Circular of the General Office of the State Council on Forwarding the Opinions of the State Administration of Taxation on the Comprehensive Application of the Value-added Tax Anti-falsification and Tax-control System
Circular of the General Office of the State Council on Forwarding the Opinions of the State Administration of Taxation on the Comprehensive Application of the Value-added Tax Anti-falsification and Tax-control System
Circular of the General Office of the State Council on Forwarding the Opinions of the State Administration of Taxation on the Comprehensive Application of the Value-added Tax Anti-falsification and Tax-control System
Guo Ban Fa [2000] No.12
February 12, 2000
The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government, and the departments and commissions of, and institutions directly under, the State Council,
The Opinions on the Comprehensive Application of the Value-added Tax Anti-falsification and Tax-control System of the State Administration of Taxation, which have been approved by the State Council, are hereby forwarded to you for earnest implementation.
Appendix: Opinions on the Comprehensive Application of the Value-added Tax Anti-falsification and Tax-control System (State Administration of Taxation, January 26, 2000)
The value-added tax (VAT) anti-counterfeiting and tax-control system (hereinafter referred to as the "System") is a computer management system that uses digital passwords and electronic storage technology to strengthen the anti-counterfeiting function of special VAT invoices and realize the monitoring of tax sources of general VAT taxpayers. It is also an important part of the national "Golden Tax Project". Initial results have been achieved since the pilot application of the System was carried out in certain regions and industries in 1994.
In order to further strengthen VAT management, protect national taxation, and prevent and severely crack down on various illegal and criminal activities such as VAT evasion or fraud, after joint research with the relevant departments, the following opinions are hereby put forward:
I. By the end of 2002, the System will cover all general VAT taxpayers. The relevant enterprises shall install and use the System in a timely manner in accordance with the requirements of tax authorities. For those who fail to install and use it within the time limit, tax authorities will stop selling special VAT invoices to them and collect unused special VAT invoices from their inventory.
II. Enterprises subject to the management by the System shall issue special VAT invoices through the System; those who issue special VAT invoices through non-tax control systems shall be punished by tax authorities in accordance with the relevant provisions of the Administrative Measures of the People's Republic of China for Invoices; those who destroy, tamper with, or disassemble the System for the purpose of tax evasion shall be severely punished in accordance with the law.
III. If the relevant enterprise obtains a special VAT invoice issued by the System and falls within the scope of tax deduction, it shall make a declaration for certification of the invoice within the time limit specified by the tax authority; if no certification is declared for a special VAT invoice within the time limit, the invoice shall not be used as a tax deduction voucher, the deducted tax, if any, shall be recovered by the tax authority in full, and the relevant enterprise shall only be punished in accordance with the relevant provisions of the Law of the People's Republic of China on the Administration of Tax Levying; if a special VAT invoice does not fall within the scope of tax deduction upon certification, the invoice shall not be used as a tax deduction voucher, and the tax authority shall ascertain the reasons and deal with it in accordance with the law.
IV. The economic burden on enterprises using the System shall be reduced appropriately. The purchase costs of special and general equipment for the System may be charged to the costs of an enterprise. Meanwhile, the VAT indicated on a purchase invoice (special VAT invoice) may be included in the enterprise's current input VAT. The specific measures will be formulated separately by the relevant departments under the State Council.
V. Special equipment and technical maintenance of the System are subject to national unified pricing, with the specific standards formulated by the State Planning Commission.
VI. Production, research and manufacturing entities of the System shall ensure the technical safety and quality of special equipment, and do a good job in daily technical maintenance. Tax authorities at all levels shall strictly supervise the sales and after-sales services of the System, but may not directly or indirectly engage in commercial business activities related to the System.
......
Guo Ban Fa [2000] No.12
February 12, 2000
The people's governments of all provinces, autonomous regions and municipalities directly under the Central Government, and the departments and commissions of, and institutions directly under, the State Council,
The Opinions on the Comprehensive Application of the Value-added Tax Anti-falsification and Tax-control System of the State Administration of Taxation, which have been approved by the State Council, are hereby forwarded to you for earnest implementation.
Appendix: Opinions on the Comprehensive Application of the Value-added Tax Anti-falsification and Tax-control System (State Administration of Taxation, January 26, 2000)
The value-added tax (VAT) anti-counterfeiting and tax-control system (hereinafter referred to as the "System") is a computer management system that uses digital passwords and electronic storage technology to strengthen the anti-counterfeiting function of special VAT invoices and realize the monitoring of tax sources of general VAT taxpayers. It is also an important part of the national "Golden Tax Project". Initial results have been achieved since the pilot application of the System was carried out in certain regions and industries in 1994.
In order to further strengthen VAT management, protect national taxation, and prevent and severely crack down on various illegal and criminal activities such as VAT evasion or fraud, after joint research with the relevant departments, the following opinions are hereby put forward:
I. By the end of 2002, the System will cover all general VAT taxpayers. The relevant enterprises shall install and use the System in a timely manner in accordance with the requirements of tax authorities. For those who fail to install and use it within the time limit, tax authorities will stop selling special VAT invoices to them and collect unused special VAT invoices from their inventory.
II. Enterprises subject to the management by the System shall issue special VAT invoices through the System; those who issue special VAT invoices through non-tax control systems shall be punished by tax authorities in accordance with the relevant provisions of the Administrative Measures of the People's Republic of China for Invoices; those who destroy, tamper with, or disassemble the System for the purpose of tax evasion shall be severely punished in accordance with the law.
III. If the relevant enterprise obtains a special VAT invoice issued by the System and falls within the scope of tax deduction, it shall make a declaration for certification of the invoice within the time limit specified by the tax authority; if no certification is declared for a special VAT invoice within the time limit, the invoice shall not be used as a tax deduction voucher, the deducted tax, if any, shall be recovered by the tax authority in full, and the relevant enterprise shall only be punished in accordance with the relevant provisions of the Law of the People's Republic of China on the Administration of Tax Levying; if a special VAT invoice does not fall within the scope of tax deduction upon certification, the invoice shall not be used as a tax deduction voucher, and the tax authority shall ascertain the reasons and deal with it in accordance with the law.
IV. The economic burden on enterprises using the System shall be reduced appropriately. The purchase costs of special and general equipment for the System may be charged to the costs of an enterprise. Meanwhile, the VAT indicated on a purchase invoice (special VAT invoice) may be included in the enterprise's current input VAT. The specific measures will be formulated separately by the relevant departments under the State Council.
V. Special equipment and technical maintenance of the System are subject to national unified pricing, with the specific standards formulated by the State Planning Commission.
VI. Production, research and manufacturing entities of the System shall ensure the technical safety and quality of special equipment, and do a good job in daily technical maintenance. Tax authorities at all levels shall strictly supervise the sales and after-sales services of the System, but may not directly or indirectly engage in commercial business activities related to the System.
......