Can a VAT invoice prove a Chinese company is real?
Question
A China supplier issued me a sample of a special VAT invoice with the tax number, company name and billing information. I want to know whether getting a value-added tax invoice can prove that the company is a real and formally registered enterprise, or whether the invoice itself can also be forged.
Answers (1)Write Your Answer ↓
A special value-added tax invoice is indeed a valuable verification document, but you must distinguish clearly what it can prove and what it cannot prove.
What can it prove? The special VAT invoice is issued by the China tax system and has a unique invoice number and invoice code. A real invoice means that the invoicing company is indeed registered in the China tax system and has normal taxpayers. At least at the moment of invoicing, the company is existing and the tax status is normal. If the invoice number you get can be found on the value-added tax invoice inspection platform of the State Administration of Taxation, and the query result is consistent with the information on the invoice, then the invoice is real and the company's tax identity is also real.
Can't prove anything? The invoice really cannot prove the company's operating capabilities, production capacity or credit status. A shell company that has just been registered for three months can issue invoices as long as it has tax registration. Moreover, judging from our verification experience, although false invoicing is severely cracked down on China, there are indeed some gray operations. For example, the invoices of some companies are authentic and can be found by the tax system, but the company itself may be a company that only issues invoices and does not actually operate.
Nowadays, China fully implements electronic value-added tax invoices, and there are fewer and fewer special paper invoices. Electronic special invoices have the same effect as paper. When you get the PDF file of the electronic ticket, you can also go to the verification platform for verification. There is one detail to note: In the past, some suppliers used to pass ordinary invoices as special invoices and sent them to customers. The inspection paths and effects of these two invoices are different. When inspecting, you must confirm that the other party issued a "special VAT invoice" instead of ordinary invoice.
Treat VAT invoices as part of multiple verifications rather than the only certificate. Only when the invoice verification + CheckChinaCompany credit report is passed at the same time can you have a solid foundation for judgment. If the supplier cannot issue a VAT invoice, or the invoice issued cannot be verified, no matter how beautiful the other party's other materials are, they must stop it.
Checking the authenticity of invoices is very simple. Nowadays, there is a QR code in the upper left corner of the electronic version of VAT invoices in China. As long as you scan the code through WeChat, the invoice information can be displayed and it can also prove that it is a real invoice. As long as the invoice is authentic, it can be proved that it is an authentic and officially registered enterprise.
However, you must pay attention to whether the company name in the invoice is the Chinese name of your supplier. Many scammers or intermediaries like to use invoices from other companies to pretend to be their own company. At the same time, you need to pay attention to the date of the invoice. It must be a recent invoice to be meaningful.
Verifying whether a real company is only the first step. It is not difficult to get a shell company that can issue invoices in China.
People Also Ask
Can international buyers directly verify the authenticity of Chinese VAT invoices?
Yes, they can, but the verification platform is available only in Chinese, so a browser translation tool is required. You'll need to obtain the invoice code, number, and the company's tax ID, then enter this information on the State Taxation Administration's verification platform. If the verification results do not match the invoice you received, it indicates that the invoice is invalid.
If a VAT invoice isn't issued, does that mean the company is fake?
Not necessarily. Some small suppliers may temporarily refrain from issuing invoices due to their business practices. The company itself may be legally registered; it's just that the invoicing process wasn't followed for this specific order. This situation is quite common. You cannot conclude that the company is fake solely because it did not issue an invoice.
Which is a stronger indicator of a genuine Chinese company: a business-to-business bank transfer or a VAT invoice?
A business-to-business bank transfer is generally more reliable than an invoice, as opening a business bank account requires the company to submit a complete set of documents for bank review and approval. Invoices carry the risk of fraudulent issuance, whereas the requirements for opening a business bank account are stricter. When collaborating with a company, prioritize payment via a business bank account for greater security.