Interpretation of ＂Announcement of State Taxation Administration of The People’s Republic of China on the Issue of Issuing VAT Invoices for Collecting Travel Tax by Insurance Institutions＂

　　With the approval of the State Council, from May 1, 2016, the pilot project of changing business tax to value-added tax was launched nationwide. For this reason, insurance institutions will issue VAT invoices when collecting premiums after the reform of the camp. In order not to change the existing operating methods and minimize the impact on taxpayers, State Taxation Administration of The People’s Republic of China issued the Announcement on Issues Concerning Insurance Institutions Collecting Travel Tax and Issuing VAT Invoices, which clarified the invoice issues in the collection and management of travel tax.
　　Since May 1, 2016, when issuing VAT invoices, insurance institutions, as travel tax withholding agents, should indicate the information of collecting travel tax in the remarks column of VAT invoices. Specifically, it includes: insurance policy number, tax period (detailed to month), collection of travel tax, late payment fee, total, etc. The VAT invoice can be used as the original accounting voucher for paying travel tax and late payment fee.

　　Link: Announcement of State Taxation Administration of The People’s Republic of China on the Issue of Issuing VAT Invoices for Collecting Travel Tax by Insurance Institutions (State Taxation Administration of The People’s Republic of China Announcement No.51, 2016)