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mem0998
Reacher
Joined: May 25, 2005
Posts: 265
Location: NJ
Status: Offline
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 Posted:
Aug 18, 2006 - 04:39 PM |
 
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| Post subject: receipts? |
Ok, today I was at the City Mart, and a woman was waiting for a fa piao (spelling?), even though she had a receipt from the register. Am I supposed to be getting these too? What do I do with them? Does it have to do with taxes?
I was just on the thread about the mini golf place, and the poster kept asking for his fa piao for 3-4 weeks. It must be important, but no one has told me to keep or get fa piao, except for taxi's in case you leave something or had bad service.
Any insight into this? |
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Adam7
Rocker
Joined: May 11, 2004
Posts: 759
Status: Offline
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Aug 18, 2006 - 04:49 PM |
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Companies need them to explain where cash is going. Standard register print outs do not suffice. If you have a benefits portion to your salary you need to start collecting Fa Piao. Also, to claim anything as an expense you need a Fa piao, for the same reason, so your company can explain where the money went.
The tax dept does this to force people to ask for fa piao as many service companies only pay tax on the fapiao they issue. Thus if you eat at a restuarant and don't ask for the fa piao they don't have to pay tax. Similarly the tax dept introduced the luck draw scratch off on restaurant receipts, this is to get you to ask for the receipt, so the place has to pay tax.
back to front system...you betcha.
Hope this helps |
_________________
Why? Just tell me why? |
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mem0998
Reacher
Joined: May 25, 2005
Posts: 265
Location: NJ
Status: Offline
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Aug 19, 2006 - 07:34 AM |
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A benefits portion to my (or my husband's, actually) salary? What is that? Meaning, some expats get a certain things or an amount spent refunded to them maybe monthly?
The person asking for a receipt was a woman in the City Mart grocery store. She just looked like she was shopping for her household food. So you are saying that maybe she has a benefits portion to the salary received?
I'm still a little confused..... |
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lilstar
Reacher
Joined: June 20, 2005
Posts: 298
Status: Offline
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Aug 19, 2006 - 08:27 AM |
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Fa piao also can be used as warranty card for certain items in supermarket, eg. electronics. Other than warranty card that have been provided inside packaging, they also need the invoice/fapiao to show that the items were purchased in their shops/supermarkets.
The lady you mentioned, if she's a foreigner, perhaps her husband has daily expenses allowance? Who knows? That's why she needs fa piao. Local chinese dont recognize receipt since it's not taxable, they use taxable invoice/fapiao |
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Pierrro
Barker
Joined: Apr 24, 2004
Posts: 179
Status: Offline
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Aug 19, 2006 - 09:39 AM |
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But there is a game on the Fa Piao. You scratch one part of it (never know which) and you have a chance to win 5 - 10 - 50 ?(not sure) Rmb... This is a very good incentive in China (anywhere in the world actually). The woman in front of you was probably asking for the Fa piao to play the scratch game...
BTW does anybody know what is the max you can win with a Fa Piao (if they have 1 million Kwai price I might start to play also) ? Anybody ever won anything here  |
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English-French : Second-hand books in Shanghai http://www.shanghaiexpat.com/MDForum-viewtopic-t-85137.phtml |
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sioux
Ranter
Joined: Sep 11, 2005
Posts: 552
Location: Putuo, Shanghai
Status: Offline
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Aug 19, 2006 - 11:56 AM |
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yes, i tried to win, but only 5 RMB |
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sinned69
Veejay
Joined: Sep 01, 2004
Posts: 1814
Location: China, Middle East, Asia Pacific
Status: Offline
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Aug 19, 2006 - 01:51 PM |
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for those that have the benefit of a expense account or reimbursement clause then a fapiao needs to be provided to the accountant or finance dept of the company/employer, but not all fapiao's can be honored or reimbursed, so beware. what i mean is that a company may not reimburse for every type of purchase (fapiao), such as shopping at supermarkets etc. and also there are many tricks that can be played on the unsuspecting and the issuance of the fapiao... to indepth to go into here. suffice to say that one needs to find out exactly what can and can;t be reimbursed as part of the contract and finance/accounts dept.
just amke sure that the fapiao has two red stamps on it, one or both of which might be actually printed on rather than stamped on, like those issued through the MRT (subway) or taxis etc. even so additionally make certain that if the stamps are "stamped" on using ink that all the characters can be read easily, because if they cannot the tax dept can and does refuse them, which in turn means that the accountant or finance dept cannot honor (reimburse) them.
