What is a fapiao? Chinese invoices for UK buyers

Recognise the common invoice types

China’s State Taxation Administration describes a fapiao as a receipt or payment document issued or obtained for goods, services and other business activities. Its invoice guide lists VAT special invoices and VAT ordinary invoices among the available types. These are not the only invoice types.

Look for the document title: 增值税专用发票 means VAT special invoice, while 增值税普通发票 means VAT ordinary invoice. Ask the person handling the China-side accounts which type they need and whose purchase it records. Do not choose a special invoice simply because its name sounds more useful.

Decide why you are requesting it

A UK importer may request a fapiao as an additional transaction record, to compare the invoicing company with the agreed seller, or because a China-side purchasing company needs it for its accounts. Agree the purpose before ordering, including who should be named as the buyer.

If you buy through a sourcing company or exporter, ask whether the fapiao records the factory’s sale to that company or a sale to you. Keep the explanation with the order. For wider identity checks, use our guide to comparing a translated Chinese business licence.

Keep the UK customs invoice separate

A fapiao records the Chinese invoicing transaction. The commercial invoice documents the goods actually shipped and their full invoiced value. Ask your clearing agent to confirm which records are needed to support customs valuation. Do not substitute a fapiao without checking the documents with your clearing agent.

Use commercial invoice checks for UK imports for the shipment fields and purchase orders, proformas and commercial invoices for document reconciliation and UK import VAT evidence. Confirm with HMRC or your customs broker what evidence you need for any UK import VAT reclaim rather than relying on a Chinese tax invoice.

Question a discount for skipping the fapiao

A supplier may offer a lower amount because it wants to leave the sale outside its tax-invoice records, or may describe the difference as tax or administration costs. Those are possible explanations, not proof of the supplier’s motive or the correct tax treatment. Ask for a written explanation.

Request comparable written offers showing the same goods, seller, delivery scope and commercial invoice arrangements. Ask what changes when the fapiao is omitted. Do not agree to a lower declared shipment value to match the discount. Our quote check service can help identify changes hidden in the offers.

Match the invoice, seller and bank account

Compare the seller’s full Chinese company name and tax identifier on the fapiao with the supplier’s business licence and agreed seller details. Keep the Chinese name alongside any English trading name. Ask the supplier to explain any difference rather than accepting a similar-looking name.

Match the payment beneficiary’s company name to the seller. Where bank details appear on the invoice, compare them with the agreed payment instructions. If the account belongs to another company or an individual, pause payment and obtain an explanation with supporting documents. Confirm changed bank details through a previously established contact.

Check the buyer details, invoice reference, date, goods description and amounts against the transaction it records. Ask for a readable original electronic file or complete scan. Keep corrections and correspondence together. Matching details help establish consistency; they do not prove that the goods meet your specification.

Arrange checks on the China side

Before accepting the supplier’s offer, specify who will issue each invoice, which transaction the fapiao covers and which payment account will be used. Cambridge China Bridge’s own staff in China can follow up on mismatched names, invoice details and supplier explanations through our factory verification service.

Factory audits and inspections are usually included in the quote; complex checks that need a third party are charged separately and agreed in advance. Third-party testing is extra and agreed first. Cambridge China Bridge can coordinate supplier checks, document queries and inspection on the China side.