On May 19th, 2017, the China State Administration of Taxation (SAT) published an announcement titled, “Announcement of Matters Regarding the Issuance of Value-added Tax Invoices”.

In this announcement, it states that “from July 1 2017, a corporate purchaser needs to provide a Tax ID when obtaining a general VAT fapiao from a seller. The Tax ID should be on the VAT fapiao. If not, the VAT fapiao will not be seen as a valid tax payment receipt.” This means that corporations should exercise caution when they need issuing VAT fapiao since it appears that the SAT will monitor every corporation’s tax status.