How to Issue a Fapiao (发票) in China — Essential for Any Local Company, WFOE, or Representative Office Billing Chinese Clients

CN 1. Prerequisite: Register with the Tax Bureau

Before issuing fapiao, a company must:

1. Register with the State Tax Administration (STA)
2. Obtain General Taxpayer status (to issue Special VAT fapiao)
3. Activate its account in the Golden Tax System (金税系统)
4. Install the official invoicing system (software + tax USB key / 税控盘)

Without this step, it is impossible to generate fapiao.

 

CN 2. Choose the Type of Fapiao

There are two main categories:

1. Special VAT Fapiao (增值税专用发票)

• Used between companies
• Allows VAT deduction
• Most important for B2B transactions
• Requires General Taxpayer status

2. General Fapiao (普通发票)

• Used for retail sales, individuals
• No VAT deduction
• Useful for simple services or small amounts

The company must select the type based on the client.

 

CN 3. Collect Required Client Information

To issue a Special VAT fapiao, mandatory client details include:

• Legal company name (in Chinese)
• Tax Identification Number (Tax ID / TIN)
• Address and phone number
• Bank name and account number
• Nature of product/service (specific tax code)

⚠️A fapiao issued with incorrect information may be invalid.

 

CN 4. Generate the Fapiao in the Golden Tax System

The company must log into the official system:

1. Open the tax invoicing software
2. Insert the tax USB key / 税控盘
3. Enter client information
4. Select the applicable VAT rate (13%, 9%, 6%…)
5. Choose the fapiao type
6. Verify amounts
7. Confirm issuance → the fapiao is generated electronically

From 2023–2025:

✔Fapiao are 100% electronic in most cities

✔Printing on paper is no longer required

✔A unique QR code enables verification

 

CN 5. Send the Fapiao to the Client

The fapiao can be sent:

• As a PDF
• Via a secure link generated by the tax system
• By email, WeChat, or electronic platform

The client will be able to :

✔verify the fapiao online

✔import the file into their accounting system

✔deduct VAT (if Special VAT fapiao)

 

CN 6. Declare the Fapiao in the Monthly VAT Filing

All issued fapiao must be:

• declared monthly
• synchronized with tax authorities
• linked to Chinese accounting standards (PRC GAAP)

The tax system automatically matches:

• issued fapiao
• received fapiao
• bank payments
• VAT returns

 

CN 7. Key Points and Common Pitfalls

❗No fapiao = no deduction for the client

→ Some clients will refuse to pay without a fapiao.

❗Fapiao errors cannot always be corrected

→ Sometimes you must cancel and reissue, with justification.

❗The fapiao must correspond exactly to :

• the actual transaction
• the contract
• the payment

❗The Authorities regularly check :

• amounts
• fapiao numbers
• tax categories
• supporting documents

 

For any information, please contact our team to info@opkofinance.com.