Invoicing
Requirement
VAT registrants must issue a tax invoice for every taxable transaction. Invoices must show this information:
- Nature and value of the sold goods or provided services
- Amount of due VAT
For sold goods, VAT must be accounted when tax invoices are issued. This information is used as an evidence for claiming input tax credit. Each tax invoice has one and only one VAT rate. These requirements must be followed:
- VAT must be calculated at the invoice header level instead of the invoice line level.
- VAT must be based on the total invoice amount after discount. Tax invoices must clearly show discounts and allowances.
Tax invoices and credit notes must contain at least these elements:
- The term ‘Tax invoice’ in a prominent place
- Name, address, and tax identification number of the issuer
- Whether the issuer is the headquarter or a branch, in which case the branch number must be provided
- Name and address of the purchaser
- Whether the purchaser is the headquarter or a branch, in which case the branch number must be provided
- Serial numbers of the tax invoice and tax invoice books, if applicable
- Description, value, and quantity of the goods or services
- Amount of chargeable VAT
- Date of issuance
In China, legal requirements for tax invoices are managed through the Golden tax system.
M3 solution
The connections to and from the Golden tax system are supported by M3.
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| MNS100 | Company. Connect Division | Rule for numbers as text on invoice |
| MFS165 | Internal Invoice Series. Open | |
| MFS167 | M3 Settings - Invoice Numbering Rule | |
| CRS405 | FAM Function. Open | |
| CRS500 | Invoice Number Log. Open | |
| ARS120 | Customer Invoice. Enter Manual | FAM function AR20 |
| ARS160 | Interest Invoice. Open | FAM function AR50 |
| ARS380 | Customer Invoice. Create fr Payment Plan | FAM function AR95 |
| COS180 | Maint Invoice. Print | FAM function CO20 |
| FAS130 | Fixed Asset. Sell | FAM function FA50 |
| MFS100 | Internal Invoice. Create | FAM function MF01 |
| OIS180 | CO Invoice. Print | FAM function OI20 |
| POS180 | Project Invoice. Print | FAM function PO20 |
| SOS180 | SO Invoice. Print | FAM function SO20 |