The former is relatively simple, while the latter is relatively complicated. The Notice of State Taxation Administration of The People's Republic of China on Amending the Provisions on the Use of Special VAT Invoices (Guo Shui Fa [2006] 156) stipulates in principle the invalidation of special invoices and the issuance of red-ink special invoices, and the Supplementary Notice of State Taxation Administration of The People's Republic of China on Amending the Provisions on the Use of Special VAT Invoices (Guo Shui Fa [2007] 18) stipulates the issuance of red-ink special VAT invoices. Guo Shui Fa [2006] 156 stipulates that in the month when special invoices are issued, the invoices and deductions returned by general VAT taxpayers meet the conditions for invalidation, which shall be regarded as invalid. If an error is found during issuance, it can be invalidated immediately.
The provisions on invalid conditions are as follows. If the seller finds mistakes when issuing special invoices, and the invoice copy and deduction copy are not delivered to the buyer, they can be invalidated immediately in the current month. In addition, three conditions must be met when the special invoice is invalidated again: first, the collection and deduction time of the returned invoice shall not exceed the month when the seller issues the invoice; Second, the seller did not copy taxes and did not keep accounts; Third, the buyer is not authenticated or the authentication result is "the taxpayer identification number authentication does not match" or "the special invoice code does not match the number authentication". Buyers need to pay special attention to these conditions. It is necessary to obtain a special invoice on the spot, carefully check it, and immediately ask the seller to re-issue a special invoice when finding mistakes; If a special invoice is obtained afterwards, the problem will be found in time and handled in time according to the above cancellation conditions.