Invoicing underbilling and overbilling refers to the inconsistency between the invoice amount and the actual transaction amount during a transaction. Under-invoicing means that the invoice amount is lower than the actual transaction amount, usually to avoid paying taxes, which is legally regarded as tax fraud and will be subject to severe legal sanctions. Such behavior not only harms the country's tax revenue and undermines market fairness, but may also threaten fiscal stability and social order, and for the enterprises themselves, it may lead to fines, damage to reputation and loss of business opportunities.
On the contrary, over-invoicing is a way for companies to get more tax rebates, which theoretically saves them some tax. However, excessive over-invoicing not only puts an unnecessary tax burden on the enterprise, but may also arouse suspicion during tax inspections and trigger legal risks. Therefore, when issuing invoices, enterprises must strictly comply with the legal provisions to ensure that the amount actually matches the transaction, in order to safeguard the legitimate rights and interests of enterprises and market compliance.