---
title: "I received a VAT ordinary invoice from a small-scale taxpayer"
description: "We need to purchase a batch of goods recently, but the supplier is a small-scale taxpayer who can only issue VAT ordinary invoices. I want to know: 1) What impact will these ordinary invoices have on export tax rebates? 2) Will there be any issues with customs declaration and foreign exchange settlements? 3) How should we communicate with the supplier about the invoicing issue during business negotiations?"
url: "https://www.sh-zhongshen.com/en/qa/obtain-value-added-tax-general-small-scale-taxpayers.html"
language: "en"
type: "Q&A"
category: "其他问题"
datePublished: "2026-01-10"
dateModified: "2026-01-10"
brand: "Zhongshen Trading China"
answerCount: 3
---

# I received a VAT ordinary invoice from a small-scale taxpayer

## Question

 We need to purchase a batch of goods recently, but the supplier is a small-scale taxpayer who can only issue ordinary VAT invoices. I want to know the following: 1) What are the advantages and disadvantages of using ordinary VAT invoices? 1. What are the potential impacts? 2. Will there be any issues with customs declaration and foreign exchange settlement? 3. How should I communicate with the other party about invoicing during business negotiations? 

## Answers
                            
### Answer 1 — Best Answer

The VAT ordinary invoices obtained from small-scale taxpayers directly prevent you from applying for export tax rebates. This is the primary risk of tax compliance. According to current policies，export tax rebates must be processed with VAT special invoices. Although using ordinary invoices does not affect the export declaration itself，your procurement costs will be considered as tax-inclusive prices and cannot be refunded for input tax. During tax inspections，if the prices of related transactions are significantly low without legitimate reasons，you may face tax adjustments。

Suggestions。

1) Recalculate the total cost and include the unreimbursable tax amount in the procurement costs。

2) Specify the invoice type and tax burden clauses in the contract。

3) Retain complete business communication records to prove the authenticity of the transaction。

If tax rebates are a critical profit factor，it is recommended to prioritize selecting general taxpayer suppliers instead.

**status:** accepted
**Author:** Lucas Liu
**Date:** 2026-01-10

### Answer 2

The core impact of ordinary invoices on logistics operations lies in cost accounting and customs declaration. You need to directly include the input tax that cannot be refunded into the cost of goods, which will affect the competitiveness of your FOB quotes. In the customs declaration process, the customs authority focuses on the authenticity of the transaction price. Ordinary invoices themselves are not an obstacle, but the declared value of the goods must be logically consistent with the invoice amount. Operational suggestions:

1) Use the EXW term to transparently transfer the tax costs to buyers;

2) If CIF is necessary, clearly indicate "tax-inclusive costs" in the quotation;

3) Maintain consistency in the amounts on documents such as invoices, contracts, and customs declarations to avoid pricing audits.

Small-scale suppliers are usually more cooperative. You can require them to accurately declare the value of the goods on the customs declaration to avoid the risk of under-declaration.

**status:** suggested
**Author:** Eric Zhou
**Date:** 2026-01-10

### Answer 3

When discussing invoicing with small-scale taxpayers, insisting on special invoices can easily lead to a breakdown in negotiations. The key is to clarify the accounts and offer a compromise. You can communicate as follows: "Mr. Wang, we understand your practical situation as a small-scale taxpayer. However, from the perspective of our need to obtain tax refunds for exports, using ordinary invoices will increase our procurement costs by approximately 13%. What do you think about this? We could adjust the price slightly, or you could go to the tax bureau to obtain special invoices, and we will bear the additional tax costs." If the other party still insists on using ordinary invoices, you need to calculate this tax loss into the procurement price during the negotiations and request a price reduction. The contract must clearly stipulate: "The tax loss arising from the supplier's provision of VAT ordinary invoices due to the inability to obtain tax refunds is included in the total contract price." This not only protects your own interests but also saves the other party's face, ensuring long-term cooperation.

**status:** suggested
**Author:** Andy Guo
**Date:** 2026-01-10

## Related Categories
- [Import Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-import-agency/)
- [Export Agency Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-agency/)
- [Export Tax Rebate Q&A](https://www.sh-zhongshen.com/en/qa/cat-export-tax-rebate/)
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- [Entrepôt Trade Q&A](https://www.sh-zhongshen.com/en/qa/cat-entrepot-trade/)

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