Q: Ordinary taxpayers need to issue a special red-ink VAT invoice. How to deal with it? Answer: According to Article 14 of the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Amending the Provisions on the Use of Special VAT Invoices (Guo Shui Fa [2006]156), if a general taxpayer obtains a special VAT invoice, and the sales amount is returned, invoiced incorrectly, or fails to meet the cancellation conditions, or the sales amount is partially returned or discounted, the buyer shall fill out an application form for issuing special VAT invoices in red ink to the competent tax authorities (. The blue special invoice corresponding to the application form shall be certified by the tax authorities. If the certification result is "qualified" and the VAT input tax has been deducted, the general taxpayer does not fill in the corresponding blue special invoice information when filling out the application form. If the certification result is "the taxpayer identification number does not match the certification" or "the code and number of the special invoice do not match the certification", the general taxpayer should fill in the corresponding blue special invoice information when filling out the application form. Article 15 of Guo Shui Fa [2006] 156 stipulates that the application form shall be made in duplicate: the first copy shall be kept by the buyer and the second copy shall be kept by the competent tax authorities of the buyer. The "Application Form" shall be stamped with the special financial seal of the general taxpayer. Article 16 stipulates that the competent tax authorities shall, after examining the application forms filled out by ordinary taxpayers, issue a red-letter notice on the issuance of special VAT invoices (hereinafter referred to as the notice). The notice should correspond to the application form one by one. Article 17 of Guo Shui Fa [2006] 156 stipulates that this notice is made in triplicate: the first copy shall be kept by the competent tax authorities of the buyer, and the second copy shall be sent by the buyer to the seller for keeping; The third copy shall be kept by the buyer. The notice shall be stamped with the seal of the competent tax authority. "Notice" shall be bound into volumes on a monthly basis and managed in accordance with the provisions on the storage of special invoices. Article 18 of Guo Shui Fa [2006] 156 stipulates that the buyer must temporarily transfer the value-added tax amount listed in the notice from the current input tax amount, and those that are not deducted from the value-added tax amount can be included in the current input tax amount. After obtaining the special invoice in scarlet letter issued by the seller, it will be used as the accounting voucher together with the retained copy. In any of the circumstances listed in the fourth paragraph of Article 14 of these Provisions, the input tax shall not be transferred out. Article 19 of Guo Shui Fa [2006] 156 stipulates that the seller shall issue a special red invoice based on the notice provided by the buyer, which shall be issued as a negative output in the anti-counterfeiting tax control system. The special invoice in scarlet letter should correspond to the notice one by one. According to Article 1 of the Supplementary Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Amending the Provisions on the Use of Special VAT Invoices (Guo Shui Fa [2007] 18), after issuing special VAT invoices (hereinafter referred to as special invoices), general VAT taxpayers need to issue special VAT invoices in red because of sales returns, sales discounts, billing errors and other reasons. According to different situations, the following measures shall be taken respectively: (1) If the special invoice deduction stamp and invoice stamp cannot be authenticated, the buyer shall fill in the Application Form for Issuing Red-ink Special VAT Invoice (hereinafter referred to as the Application Form), fill in the specific reasons and the corresponding special VAT invoice information in blue on the application form, and the competent tax authorities shall issue the Notice for Issuing Red-ink Special VAT Invoice (hereinafter referred to as the Notice) after examination. The buyer will not transfer the input tax. (2) If the goods purchased by the buyer do not fall within the scope of VAT deduction, and the special invoices obtained are not authenticated, the buyer shall fill in the application form, fill in the specific reasons and the information of the corresponding special invoices in blue on the application form, and the competent tax authorities shall issue a notice after examination. The buyer will not transfer the input tax. (3) If the buyer refuses to issue a special invoice due to an error in invoicing, the seller shall fill in the application form to the competent tax authorities within the certification period of the special invoice, and fill in the specific reasons and the information of the corresponding special invoice in blue on the application form. At the same time, the buyer shall provide written materials to explain the reasons for rejection, the wrong specific items and the correct contents, and the competent tax authorities shall issue a notice after examination and confirmation. The seller shall issue a special red invoice and notice. (4) If the special invoice is not delivered to the buyer due to billing errors and other reasons, the seller shall fill in the application form to the competent tax authorities within the month following the issuance of the wrong special invoice, and fill in the specific reasons and the information of the corresponding special invoice in blue on the application form. At the same time, the seller shall provide written materials to explain the specific reasons, specific items and correction contents of the error, and the competent tax authorities shall issue a notice after examination and confirmation. The seller shall issue a special red invoice and notice. (5) In case of sales return or sales discount, in addition to handling according to the provisions of the Notice, the seller should also submit a copy of the corresponding accounting voucher for this business to the competent tax authorities for the record after issuing a special red invoice. If the special invoice is not delivered to the buyer, the seller shall fill in the application form to the competent tax authorities within the next month after issuing the wrong special invoice, and fill in the specific reasons and the information of the corresponding special invoice in blue on the application form, and provide the written materials issued by the seller explaining the specific reasons, the specific items of the error and the correct contents, and issue a notice after being examined and confirmed by the competent tax authorities. The seller shall issue a special red invoice and notice. (5) In case of sales return or sales discount, in addition to handling according to the provisions of the Notice, the seller should also submit a copy of the corresponding accounting voucher for this business to the competent tax authorities for the record after issuing a special red invoice.

Legal objectivity:

"Provisional Regulations on Value-added Tax in People's Republic of China (PRC)" Article 21 When making taxable sales, a taxpayer shall issue a special VAT invoice to the buyer who asks for a special VAT invoice, and indicate the sales amount and output tax separately on the special VAT invoice. Under any of the following circumstances, a special VAT invoice may not be issued: (1) The buyer of taxable sales is an individual consumer; (2) The tax exemption clause applies to taxable sales.