AN ADDITIONAL CIRCULAR ON THE QUESTION CONCERNING THE USE OF VATSPECIAL VOUCHERS

AN ADDITIONAL CIRCULAR ON THE QUESTION CONCERNING THE USE OF VATSPECIAL VOUCHERS (State Administration of Taxation: 15 March 1994 Coded Guo Shui Fa[1994] No. 056) Whole Doc.

To the tax bureaus of various provinces, autonomous regions and municipalities and the tax bureaus of various cities with independent planning: In order to solve the problems existing since the trial implementation of the Regulations on the Use of Value-Added Tax Special Vouchers, the bureau on February 14 issued the Circular of the State Administration of Taxation on the Question Concerning the Use of Value-Added Tax Special Vouchers (coded Guo Shui Ming Dian [1994] No.

035). It is said that the outstanding problem in the current use of special vouchers is that there is great random in the special vouchers issued by commercial retail sales enterprises and there are many mistakes in the written face value. In view of this situation, on February 25, 1994, our bureau issued the Additional Circular on the Question Concerning the Use of Value- Added Tax Special Vouchers in the form of an openly transmitted telegraph coded Guo Shui Ming Dian [1994] No. 039 to various localities. The text of the Additional Circular is hereby printed to you and please continue to put it into practice.

I. In selling commodities, commercial retail enterprises which issue special voucher to the purchaser, must act in accordance with the stipulation of the Guo Shui Ming Dian [1994] No. 035, that is, the purchaser must have the duplicate of the tax registration certificate affixed with the stamp of an ordinary tax payer, if the purchaser fails to provide the certificate, the seller shall not, without exception, issue him the special voucher.

II. In drawing up vouchers, commercial retail sales enterprises and other types of enterprises shall accurately fill in and draw up at one single time all the voucher forms in accordance with stipulations. If the stub form and the account form of the used special voucher which should have been filled in but have failed to do so or have inaccurately or wrongly filled, the voucher belongs to a special voucher drawn up not in accordance with the requirements, once it is ferreted out, the tax authorities may impose a fine below 10000 Yuan in accordance with the related stipulations of the rules for punishment as set in the Voucher Management Measures of the People's Republic of China.

III. When the purchaser (ordinary tax payer) buys commodities from the commercial retail sales enterprise, if the special voucher received is discovered not in conformity with the drawing up requirements, the purchaser has the right to reject or return it, the seller shall re-draw up the voucher in accordance with the requirements, otherwise, the voucher shall not be regarded as a certificate for tax deduction.

IV. An ordinary tax payer shall use the special voucher (including electronic computer external voucher) of a unified pattern manufactured under the supervision of the tax authorities, all special vouchers designed and printed without the authorization and permission of tax authorities which have been drawn up and used are invalid, after they are found out, a heavy punishment will be meted out according to law.

V. Tax authorities at all levels shall Conscientiously do a good job of publicity and guidance work relating to the use and management of special vouchers, energetically organize people to go deep into enterprises to give detailed explanations and demonstrations and provide timely solutions to the problems arising in the course of operation. They shall carry out frequent special checks on special vouchers. With regard to cases of violation of the stipulations on the use of special vouchers, filling in and drawing up special vouchers not in accordance with the requirements, and practising fraud which result in failure to pay tax, paying less than the required tax or cheating on tax by one's own unit, by other units or individuals, the cases shall be dealt with strictly in accordance with the related stipulations as set in the Voucher Management Measures of the People's Republic of China; the typical cases of which shall be reported to the State Administration of Taxation at any time.

VI. If the openly transmitted telegraph of the coded Guo Shui Ming Dian [1994] No. 039 is found somewhere not in conformity with this text, this text shall be taken as the standard one.

voucher (including electronic computer external voucher) of a unified pattern manufactured under the supervision of the tax authorities, all special vouchers designed and printed without the authorization and permission of tax authorities which have been drawn up and used are invalid, after they are found out, a heavy punishment will be meted out according to law.

V. Tax authorities at all levels shall Conscientiously do a good job of publicity and guidance work relating to the use and management of special vouchers, energetically organize people to go deep into enterprises to give detailed explanations and demonstrations and provide timely solutions to the problems arising in the course of operation. They shall carry out frequent special checks on special vouchers. With regard to cases of violation of the stipulations on the use of special vouchers, filling in and drawing up special vouchers not in accordance with the requirements, and practising fraud which result in failure to pay tax, paying less than the required tax or cheating on tax by one's own unit, by other units or individuals, the cases shall be dealt with strictly in accordance with the related stipulations as set in the Voucher Management Measures of the People's Republic of China; the typical cases of which shall be reported to the State Administration of Taxation at any time.

VI. If the openly transmitted telegraph of the coded Guo Shui Ming Dian [1994] No. 039 is found somewhere not in conformity with this text, this text shall be taken as the standard one.