Question
Can the tax authorities obtained by the general taxpayer from the individual transporter issue transport invoices on their behalf to offset the tax deduction
Answer
According to the provisional regulations of the people's republic of china on value added tax (state council decree no. 538 of 2008):
“article 8 taxpayers buy goods or receive value added tax (vat) paid or charged for taxable labour (hereinafter referred to as goods purchased or taxable labour), which is the amount of the tax。
The following additions are granted to be deducted from the sales:
(iv) the purchase or sale of goods and the payment of transport costs in the course of production, calculated on the basis of the amount of transport costs and the deduction of 7 per cent as stated in the transport cost settlement document. A formula for calculating the progressive tax:
Inward taxes = transportation costs x deduction rate
Article 9 provides that a taxpayer who buys goods or taxable labour and who obtains a value-added tax deduction certificate that is not in conformity with the law, administrative regulations or the relevant provisions of the tax authorities of the state council, shall not receive any deduction from the tax。
The items for which credit is granted and the adjustment of the deduction rate are determined by the state council.”
In accordance with the rules for the implementation of the provisional regulations of the people's republic of china on value added taxes (decree no. 50 of 2008 of the ministry of finance, general state tax administration):
“vat deduction certificates, referred to in article 9 of regulation 19, refer to vat-specific invoices, customs import vat-specific contributions, farm purchase invoices and farm sales invoices, and transport cost settlement documents.”
In accordance with the above-mentioned provisions, transport invoices issued on behalf of the tax authorities obtained by your company from the individual transport units are subject to the required crediting。
