Legally Required Document

Title in original language: 增值税发票

Applicable to: All forestry entities

Holder of Document: Both seller and buyer in China 

Signature required by:
Seal of the seller.

Key considerations when checking the doc:

• Can it be verified via the website: https://inv-veri.chinatax.gov.cn?
• Does the volume or quantity match other documents such as sales contract and delivery note?
• Does the product description match the harvesting permit?
• Check whether the document date is after the timber harvest date (See Harvest Permit)?
• Are the names of the buyer or seller the same as on the delivery note and business contract (if applicable)? VAT invoice with unclear species information for logs and sawn timber?
• To ensure correct supply chain, it is recommended that the supplier provide the delivery note, phytosanitary certificate or statement(s) issued by the seller for the species included in the VAT invoice to verify species information.

Purpose and content of document:
An invoice provide evidence of a transaction. A VAT invoice (Fapiao) is evidence that an enterprise pays tax and tax reimbursement. Usually, invoices are issued by the seller to the buyer. VAT invoices have a uniform format and requirements and are printed and sold by designated tax authorities who monitor and supervise tax collection. Companies will apply for the blank template from the designated tax authorities. Following any transactions, companies enter the necessary information such as price, total amount, name of product etc. into Taxation authority VAT issuing IT system, print the VAT invoice on the hardcopy blank template and seal it with the company stamp. VAT invoices are monitored by the Taxation Authority. Contents of the invoice include invoice code, invoice serial number, uniform social credit code (for both buyer and seller), name and address of buyer and seller, product description, volume/quantity, and the seal of the seller. The VAT invoice is also required between two affiliated companies (e.g., forest and sawmill under the same ownership) when they are independent in accounting/Finance.

Evidence limitations and weaknesses:
The species is not legally required to be included in the VAT invoice of timber or timber products. As a result, for logs and sawn timber, it is recommended to check the sales contract, delivery note, phytosanitary certificate to confirm the species.