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Circular of The State Administration
of Taxation Concerning Matters Related to Strengthening
the Administration of the Special Bill of Payment of
Import VAT and the Invoice of Waste
Material2004-7-1 |
| January 21 |
|
| Guo Shui Han[2004]No.128 January 21, 2004 To the
national taxation bureaus of all the provinces,
autonomous regions and municipalities directly under the
State Council and cities with separate plans under the
state plan, In order to crack down the illegal activity
of tax evasions by using the Special Bill of Payment of
Import VAT and the invoice of waste material, to
strengthening the administration and supervision of VAT
and to plug the tax leak, the State Administration of
Taxation (hereinafter refer to as SAT) promulgate the
Measures on audit the Special Bill of Payment of Import
VAT and the Measures on audit the invoice of waste
materials to you departments now, and the concerning
matters are hereby notified as follows: 1. It is
presently an important measure of strengthening the
administration of VAT and of plugging tax leaks to
strengthen the administration and supervision of the
Special Bill of Payment of Import VAT and the invoice of
waste material. After the promulgating of this circular,
all the bureaus and offices of SAT shall convene the
special meeting to assign the tasks, to comprehensively
spread the spirit of this circular, to train the
competent officials and taxpayers so that the policy can
be fully implemented. 2. In order to meet the need of
one-window contrasting of the 4 sorts of non-VAT-invoice
including the invoice of waste materials, the custom
duty payment certificate, the receipt of primary product
purchasing and the invoice of transportation cost, it is
decided to alter the content of reporting form specified
in the Measure of Tax Declaration of Normal VAT
Taxpayers as follows: (1) Adjust the column 5 of the
Annex II of Tax Return of VAT to " among them: Custom
duty payment certificate". This column reflects
specifically the deducted purchasing tax amount declared
with the custom duty payment certificate according to
the laws and regulations of the imported goods of the
taxpayers, including the goods of the tax rate of 17%
and 13% (2) Adjust the column 6 of the Annex II of Tax
Return of VAT to "the receipt of primary product
purchasing and normal invoice". This column reflects
specifically the deducted purchasing tax amount declared
with the receipt of primary product purchasing and
normal invoice according to the laws and regulations
because of the purchasing of the tax-free primary
products of the taxpayers. (3) Adjust the column 7 of
the Annex II of Tax Return of VAT to "the invoice of
waste materials". This column reflects specifically the
deducted purchasing tax amount declared with the normal
invoice according to the laws and regulations because of
the purchasing of the waste materials of the taxpayers.
(4) Adjust the column 8 of the Annex II of Tax Return of
VAT to "the invoice of transportation cost". This column
reflects specifically the deducted purchasing tax amount
declared with the normal invoice of transportation cost
according to the laws and regulations because of the
purchasing of the taxpayers 3. The SAT will promulgate
the provisions on the matters of information collection,
audit and check of the custom duty payment certificate
and the invoice of waste material later. 4. The
questions in the course of implement of this circular
shall be reported to the national taxation bureau at the
provincial level, and then be consulted and reflected to
the State Administration of Taxation. Linkman: Liu Feng,
Office of Invoice Tax Control, Department of Circulation
Tax 010-63417700 Gong Bin, Office of audit and
evaluation, Department of Circulation Tax 010-63417797
Liu Hao, Office of VAT, Department of Circulation Tax
010-63417705 5. This circular shall go into effect as of
February 1, 2004 Annex I: Measures on Audit of Special
Bill of Payment of Import VAT 1. After getting all the
Special Bill of Payment of Import VAT (hereinafter
referred to as the custom duty payment certificate) to
deduct the VAT, the normal VAT payers shall fill the
detailed list of deduct (Appendix I ) one by one
according to the custom duty payment certificate, and
shall report them with the tax return simultaneously at
the time of VAT declaration. The taxpayers are allowed
to offer the paper documents of the detailed list of
deduct of the custom duty payment certificate only when
they declare in February (those who miss the period of
declaration shall re-offer after the period of the
month), and from March, the taxpayers shall offer the
paper documents and the software or other memory medium
that record the electronic data of the detailed list of
deduct at the same time. The purchasing tax amount shall
not be deducted if the mentioned documents are not
offered. The very certificate cannot be used to deduct
the purchasing tax amount if the detailed list of deduct
of the custom duty payment certificate was not filled or
not totally filled according to the related regulations.
2. The information collection software of the detailed
list of deduct of custom duty payment certificate shall
be unified tapped by the SAT, and shall be freely
provided to the taxpayers by the competent tax
authority. The national tax bureaus and taxpayers can
download the software from the website of the State
Administration of Taxation (http://chinatax.gov.cn)
after February 25. 3. The custom duty payment
certificate that obtained after February 1, 2004 shall
be declared to deduct before the deadline of the first
declaration period after 90 days of the obtain of the
certificate, and shall not deduct any purchasing tax
amount after the deadline. The custom duty payment
certificate that obtained before January 31, 2004 must
be declared to deduct before the declaration period of
May, 2004, and it can not be used to deduct any
purchasing tax amount after the period. 4. The competent
tax authority shall do the following audit in the
procedure of VAT declaration. (1) To audit whether there
is data in the column 5 of the Annex II of the VAT Tax
Return and to audit the offer of the deduct list if
there is any data. (2) To audit whether the deduct list
of the custom duty payment certificate is fully filled.
