Whether zero-rated tax invoices and purchase confirmations can be issued when receiving a down payment
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When supplying goods to an overseas corporation, I have previously issued zero-rated tax invoices to the client's domestic entity at the FOB point and requested/received a purchase confirmation. This time, due to the large scale of the contract, I intend to proceed after receiving a down payment, but the client's domestic entity is requesting that I issue a tax invoice. In this case, I would like to inquire whether it is permissible to issue it at a zero rate and if a purchase confirmation can still be obtained.
Answer 1
- 0The timing for issuing a tax invoice is when the supply of goods or services is completed; for this reason, it is correct to issue the tax invoice at the time the goods are actually delivered. However, an exception exists where a pre-issued tax invoice can be issued, provided that the payment is actually received. In other words, if a down payment is actually received, a tax invoice can be issued for it, and the same applies to zero-rated tax invoices. If your company receives a down payment from a client and obtains a purchase confirmation for it, you can issue a zero-rated tax invoice for that transaction.Machine translated
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