According to the Ministry of Finance's Notice of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China on Some Policy Issues of Business Tax, if a company engages in advertising agency business, the turnover shall be the balance of its total income minus the advertising fees paid to other advertising companies or publishers (including media and carriers).
Among them, the "advertising fee paid to other advertising companies or publishers (including media and carriers)" uses the advertising fee invoice as a deduction voucher, which is a bit like the VAT invoice. Therefore, the other party asked for an advertising invoice.
Extended data
According to the new regulations, the advertising fee has been raised now. If it is small-scale, the levy rate of 3% applies, and the general taxpayer applies the tax rate of 6%. The advertising fee belongs to the modern service industry, which is under the jurisdiction of State Taxation Administration of The People's Republic of China. If the company does not have the qualification to issue invoices by itself, it can only apply to the national tax bureau for issuing invoices on its behalf, and can only issue invoices with a 3% levy rate as a small-scale taxpayer.
Enterprises must meet the following three conditions to declare and deduct advertising expenses:
1, the advertisement is produced by a specialized agency approved by the industrial and commercial department;
2. The expenses have been actually paid and the corresponding invoices have been obtained;
3. Spread through some media.
Baidu encyclopedia-advertisement invoice