It means that the amount invoiced exceeds the amount of goods actually sold. Over-invoicing is illegal.
According to the Decision of the Standing Committee of the National People's Congress on Punishing the Crimes of Falsely Issuing, Counterfeiting and Illegally Selling VAT Invoice:
I. Anyone who falsely issues a VAT invoice shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention, and shall be fined not less than 20,000 yuan and not more than 200,000 yuan; and if the amount of the falsely invoiced tax is larger or if there are other serious circumstances, he/she shall be sentenced to not less than three years and not more than ten years imprisonment.
And a fine of not less than 50,000 yuan and not more than 500,000 yuan; if the amount of tax falsely invoiced is huge or there are other particularly serious circumstances, the penalty shall be fixed-term imprisonment of not less than ten years or life imprisonment, and confiscation of property.
If any of the preceding acts fraudulently obtains state taxes, the amount of which is particularly huge, the circumstances are particularly serious, and it causes particularly significant losses to the national interests, he or she shall be sentenced to life imprisonment or death, and confiscation of property.
The leading elements of a criminal group that falsely issues VAT invoices shall be punished more severely in accordance with the provisions of the preceding two paragraphs, respectively. False VAT invoicing refers to one of the behaviors of falsely issuing VAT invoices for others, falsely issuing VAT invoices for oneself, letting others falsely issue VAT invoices for oneself, or introducing others to falsely issue VAT invoices.
Expanded Information:
The criminal means of fraudulent opening of VAT invoices are also diverse. They are mainly manifested in the following five kinds:
One is to issue "big head, small tail" VAT invoices. This means is in the invoicing side of the stub union, bookkeeping union fill in a smaller amount, in the invoicing side of the receipt of invoices, credit union fill in a larger amount, the use of the difference between the two, less write down the amount of output tax.
The invoicing party presents the bookkeeping union at the time of tax payment, and the amount is smaller, thus the taxable amount is also smaller; the invoice-receiving party presents the deduction union at the time of tax deduction, and the amount is larger, thus the deduction of the tax amount is also larger. In this way, the invoicing party and the receiving party are eroding the national tax.
The second is the "split use, single fill" invoice. The invoicing party will split the whole invoice and use it for its own use, with the stub and the bookkeeping copy filled out in accordance with the actual transaction amount of the goods.
The invoice and credit union issued to the other party to fill in a larger amount, so that the recipient party to achieve more tax credit, do not pay or pay less tax purposes, to meet the criminal needs of the recipient party, to promote their sales.
Third is the "tearing and filling" invoice, that is, "mandarin ducks vote". Deliberately inflate the amount of input and input tax on export goods.
The fourth is "folio", i.e., the invoicing party and the invoiced party falsely issue VAT invoices for each other, and each is the invoicing party and the invoiced party.
Fifth, "ring opening", i.e., several units or individuals open in series, in the shape of a ring. It is worth noting that in the crime of false VAT invoicing, whether it is falsely opened on real VAT invoices or falsely opened on forged VAT invoices, as long as it reaches the conviction standard stipulated by the law, it should be convicted and punished for the crime of false VAT invoicing.
Baidu Encyclopedia - Report of the Standing Committee of the National People's Congress on Punishing False, Forged and Illegal