MEASURES OF THE PEOPLE'S REPUBLIC OF CHINA FOR THE CONTROL OF IN-VOICES
MEASURES OF THE PEOPLE'S REPUBLIC OF CHINA FOR THE CONTROL OF IN-VOICES
(Ministry of Finance: 23 December 1993)
Whole Doc.
Chapter I-General Provisions
Article 1
The measures are made in accordance with the in order to
strengthen the control of invoices and the supervision of financial
affairs, to ensure taxation income of the State and maintain economic
order.
Article 2
Units and individuals who print, receive, purchase, issue, obtain,
and keep invoices (hereinafter referred to as "units and individuals who
print and use invoices") within the territory of the People's Republic of
China, must comply with the Measures.
Article 3
"The invoice" Stated in the 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 State Administration of Taxation takes the overall responsibility
for the control of invoices nationwide. The branches of the State
Administration of Taxation and local tax bureaux of the provinces,
autonomous regions and municipalities (hereinafter referred to as "tax
authorities of the provinces, autonomous regions and municipalities")
shall, base on their respective responsibilities, make joint efforts to
have good control of invoices in their respective administrative regions.
The relevant departments of finance, audit administrations for
industry and commerce, and public security shall within the scope of their
responsibilities coordinate with the tax authorities to have good control
of invoices.
Article 5
The categories, order of duplicates, contents and the range of usage
of invoices shall be determined by the State Administration of Taxation.
Article 6
Any unit and individual can inform against any act violating the
legislation for the control of invoices. Tax authorities shall maintain
secrecy for the informers and present them with appropriate awards.
Chapter II-Printing of Invoices
Article 7
Invoices shall be printed by enterprises appointed by tax authorities
of the provinces, autonomous regions and municipalities; special invoices
for Value-Added Tax shall only be printed by the State Administration of
Taxation. Printing, forgery and revision of invoices without permission
are prohibited.
Article 8
Devices against forgery of invoices shall be produced by enterprises
appointed by the State Administration of Taxation. Illegal manufacturing
of these anti-forgery devices is prohibited.
Article 9
Tax authorities of the provinces, autonomous regions and
municipalities shall implement the principle of unified control of the
printing of invoices, strictly examine the qualifications of the
enterprises engaged in printing invoices and issue invoice printing permit
to these appointed enterprises.
Article 10
Invoices shall be stamped with a nationwide uniform stamp for
supervision of the printing of invoices. The form of the stamp and the
requirements for the printing and layout of invoices shall be stipulated
by the State Administration of Taxation. The stamp for supervision of the
printing of invoices shall be made by the tax authorities of the
provinces, autonomous regions and municipalities. Forgery of the stamp for
supervision of the printing of invoices is prohibited.
A system of changing the printing plate at indefinite intervals shall
be implemented.
Article 11
In accordance with unified regulations of tax authorities,
enterprises printing invoices shall establish a system for printing and
managing invoices, and measures for safe-keeping.
A system of person-in-charge of the usage and control of the stamp
for supervision of the printing of invoices and the special anti-forgery
devices shall be implemented.
Article 12
Enterprises printing invoices must print the invoices in accordance
with the type and amount approved by tax authorities.
Article 13
Invoices must be printed in Chinese. In autonomous regions, a
national language used in common in that particular region can be added to
the invoices. If necessary, invoices can be printed in both Chinese and a
foreign language simultaneously.
Article 14
Apart from the special invoices for Value-Added Tax, the invoices
used by units and individuals in various provinces, autonomous regions and
municipalities should be printed within the respective provinces,
autonomous regions and municipalities; if for any reason they must be
printed in other provinces, autonomous regions and municipalities, the tax
authorities of the relevant provinces, autonomous regions and
municipalities should obtain consent from the tax authorities of these
other provinces, autonomous regions and municipalities that undertaking
the printing of invoices. The invoices shall then be printed by the
enterprises appointed by the tax authorities of these other provinces,
autonomous regions and municipalities which undertaking the printing of
invoices.
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 who perform tax registration according to
the law shall, upon receiving the tax registration certificate, apply to
acquire invoices from the respective tax authorities.
Article 16
Units and individuals applying for acquisition of invoices shall file
an application for purchasing invoices, provide certificates of identity,
tax registration certificates or other relevant documents, as well as
moulds for stamps of the financial department or special stamps for
invoices. After examination and approval of the relevant tax authorities,
invoice purchase books will be issued.
