The Provisions on the Use of Special VAT Invoices stipulates that general taxpayers selling goods (including goods deemed to be sold), taxable services and non-taxable services subject to VAT according to VAT rules (hereinafter referred to as sales taxable items) must issue special VAT invoices to the buyers. However, under the following circumstances, special VAT invoices may not be issued:

(1) Selling taxable items to consumers.

(two) sales of tax-free items, except for the sale of grain by state-owned grain purchase and sale enterprises.

(3) Selling goods declared for export and selling taxable services overseas.

(4) Use the goods for non-taxable items.

(5) Use the goods for collective welfare or personal consumption.

(6) Providing non-taxable services (excluding value-added tax), transferring intangible assets or selling real estate.

When selling taxable items to small-scale taxpayers, special VAT invoices shall not be issued.

Ordinary taxpayers give goods to others free of charge. If the payee is a general taxpayer, a special VAT invoice can be issued according to the requirements of the payee.

Commercial retail enterprises can only issue special invoices for value-added tax to units where the buyer is a general taxpayer. The buyer requesting special invoices must hold a tax registration certificate (copy) stamped with the seal of the general taxpayer. Commercial retail enterprises shall not issue special invoices without providing vouchers.

To sum up, the issuing scope of special VAT invoices is limited by two factors:

First, whether the sales project can issue special invoices;

Second, whether the buyer can use the special invoice to deduct the tax.

Specific items for which special invoices cannot be issued:

(1) restrictions on sales items: selling goods declared for export and selling taxable services abroad; Sales of tax-free items (except for the sale of grain by state-owned grain purchase and sale enterprises); Providing non-taxable services (except value-added tax), transferring intangible assets or selling real estate;

(2) Definition of buyer: the buyer is the final consumer; Donate goods to non-VAT general taxpayers; Commercial retail enterprises sell goods to non-VAT general taxpayers.