Since 1 August 2012, taxpayers shall file and pay tax for false-value VAT invoice they issued. Meanwhile, issuing false-value VAT invoice shall be fined according to tax law and the false-value VAT invoice shall not be regarded as official document for deduction of input VAT.
Lee & Lee Associates Comments: The above notice shows that the administration on VAT invoice has been strengthened. In the future, tax authority may continue to announce more strict rules in monitoring and examining various illegal VAT related behavior.
Relevant Rule: Notice of the State Administration of Taxation on Issues Concerning Taxes on Falsely Making Out Special Invoices for Value-added Tax (Announcement of SAT No. 33 [2012]) effective 1 August 2012.
