Laws of the People's Republic of China

The State Administration of Taxation

Supplementary Circular of the State Administration of Taxation on the Circular of the State Administration of Taxation on the Settlement for the Taxpayers Obtaining the False Special Invoice of Value-added Tax without Acknowledgement

GuoShuiFa [2000] No.182

November 6, 2000

The local taxation bureaus and the taxation bureaus of province, autonomous region, municipality directly under the Central Government and municipality separately listed on the State plan:

In order to implement the Circular of the State Administration of Taxation on the Handling of Drawing the False Added-value Invoice by the Taxpayers (GuoShuiFa [2000] No.134 , hereinafter referred to No.134 document) strictly and crack down the activity of drawing the false added-value special invoice and protect the legitimate rights and interests of taxpayers, the relative issues are clarified as follows now:

If one of the following occurs, it is handled in name of tax dodging and defraud of the exports tax rebate when the buyers apply for the deducting of receipts tax or exports tax rebate for the tax authority, regardless of whether the real transaction between sellers and buyers occurs or the amount of goods and money on the added-value tax special invoice conforms to the real transaction.

I.

The name and seal of sellers marked in the added-value special invoice obtained by the buyers do not conform to the sellers of the real transaction, which belongs to the situation prescribed in article 2 of No.134 document that the buyers obtain the invoice from the sellers drawn by the 3rd party.

II.

The added-value special invoice obtained by the buyers is not the invoice of province (autonomous region and municipality separately listed on the State plan) where sellers stay in, which belongs to the situation prescribed in the article 2 of No.134 document that invoice is obtained from the area out of sales place.

III.

There is other evidence that shows that buyers know the added-value invoice is obtained illegally by the sellers, which is prescribed in the article 1 of No.134 document that drawee apply the taxation institutions for tax deducting by use of the invoice drawn by others in purpose of tax dodging.