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Function documentation VAT Invoices 

Use

In China, there are two types of VAT invoices that you can use depending on your requirements:

  • Special invoices
  • are used by companies that require tax refunds. You purchase the forms for these invoices from your local tax authority.
  • Normal invoices
  • are used by companies that do not require tax refunds. You purchase the forms for these invoices from any supplier.

Companies that require VAT refunds have to issue their VAT invoices (special invoices) on preprinted,

prenumbered forms. Once they have purchased these forms from their local tax authority, they register them internally, usually with a central invoice-keeping department. This department distributes the forms to the issuing departments, which are responsible for issuing and collecting the VAT invoices.

Companies that do not require VAT refunds issue their VAT invoices (normal invoices) on forms that are numbered but are not registered with the authorities.

Country Version China provides various functions to enable you to keep track of both incoming and outgoing VAT invoices, and to manage the invoices in accordance with government requirements.

Prerequisites

You must have the SD component.

Features

You can reassign official document numbers and void prenumbered forms, for example if a form is misprinted or is lost (see

Voiding and Reassigning Documents).

A special

VAT Invoice Printing Program is available, which enables you to handle and print prenumbered VAT invoices according to Chinese requirements.

Additionally, the system provides you with functions to generate two reports that you are required to submit to the tax authorities every month:

Report on Invoices Purchased, Issued, and Held
Report on VAT Invoices Issued (Special/Normal)

Activities

When you receive a VAT invoice from a vendor printed on a prenumbered form, you post it using the standard procedure, but you also enter the form's official document number in the Reference field.

With regard to outgoing special invoices, you purchase the prenumbered forms from a state-approved agency and record the forms' official document numbers in the system.You create your VAT invoice in the system using the standard SD billing procedure. As you print out the invoices on the prenumbered forms, the system automatically records, in the system document’s Reference field, the official document number of the prenumbered form onto which the system document has been printed.

NoteUser role SAP_ICC_PRENUMBERED_DOCUMENTS is supplied with Country Version China and provides the following transactions:

IDVD

Void Unused Prenumbered Documents

IDDH

Used Prenumbered Forms Report

J1A6

Display and Change Official Document Number (FI/SD)

IDCP

Printout of Billing Documents and Delivery Notes on Prenumbered Forms

You can include any of these transactions in your Favorites. To do this, choose Favorites -> Insert transaction. Enter the transaction in the dialog box that appears and choose Enter.

 

 

 

 

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