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Can Small-Scale Taxpayers Issue Special VAT Invoices by Themselves in China?

The special value-added tax (VAT) invoice, also called special VAT fapiao, is an essential document used to offsett input VAT from output VAT, thereby relieving the taxpayer from VAT payment liabilities.

Traditionally, a company must obtain VAT general taxpayer status in order to be able to issue special VAT invoices. However, in August 2016, China launched a pilot program to allow small-scale taxpayers in the hotel industry to issue special VAT invoices by themselves. This pilot program has since expanded several times to include more sectors and a wider geographical scope.

Source: china-briefing.com