CIRCULAR ON THE QUESTION CONCERNING THE USE OF SPECIAL VOUCHERS OFVALUE-ADDED TAX

CIRCULAR ON THE QUESTION CONCERNING THE USE OF SPECIAL VOUCHERS OFVALUE-ADDED TAX (The State Administration of Taxation: 14 February 1994 Coded GuoShui Ming Dian [1994] No. 035) Whole Doc.

To the tax bureaus of various provinces, autonomous regions and municipalities, and to the tax bureaus of various cities with independent planning: In light of the actual conditions emerged since the trial implementation of the Regulations Concerning the Use of Special Vouchers of Value-Added Tax, the circular on related issues is hereby given as follows: I. It is reported that at present tax authorities in some regions have not as yet issued the new tax payers registration numbers to the tax payers, the value-added tax payers in these regions still have to use the old tax payer registration numbers when issuing or asking for special vouchers. In view of this actual condition, before April 1 of this year, the value-added tax payers still can use the old tax payer registration number while issuing or asking for special vouchers, such special vouchers can be used as tax-deduction certificates. Tax authorities in related regions should issue the new tax payer registration number to the tax payers not later that April 1 of this year. After April 1 of this year, when special vouchers are issued, the new tax payer registration number shall be written in the "Tax payer Registration Number" column of the "goods selling unit" and the "goods purchasing unit", otherwise, the special voucher shall not be used as tax-deduction certificate.

II. In light of the actual conditions, the telephone numbers of both the purchaser and the seller may not be written in the "Bank of Deposit and Account Number" column of the special voucher.

III. In view of the fact that power supply departments and tap water companies have possessed the condition of using electronic computers to draw up special vouchers, the special vouchers manufactured under the supervision of tax authorities and the special vouchers drawn up with electronic computer may be used for the electricity or tap water they sell, but ordinary vouchers shall be drawn up when electricity and tap water are sold to consumers.

Power supply departments or tap water companies which have not as yet obtained external special vouchers may temporarily use ordinary vouchers in place of special vouchers. The ordinary vouchers gained from the purchase of electricity or tap water by ordinary tax payers may be used as certificates for calculating the volume of tax on purchase. The formula for calculating the purchase tax volume is as follows: The sum of money for The volume purchase Tax rate of tax on purchase of = ------- X of power or electricity or tap water (1 +the tax rate tap water of power or tap water) The tax authorities in various localities should provide external special vouchers to power supply departments and tap water companies before May 1 of this year. Beginning from May 1 of this year, power supply departments and tap water companies, except for selling power and tap water to consumers, shall issue special vouchers.

IV. In order to reduce the work amount of issuing special vouchers and lower the use cost of special vouchers, itemized special vouchers may be drawn up for many kinds of goods sold. If the applicable tax rates for the goods sold are not the same, special vouchers shall be itemized respectively according to different tax rates. When itemized special vouchers are used, the volumes "Name of Commodities and Labor Services", "Unit of Measurement" and "Unit Price" may not be filled.

The itemized special vouchers must be attached with the detailed list of goods sold affixed with the special financial seal or the special voucher seal. which is issued by the seller. On the detailed list of goods sold should be written the names of the units of both the purchaser and the seller, the name of commodities or labor services, the unit of measurement, quantity, unit price, sales volume; the consolidated sales volume of the detailed list of goods sold should be same as the figures given in the "Sum of Money" column of the special voucher. The purchaser should ask for a detailed list of goods sold in duplicate, being respectively attached at the back of the voucher form and the deduction form.

The pattern of the detailed list of goods sold shall be mapped out by the tax bureaus of various provinces, autonomous regions, municipalities and cities with independent planning for the time being.

V. For the expenses not included in the calculated price (referring to the charges not included in the calculated price outside the value-added tax amount) collected from the goods old or taxable labor services, if the price and the expenses not included the calculated price and expenses may be filled in the "Unit price" column of the special vouchers, attached with an itemized table of the expense not included in the calculated price which should be given to the goods purchaser. But if the expense not included in the calculated price belongs to withholding consumption tax and no value-added tax is levied, then the combined total should not be included in the expense not included in the calculated price. This expense not included in the calculated price requires the drawing up of separate ordinary vouchers.

In the itemized table of the expense not included in the calculated prices should be written the name of the units of both the purchaser and the seller, the name of the commodities or labor services on which expenses not included in the calculated price are charged, the unit of measurement, quantity, the name of the items of expenses not included in the calculated prices, the unit expense standards as well as the amount of expense not included in the calculated prices (the unit expense standard is multiplied by quantity), In the itemized table should be affixed the special financial seal or the special voucher seal of the seller. The goods purchaser should ask for the itemized table of expenses not included in the calculated prices in duplicate, which should be attached respectively to the back of the voucher form and the deduction form.

The pattern of the itemized table of the expense not included in the calculated price shall be temporarily mapped out by the tax bureaus of various provinces, autonomous regions, municipalities and various cities with independent planning.

VI. In order to facilitate the management of special vouchers, the retail sales units which sell goods to ordinary tax payers may issue special vouchers, but should not issue special vouchers when they sell goods to other units and individuals. Ordinary tax payers who purchase goods at retail sales units shall present a copy of the tax registration certificate affixed with a special seal identified by the ordinary tax payer, otherwise a special voucher shall not be issued to him.