Fapiao are government-controlled electronic invoices that are mandatory for claiming VAT deductions and expenses in China. Companies must install the invoicing system, purchase quota, and issue e-fapiao in real time — business without fapiao means deductions are denied.
Why it matters: (1) Fapiao is the tax deduction evidence — no fapiao, no VAT credit, no CIT expense deduction, no reimbursement. (2) Since the 2021-2024 digitization push (fully digital e-fapiao nationwide rollout), issuance is real-time through the tax authority platform — paper fapiao are being phased out. (3) For foreign-invested companies: register the invoicing system during tax setup, apply for quota increases as volume grows. (4) Issuing correctness: match buyer's tax ID, correct VAT rate (13%/9%/6% by category), special vs general fapiao (special = buyer deducts input VAT). (5) Receiving fapiao: verify authenticity via the tax platform, and beware 'stamp instead of invoice' offers from suppliers — those are non-deductible and often illegal. (6) Foreign HQ education: your AP team must understand fapiao or Chinese expenses will be systematically unrecoverable.
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Zhonghui Consulting handles FDI registration, WFOE setup, banking, accounting, and foreign-staff compliance end-to-end — fixed fees, English-speaking team, ICPA-licensed delivery.
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