What is false invoicing?
什么是虚开发票？
According to the Measures of the People's Republic of China for Invoice Management
No unit or individual may make false invoices as follows:
（1） Issuing invoices for others or for themselves that are inconsistent with the actual business conditions;
（2） Ask others to issue invoices for themselves that are inconsistent with the actual business conditions;
（3） Introduce others to issue invoices inconsistent with the actual business conditions.
根据《中华人民共和国发票管理办法》
任何单位和个人不得有下列虚开发票行为：
(一)为他人、为自己开具与实际经营业务情况不符的发票；
(二)让他人为自己开具与实际经营业务情况不符的发票；
(三)介绍他人开具与实际经营业务情况不符的发票。
Issuing invoices for others or for themselves that are inconsistent with the actual business conditions.
为他人、为自己开具与实际经营业务情况不符的发票。
Give some simple examples:
l Issue invoices without real transactions;
l The apple is sold and the orange is invoiced;
l Three apples were sold, and the invoice was issued for two apples;
l The apple sold is 5 yuan a catty, and the invoice is 7 yuan a catty;
l The goods were sold to A, but the invoice was issued to B;
l Party A sells things to Party B, but Party C issues an invoice to Party B.
Above situation all FALSE！
举几个简单的例子：
l 没有真实交易发生，却开具发票；
l 卖的是苹果，发票开的是桔子；
l 卖了3个苹果，发票开的是2个苹果；
l 卖的苹果5块钱一斤，发票开的是7块钱一斤；
l 东西卖给了甲，发票却开给了乙；
l 甲卖东西给乙，发票却是丙开给乙的。
以上情况均为虚开发票！
To sum up, the seller, buyer, commodity name, quantity, unit price and amount on the invoice must be consistent with the actual business. If there is any inconsistency, it is false.
总结一下，发票上的销货方、购货方、商品名称、数量、单价、金额必须与实际经营业务一致，有一样不一致，即为虚开。
Ask others to issue invoices for themselves that are inconsistent with the actual business conditions.
让他人为自己开具与实际经营业务情况不符的发票。
This is easy to understand, that is, it is not only false to issue invoices that are inconsistent with the actual business situation, but also false to ask others to issue invoices for themselves that are inconsistent with the actual business situation.
For example, in order to avoid paying taxes, Company A's legal representative asked Company B, whose friend is the legal representative, to issue an invoice for Company A without actual transactions. Here, both Company A and Company B make false invoices.
这个比较容易理解，即不仅对外开具与实际经营业务情况不符的属于虚开发票，让他人为自己开具与实际经营情况不符的发票也属于虚开发票的行为。
举个例子，A公司为逃避税款缴纳，A公司法定代表人让好友任法定代表人的B公司在没有实际交易的情况下为A公司开具发票。在这里，A公司和B公司均属于虚开发票的行为。
Introduce others to issue invoices inconsistent with the actual business conditions.
介绍他人开具与实际经营业务情况不符的发票。
In this article, the intermediary is also included in the category of false invoicing. There are two cases. One is professional, that is, it acts as a "broker" between the drawer and the drawee to earn intermediary fees. Whether or not an introduction fee is charged, once such an act occurs, it is illegal.
这一条把中间人也纳入了虚开发票的范畴，这里面又有两种情况，一种是职业的，即以此为赚钱的方式，在开票方与受票方之间充当“掮客”的角色，赚取中介手续费。不管有没有收取介绍费，一旦发生此种行为，都违法。
Consequences of False Invoicing
虚开发票的后果
In light of the seriousness of the circumstances of making false invoices, he shall be sentenced to fixed-term imprisonment of not more than three years or criminal detention and shall also be fined not less than 20000 yuan but not more than 200000 yuan; He shall be sentenced to fixed-term imprisonment of not less than 10 years or life imprisonment and shall also be fined not less than 50000 yuan but not more than 500000 yuan or be sentenced to confiscation of property.
根据虚开发票情节严重程度，处三年以下有期徒刑或者拘役，并处二万元以上二十万元以下罚金； 处十年以上有期徒刑或者无期徒刑，并处五万元以上五十万元以下罚金或者没收财产。
Pragmatic Tips to avoid accidentally break the law
规避违法的实操建议
l Conduct basic online survey before signing the contract.
签合同前做好基础线上调查
l Verify whether the supplier's business license, bank account opening permit and other relevant qualification certificates are true and complete; Whether the goods or services provided are within its business scope; Investigate whether the supplier and its legal representative have bad credit records.
核实供应商的营业执照、银行开户许可证等相关资质证件是否真实、齐全；提供的商品或服务是否在其经营范围之内；调查供应商及其法定代表人是否存在不良信用记录等。
l Keep relevant data：
保存好相关资料：
ü contracts or agreements of relevant business activities, payment vouchers for non cash payment, evident materials for goods transportation, internal vouchers for goods warehousing and outbound, etc.
相关业务活动的合同或者协议、采用非现金方式支付的付款凭证、货物运输的证明资料、货物入库、出库内部凭证等。
l Avoid cash settlement and personal transfer settlement, and try to transfer to the bank account indicated on the invoice and contract.
避免现金结算及个人转款结算方式，尽可能向发票上及合同上注明的银行账户转账。
l Carefully check the invoice information.
谨慎查验发票信息。
ü If the enterprise receives the special VAT invoice, it should check the information on the national invoice inspection website as soon as possible, and print and save the inspection results.
如果企业收到了增值税专用发票，应该第一时间在国家发票查验网站上核查信息，并打印保存好查验结果。
ü 国家发票查验网站：https://inv-veri.chinatax.gov.cn/
ü Check whether the seller's name, tax number, address, telephone number, bank account and account number are consistent with the information in the contract; Whether the commodity name or business item, unit of measurement, quantity, unit price, amount, etc. are consistent with those agreed in the contract.
核对销售方名称、税号、地址、电话、银行开户行及账号是否与合同上的信息一致；商品名称或经营项目、计量单位、数量、单价、金额等是否与合同约定一致等。
Normally SMEs choose to outsource accounting and book-keeping to service companies. But this doesn’t mean you are free of the risk. Reindeer Station strongly advice you at least learn about the basic book-keeping standard and principle knowledge of invoice and taxation when operating your business in China. For consultation, please contact us. All at great value！
一般来说小微企业选择外包会计财务。但是这并不意味着你可以高枕无忧。灵达商务强烈建议你在华运营公司时至少学习基本的会计标准和发票税务相关原则和常识。咨询服务请联系我们。一切物超所值！