What's the difference between VAT invoice and ordinary invoice?
Special invoice for value-added tax is a new type of invoice used to implement the new value-added tax system in China. Compared with ordinary invoices used in daily business, it has the following differences:
1. The printing requirements of invoices are different: according to Article 22 of the new tax administration law, special VAT invoices are printed by enterprises designated by the tax authorities in the State Council; Other invoices shall be printed by enterprises designated by the State Taxation Bureau and Local Taxation Bureau of provinces, autonomous regions and municipalities directly under the Central Government in accordance with the provisions of the competent department of the State Council. No invoice shall be printed without the designation of the tax authorities specified in the preceding paragraph.
2. Different invoice users: Special VAT invoices can only be purchased and used by general VAT taxpayers, and small-scale taxpayers can only use them after being approved by the tax authorities. Ordinary invoices can be purchased by all kinds of taxpayers engaged in business activities and handling tax registration. Taxpayers who have not applied for tax registration may also apply to the tax authorities for purchasing and using ordinary invoices.
3. The contents of the invoice are different: the special VAT invoice includes the taxpayer's tax registration number, the amount excluding VAT, the applicable tax rate and the VAT payable. In addition to the contents of ordinary invoices such as the name of the buyer, the seller, the goods or services, the quantity and measurement unit of the goods or services, the unit price and price, the billing unit, the payee and the billing date.
4. There are different copies of invoices: there are four and seven VAT invoices. The first copy is the stub copy (kept for future reference), the second copy is the invoice copy (for the buyer's bookkeeping), the third copy is the deduction copy (for the buyer's tax deduction certificate), the fourth copy is the bookkeeping copy (for the seller's bookkeeping), and the remaining three copies are seven copies, which are used for enterprise card issuing, inspection and warehouse retention respectively. Ordinary invoices are only in triplicate, with the first stub, the second invoice and the third bookkeeping.
5. The role of invoices is different: the special VAT invoice is not only a voucher for the buyer and seller to receive and pay, but also a voucher for the buyer to deduct VAT; Except for freight, agricultural and sideline products and waste materials, which are deducted according to the statutory tax rate, ordinary invoices shall not be deducted.
What is the tax rate of VAT invoice?
Special VAT invoices are issued to ordinary taxpayers, and the other party can deduct the input tax, while ordinary VAT invoices can be issued to ordinary taxpayers or small-scale taxpayers, and no one can deduct the input tax.
As a sales unit, issuing special VAT invoices is the same as issuing ordinary VAT invoices. The tax rate is 17% or 13%, which is sold in the current month and income tax is declared in the current month.
I hope the above content can help you. If in doubt, please consult a professional lawyer.
Legal basis:
Article 21 of the Provisional Regulations of People's Republic of China (PRC) on Value-added Tax.
For taxable sales, the taxpayer shall issue a special VAT invoice to the buyer who requests the special VAT invoice, and indicate the sales amount and output tax amount respectively on the special VAT invoice. Under any of the following circumstances, a special VAT invoice shall not be issued:
(a) the buyer of taxable sales behavior is an individual consumer;
(2) The tax exemption clause applies to taxable sales.