What kind of invoice can a resource recycling enterprise that implements ＂reverse invoicing＂ issue？
Recently, State Taxation Administration of The People’s Republic of China issued the Announcement on Issues Related to "Reverse Invoicing" by Resource Recycling Enterprises to Sellers of Scrap Products from Natural Persons (State Taxation Administration of The People’s Republic of China Announcement No.5, 2024), clarifying that since April 29, 2024, sellers of scrapped products from natural persons will sell scrapped products to resource recycling enterprises, and qualified resource recycling enterprises can issue invoices to sellers (referred to as "reverse invoicing"), which will help to promote large-scale equipment renewal and trade-in of consumer goods.
What kind of invoice can a resource recycling enterprise that implements "reverse invoicing" issue? Let’s get to know each other ↓
Q: What invoices can be issued by resource recycling enterprises that implement "reverse invoicing"?
Answer: Considering the fact that taxpayers need invoices for pre-tax deduction of income tax, and taxpayers who apply the general VAT taxation method also need special VAT invoices to deduct the input tax, therefore, if the resource recycling enterprises belong to the general VAT taxpayers who apply the general VAT taxation method, they can issue special VAT invoices and ordinary VAT invoices in reverse; If it is a small-scale VAT taxpayer, or a general VAT taxpayer who chooses to apply the simple VAT taxation method, ordinary invoices may be issued in reverse, and special VAT invoices may not be issued in reverse. If the resource recycling enterprise sells scrapped products and the VAT tax calculation method changes, it shall apply for adjusting the ticket type of "reverse invoicing" and correctly invoice according to the selected applicable VAT tax calculation method. Resource recycling enterprises can deduct the tax indicated on the special VAT invoice issued in reverse according to regulations.
Case 1: Company A, a resource recycling enterprise, belongs to the general taxpayer of value-added tax, and its sales of scrapped products are subject to the general taxation method of value-added tax, and it has obtained the qualification of "reverse invoicing". In June, 2024, Company A purchased waste plastics from natural person A who sold waste products, and the purchase amount was 2.02 million yuan. For the above-mentioned acquisition business, Company A chooses to issue a special VAT invoice in reverse, indicating that the sales excluding tax is 2 million yuan and the tax amount is 20,000 yuan. Then Company A can deduct the above-mentioned input tax of 20,000 yuan when calculating the VAT payable in June 2024.
Case 2: Company A, a resource recycling enterprise, belongs to the general taxpayer of value-added tax, and its sales of scrapped products are subject to the simple tax calculation method of value-added tax, and it has obtained the qualification of "reverse invoicing". In July, 2024, Company A purchased waste plastics from natural person A who sold waste products, with the purchase amount of 1.01 million yuan. For the above-mentioned acquisition business, because Company A has chosen to apply the simple tax calculation method of value-added tax, it can only issue ordinary invoices to natural person A in reverse, and cannot issue special invoices for value-added tax in reverse.
Original title: "What kind of invoice can a resource recycling enterprise that implements" reverse invoicing "issue? 》
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