The situation: A small business owner wanting to cut his tax bought official invoices (fapiao) from an outside party that corresponded to no real transactions, and entered them as expenses. He also sometimes neglected to issue proper fapiao for some of his sales.
Applicable law: Under VAT rules and invoice administration, buying or using fake invoices, as well as failing to issue proper fapiao, is a serious violation that can lead to administrative and even criminal liability, alongside settlement of the tax due.
Typical outcome: On audit, the bogus expenses were disallowed, the business was required to pay the tax difference with penalties, and its reputation and tax rating suffered. A trader who stuck to genuine invoices faced none of these problems.
💰 Tax · Awareness case
Buying a fake fapiao… a serious violation · Yalla China
🤝 Governing law: 增值税 / VAT rules
A business bought fake official invoices to inflate expenses and reduce tax, and faced penalties during an audit.
Illustrative, general educational examples — not real specific facts and not legal advice; for awareness only. For an actual situation, consult a licensed lawyer.
🎓 The lesson / takeaway
Lesson: Always use genuine fapiao, issue correct invoices for your sales, and never buy fake invoices however tempting. The official invoice is the basis of your accounting, and any manipulation exposes you to penalties and liability far exceeding any tax saving.
🕒 Updated: 16 March 2026