Units and individuals who need invoices shall based on the
categories, quantity and mode of acquisition approved by the relevant
authorities as indicated in the invoice purchase books to purchase
invoices from the relevant tax authorities.
Article 17
Units and individuals who temporarily need to use invoices may
directly apply to the relevant tax authorities for purchase.
Article 18
Units or individuals who temporarily carry on business activities
outside their own provinces, autonomous regions and municipalities should
by presenting the certificates from the tax authorities of their original
location, apply for the acquisition of invoices from the local tax
authorities where their business activities take place.
Tax authorities of the provinces, autonomous regions and
municipalities shall regulate the procedures for acquisition of invoices
by units or individuals who temporarily carry on cross city or county
business within the provinces, autonomous regions and municipalities.
Article 19
For units and individuals from other provinces, autonomous regions
and municipalities applying for purchase of invoices for temporary
business activities in the areas under their own jurisdiction, tax
authorities can request for provision of guarantors or a security deposit
of not exceeding 10000 yuan based on the face value of the invoices
purchased and hand in the invoices for disposal within a set time limit.
Those who hand in invoices on time for disposal shall be released
their guarantors' commitments and returned their security deposit; for
those who fail to hand in the invoices for disposal on time, their legal
liabilities should be taken over by the guarantors or satisfied with the
security deposit.
Tax authorities shall issue receipts upon collecting security
deposit.
Chapter IV-Issuance and Safeguarding of Invoices
Article 20
Units and individuals engaged in the sales of goods, provision of
services and other business activities, should issue invoices to the
payers when collecting payment in business activities with outside
parties. However, under some special circumstances, payers can issue
invoices to payees.
Article 21
Units and individuals engaged in production and business activities
should obtain invoices from payees for payment made in purchasing
commodities, accepting services and taking part in other economic
activities. Upon receipt of the invoice, they should not ask for
alternation of the name of article and amount of payment.
Article 22
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 23
Invoices should be issued column by column and with all the
duplicates, in strict accordance with the time limits, sequence stipulated
in the regulations and be stamped with the unit's stamp of the financial
department or a special stamp for invoices.
Article 24
In use of computers to generate invoices, prior approval from the
respective tax authorities should be obtained. Standard invoices issued
under the supervision of tax authorities besides the computer-generated
invoices shall be used. The stubs of the invoices so issued must be bound
into booklets with sequential numbers.
Article 25
No unit or individual can lend, transfer or issue invoices on other
unit's or individual's behalf. Without the prior approval from the tax
authorities, they cannot use invoices by tearing invoice books apart, nor
expand the scope of usage of the invoices of professionals.
Illegal sales or purchases of invoices, stamps for supervision of the
printing of invoices and anti-forgery devices for invoices are prohibited.
Article 26
The area of issuance of invoices is limited to the provinces,
autonomous regions and municipalities where the units and individuals
purchase them.
Tax authorities of the provinces, autonomous regions and
municipalities may regulate the procedures for issuance of invoices cross
city or county.
Article 27
Without prior approval, no unit or individual can carry, mail or
transport blank invoices beyond the regions where these invoices are bound
to be used.
Carrying, mailing and transporting blank invoices into or from the
territory of China is prohibited.
Article 28
Units and individuals issuing invoices should establish a system for
the use and registration of invoices, prepare an invoice register and
report to the respective tax authorities on the use of invoices at regular
intervals.
Article 29
Units and individuals issuing invoices should, 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 30
Units and individuals issuing invoices should, in accordance with the
regulations of the tax authorities, store and keep invoices and shall not
destroy the invoices without authorization. The stubs of the invoices
already issued and the invoice register should be kept for five years.
Upon completion of the period the invoices shall be destroyed after
examination by the relevant tax authorities.
Chapter V-Inspection of Invoices
Article 31
In managing invoices, the tax authorities have the right to do the
following:
(1) Examining the printing, purchasing, issuing, obtaining and safe
keeping of 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;
(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 32
Units and individuals printing and using invoices must accept lawful
inspection by tax authorities, present the truth and provide the relevant
data, without refusal or concealment.
Tax officials should present their tax inspection permits at the time
of inspection.
Article 33
When tax authorities take away the invoices already issued for
inspection, they should 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 effective. The
units and individuals whose invoices have been taken away for inspection
must not refuse the above arrangement.
