Special VAT invoices can generally only be purchased and used by general VAT taxpayers, and small-scale taxpayers needing to use them can only be approved by the tax authorities and then issued by the local tax authorities on their behalf. Ordinary invoices, on the other hand, can be purchased and used by all kinds of taxpayers who are engaged in business activities and have applied for tax registration, and taxpayers who have not applied for tax registration can also apply to the tax authorities for purchasing and using ordinary invoices.
One, special invoices
VAT special invoices are designed and printed under the supervision of the State Administration of Taxation (SAT), and are limited to be purchased and used by general VAT taxpayers only, which not only serve as an important accounting document reflecting the economic activities of the taxpayers but also as a legal proof of the tax obligations of both seller and purchaser, and are the decisive and legal special invoices for VAT computation and management.
The implementation of special VAT invoice is a crucial step in the reform of VAT, which is different from ordinary invoice, not only has the function of commercial voucher, but also has the function of tax deduction because of the implementation of tax deduction on the basis of the invoice, and the purchaser has to pay VAT to the seller. It has the role of tax payment certificate. More importantly, the VAT invoice links the various links between the initial production of a product and its final consumption, maintaining the integrity of the tax and reflecting the role of VAT.
Two, the role of special invoices
(1) VAT special invoices are commercial vouchers, due to the implementation of tax deduction on the basis of invoices for purchases, the purchaser has to pay the VAT to the seller, and therefore they are also tax-paid vouchers, which play the role of legitimate proof of the seller's tax obligations and the purchaser's input tax amount.
(2) - Each link between the initial production of a kind of goods and its final consumption can be connected with a special VAT invoice, and based on the tax amount stated on the special invoice, tax is levied at each link and tax is deducted at each link, so that the tax can be passed on from the previous business link to the next business link, and all the way to the supply of the goods or services to the final consumer, so that each link can be connected with the other and the tax can be deducted at each link. The sum of the taxable amount stated on the VAT invoice issued by each link is the overall tax burden of the goods or services. Therefore, it reflects the characteristics of universal VAT collection and fair tax burden.
Legal Basis
Provisional Regulations of the People's Republic of China on Value-added Tax (VAT)
Article 2 VAT Rates:
(1) When a taxpayer sells goods, labor services, leasing services of tangible movable assets or imports goods, except as otherwise provided for in Items 2, 4, and 5 of this Article, the tax rate shall be 17%.
(2) The tax rate for a taxpayer's sale of transportation, postal services, basic telecommunications, construction, real estate leasing services, sale of real estate, transfer of land use rights, and the sale or import of the following goods shall be 11%:
1. Agricultural products such as grains, edible vegetable oils, and edible salts;
2. Tap water, heating, cold air, hot water, coal gas, and liquefied petroleum gas, Natural gas, dimethyl ether, biogas, coal products for residential use;
3. Books, newspapers, magazines, audio-visual products, electronic publications;
4. Feedstuffs, chemical fertilizers, pesticides, agricultural machinery, agricultural films;
5. Other goods prescribed by the State Council.
(3) The tax rate for sales of services and intangible assets by taxpayers shall be 6%, except as otherwise provided in the first, second and fifth subparagraphs of this Article.
(d) Taxpayers exporting goods shall be subject to a tax rate of zero percent; however, unless otherwise provided by the State Council.
(v) The tax rate for cross-border sales of services and intangible assets within the scope of the State Council's regulations by domestic units and individuals is zero.
The adjustment of the tax rate shall be decided by the State Council.