Laws of the People's Republic of China

Ministry of Finance, The State Administration of Taxation

Circular of MOF and SAT on Abolishing the Measures on Administrating Special Value-added Tax Invoice Issued by Local Taxation Office as Agencies of the State Administration of Taxation through Special Script of Tax

Cai Shui [2005] No.43

March 22,2005

To departments (bureaus) of finance and bureaus of state taxation in all the provinces, autonomous regions, municipalities directly under the Central Government, cities specifically designated in the state plan, financial bureau of Xinjiang Production and Construction Corporations,

According to The Circular on the Testing Administration Measures on Special Value-added Tax Invoice Issued by Local Taxation Office as Agencies of the State Administration of Taxation (Guo Shui Fa (2004)No,153) and The Circular on Intensifying the Issues Concerning the Administration of Special Value-added Tax Invoice Issued by Local Taxation Office as Agencies of the State Administration of Taxation (Guo Shui Han (2004) No.153), the special value-added invoice issued by local taxation offices an agencies shall be concluded in the fake-preventing administration system of special value-added tax invoice from the date of January 1, 2005. In order to enhance the efficiency and simplify the procedure of export tax refund, the exporting goods listed in special value-added tax invoice issued by local taxation office as agencies through the fake-preventing administration system shall not be supervised under the special value-added tax (for exporting only) script or exporting goods pay taxes division document (hereinafter referred as special invoice of value-added tax). Details are notified as follow,

I.

Special script of value-added tax shall not be provided for enterprises when export tax refund is applied, on the condition that the exporting goods be applied to customs after January 1, 2005(the date on the export customs declaration(on the couplet for export tax refund only) shall be taken as the actual date of exporting), and that the special value-added invoice be issued by local taxation offices an agencies under the fake-preventing administration system of special value-added tax invoice(invoice issued by local taxation offices here and after is prescribed in Article 2 Guo Shui Fa (2004) No.153) after the date of January 1, 2005.

II.

Special script of value-added tax shall not be provided for selected bidders and foreign-ventured enterprises when export tax refund is applied, on the condition that domestic machinery and electronic products selected in international bidding fare be adopted in the costs loaned foreign governments and international financial organizations, that domestic equipment be bought by foreign-ventured enterprises, and that the special value-added invoice be issued by local taxation offices an agencies under the fake-preventing administration system of special value-added tax invoice after the date of January 1, 2005.

III.

Special script of value-added tax shall be provided, should it be required to be issued by taxation offices at all levels under stipulations, without any excuses for enterprises on the products exported before January 1, 2005.

IV.

Special invoice of value-added tax applied by exporting enterprises shall be issued by taxation offices under due attestation procedure of the administration on Special Value-added Tax Invoice Issued by Local Taxation Office as Agencies of the State Administration of Taxation, and export tax refund application shall not be taken should there is no attestation or the requirement of attestation is not satisfied.

V.

The relative electronic communication of special invoice of value-added tax shall be adopted by taxation offices when applications on export tax refund were handed in under Article 1 of this Circular, where Article Six of The Circular on the Administration on the Offset of Exporting Goods of the State Administration of Taxation (Guo Shui Fa (2004) No.64) shall be applied. Communication Department and Tax-refund Department of Taxation offices of all levels shall collaborate with each other, with the view to fulfilling the project of transferring and incepting electronic information of special value-added tax invoice issued by local taxation office as agencies of the State Administration of Taxation.

This circular is specifically issued.