VAT Invoice

A VAT Invoice is a statutory document issued by a seller when selling goods, providing processing, repair and replacement services, services, intangible assets, or real estate within China, recording the VAT amount and sales amount. In foreign trade, it is mainly used for export tax rebates, input VAT deduction in domestic procurement, and corporate financial accounting. Usage scenarios include: export enterprises purchasing raw materials from domestic suppliers and obtaining special VAT invoices for claiming export tax rebates; foreign trade comprehensive service enterprises reviewing the special VAT invoices obtained by small and medium-sized export enterprises when handling tax rebates on their behalf. Precautions: Only special VAT invoices (not ordinary invoices) can be used for input VAT deduction and export tax rebates; invoices must be authentic, legal, and complete, and the product name, quantity, and amount must be consistent with the customs declaration form and contract; issuing or accepting false invoices will result in tax penalties or even criminal liability. Differences from other terms: A VAT Invoice is different from a Commercial Invoice, which is a document issued by the exporter to the importer detailing goods and prices for customs declaration and settlement; it is also different from a Proforma Invoice, which is only used for quotations or applying for letters of credit and has no tax function.