Release Date: January 9, 2018 Source: Department of Goods and Services Tax, State Administration of Taxation

 2017 Year 12 In the month, the State Administration of Taxation issued the “Announcement on Several Matters Concerning the Management of Value-Added Tax Invoices” (State Administration of Taxation Announcement). 2017 Year No. 45 Number), clearly starting from 2018 Year 1 Moon 1 The short name for the tax classification codes for goods and services, effective from today, is hereby announced. We now provide answers to relevant questions arising during implementation as follows:
　　 1. Why is the abbreviated tax classification code for goods and services being implemented?
　　To help taxpayers accurately select the tax classification codes for goods and services, the State Administration of Taxation has developed abbreviated names for these tax classification codes. When taxpayers issue value-added tax (VAT) invoices through the upgraded VAT invoice management system, the corresponding abbreviated names for the goods and services tax classification codes will automatically appear and be printed in the “Name of Goods or Taxable Labor Services and Services” or “Item” field on the invoice.
　　 II. Can VAT invoices without the abbreviated tax classification codes for goods and services still be used normally?
　　Due to the large number of taxpayers, the system upgrade will take some time. As a result, some taxpayers have not yet upgraded their systems, leading to the omission of the abbreviated codes for the tax classification of goods and services on the issued value-added tax invoices. Value-added tax invoices that do not include the abbreviated codes for the tax classification of goods and services remain fully valid and do not need to be reissued.
　　Taxpayers should promptly carry out the system upgrade. For taxpayers who are unable to perform the upgrade themselves, the tax authorities and tax control service providers will offer assistance. The tax authorities have already taken, and will continue to take, further measures to provide greater convenience for taxpayers in issuing invoices.