Meaning
Controlled fiscal document issued through the official tax system to record the sale of goods or services. The vat fapiao provides the primary evidence for tax reporting and the recovery of input credits. China requires all commercial entities to use the Golden Tax System to generate these documents.
Each sheet contains a unique identification number and an encrypted QR code for verification.
Invoice Type
Two distinct categories exist to handle different transaction types and tax statuses. General invoices are used by small-scale taxpayers or for sales to end consumers who do not require a tax deduction. Special invoices allow the purchaser to offset the tax paid against their own VAT liability.
A special vat fapiao requires the buyer to provide their official tax identification and registered address.
Digital Migration
Electronic versions of the document are replacing paper books across most provinces. The digital format reduces the physical storage burden and allows for instantaneous verification through the national portal. Online systems allow companies to issue invoices remotely without visiting a tax bureau for additional paper supply.
Security protocols ensure that the electronic file holds the same legal weight as a printed copy.
Credit Validation
Input tax recovery depends on the authentication of the document. Buyers have a specific window to verify the invoice. Errors in the name or tax code render the document useless.
Fraudulent issuance of these documents carries severe criminal penalties including imprisonment.
