Important Notice for FIEs: New Regulation Requires Special Chop for Invoices

All taxation invoices (i.e. invoices issued by the tax authorities) must be affixed with a special invoice stamp, effective on February 1, 2011, according to the Measures of the PRC on the Administration of Invoices promulgated by the State Council on December 20, 2010. Entitles who fail to affix the special tax chop on invoices can be fined up to RMB10,000.

Taxpayers must affix the special invoice chop on all invoices they issue, and the use of financial chops on invoices is no longer valid as of February 1, 2011, according to Notice of the Beijing State Administration of Taxation (SAT) Regarding the Carving and Usage of Special Invoice Chops issued on January 31, 2011.

This notice specifies that taxpayers must have a special invoice chop carved according to specifications given by the Notice on Further Strengthening the Administration of Chops, promulgated by the Beijing Municipal Public Security Bureau and 8 other departments, and the Circular of the SAT Regarding the Relevant Issues in the Style of Special Invoice Chops (Circular). Previous special invoice stamps can be used until December 31, 2011, and invoices issued prior to the promulgation of this notice that are stamped with old special invoice chops continue to be valid.

In Shenzhen, based on our oral consultation with the tax authority, invoices stamped with old special invoice chops will continue to be valid until June 30, 2011.  As for Shanghai, the style of all special invoice chops should comply with the specifications of the Circular (as specified below) by the December 31, 2011. Please consult with your tax official in charge regarding your local tax authority’s requirements.   

All special invoice chops should be carved by an agent designated by the public security bureau.

Sample

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