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	MEASURES FOR THE ADMINISTRATION OF VALUE-ADDED TAX CREDIT OF TRANSPORT INVOICES (TRIAL)

	(No.121 [2003] of the State Administration of Taxation promulgated on October 17, 2003 and shall come into force as of November 1, 2003)


SUBJECT : VALUE-ADDED TAX; CREDIT OF TRANSPORT INVOICES
ISSUING DEPARTMENT : STATE ADMINISTRATION OF TAXATION
ISSUE DATE : 10/17/2003
IMPLEMENT DATE : 11/01/2003
LENGTH : 778 words
TEXT :

Article 1.The present Measures are hereby formulated in order to further strengthen the administration of the relevant value-added tax credit vouchers of transport invoices and to stop up the loopholes in taxation.

Article 2. The present Measures shall apply to any general taxpayer of value-added tax (hereinafter referred to taxpayer) who has obtained transport invoices and should calculate the creditable input tax.

The term "transport invoices" used herein shall refer to:

(1) Freight bills obtained by a taxpayer after paying the freight for the goods purchased (excluding fixed assets);

(2) Freight bills obtained by a taxpayer after paying the freight for the taxable goods sold (excluding the freight advanced that shall not be included in the turnover provided for in Article 12 of the Implementing Rules of the Interim Regulation of the People's Republic of China on Value-Added Tax).

Article 3. The transport invoices issued by a transporter itself for the transport services provided and the transport invoices issued for the transporters and individuals by the intermediary agencies entrusted by the administrations of local taxation in charge of the transporters and the provincial administrations of local taxation shall be creditable. The transport invoices issued by any other entities for the transporters and individuals may not be creditable.

Article 4. With respect to all the transport invoices for which creditable input tax of value-added tax needs to be calculated, the taxpayer shall fill in the List of Value-Added Tax Credit of Transport Invoices according to such transport invoices one by one (see attachment hereto). And when filing tax returns for value-added tax, the taxpayer shall also submit the List of Value-Added Tax Credit of Transport Invoices in addition to the documents to be submitted pursuant to the existing provisions. The taxpayer shall submit the electronic information of the List of Value-Added Tax Credit of Transport Invoices in addition to the paper lists at the same time.

Where the paper documents and the electronic information of the List of Value-Added Tax Credit of Transport Invoices are not submitted separately, the input tax may not be creditable with respect to the transport invoices. If the taxpayer fails to fill in the List of Value-Added Tax Credit of Transport Invoices pursuant to the provisions, or the contents filled in are incomplete, the input tax may not be creditable with respect to the transport invoice concerned.

The information collection software of the lists of value-added tax credit of transport invoices shall be developed by the State Administration of Taxation (SAT) uniformly and shall be provided to the taxpayers free of charge by the competent administrations of state taxation. A taxpayer without the necessary conditions for using the information collection software may entrust an intermediary agency to collect the information.

Article 5. With respect to the transport invoices obtained that are issued after October 31, 2003, a taxpayer shall apply for tax credit with the administration of state taxation in charge within 90 days from the day of issuance of the invoice, and the invoices may not be creditable after that 90 days. With respect the transport invoices obtained that are issued prior to October 31, 2003, the taxpayer must finish the tax credit procedures before January 31, 2004, and after that date, no such invoices may be creditable.

Article 6. The competent administrations of state taxation shall, when handling an application within the period of tax return filing, check the data in the Items "Amount" and "Tax" in the eighth column "7% Credit Rate" in the Appendix to Tax Return for Value-Added Tax (see attachment 2) against the data in the Items "Freight Allowed to Be Calculated for Tax Credit, and Input Tax Creditable Calculated" in the column "Total" of the List of Value-Added Tax Credit of Transport Invoices. If there is any disparity, the form shall be returned to the taxpayer for re-filing.

Article 7. After the period of tax return filing ends, the administrations of state taxation at the county (city) level shall transmit the aggregated electronic information of the List of Value-Added Tax Credit of Transport Invoices to the tax authorities at higher levels through the internet.

For the specific requirements for collection, transmission, sorting out, and comparison of the information of transport invoices, the Implementation Scheme of the Administration Process of Cargo Transport Invoices shall be referred to.

Article 8. Any disparity in comparison shall be investigated by the investigation department first. And if any problem does exist upon verification, such problem shall be dealt with pursuant to the relevant provisions. The investigation department shall pass on the investigation and handling results to the administration department.

Article 9. The present Measures shall take effect as of November 1, 2003.