Manufacturing in China can be confusing and daunting. As you’ve been looking to produce your promotional products in China, you’ve probably read about the china tax invoice system, known as Fapiao. You may be questioning what they are and whether you need to be concerned with them. But don’t worry! This blog will tell you everything you need to know about Fapiao.

Promotional Product Fapiao

Promotional Product Fapiao

What are Fapiao?

Fapiao are an extremely important part of conducting business in China, and are a core part of China’s tax law. Therefore, it is important to understand what they are. Fapiao are a physical Chinese VAT invoice that are printed on a piece of paper. They are issued by companies in return for goods and services. The fapiao are created using a printing machine that is issued to the company by the State Administration of Tax. When a fapiao is printed, the Tax bureau is informed immediately. Therefore, the paper serves as a warranty against tax evasion.

Types of Fapiao

There are two types of Fapiao:

Special Value-Added Tax Fapiao

This type of Fapiao can be used for tax deduction purposes, and therefore includes a lot of information. Including tax code, address, telephone number, bank account information.

General Fapiao

These cannot be used for tax deduction purposes. They generally include less information about the business as well. General Fapiao are usually issued when a company cannot give a Special Value-Added Tax Fapiao.

If I’m buying promotional products from China will I receive a Fapiao?

Generally, no. Chinese company’s do not have to provide a Fapiao to companies that have the capabilities to remit money overseas in foreign currencies. There may be Fapiao’s involved with your order, here at ODM we will manage all of these for you so you don’t have to worry about them!

What about orders from a company within China?

The ODM Group is a Wholly Foreign-Owned Enterprise in China, meaning that we are able to issue Fapiao. Therefore, if you are a Chinese company and need a Fapiao with your purchase, this will not be a problem!

More Blogs To Inform You

One of the most interesting things about Fapiao is that in 2002 the Chinese Government turned them into a public lottery in order to incentivise people to ask for tem. Customers can win a few or few hundred RMB every time they make a purchase. Read all about this here:

This is another interesting blog about the details of buying products from china:

Here is some information to help you decide whether manufacturing in China is for you:

Still struggling to decide which promotional product to make? Take a look at this blog on brainstorming: