What a fapiao is
A fapiao (发票) is the official invoice in China. It is issued through the tax authority’s system, so every sale is recorded for tax purposes. For the buyer, the fapiao is what makes the cost deductible and, for VAT general taxpayers, what allows input VAT to be credited.
Types of fapiao
| Type | Who uses it | Input VAT credit? |
|---|---|---|
| Special VAT fapiao (专票) | Business customers that are VAT general taxpayers | Yes |
| General VAT fapiao (普票) | Consumers, small-scale taxpayers | No |
| Fully digital fapiao (数电票) | Increasingly everyone | Either, depending on type |
China has rolled out fully digital fapiao nationally, which removes most of the old paper and tax-control-device process.
What foreign companies get wrong
- Paying without a fapiao. The cost may not be deductible, which raises your corporate income tax.
- Wrong buyer details. The company name and tax number must match exactly.
- Scope mismatches. Issuing fapiao for activities outside your business scope.
- Assuming an overseas invoice works. Payments abroad have their own withholding and documentation rules.
Who can issue them
Only a Chinese entity registered for tax, such as a WFOE, can issue fapiao. A representative office can’t, which is one reason companies upgrade once they start selling.
Our accounting & tax service handles fapiao issuing and checking every month.
Reviewed by Choi & Partners · 3 October 2026. This page is general information, not legal advice.