Administrative Measures of the People's Republic of China for Invoices (Revised in 2010)

Order of the State Council No. 587

December 20, 2010

(Approved by the State Council on December 12, 1993, promulgated by the Order of the Ministry of Finance No.6 on December 23, 1993 and revised by the Decision of the State Council on Revising the Administrative Measures of the People's Republic of China for Invoices)

Chapter I General Provisions

Article 1 These Measures are formulated in accordance with the Law of the People's Republic of China on the Administration of Tax Levying with a view to strengthening the administration of invoices and the supervision of financial affairs, ensuring tax revenue of the State and maintaining economic order.

Article 2 All units and individuals that prints, purchases, issues, obtains, keeps, and cancels invoices within the territory of the People's Republic of China (hereinafter referred to as the "units and individuals printing and using invoices") must observe these Measures.

Article 3 The term "invoice" as used in these Measures refers to the certificates of payment or receipt of money made out or received in purchases and sales of goods, provision or acceptance of services and in other business activities.

Article 4 The competent taxation department under the State Council shall be centrally responsible for the nationwide administration of invoices. The local offices of the state administration of taxation and the local taxation bureaus of provinces, autonomous regions and municipalities directly under the Central Government (hereinafter referred to as the taxation authorities of provinces, autonomous regions and municipalities) shall, according to their respective duties, work together to carry out the administration of invoices in their respective administrative areas.
The relevant departments of finance, audit, industry and commerce, and public security shall, within the scope of their duties, coordinate with the taxation authorities for better administration of invoices.

Article 5 The categories, number of sheets, content and the range of usage of invoices shall be determined by the competent taxation department under the State Council.

Article 6 Any units and individuals may inform against any act violating the provisions for the administration of invoices. Taxation authorities shall maintain secrecy for the informers and present them with discretionary awards.

Chapter II Printing of Invoices

Article 7 Special invoices for value-added tax shall be printed by enterprises determined by the competent taxation department under the State Council; other invoices shall, in accordance with the provisions of the competent taxation department under the State Council, be printed by enterprises determined by the taxation authorities of provinces, autonomous regions and municipalities. Printing without authorization, forgery, and alteration of invoices are prohibited.

Article 8 Any enterprise which prints invoices shall meet the following conditions:
1. It has obtained the printing business permit and business license;
2. Its equipment and technical standards are able to meet the needs of printing invoices; and
3. It has a sound financial system and a strict quality supervision, safety management and confidentiality system.
Taxation authorities shall, by way of invitation of bids, determine enterprises which print invoices and issue the enterprises with an invoice printing permit.

Article 9 The printing of invoices shall adopt the nationwide unified special products for anti-counterfeit invoices determined by the competent taxation department under the State Council. Illegal manufacturing of special products for anti-counterfeit invoices is prohibited.

Article 10 Invoices shall be stamped with a nationwide uniform stamp for supervision of the printing of invoices. The format of the stamp and the requirements for the printing and layout of invoices shall be stipulated by the competent taxation department under the State Council. The stamp for supervision of the printing of invoices shall be made by the taxation authorities of the provinces, autonomous regions and municipalities directly under the Central Government. Forgery of the stamp for supervision of the printing of invoices is prohibited.
A system of changing the printing plate at non-periodic intervals shall be implemented.

Article 11 In accordance with the unified provisions of taxation authorities, enterprises printing invoices shall establish a system for invoice printing and administration, and measures for the custody of invoices.
A system of person-in-charge of the usage and administration of the stamp for supervision of the printing of invoices and the special products for anti-counterfeit invoices shall be implemented.

Article 12 Enterprises printing invoices must print the invoices in accordance with the format and quantity approved by taxation authorities.

Article 13 Invoices must be printed in Chinese. In autonomous regions, a national language commonly used in an ethnic region can be added to invoices. If necessary, invoices can be printed in both Chinese and a foreign language simultaneously.

Article 14 Except for the special invoices for value-added tax, the invoices used by units and individuals in various provinces, autonomous regions and municipalities directly under the central government shall be printed within the respective provinces, autonomous regions and municipalities directly under the Central Government; if for any reason they must be printed in other provinces, autonomous regions and municipalities directly under the Central Government, the taxation authorities of the relevant provinces, autonomous regions and municipalities directly under the Central Government shall obtain consent from the taxation authorities of these other provinces, autonomous regions and municipalities directly under the Central Government. The invoices shall then be printed by the enterprises determined by the taxation authorities of these other provinces, autonomous regions and municipalities directly under the Central Government.
Printing of invoices outside the territory of the People's Republic of China is prohibited.

