Issuance of Local Purchase Certificates and the Standard for Goods Supply Date in Assembly Material Transaction Structures

Question

I have an inquiry regarding the issuance of a Local Purchase Certificate (Purchase Confirmation). Company A sent a purchase order to Company B for the purpose of export. Since the materials in question needed to be assembled into Company C's products, a purchase order was also sent to Company C, and Company B delivered the materials to Company C. In this case, if Company B requests a Local Purchase Certificate from Company A, I am wondering if Company A can issue the certificate without going through Company C. Additionally, I would like to inquire whether the supply date of the goods should be considered the date the Export Declaration Certificate was issued.

tflow_expert · Answer

1. Since a Purchase Confirmation is a supporting document for issuing zero-rated tax invoices, if B is issuing a tax invoice to A in connection with the supply of goods, A should issue a Purchase Confirmation to B. 2. The supply date of the goods on the Purchase Confirmation is the actual time of supply of the goods, not the date the export declaration certificate was issued, and this must be the same as the tax invoice issuance date. Logically, the purchase date of the goods must be prior to the export date.

Issuance of Local Purchase Certificates and the Standard for Goods Supply Date in Assembly Material Transaction Structures

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