An Output Invoice is a special VAT invoice or ordinary invoice issued by a foreign trade enterprise to the buyer when selling goods or providing taxable services within China, used to record sales revenue and output VAT. It mainly applies to domestic sales and serves as the basis for calculating output VAT. Unlike a Commercial Invoice used for export, an Output Invoice is used for domestic tax filing, while a Commercial Invoice is used for customs declaration and foreign exchange collection. Notes: 1. It must be issued in accordance with the regulations of the State Administration of Taxation, with truthful and complete content; 2. The tax rate must be correctly selected according to the type of goods or services; 3. It corresponds to input invoices and is used for VAT deduction; 4. In export business, an Output Invoice is generally not applicable; instead, a Commercial Invoice is used. The difference from a Proforma Invoice is that an Output Invoice is a formal transaction voucher with legal effect. Foreign trade practitioners need to distinguish between invoice types for domestic sales and exports to avoid tax risks.
📝 Examples
1. Our company sold a batch of goods to a domestic customer and has issued a special VAT invoice (Output Invoice) at a tax rate of 13%. The customer is requested to verify and deduct it in a timely manner. (Note: In domestic sales business, an Output Invoice is issued for tax processing.) 2. The finance department checks this month's Output Invoices against sales revenue to ensure accounting consistency and file VAT returns. (Note: Output Invoices are used for corporate tax filing and accounting reconciliation.)
💡 Foreign Trade Tips
Foreign trade terms are the foundation of international business communication
Trade practices may vary slightly by country; pay attention when using them
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