(3) To audit whether the data in the column of Tax
amount in the deduct list equals to the data in the
column of Tax amount of the custom duty payment
certificate in the Annex II of the VAT Tax Return. The
competent tax authority shall demand the taxpayers to
re-offer the related documents or to redeclare after
amending the related data if it was found out that the
taxpayer did not offer the deduct list or there exist
problem after the audit. 5. The normal VAT taxpayers are
allowed not to offer the deduct list if they do not
obtain the current custom duty payment certificate.
Annex II Measures on auditing the invoice of waste
materials 1. The unit managing the recycling of wasted
materials (hereinafter refer to as waste-units) shall
fill one by one the detailed list of waste materials
(hereinafter refer to as the detailed list of making)
according to the normal invoices of selling the
materials, and shall offer it in accordance with the VAT
tax return in the course of VAT declaration. The
taxpayers are allowed to offer the paper documents of
the detailed list only when they declare in February
(those who miss the period of declaration shall re-offer
after the period of the month), and from March, the
taxpayers shall offer the paper documents and the
software or other memory medium that record the
electronic data of the deduct list at the same time. 2.
The waste-unit shall tap the finance stamp and the stamp
of the invoice maker when they make the normal invoice
in the course of selling the waste materials. The normal
VAT taxpayers of manufacturing units cannot deduct the
purchasing tax amount with the invoice that has no stamp
of the invoice maker. 3. After getting all the invoice
of waste materials to deduct the VAT, the normal VAT
payers shall fill the deduct bill of invoice of waste
materials (appendix 3, hereinafter refer to as the
detailed list of deduct) one by one according to the
invoice, and shall offer them with the tax return
simultaneously at the time of VAT declaration. The
taxpayers are allowed to offer the paper documents of
the deduct list only when they declare in February
(those who miss the period of declaration shall re-offer
after the period of the month), and from March, the
taxpayers shall offer the paper documents and the
software or other memory medium that record the
electronic data of the deduct list at the same time. The
purchasing tax amount shall not be deducted if the
mentioned documents are not offered. The very
certificate cannot be used to deduct the purchasing tax
amount if the deduct list was not filled or not totally
filled according to the related regulations. 4. The
information collection software of the detailed list of
deduct and the detail list of making shall be unified
tapped by the State Administration of Taxation, and
shall be freely provided to the taxpayers by the
competent tax authority. The national tax bureaus and
taxpayers can download the software from the website of
the State Administration of Taxation
(http://chinatax.gov.cn) after February 25. 5. The
invoice of waste materials made after March 1, 2004
shall be declared to deduct before the deadline of the
first declaration period after 90 days of the making of
the invoice, and shall not deduct any purchasing tax
amount after the deadline. The invoice of waste
materials made before March 1, 2004 must be declared to
deduct before the declaration period of June, 2004, and
it can not be used to deduct any purchasing tax amount
after the period. 6. The invoice of waste materials
without the stamp of invoice maker that made before
March 1, 2004 being holding by the manufacturing units
is allowed to deduct the purchasing tax amount, and the
column of ID of Sell Taxpayer and the column of No. of
the Competent Tax Authority of the Sell Taxpayer are
allowed not to be filled temporarily. 7. The detailed
list of making and the detailed list of deduct are
allowed not to be offered to the competent tax authority
in the case of the waste-unit did not make the invoice
of waste materials and the normal VAT taxpayers did not
obtain the invoice. 8. The competent tax authority shall
do the following audit in the procedure of VAT
declaration. (1) To audit the declaration of the
waste-unit i.Whether the detailed list of making is
fully filled ii. Whether the data in the item of Total
Amount in the column of Invoice Amount in the detailed
list of making equals to or less than the data in the
item of Saleroom of Tax-free Goods in the column 16
Making Normal Invoice in the Annex I of the VAT tax
return (2) To audit the declaration of the obtain of the
invoice of waste materials i. Whether there is data in
the column 7 Invoice of waste materials and whether
offer the detailed list of deduct if there is data ii.
Whether the detailed list of deduct is fully filled iii.
whether the data in the column of Invoice Amount and
column of Deduct Tax Amount is equals to the data In the
column 7 Invoice of waste materials of the Annex II of
VAT tax return The competent tax authority shall demand
the taxpayers to re-offer the related documents or to
re- declare after amending the related data if it was
found out that the taxpayer did not offer the detailed
list of making and the detailed list of deduct or there
exist problem after the audit. 9. The waste-unit that be
proved to falsely making the invoice of waste materials
will not apply the policy of exempt VAT, and will be
punished by the competent tax authority in accordance
with the related laws and regulations. Annex: the sample
of the stamp of invoice maker
(omitted) | |
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