Chapter III Purchasing of Invoices

Article 15 All units and individuals that need to purchase invoices shall, on the strength of taxation registration certificate, identity documentation of the responsible person and the mould of special seal for invoices made according to the format specified by the competent taxation department under the State Council, go through the procedures for purchasing invoices with the competent taxation authority. The competent taxation authority shall, in light of the business scope and scale of the invoice purchasing unit and individual, confirm the types, quantity and purchasing methods of invoices to be purchased, and shall, within five (5) working days, issue an invoice purchase book to such unit and individual.
In purchasing invoices, any units and individuals shall report information on the use of invoices as required by the relevant taxation authority and the taxation authority shall examine and verify such information in accordance with the provisions.

Article 16 All units and individuals that need to use invoices on a temporary basis may, on the strength of the written evidence for goods purchased or sold, services provided or received and other business activities conducted and the identity documentation of the responsible person, directly apply to the taxation authority at its or his place of business to write out invoices on its or his behalf. Where tax shall be paid in accordance with the provisions of taxation laws and administrative regulations, the taxation authority shall first collect tax and then issue the invoices. The taxation authority may, in light of the need of invoice administration and in accordance with the provisions of the competent taxation department under the State Council, authorize any other unit to issue invoices on a commission basis.
Illegal issue of invoices on a commission basis is prohibited.

Article 17 Units or individuals who temporarily carry on business activities outside their own provinces, autonomous regions and municipalities directly under the Central Government shall by presenting the certificates from the taxation authorities of their original location, apply for the acquisition of invoices from the local taxation authorities where their business activities take place.
Taxation authorities of the provinces, autonomous regions and municipalities directly under the Central Government shall specify the provisions for acquisition of invoices by units or individuals who temporarily carry on cross city or county business within the provinces, autonomous regions and municipalities directly under the Central Government.

Article 18 For units and individuals from other provinces. autonomous regions and municipalities directly under the Central Government applying for purchase of invoices for temporary business activities in the areas under their own jurisdiction, taxation authorities can request for provision of guarantors or a security deposit of not exceeding CNY10,000 based on the face value of the invoices purchased and handing in the invoices for disposal within a set time limit.
For those who hand in invoices on time for disposal, their guarantors shall be released from the commitments or have their security deposit refunded; for those who fail to hand in the invoices for disposal on time, their legal liabilities shall be taken over by the guarantors or satisfied with the security deposit.
Where a taxation authority collects deposits, it shall draw up receipts for fund transfer settlement

Chapter IV Issuance and Safekeeping of Invoices

Article 19 Units and individuals engaged in the sales of goods, provision of services and other business activities, shall issue invoices to the payers when collecting payment in business activities with outside parties. However, under extraordinary circumstances, payers can issue invoices to payees.

Article 20 Units and individuals engaged in production and business activities shall obtain invoices from payees for payment made in purchasing commodities, accepting services and taking part in other business activities. Upon receipt of the invoice, they shall not ask for alteration of the name of article and amount of payment.

Article 21 Invoices not in line with the regulations must not be taken as the proof for reimbursement. Any unit and individual has the right to refuse such invoices

Article 22 Invoices shall be truthfully drawn up according to the prescribed time limit, sequence and columns simultaneously for all sheets and then be stamped with a special seal for invoices.
No unit or individual may commit any of the following acts:
1. Drawing up for itself or himself or for others invoices which are not consistent with actual business details;
2. Causing others to draw up for itself or himself invoices which are not consistent with actual business details; or
3. Introducing others to draw up invoices which are not consistent with actual business details.

Article 23 Any unit and individual that installs tax-control devices shall use the tax-control devices to draw up invoices in accordance with the applicable provisions and report data on invoices drawn up to the competent taxation authority on schedule.
Any unit and individual that uses non-tax control electronic devices to draw up invoices shall file manual materials for software programs used in the non-tax control devices with the competent taxation authority for the record and shall keep and report to the competent taxation authority data on the issued invoices in accordance with the applicable provisions.
The state promotes the application of network invoice management system in drawing up invoices. Specific administrative measures shall be formulated by the competent taxation department under the State Council

Article 24 Any unit and individual shall use invoices in accordance with the provisions governing invoice management and shall not commit any of the following acts:
1. Re-lending, transferring, or introducing others to transfer invoices, the supervised manufacture seal for invoices and special products for anti-fake invoices;
2. When it or he knows or ought to know that the invoices are printed without authorization, forged, altered, illegally obtained or disused, buying, drawing up, keeping, carrying, mailing, or transporting such invoices ;
3. Tearing off an invoice book to use the invoices;
4. Expanding the scope of using invoices; or
5. Using other vouchers to substitute for invoices.
Tax authorities shall provide a convenient channel for invoice authenticity inquiry.

