Core Viewpoint - The article provides a comprehensive guide on how to handle the red invoice process in the new electronic tax system, emphasizing the importance of correctly issuing and confirming red invoices to resolve common issues faced by taxpayers [3][4]. Summary by Sections Red Invoice Issuance Process - Taxpayers can issue red invoices when there are errors in the original invoices, such as returns or service interruptions, following the guidelines set by the State Administration of Taxation [3][4]. - The process involves filling out a "Red Invoice Information Confirmation Form" which must match the original blue invoice details [4][5]. Rules for Red Invoice Issuance - Different types of invoices have specific rules for red issuance: - Digital invoices can offset other digital invoices and paper invoices issued through the electronic invoice service platform [6]. - Paper invoices can only offset other paper invoices and tax-controlled invoices, not digital invoices [6]. - Tax-controlled invoices can only offset other tax-controlled invoices [6]. Situations for Red Invoice Issuance - If the recipient has not confirmed the invoice's purpose or recorded it, the issuer can automatically issue a red invoice without the recipient's confirmation [7]. - If the recipient has confirmed the invoice's purpose, either party can initiate the red invoice process, requiring mutual confirmation [8]. - If the original invoice has been used for VAT deduction, the taxpayer must adjust their input tax until the red invoice is received [9]. Restrictions on Red Invoice Issuance - Red invoices cannot be issued if the original blue invoice has been voided, fully offset, or is in a state of abnormal tax deduction [10]. - Specific VAT purposes such as "pending refund" or "already deducted" also restrict the issuance of red invoices [10]. Choosing the Reason for Red Invoice - Taxpayers must select the appropriate reason for issuing a red invoice based on the actual business situation, with restrictions on certain combinations of goods and services [11]. Steps for Issuing Red Invoices - The process involves logging into the electronic tax bureau, selecting the appropriate options, and confirming the details of the original blue invoice [14][19]. - If the red invoice is for a paper type, additional steps are required to manually issue the red invoice [21]. Confirmation Process for Red Invoices - The recipient must confirm the red invoice information through the electronic tax bureau, ensuring all details are accurate before proceeding [30][31]. - If the confirmation is not completed within 72 hours, the red invoice confirmation will be voided [29].