no getting hold of "fake" fapiao is a whole other matter...  |
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qing nin shao deng |
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sinned69
Veejay
Joined: Sep 01, 2004
Posts: 1814
Location: China, Middle East, Asia Pacific
Status: Offline
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Aug 19, 2006 - 01:51 PM |
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fapiao's are different from a receipt and only the fapiao can be used for expense related claims and taxation issues. a receipt in relation to claiming back expenses for a company is worthless as they will not be honored as they are not acceptable to the taxation dept.
for those that have the benefit of an expense account or reimbursement clause then a fapiao needs to be provided to the accountant or finance dept of the company/employer, but not all fapiao's can be honored or reimbursed, so beware. what i mean is that a company may not reimburse for every type of purchase (fapiao), such as shopping at supermarkets etc. and also there are many tricks that can be played on the unsuspecting and the issuance of the fapiao... to indepth to go into here. suffice to say that one needs to find out exactly what can and can't be reimbursed as part of the contract and finance/accounts dept.
just amke sure that the fapiao has two red stamps on it, one or both of which might be actually printed on rather than stamped on, like those issued through the MRT (subway) or taxis etc. even so additionally make certain that if the stamps are "stamped" on using ink that all the characters can be read easily, because if they cannot the tax dept can and does refuse them, which in turn means that the accountant or finance dept cannot honor (reimburse) them.
now getting hold of "fake" fapiao is a whole other matter... |
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qing nin shao deng |
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gooose
Newbie
Joined: Feb 11, 2009
Posts: 5
Status: Offline
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June 10, 2009 - 05:19 PM |
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anybody selling fa piao's? I've heard that some people sell it for 4% it's indicated value... |
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tihZ_hO
Post Roaster
Joined: Feb 17, 2004
Posts: 4248
Location: Shanghai / Jakarta
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June 10, 2009 - 05:44 PM |
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^ Yes - that is correct.
Lehman Brown:
There have been major changes in all facets of Chinese taxation in recent months, especially in the country's capital, Beijing. Whether it be a government crackdown on individual income tax avoidance (targeting income earners over 100,000 RMB per year), or the constant decreasing customs duties across all commodities, keeping up-to-date with China's tax regulation is a constant task.
In this "insights@lehmanbrown special", we look at the major changes affecting the business tax collection system in Beijing. Whilst the system may not seen like a drastic change from the arguably inefficient current system, there could be upsides for those readers living in Beijing ... in the form of cold hard cash!
In China there are essentially 3 main types of corporate taxes:
1. Corporate Income Tax (based on business profits) and generally at 33%,
2. Value Added Tax (based on sales of goods) usually at 17% and
3. Business tax (based on sales of services), generally between 3-5%.
Business taxation in China is collected at both local and national levels, whilst Valued Added Tax (VAT) and Corporate Income Tax (CIT) are collected predominately at national levels (they are also collected at local levels in some instances).
Business tax:
The "fa piao" (发票) system is the backbone for the tax authorities to calculate and collect business tax. A "fa piao" is the generic name for an "invoice" which is provided by businesses to consumers for the amount of services or goods rendered.
For example, if a consumer was to get a haircut they would collect (be provided with) a service invoice "fuwu ye fa piao" (服务业发票) for the cost of the service, on which the hairdresser would pay business tax. This business tax is collected by the local tax department.
If, however the consumer was then to buy a pair of scissors from the hairdresser, they would be provided with a goods invoice "zengzhi shui fa piao" (增值税发票) for the costs of the goods, on which the hairdresser would pay Value added tax (VAT). This tax would be payable to the national tax department.
The old system:
The above example demonstrates the degree of complexity and bureaucracy of the current "fa piao" system for corporate tax collection in China. However, these problems are even greater exacerbated by the fact that the burden for collecting the "fa piao" invoices rests with the consumer. Thus, if the consumer does not request the invoice (there was no incentive for individual consumers to collect the invoices on the tax authority's behalf), and the business does not offer them, the government does not have any audit trail or method for accurately calculating VAT and Business Taxes. Similarly, when a consumer did request a fa piao generally there was a bargaining process which followed as to what the amount of the invoice should be.
As a result there was a large problem of underreporting of services and goods sales in China and, thus, under-collection of taxation. This vicious cycle then continues as local tax departments, to combat this underreporting, arbitrarily estimate sales figures on which businesses are obliged to pay taxes. Of course these figures would vary widely depending on the person at the the tax authority, the mood they were in, the relationship that the business had with the person and many other such factors.
On the other side, business consumers could claim their purchased fa piao's as business expenditure and therefore reduce their profits (thereby reducing their corporate income tax payable). This saw an outbreak of fake fa piao's as businesses tried to dodge the tax man. |
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Battered deep fried butter, donut hamburgers, is it any wonder America has more body mass than China. China is the counterweight for America or else the Earth would be unbalanced and fly into the sun. |
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