Tax authorities clarify the introduction of reverse invoicing, to be implemented by April 30th

• New change in value-added tax: Tax authorities clarify the introduction of reverse invoicing, to be implemented by April 30th
• Reverse invoicing allows buyers to issue invoices to sellers
• Purpose of reverse invoicing in resource recycling industry: facilitate VAT deduction chain, provide legal pre-tax deduction certificates, and promote industry development
• Individuals engaged in selling scrap products can enjoy VAT exemption or reduction policies
• Implementation of reverse invoicing may lead to increase in fake invoices and stronger tax supervision
• Tax authorities will crack down on tax evasion through reverse invoicing and illegal financial incentives for taxpayers in recycling industry
• Companies in focus for tax supervision due to reverse invoicing implementation
• Various situations allow for reverse invoicing, such as agricultural product purchase invoices, second-hand car sales invoices, and photovoltaic power purchase invoices
• Strict tax supervision in all industries allowing reverse invoicing
• Companies must meet conditions, follow correct invoicing procedures, ensure authenticity of transactions, and maintain strict documentation when implementing reverse invoicing
• Cash transactions should be avoided to prevent fund flow issues

Source: 163.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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