Article 25 Except for special circumstances specified by the competent taxation department under the State Council, any unit and individual that purchases invoices shall only draw up the invoices within the province, autonomous region and municipality in which such unit and individual is located.
Taxation authorities of the provinces, autonomous regions and municipalities directly under the Central Government may regulate the procedures for issuance of invoices cross city or county.

Article 26 Except for special circumstances specified by the competent taxation department under the State Council, no unit or individual may carry, mail or transport blank invoices across regions in violation of the application provisions.
Carrying, mailing and transporting blank invoices into or from the territory of China are prohibited.

Article 27 Units and individuals issuing invoices shall establish a system for the use and registration of invoices, prepare an invoice register and report to the respective taxation authorities on the use of invoices at regular intervals.

Article 28 Units and individuals issuing invoices shall, at the same time as they go through the formalities for changing or cancelling tax registration, go through the formalities for changing or cancelling invoices and invoice purchase books.

Article 29 Units and individuals issuing invoices shall, in accordance with the regulations of the taxation authorities, store and keep invoices and shall not destroy the invoices without authorization. The stubs of the invoices already issued and the invoice register shall be kept for five years. Upon completion of the period the invoices shall be destroyed after examination by the relevant taxation authorities.

Chapter V Inspection of Invoices

Article 30 In managing invoices, the taxation authorities have the right to conduct the following inspections:
1. Inspecting the details of the printing, purchasing, drawing up, obtaining, keeping, handing in for cancellation invoices;
2. Selecting invoices to be examined;
3. Investigating and duplicating documents and materials related to the invoices;
4. Inquiring the parties concerned about the problems and the conditions related to the invoices; and
5. Making notes, tape-recording, video-recording, taking photographs and making copies on the related state of affairs and data when dealing with cases of investigation of invoices.

Article 31 Units and individuals printing and using invoices must accept lawful inspection by taxation authorities, present the truth and provide the relevant data without refusal or concealment. Tax officials shall present their tax inspection permits at the time of inspection.

Article 32 When taxation authorities take away for inspection the invoices already issued, they shall issue certificates for exchange of the invoices to the units and individuals to be inspected. The certificates for exchange of the invoices and the invoices to be examined are equally authentic. The units and individuals whose invoices have been taken away for inspection must not refuse the above arrangement.
Taxation authorities shall issue receipts when taking away blank invoices for inspection, blank invoices that are found in order shall be returned in time.

Article 33 In the course of examining the reporting of tax, if the taxation authorities find any doubt over invoices or evidence concerning the reporting of tax obtained outside China by the units or individuals, they may ask the units or individuals for certificates of confirmation provided by foreign notary or chartered accountants. After examination and approval by the taxation authorities, these invoices or evidence could be taken as book-keeping vouchers.

Article 34 In the course of examining invoices, taxation authorities may find the need to check how the stubs and invoices are completed, they may send out invoice completion checking cards to the units in possession of the invoices or stubs. These units concerned shall complete the cards in accordance with facts and return them in time.

Chapter VI Penalty Provisions

Article 35 Any unit or individual that falls under any of the following circumstances in violation of the provisions of these Measures shall be ordered by the relevant taxation authority to make corrections and the taxation authority may impose a fine of not more than CNY10,000 and shall confiscate any illegal income if any:
1. Where the unit or individual fails to draw up invoices which shall be drawn up, fails to draw up invoices simultaneously involving all sheets in accordance with the prescribed time limit, sequence and columns or fails to affix the special seal for invoices;
2. Where the unit or individual, when using tax-control devices to draw up invoices, fails to report data on the drawn up invoices to the competent taxation authority;
3. Where the unit or individual, when using non-tax control electronic devices to draw up invoices, fails to file manual materials for software programs used in the non-tax control devices with the competent taxation authority for the record , or fails to keep and report to the competent taxation authority data on the issued invoices in accordance with the applicable provisions;
4. Where the unit or individual tears off an invoice book to use the invoices;
5. Where the unit or individual expands the scope of using invoices;
6. Where the unit or individual uses other vouchers to substitute for invoices;
7. Where the unit or individual draws up invoices across regions in violation of the applicable provisions;
8. Where the unit or individual fails to hand in invoices for cancellation in accordance with the applicable provisions; or
9. Where the unit or individual fails to keep and maintain invoices in accordance with the applicable provisions.

