Input Invoice

Input Invoice (进项发票) in Chinese foreign trade and tax practice typically refers to the VAT special invoice or customs import VAT payment certificate obtained from suppliers when a company purchases goods, receives taxable labor or services. Its core function is to offset output tax, reducing the company's actual VAT burden. Usage scenarios include: foreign trade companies purchasing export goods from domestic factories, entrusted processing, receiving freight forwarding or customs declaration services, and customs payment certificates obtained when importing goods. Precautions: 1) Only general VAT taxpayers can deduct; 2) Invoices must be authentic and compliant, with the header, tax ID, goods name, etc. consistent with the contract; 3) In export tax rebates, input invoices are an important basis for calculating the rebate amount; non-compliant invoices may lead to rebate failure; 4) Opposite to 'output invoice', which is issued by the company when selling. Difference: Input invoices represent the tax burden on the 'purchase side', output invoices represent the tax burden on the 'sales side', and the difference between them is the VAT payable. Foreign trade companies should pay special attention to the different treatment of input invoices under the 'exempt, refund' and 'exempt, credit, refund' methods.