The situation: A small-business owner selling services refuses to issue an official invoice (fapiao) to clients, or demands a higher price for one, to reduce VAT.
Applicable law: A seller must issue an official invoice on sale at the buyer's request, and may not refuse or condition it on a higher price. VAT is charged on sales, with a simplified regime, rates and exemptions for small-scale taxpayers below a certain revenue threshold. Failing to issue invoices or issuing false ones brings fines and possibly criminal liability in serious cases.
Outcome: A client complained of the refusal, the business was required to issue the invoice and settle its VAT, and it narrowly avoided a bigger penalty.
💰 Tax · Awareness case
The Official Invoice Isn't a Detail — It's an Obligation · Yalla China
🤝 Governing law: 增值税相关规定 / Value-Added Tax Provisions
Your client asks for an official invoice — can you refuse?
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
🎓 The lesson / takeaway
Lesson: The invoice is the client's right and your duty. Don't refuse it or demand a higher price; evasion costs more than the tax itself.
🕒 Updated: 16 March 2026