Issue invoices only for real transactions, and use the full small-scale taxpayer exemption
- Top value
- Evidence A
- Keeps you free
- Free
- Takes minutes
- No willpower
In plain words
If you are a small-scale taxpayer paying tax under the simplified method, selling under 100,000 CNY a month or under 300,000 CNY a quarter means no value-added tax. The rate that was 3% is also cut to 1% for the same period. On the other hand, "finding someone to issue invoices to offset costs" is false invoicing (虚开), with a sentence starting at up to 3 years and a fine of 20,000 to 200,000 CNY.
Translated from the Chinese original. Original book, section 12, tip 13. This section describes legal rules, mostly mainland China’s. It is general information, not legal advice; for your own case, talk to a lawyer. Content may be out of date and rules differ by place. When you actually deal with an agency, a doctor or a court, follow what local officials, doctors and lawyers tell you. Disclaimer