What to do after an invoice is invalidated
In daily financial work, invoice voiding is a common operation. Whether due to a filling error, canceled transaction, or other reasons, correctly handling voided invoices is critical for businesses and individuals alike. This article will introduce in detail the processing procedures, precautions, and relevant laws and regulations after invoices are invalidated to help you avoid unnecessary financial risks.
1. Common reasons for invalidation of invoices
Void invoices are usually caused by the following reasons:
| Reason type | Specific instructions |
|---|---|
| Fill in error | Invoice information (such as amount, header, tax number, etc.) is filled in incorrectly |
| transaction canceled | Buyer and seller negotiate to cancel transaction |
| Repeat invoicing | Multiple invoices issued for the same transaction |
| system problem | Invoicing system failure leads to abnormal invoice information |
2. Specific process for invalidating invoices
In different circumstances, invoice invalidation is handled differently:
| Invoice status | Processing method | Things to note |
|---|---|---|
| No paper invoice issued | Void directly in the invoicing system | The invalidation operation needs to be completed within 24 hours |
| Issued but not delivered | Void and withdraw the invoice copy in the system | All copies must be complete |
| Delivered to customer | Need to issue a red letter invoice for offset | It is necessary to obtain the "Information Form for Issuing Red Letter Invoices" issued by the other party |
| Electronic invoice | Redundant processing in the invoicing system | Need to complete the operation within 72 hours |
3. Time requirements for invalidation of invoices
The invalidation time limits for different types of invoices are as follows:
| Invoice type | void time limit |
|---|---|
| Special value-added tax invoice | Issues issued in the current month can be voided, and red credits are required if the date is exceeded. |
| Ordinary invoice | Issues issued in the current month can be voided, and red credits are required if the date is exceeded. |
| Electronic ordinary invoice | Can be flushed within 72 hours after issuance |
| Motor vehicle sales invoice | Must be invalidated on the day of issuance |
4. Things to note when invalidating invoices
1.Voided invoices must be complete: When a paper invoice is invalidated, all copies (invoice copy, accounting copy, stub copy, etc.) must be recovered and stamped with "voided" seal.
2.Process in time: The voiding operation must be completed within the specified time limit. If it is overdue, it will not be voided directly and can only be processed by issuing a red invoice.
3.Keep invalid records: All invalidated invoices must be properly kept for at least 5 years to prepare for inspection by the tax authorities.
4.Prevent duplicate invoicing: If you need to re-issue an invoice after it has been invalidated, you should ensure that the original invoice has been completely invalidated to avoid issuing multiple valid invoices for the same transaction.
5.Special requirements for electronic invoices: After the electronic invoice is invalidated, it should be clearly marked in the invoicing system and a notification of invalidation should be sent to the purchaser.
5. Legal risks of invalid invoices
Improper handling of voided invoices may bring the following risks:
| Risk type | possible consequences |
|---|---|
| False invoices | Suspected of tax evasion, face administrative penalties or even criminal liability |
| Lost invoice | Failure to void normally may result in double taxation |
| Violation and invalidation | Confirmed by tax authorities to be in violation of regulations, affecting tax credit rating |
| Discrepancies between accounts and facts | Causing financial chaos and increasing audit risk |
6. Frequently Asked Questions
Q: How long do voided invoices need to be kept?
A: According to the "Tax Collection Management Law", invalid invoices should be kept for 5 years.
Q: Can electronic invoices be voided?
A: Electronic invoices cannot be voided directly and can only be offset by issuing a red invoice.
Q: Can invoices that span multiple months still be voided?
A: Cross-month invoices cannot be voided directly and must be processed by issuing a red letter invoice.
Q: Do I need the other party’s consent to cancel an invoice?
A: If an invoice that has been delivered to the buyer is invalidated or red-charged, the buyer must cooperate with the issuance of the "Information Form for Issuing Red Letter Invoices".
7. Summary
Correctly handling voided invoices is an important part of financial management. Enterprises should establish a complete invoice management system, standardize the invoice invalidation process, and ensure compliance with tax law requirements. For financial personnel, mastering the relevant regulations and operating skills for invalidating invoices can effectively prevent tax risks and safeguard the legitimate rights and interests of enterprises.
In daily work, it is recommended to regularly check the usage of invoices and promptly discover and process invoices that need to be voided. If you are not sure how to handle the situation, you should consult the tax authorities or professional tax consultants in time to avoid unnecessary trouble caused by improper operation.
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