Tax authorities should issue receipts when taking away blank invoices
for inspection, blank invoices that are found in irder should be returned
in time.
Article 34
In the course of examining the reporting of tax, should the tax
authorities find any doubt with invoices or evidence concerning the
reporting of tax obtained outside 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 tax
authorities, these invoice on evidence could be taken as basis for
book-keeping.
Article 35
In the course of examining invoices, tax authorities may find the
need to check how the stubs and the invoices are completed, they may send
out invoice completion checking cards to the units in possession of the
invoices or stubs. These units concerned should complete the cards in
accordance with facts and return them in time.
Chapter VI-Provisions on Penalty
Article 36
Acts violating the law for management of invoices include:
(1) Failure to print invoices or manufacture anti-forging devices for
invoices in accordance with the relevant regulations;
(2) Failure to purchase invoices in accordance with the relevant
regulations;
(3) Failure to issue invoices in accordance with the relevant
regulations;
(4) Failure to obtain invoices in accordance with the relevant
regulations;
(5) Failure to keep invoices in accordance with the relevant
regulations;
(6) Failure to accept inspection by tax authorities in accordance
with the relevant regulations.
For all the units and individuals who have committed one of the above
said, the tax authorities may order them to rectify within a prescribed
time limit, confiscate their illicit income, and impose a fine of up to
10000 yuan at the same time. Those who have committed two or more of the
acts listed above can be penalised on separate accounts.
Article 37
Tax authorities shall confiscate the blank invoices and the illicit
income of those who illegally carry, mail, transport or keep these
invoices and a fine of up to 10000 yuan may be imposed at the same time.
Article 38
Tax authorities shall seal up, detain, or destroy the invoices
illegally printed, counterfeited, bought or sold, and the privately made
stamps for supervision of the printing of invoices and the anti-forgery
products for invoices. Tax authorities shall also confiscate the illicit
income and the tools used in committing the offenses; a fine between 10000
yuan and 50000 yuan may be imposed at the same time; if these offenses
constitute crimes, legal actions will be taken against the offenders.
Article 39
In cases of violations of the regulations on the control of invoices
leading to the evasion and defraudation 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 40
If the units or individuals concerned do not agree to the decisions
of the tax authorities on the penalties imposed, they can apply to the
higher tax authorities for reconsideration or file a suit at the People's
Court in accordance with the law; the tax authorities which have made the
decision on the penalties can apply to the People's Court to forcefully
execute the penalties if the parties concerned have neither applied for
reconsideration within the prescribed time, nor filed a suit at the
People's Court, nor implemented the decisions.
Article 41
According to the relevant regulations, administrative discipline
shall be given to any tax officials, by taking advantage on their
positions, deliberately place obstacles before any units or individuals
who print or use invoices or have violated the regulations concerning the
management of invoices. If such acts have constituted criminal charges,
they shall be penalised according to the law.
Chapter VII-Supplementary Provisions
Article 42
The special invoices used by State-owned financial, posts and
telecommunications, railways, airline, road and water transport
institutions, etc., may be managed by the respective competent departments
of the State Council or the respective departments of the People's
Governments of the provinces, autonomous regions and municipalities after
the approval of the State Administration of Taxation or its branches in
the provinces, autonomous regions and municipalities.
Article 43
In accordance with the need for economic development and for the
collection and supervision of tax, the State encourages the use of cash
registers. Specific procedures will be promulgated separately.
Article 44
These Measures are subject to the interpretation of the State
Administration of Taxation and the detailed rules for their implementation
shall be made by the State Administration for Taxation.
Article 45
These Measures shall come into effect on the day of their
promulgation. At the same time, the promulgated by the Ministry
of Finance in 1986 and the
promulgated in 1991 by the State Administration of Taxation shall be
repealed on the same date. epealed on the same date. epealed on the same
date.
changing or cancelling
invoices and invoice purchase books.
Article 30
Units and individuals issuing invoices should, in accordance with the
regulations of the tax authorities, store and keep invoices and shall not
destroy the invoices without authorization. The stubs of the invoices
already issued and the invoice register should be kept for five years.
Upon completion of the period the invoices shall be destroyed after
examination by the relevant tax authorities.
