When purchasing goods or receiving services, the party paying the price or fees will often ask the other party to issue an "invoice". Both invoices and receipts have legal effect, but "invoices" are more formal and standardized vouchers than receipts. The so-called invoice refers to the receipt and payment voucher issued and collected when purchasing and selling goods, providing or receiving services, and engaging in other business activities. In a formal transaction, the buyer must ask the other party to issue an invoice when paying for the goods.

Legal Analysis

Receipts must be stamped with the official seal. Receipts without the official seal are not legally valid and will not be conducive to safeguarding one's legitimate rights and interests in the event of a dispute. Receipts are the original vouchers used by enterprises and institutions in economic activities. They mainly refer to receipts and payments stamped with the financial bill supervision seal printed by the financial department. They are used for administrative income, that is, non-taxable business. However, a receipt without an official seal is of little use because legally a receipt without an official seal is not recognized, so the receipt must be stamped with the official seal or the signature of the party concerned. Official seal refers to the seal used by agencies, groups, enterprises and institutions. Since the Ministry of Public Security does not have unified regulations on the procedures for engraving seals, public security agencies in various places have different regulations on the procedures for engraving seals. The procedures vary depending on the type of seal being carved. To engrave the above-mentioned seals, a foreign-funded enterprise must present a business license and a foreign-funded enterprise registration certificate. If the enterprise is a Sino-foreign joint venture or a Sino-foreign cooperative enterprise, it must present a letter of introduction issued by the Chinese party and go to the public security agency at or above the county level where the unit is located to have the seal engraved. A notice or letter of introduction, and then go to the engraving factory or shop designated by the public security organ to have it engraving. To engrave an official seal, you need to go to an engraving unit that holds a special industry license to engrave an official seal. Any private engraving of an official seal is illegal, and the engraved seal has no legal effect.

Legal Basis

Article 502 of the "People's Republic of China and Civil Code" A contract established in accordance with the law shall take effect from the time of establishment, but the law provides otherwise or the parties agree otherwise. Except as agreed. In accordance with the provisions of laws and administrative regulations, if the contract should be subject to approval and other procedures, the provisions shall be followed. If the failure to go through approval and other procedures affects the effectiveness of the contract, it will not affect the effectiveness of the contract's obligation clauses such as submission for approval and related clauses. If the party that should go through the application approval and other procedures fails to perform its obligations, the other party may request that it bear liability for violating such obligations. In accordance with the provisions of laws and administrative regulations, if the modification, transfer, termination, etc. of a contract require approval and other procedures, the provisions of the preceding paragraph shall apply.