The difference between an electronic VAT invoice and a paper VAT invoice is mainly in the medium and the way it is stored. Electronic invoices are digitized and can be viewed and stored directly on electronic devices, while paper invoices are physical paper. Electronic invoices are easy to save, only need to keep the electronic files and print them when necessary, avoiding the problem of losing paper invoices. Electronic invoices are less costly to issue and can be issued online, reducing printing costs, tax-control equipment costs and human resources. Paper invoices require physical storage space and the paper may wear out or be damaged over time. Electronic invoices are more convenient and efficient in terms of management and storage.
Types of VAT invoices:
1. Electronic VAT invoices: are VAT invoices issued and transmitted electronically, with legal effect, account processing and tax management functions;
2. Paper VAT invoices: are VAT invoices that are uniformly printed by the tax authorities or are printed by the enterprises themselves with the approval of the tax authorities. Special invoices are used to record transactions and serve as tax payment certificates.
Summary, whether the special VAT invoice is in electronic form or paper form, the essential difference lies in the medium and the way of preservation. Electronic invoice has more convenience and efficiency compared with paper invoice because of its digitized characteristics, low cost, easy to preserve and manage, while paper invoice needs to take up the space of the entity and is easy to be worn out by the influence of time.
Legal basis:
"Chinese People's **** and State E-commerce Law"
Article 14
E-commerce operators selling goods or providing services shall issue paper invoices or electronic invoices, and other proof of purchase or service documents in accordance with the law. Electronic invoices and paper invoices have the same legal effect.
Provisional Regulations of the People's Republic of China on Value-added Tax
Article 21
Taxpayers shall issue VAT invoices to purchasers requesting VAT invoices for their taxable sales and shall state the sales amount and the amount of output tax on the VAT invoices respectively. VAT invoices shall not be issued under any of the following circumstances: (1) the purchaser of the taxable sales behavior is an individual consumer; (2) the taxable sales behavior is subject to tax exemption.