Chapter V-Inspection of Invoices
Article 31
In managing invoices, the tax authorities have the right to do the
following:
(1) Examining the printing, purchasing, issuing, obtaining and safe
keeping of 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;
(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 32
Units and individuals printing and using invoices must accept lawful
inspection by tax authorities, present the truth and provide the relevant
data, without refusal or concealment.
Tax officials should present their tax inspection permits at the time
of inspection.
Article 33
When tax authorities take away the invoices already issued for
inspection, they should 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 effective. The
units and individuals whose invoices have been taken away for inspection
must not refuse the above arrangement.
Tax authorities should issue receipts when taking away blank invoices
for inspection, blank invoices that are found in irder should be returned
in time.
Article 34
In the course of examining the reporting of tax, should the tax
authorities find any doubt with invoices or evidence concerning the
reporting of tax obtained outside 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 tax
authorities, these invoice on evidence could be taken as basis for
book-keeping.
Article 35
In the course of examining invoices, tax authorities may find the
need to check how the stubs and the invoices are completed, they may send
out invoice completion checking cards to the units in possession of the
invoices or stubs. These units concerned should complete the cards in
accordance with facts and return them in time.
Chapter VI-Provisions on Penalty
Article 36
Acts violating the law for management of invoices include:
(1) Failure to print invoices or manufacture anti-forging devices for
invoices in accordance with the relevant regulations;
(2) Failure to purchase invoices in accordance with the relevant
regulations;
(3) Failure to issue invoices in accordance with the relevant
regulations;
(4) Failure to obtain invoices in accordance with the relevant
regulations;
(5) Failure to keep invoices in accordance with the relevant
regulations;
(6) Failure to accept inspection by tax authorities in accordance
with the relevant regulations.
For all the units and individuals who have committed one of the above
said, the tax authorities may order them to rectify within a prescribed
time limit, confiscate their illicit income, and impose a fine of up to
10000 yuan at the same time. Those who have committed two or more of the
acts listed above can be penalised on separate accounts.
Article 37
Tax authorities shall confiscate the blank invoices and the illicit
income of those who illegally carry, mail, transport or keep these
invoices and a fine of up to 10000 yuan may be imposed at the same time.
Article 38
Tax authorities shall seal up, detain, or destroy the invoices
illegally printed, counterfeited, bought or sold, and the privately made
stamps for supervision of the printing of invoices and the anti-forgery
products for invoices. Tax authorities shall also confiscate the illicit
income and the tools used in committing the offenses; a fine between 10000
yuan and 50000 yuan may be imposed at the same time; if these offenses
constitute crimes, legal actions will be taken against the offenders.
Article 39
In cases of violations of the regulations on the control of invoices
leading to the evasion and defraudation 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 40
If the units or individuals concerned do not agree to the decisions
of the tax authorities on the penalties imposed, they can apply to the
higher tax authorities for reconsideration or file a suit at the People's
Court in accordance with the law; the tax authorities which have made the
decision on the penalties can apply to the People's Court to forcefully
execute the penalties if the parties concerned have neither applied for
reconsideration within the prescribed time, nor filed a suit at the
People's Court, nor implemented the decisions.
Article 41
According to the relevant regulations, administrative discipline
shall be given to any tax officials, by taking advantage on their
positions, deliberately place obstacles before any units or individuals
who print or use invoices or have violated the regulations concerning the
management of invoices. If such acts have constituted criminal charges,
they shall be penalised according to the law.
Chapter VII-Supplementary Provisions
Article 42
The special invoices used by State-owned financial, posts and
telecommunications, railways, airline, road and water transport
institutions, etc., may be managed by the respective competent departments
of the State Council or the respective departments of the People's
Governments of the provinces, autonomous regions and municipalities after
the approval of the State Administration of Taxation or its branches in
the provinces, autonomous regions and municipalities.
Article 43
In accordance with the need for economic development and for the
collection and supervision of tax, the State encourages the use of cash
registers. Specific procedures will be promulgated separately.
Article 44
These Measures are subject to the interpretation of the State
Administration of Taxation and the detailed rules for their implementation
shall be made by the State Administration for Taxation.
Article 45
These Measures shall come into effect on the day of their
promulgation. At the same time, the promulgated by the Ministry
of Finance in 1986 and the
promulgated in 1991 by the State Administration of Taxation shall be
repealed on the same date. epealed on the same date. epealed on the same
date.
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