Basically, there are two kinds of VAT taxpayers in China. One is general VAT taxpayer, another is Non-general VAT taxpayer.

For general VAT taxpayers, the VAT tax payable calculated as below.

Sales VAT - purchase VAT issued in special VAT fapiaos-extra deduction

Then, more purchase VAT issued in special VAT fapiaos, lower VAT tax payable for a company who is a general VAT taxpayer.

-----------------------------------------------------------------

For non-general VAT taxpayers, the VAT tax payable calculated as below.

Sale amount excluding VAT * VAT rate

So it is no meaning for non gerenal VAT taxpayers to get special VAT fapiao. But still they need to get fapiao for expense reimbursement, accounting treatment and annual settlement of enterprise income tax.

#Special VAT invoice#Why My Chinese Clients Prefer Special VAT Fapiao

wcx@ruanyinchina.com

86 189 1629 8482