Announcement of the Shanghai Municipal Tax Service of the State Taxation Administration on Further Conducting the Pilot Program of Receiving Fully Digitized Electronic Invoices

　　Shanghai Municipal Tax Service of the State Taxation Administration

　　Announcement of the Shanghai Municipal Tax Service of the State Taxation Administration on Further Conducting the Pilot Program of Receiving Fully Digitized Electronic Invoices

　　Document Number: Announcement No. 1 [2022] of the Shanghai

　　Municipal Tax Service of the State Taxation Administration

　　Issued by: Shanghai Municipal Tax Service of the State Taxation

　　Administration

　　Date of Issuance: May 19, 2022

　　To implement the requirements of the “Opinions on Further Deepening the Reform of Tax Collection and Administration” issued by the General Office of the CPC Central Committee and the General Office of the State Council, and improving the Fully Digitized Electronic Invoices (FDEI) user experience in combination with the previous pilot situation of FDEI, tax authorities have upgraded the electronic invoice service platform. With the approval of the State Taxation Administration, it is determined to further develop the FDEI pilot work. Now, related matters are announced as follows:

　　1. Starting from May 23, 2022, the FDEI pilot will be further carried out among some taxpayers in Shanghai, and taxpayers using the electronic invoice service platform will be the pilot taxpayers, with the specific scope determined by the Shanghai Municipal Tax Service of the State Taxation Administration. Among them, the pilot taxpayers are divided into taxpayers who issue invoices through the electronic invoice service platform and taxpayers who use tax digital accounts through the electronic invoice service platform, and the corresponding provisions of this announcement shall apply to the pilot taxpayers by distinguishing the invoicing situation and the situation of using tax digital accounts, respectively.　

　　The scope of the recipients of invoices issued through the electronic invoice service platform shall be the taxpayers within the jurisdiction of Shanghai Municipal Tax Service.

　　According to the relevant provisions, taxpayers who do not use the network to handle tax affairs or do not have the network conditions are not included in the pilot scope for the time being.

　　The electronic invoice service platform is accessible through the following website: https://etax.shanghai.chinatax.gov.cn.

　　2.The legal validity and basic use of FDEI are the same as the existing paper invoices. Among them, the legal validity and basic use of FDEI with the words "Special VAT Invoice" are the same as the existing special VAT invoices; the legal validity and basic use of FDEI with the words "General Invoice" are the same as the existing general invoices.

　　3. The Shanghai FDEI is supervised by the Shanghai Municipal Tax Service of the State Taxation Administration. Without different pages, FDEI has the basic contents: dynamic QR code, invoice number, invoice date, buyer information, seller information, item name, specification and model, unit, quantity, unit price, amount, tax rate/levy rate, tax amount, total, total price and tax (upper case, lower case), remark, invoicing person.

　　Thereinto, if the pilot taxpayers are engaged in businesses of specific industries, involving special commodity services and specific application scenarios (including rare earth, cigarette, construction services, passenger transportation services, cargo transportation services, real estate sales, real estate operation leasing services, agricultural products acquisition, photovoltaic acquisition, collection of vehicle and vessel tax, sale of self-produced agricultural products, differential taxation, etc.), the electronic invoice service platform provides the FDEI style for the above-mentioned specific businesses, and the pilot taxpayers should use the FDEI for specific businesses in accordance with the relevant regulations on invoicing. The FDEI style is shown in Annex 1.

　　4. The invoice number of Shanghai FDEI is 20 digits, among which: the first and second digits represent the last two digits of the calendar year, the third and fourth digits represent the administrative division code of Shanghai, the fifth digit represents the information on FDEI issuing channel, and the sixth to twentieth digits represent the sequential code and other information.

　　5. The newly established and registered pilot taxpayers who do not use the VAT invoice management system to issue invoices shall issue FDEI as well as paper special VAT invoices (hereinafter referred to as "Paper Special Invoices") and paper general VAT invoices (folded invoices, hereinafter referred to as "Paper General Invoices") through the electronic invoice service platform.