Article 36 Any unit or individual that carries, mail and transport blank invoices across regions in violation of the applicable provisions or carries mail and transport blank invoices into and out of China shall be ordered by the relevant taxation authority to make corrections and the taxation authority may impose a fine of not more than CNY10,000, or a fine of not less than CNY10,000 but not more than CNY30,000 if the circumstances involved are serious, and shall confiscate any illegal income if any.
Any unit or individual that loses invoices or destroys invoices without permission shall be punished in accordance with the provisions of the preceding paragraph.

Article 37 The illegal income of any unit or individual that draws up false invoices in violation of Paragraph 2 of Article 22 hereof shall confiscated by the relevant taxation authority; if the amount involved is not more than CNY10,000, a fine of not more than CNY50,000 shall also be imposed on the unit or individual; if the amount involved is more than CNY10,000, a fine of not less than CNY50,000 but not more than CNY500,000 shall also be imposed on the unit or individual; if a crime is committed, the unit or individual shall be investigated for criminal liability.
Any unit or individual that draws up invoices illegally on a commission basis shall be punished in accordance with the provisions of the preceding paragraph

Article 38 Where any unit or individual prints without authorization, forges, and alters invoices, or illegally produces special products for anti-fake invoices, or forges the supervised manufacture seal for invoices, the relevant taxation authority shall confiscate the illegal income involved, confiscate and destroy the tools and illegal articles involved and impose a fine of not less than CNY10,000 but not more than CNY50,000; if the circumstances involved are serious, a fine of not less than CNY50,000 but not more than CNY500,000 shall be imposed on the unit or individual; if the enterprise is an enterprise which prints invoices, its invoice printing permit may be revoked; if a crime is committed, the unit or individual shall be investigated for criminal liability.
If there are any provisions in the Tax Collection and Administration Law of the People's Republic of China with respect to punishments specified in the preceding paragraph, such provisions shall be followed.

Article 39 Where any unit or individual falls under any of the following circumstances, the relevant taxation authority shall impose a fine of not less than CNY10,000 but not more than CNY50,000; if the circumstances involved are serious, a fine of not less than CNY50,000 but not more than CNY500,000 shall be imposed on the unit or individual; the relevant taxation authority shall confiscate any illegal income if any:
1. Where the unit or individual re-lend, transfers, or introduce others to transfer invoices, the supervised manufacture seal for invoices and special products for anti-fake invoices; or
2. Where the unit or individual that knows or ought to know that the invoices are printed without authorization, forged, altered, illegally obtained or disused, buys draws up, keeps, carries, mails, or transports such invoices.

Article 40 Taxation authorities may announce to the public any unit and individual that violates the provisions governing invoice management twice or more or has a serious violation of such provisions.

Article 41 In cases of violations of the regulations on the control of invoices leading to the evasion, nonpayment or underpayment of tax by other units or individuals, tax authorities shall confiscate the illicit income and a fine of no more than the actual amount of the tax evaded, unpaid or underpaid may be imposed at the same time.

Article 42 Any party who is dissatisfied with the punishment decision of the relevant taxation authority may apply for administrative reconsideration or initiate an administrative action with a people's court in accordance with the law.

Article 43 According to the relevant regulations, administrative sanctions shall be imposed on any tax officials who, by taking advantage of their positions, deliberately place obstacles before any units or individuals who print or use invoices or indulge in acts in violation of the regulations concerning the management of invoices. If such acts constitute criminal offenses, they shall be prosecuted for their criminal liability.

Chapter VII Supplementary Provisions

Article 44 The competent taxation department under the State Council may, in light of the special operation mode and business demand of the relevant industry, formulate administrative measures for invoices in respect of such industry together with the competent department under the State Council for such industry.
The competent taxation department under the State Council may, in light of the special administrative needs of special invoices for VAT, formulate specific administrative measures for special invoices for VAT.

Article 45 These Measures shall come into effect on the day of promulgation. The Tentative Measures of the People's Republic of China for the Control of Invoices promulgated by the Ministry of Finance in 1986 and the Tentative Provisions Concerning the Administration of invoices of Foreign-Invested Enterprises and Foreign Enterprises promulgated in 1991 by the State Administration of Taxation shall be repealed simultaneously.