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Official Reply of the State Administration of Taxation on Issues concerning Invoicing by Taxpayers for the Sale of Grain Temporarily Reserved by the State

Document No.:Shui Zong Han [2017] No.422

Taxes:Value-added Tax

Date of Promulgation:

IssueDepartment:State Administration of Taxation

Date of Implementatio:2017-10-09


Official Reply of the State Administration of Taxation on Issues concerning Invoicing by Taxpayers for the Sale of Grain Temporarily Reserved by the State

Issued by: State Administration of Taxation
Document No.: Shui Zong Han [2017] No.422
Date of Issuance: 2017-10-09

Inner Mongolia Autonomous Region Office of the State Administration of Taxation:

Your “Request for Instructions on Matters relating to the Issuance of Value-Added Tax Invoices for the Sale of Temporarily Reserved Grain by Auction Clarified by the China Grain Reserves Corporation” (Nei Guo Shui Fa [2017] No.71) has been well received. Because the auction price of some grains temporarily stored by the State is lower than the inventory cost, and the actual payment received by enterprises not affiliated to the China Grain Reserves Corporation (hereinafter referred to as the SinoGrain), which undertake the tasks of grain temporarily stored by the State and directly assume the obligation of loans, is lower than the inventory cost, therefore, they cannot issue VAT invoices to enterprises affiliated to the SinoGrain according to the amount of inventory cost according to the provisions of the “Official Reply of the State Administration of Taxation on Issues concerning Invoicing by Taxpayers for the Sale of Grain Temporarily Reserved by the State” (Shui Zong Han [2015] No.448). In view of the above circumstances, the relevant issues concerning issuing the VAT invoices for the sale of grains temporarily stored by the State (including soybean, the same below) by taxpayers are hereby replied as follows:

I. For grains temporarily stored by the State, if they are sold at a price lower than the inventory cost, enterprises not affiliated to the SinoGrain shall issue value-added tax (VAT) invoices to those affiliated to the SinoGrain according to the transaction price; however, when the aforesaid grains are sold at the inventory cost or at a price higher than that cost, enterprises not affiliated to the SinoGrain shall issue VAT invoices to those affiliated to the SinoGrain according to the inventory cost.

II. Enterprises directly subordinate to the SinoGrain shall issue VAT invoices according to the transaction price of the State's temporary grain reserves to the buyers.

For cases which have arisen but not yet been settled, the Reply shall apply. Since the date of publication of this reply, the “Official Reply of the State Administration of Taxation on Issues concerning Invoicing by Taxpayers for the Sale of Grain Temporarily Reserved by the State” (Shui Zong Han [2015] No.448) shall be simultaneously repealed.

The replay is hereby notified as above.

State Administration of Taxation
October 9, 2017

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