　　The legal validity, basic use and basic usage regulations of Paper Special Invoices and Paper General Invoices issued through the electronic invoice service platform are the same as those of existing Paper Special Invoices and Paper General Invoices. Among them, the invoice password area no longer displays the cryptograph of invoices, but the 20-digit invoice number given by the electronic invoice service platform and the website of the National VAT Invoice Verification Platform.

　　6. After passing the real-name verification, the pilot taxpayers can issue invoices through the electronic invoice service platform without using tax-controlled special equipment, and there is no need to verify old VAT invoices. Among them, FDEI does not require the verification of invoice type or the acquisition of invoices.

　　7. Tax authorities implement the management of the total invoicing amount for the pilot taxpayers. The total invoicing amount refers to the upper limit of the total amount of invoices (excluding VAT) issued by a pilot taxpayer in a natural month.

　　(1) The FDEI, Paper Special Invoices and Paper General Invoices issued by the pilot taxpayers through the electronic invoice service platform as well as the Paper Special Invoices, Paper General Invoices, general VAT invoices (rolled invoices), electronic special VAT invoices (hereinafter referred to as "Electronic Special Invoices") and electronic general VAT invoices issued through the VAT invoice management system shall share the same total amount of invoicing.

　　(2) Tax authorities determine the total amount of initial invoicing based on the degree of tax risk, tax credit level and actual operation of the pilot taxpayers, and make regular adjustments, temporary adjustments or manual adjustments.

　　Regular adjustment means that the electronic invoice service platform automatically adjusts the total amount of invoices issued by a pilot taxpayer every month.

　　Temporary adjustment refers to when the invoicing amount of a pilot taxpayer with lower tax risk reaches a certain percentage of the total invoicing amount for the first time in a month, the electronic invoice service platform will automatically increase the total invoicing amount for it once temporarily.

　　Manual adjustment means that a pilot taxpayer applies for adjusting the total invoicing amount due to changes in its actual operation, and the competent tax authorities adjust the total invoicing amount for it if they do not find any abnormality during review in accordance with the law and regulations.

　　(3) Before completing the VAT declaration within the VAT declaration period, pilot taxpayers can issue invoices on the electronic invoice service platform according to the remaining available amount of the previous month and within the total invoicing amount of the very month. After the pilot taxpayers have completed and passed the VAT declaration in accordance with the regulations, they can issue invoices on the electronic invoice service platform according to the remaining available amount in the very month.

　　8. A pilot taxpayer’s digital tax account on the electronic invoice service platform automatically collects invoice data for the pilot taxpayer to inquire, verify, download, print and confirm the use of invoices, and provides functions such as tax policy inquiry, application for adjustment of the total invoicing amount and invoice risk prompt.

　　9. The pilot taxpayers can deliver FDEI automatically through the digital tax account on the electronic invoice service platform, or they can deliver FDEI by themselves through email, QR code and other means.

　　10. Starting from May 23, 2022, the pilot taxpayers shall use the functions of invoice usage confirmation, risk prompt and information download through the digital tax account on the electronic invoice service platform, and shall no longer use the above-mentioned functions through the integrated VAT invoice service platform.

　　Non-pilot taxpayers continue to use the relevant invoice functions through the integrated VAT invoice service platform.

　　If the FDEI, paper special invoice, electronic special invoice, uniform invoice for motor vehicle sales, electronic general VAT invoice for turnpike tolls and other vouchers with the words "Special VAT Invoice" obtained by the pilot taxpayers are used to declare input VAT credit or consumption tax credit, or apply for export tax refund or entrusted tax refund, the use of the invoices should be confirmed through the digital tax account on the electronic invoice service platform. If taxpayers confirm the wrong use of invoices, they can apply for correction to the competent tax authorities.

　　11. The pilot taxpayers can confirm the use of the compliant VAT deduction vouchers for agricultural products through the digital tax account on the electronic invoice service platform and calculate the input tax amount for credit. Among them, for the agricultural products purchased by the pilot taxpayers for the production or entrusted processing with 13% tax rates, the competent tax authorities can open the function of confirmation on the additional deduction of the input tax amount for agricultural products, and calculate the additionally deducted input tax amount for agricultural products in the period of acquisition for production.

