(“Bulletin [2014] No. 19”) 国家税务总局关 于简化增值税发票领用和使用程序有关问题的公告), issued by the State Administration of Taxation (“SAT”)

Based on Bulletin [2014] No. 19, the procedures concerning the collection and use of VAT invoices will be further simplified, including as follows:

  • Formalities regarding the receipt and use of VAT invoices: the tax authorities shall use their internal data base system to verify the number of VAT invoices that a taxpayer has already issued out of the quota it has been assigned with, so the taxpayer does no longer need to give physical evidence of the number of VAT invoices already issued 
  • Requirement for manual verification of used VAT invoices has been abolished.
  • Examination and approval formalities for special invoices: tax authorities cannot conduct preliminary onsite inspections when the general taxpayers apply for special invoices by amounts not exceeding RMB 100,000.
  • Loss of special invoices: other documents (e.g., photocopy of invoice stub) could substitute the original special invoices for deduction of input VAT.
  • Formalities for red-letter special invoice (issued to cancel a special invoice): the requisite to provide to the tax authority a copy of the bookkeeping certificate related to the transaction has been lifted.

Date of issue: March 24, 2014. Date of effectiveness: May 1, 2014.