Cards such as catering cards, beauty cards and fitness cards that are paid before consumption, and multi-purpose prepaid cards that can be used across regions, industries and legal persons, such as Fuka Shang Tong cards, have developed rapidly, bringing convenience to consumers, but also becoming a "gray zone" lacking supervision. If the card seller issues invoices in the name of travel expenses, catering expenses, office supplies, etc. according to the buyer's demand, it will bring the possibility of "making false accounts" to the enterprise and breed corrupt behaviors such as bribery.
"This announcement clarifies the operational issues such as the use of invoices in all aspects of prepaid card business." According to the relevant person in charge of the Goods and Services Tax Department of State Taxation Administration of The People's Republic of China, the announcement stipulates that card sellers do not pay VAT when selling prepaid cards, and may not issue special VAT invoices to card buyers, but may issue ordinary VAT invoices, and make detailed specifications on the items issued.