The Circular of the State Administration of Taxation on Several Issues Concerning the National Implementation of the Transformation Reform of Value-added Tax (Cai Shui [2008] No. 170) and Cai Shui [2009] No. 9, etc., which are applicable to the policy of halving the value-added tax (VAT) according to the simplified method at the levy rate of 4%, ordinary invoices shall be issued, and special VAT invoices shall not be issued.
(2) Small-scale taxpayers selling their own used fixed assets shall issue ordinary invoices, and no special VAT invoices shall be issued by the tax authorities on behalf of them.
II. Taxpayers selling used goods shall issue ordinary invoices, and shall not issue VAT special invoices on their own or by the tax authorities on behalf of them.
Three, general taxpayers selling goods can issue special VAT invoices on their own if the provisions of Article 2 (3), (4) and Article 3 of Cai Shui [2009] No.9 are applicable.
Expanded Information:
According to the Circular on the Administrative Issues Concerning the Policy of Simplified Levy of Value-added Tax (VAT):
Fourth, on the sales amount and taxable amount
(1) If a general taxpayer sells its own used items and old goods, and applies the policy of halving the VAT levy according to the 4% levy rate under the simplified method, it shall determine the sales amount and tax payable according to the following formulas:
Sales = Sales inclusive of tax/(1+4%)
Tax payable = Sales x 4%/2
(2) A small-sized taxpayer sells its own used fixed assets and old goods, the sales and taxable amount shall be determined according to the following formulas:
Sales = Tax-inclusive sales/(1+3%)
Taxable amount = Sales × 2%
V. Small-scale taxpayers who sell their own used fixed assets and old goods shall fill in the VAT declaration form (for small-scale taxpayers) in column 4 of the VAT declaration form, and their utilization tax excluded sales are filled in the VAT declaration form (for small-scale taxpayers) The tax-exclusive sales of ordinary invoices issued by tax-control instruments are entered in column 5.
Notice of the State Administration of Taxation on Administrative Issues Concerning the Policy of Simplified Collection of Value-added Tax (VAT)