Purchase entry:

Debit: Raw materials

Debit: Taxes payable - VAT input

Credit: Accounts payable Payment

The reversal entry of the red letter invoice:

Debit: Accounts payable

Credit: raw materials

Credit: taxes payable -Input tax transfer out

Extended information:

According to the "Announcement of the State Administration of Taxation on Issues Concerning the Issuance of Red Letter Value-Added Tax Invoices":

Article 1, After a general VAT taxpayer issues a special VAT invoice (hereinafter referred to as a "special invoice"), sales returns, invoicing errors, taxable services are suspended, etc. but do not meet the conditions for invoice invalidation, or due to partial return of sales and occurrence of Sales discounts that require the issuance of special invoices with red letters shall be handled as follows:

(1) If the buyer obtains the special invoice and has used it to declare deductions, the buyer can use the new value-added tax invoice management system ( Fill out and upload the "Information Form for Issuing Special Value-Added Tax Invoices with Red Letters" (hereinafter referred to as the "Information Form", see the attachment for details) in the "Information Form" (hereinafter referred to as the "New System"), and do not fill in the corresponding blue letters when filling out the "Information Form" Special invoice information.

The value-added tax amount listed in the "Information Form" should be temporarily transferred from the current input tax amount. After obtaining the red-letter special invoice issued by the seller, it will be used as an accounting voucher together with the "Information Form". If the purchaser obtains a special invoice but does not use it to declare deductions, but the invoice copy or deduction copy cannot be returned, the purchaser should fill in the corresponding special invoice information in blue when filling out the "Information Form".

If the special invoice issued by the seller has not been delivered to the buyer, and the buyer has not used it to declare deductions and returned the invoice and deduction copies, the seller can fill in and upload the "Information" in the new system surface". When filling out the "Information Form", the seller should fill in the corresponding special invoice information in blue.

(2) The competent tax authority receives the "Information Form" uploaded by taxpayers through the Internet. After the system automatically verifies and passes the verification, it will generate an "Information Form" with the "Red Letter Invoice Information Form Number" and submit it The information is synchronized to the taxpayer’s system.

(3) The seller shall issue a special red-letter invoice based on the "Information Form" that has been verified by the tax authority system, and the invoice will be issued as a negative amount in the new system. The special invoice with red letters should correspond one-to-one with the "Information Form".

(4) Taxpayers can also present the electronic information or paper materials of the "Information Form" to the tax authorities for systematic verification of the contents of the "Information Form".

Article 34 of Chapter 4 of the "Invoice Management Measures Implementation Rules" stipulates: After the invoice is issued, if the sales return occurs and a red invoice needs to be issued, the original invoice must be withdrawn and marked "void" or obtain a valid certificate from the other party.

If a sales discount occurs, a new sales invoice will be issued after the original invoice is recovered and marked "voided". According to this article, the opinions on filling in the local tax red-letter invoice are as follows:

Case 1: If the party receiving the service does not handle the accounting, the invoice can be returned

Process 1: If the invoice If the cancellation is not paid, there is no need to issue a red invoice. The invoice copies that have been issued can be requested from the service recipient, and the word "voided" can be marked on all copies of the invoice as a voucher for deducting the labor income of the current period, and then a replacement invoice will be issued based on the actual amount received.

Process 2: If the invoice has been paid off, a red invoice needs to be issued. The invoice that has been issued can be requested from the service recipient, and the word "voided" should be marked on the invoice. Issue red invoices based on the recovered invoices.

It is required to copy all the copies at once. The stub copy, deduction copy and invoice copy of the red invoice must not be torn off. The deduction copy and invoice copy of the blue special invoice should be pasted on the invoice copy of the red special invoice. At the back, indicate the storage location of the blue-letter and red-letter special invoice accounting pages as the basis for issuance of the red-letter special invoice.

Situation 2. If the service recipient has already done the accounting, the invoice cannot be returned.

Certification passed

1. Write an application report and stamp it with the official seal

2. Issue a "red letter invoice application form" within the anti-counterfeiting tax control , print two copies, and export the data to a USB flash drive.

3. Bring the application form, USB flash drive, original invoice and photocopy of the accounting voucher to the tax assessment department or tax administrator to issue a survey draft.

4. Take back the issued special value-added tax invoice notice with red letters, send it to the invoicing party, and transfer the input tax out.

A red-letter invoice should be issued based on the invoice copied by the other party and relevant certificates (must have the official seal of the unit or the consumer's personal signature and ID number). All copies are required to be copied and printed at one time. The stub copy, deduction copy and invoice copy of the red-letter invoice must not be torn off. The provided information certificates should be pasted behind the invoice page of the red-letter special invoice.

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State Administration of Taxation-Announcement on issues related to the issuance of red-letter value-added tax invoices