　　12. The pilot taxpayers can make the invoice entry mark through the digital tax account on the electronic invoice service platform. If the taxpayers file the reimbursement with FDEI, the relevant regulations of the finance and archives departments shall be implemented.

　　13. If the pilot taxpayers need to issue red-letter FDEI or red-letter paper invoices through the electronic invoice service platform in case of invoicing error, sales return, service suspension, sales discount, etc., the following provisions shall apply:

　　(1) If the invoiced party has confirmed the use or entry into account, the invoicing party or the invoiced party can fill out and upload the "Red-Letter Invoice Information Confirmation Form" (hereinafter referred to as "Confirmation Form", see Annex 2), and after confirmation by the other party, the invoicing party shall issue red-letter FDEI or red letter paper invoice in full or in part.

　　If the invoiced party has used the invoice to declare for VAT credit, the VAT amount listed in the Confirmation Form shall be temporarily transferred out from the current input tax amount, and the red-letter invoice issued by the invoicing party, after being obtained, shall be used as the bookkeeping voucher together with the Confirmation Form.

　　(2) If the invoiced party does not confirm the use and entry into account, the invoicing party shall fill out the "Confirmation Form" and issue a red-letter FDEI or red-letter paper invoice in full without confirmation from the invoiced party. If the original blue-letter invoice is a paper invoice, the invoicing party shall withdraw the original paper invoice and indicate the word "invalid" or obtain a valid certificate from the invoiced party.

　　14. If a taxpayer falls under the circumstances specified in Article 1 of the “Announcement of the State Taxation Administration on Issues concerning the Issuance of Red-Letter Value-Added Tax Invoices” (Announcement No. 47 [2016] of the State Taxation Administration)” and Article 7 of the “Announcement of the State Taxation Administration on Matters Concerning the Implementation of the Electronic Special Value-Added Tax Invoice System among Newly-Formed Taxpayers” (Announcement No. 22 [2020] of the State Taxation Administration), and the purchaser is a pilot taxpayer, the purchaser can fill out and upload the "Information Sheet for Issuing Red-Letter Special VAT Invoices" (hereinafter referred to as "Information Sheet") through the electronic invoice service platform.

　　15. Units and individuals can check and verify the FDEI information through the electronic invoice service platform or the National VAT Invoice Verification Platform (https://inv-veri.chinatax.gov.cn).

　　16. The electronic invoice service platform does not support the issuance of FDEI for specific businesses such as motor vehicles (including used cars) and tolls for the time being, and the time for the issuance of invoices for the above-mentioned functions online will be announced separately.

　　Before the relevant invoice function goes online, the pilot taxpayers can issue Special VAT Invoice for Motor Vehicles, Uniform Invoice for Motor Vehicle Sales, Uniform Invoice for Used Vehicle Sales, General VAT Invoice (Rolled Invoice), Electronic Special Invoice and Electronic General VAT Invoice (including Electronic General VAT Invoice for Turnpike Tolls) through the VAT invoice management system.

　　17. If a pilot taxpayer is a general taxpayer during the tax mentoring period and applies for manual adjustment of the total invoicing amount within one month, the provisions of Article 9 of the “Notice of the State Taxation Administration on Issuing the Administrative Measures for the Tax Mentoring Period for General Taxpayers of Value Added Tax” (No. 40 [2010] of the State Taxation Administration) shall be executed.

　　Among them, the sales of the Special VAT Invoice include the sales of the FDEI, paper special invoice and electronic special invoice with the words "Special VAT Invoice".

　　18. Taxpayers shall use FDEI in accordance with the law, in good faith and truthfully, shall avoid false invoicing, false credit, and tax fraud, and shall accept the examination of tax authorities according to law. Tax authorities shall strengthen tax supervision and risk prevention in accordance with the law, and crack down on tax-related crimes.

　　19. This Announcement shall come into effect on May 23, 2022, and the Shanghai Municipal Tax Service of the State Taxation Administration on the Piloting of Fully Digitalized Electronic Invoices (Announcement No. 3 [2021] of the Shanghai Municipal Tax Service of the State Taxation Administration) was abolished at the same time. The matters not processed previously shall be executed according to the provisions of this Announcement.

　　This announcement is hereby made.