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Taxation - China

Question

Relevant Regulations on Invoice Issue in China (Continued)

Answer
Q:
How to deal with an unclear invoice seal?
A:
The remedy is to affix a clear invoice seal next to the unclear one, or to void the invoice or issue red letter invoice.

Q:
Is the invoice still valid when the invoice chop is up-side-down?
A:
Yes, still valid.

Q:
What is the consequence when there is no invoice seal affixed?
A:
The tax bureau will ask for a correction, as well as impose a fine of no more than RMB10,000, and the illegal income will be confiscated if any.

Q:
Does it need to affix chop on the invoice page for book-keeping?
A:
Only invoice page and offset page need to be affixed with invoice chop.

Q:
Is there something wrong with an invoice with different name of company name and chop name?
A:
Not necessarily. If the enterprise is entrusted by tax bureau to collect tax on its behalf, the general invoice issued for the taxpayer should be affixed with invoice chop of the entrusted enterprise. Under this situation, it is normal that the chop name is not in accordance with the name of the actual seller.

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