In China, can I directly register a Microsoft Advertising account to target a global audience, add funds, and receive tax invoices (fapiao) on my own?

Dear 龙 徐,

You are most welcome.

1. The relevant documents do not explicitly mention the term "fapiao" or provide details about the issuance of a Chinese VAT invoice (增值税发票 / VAT fapiao) for Microsoft Advertising accounts in China. However, they do state that tax or VAT requirements depend on your business location, which is the country/region where your business is legally registered. For China, Microsoft Advertising will apply taxes according to local regulations, and VAT information will be included on your invoices, statements, and credit memos. You are asked for your VAT registration number when you sign up and each time you create a new account.

2. Yes, a Chinese mainland company can register, fund, and manage its Microsoft Advertising account directly through the official Microsoft Advertising website without using an agency, and still receive compliant Chinese VAT invoices. The documents confirm that for businesses based in China, Microsoft mails paper invoices monthly to the registered billing address as required by law, regardless of whether the account is self-managed or agency-managed. Electronic invoices are also sent to Accounts Payable contacts, but the paper invoice is the official document for China. There is no difference in invoice eligibility or invoice type between a self-funded account and an agency-managed account. Both types of accounts are eligible to receive compliant VAT invoices. The responsibility for paying the bills (the bill-to customer) can belong to either the company itself or the agency, depending on the arrangement. If the agency is the bill-to customer, they will receive the invoice; if the company is the bill-to customer, the company will receive the invoice. The invoice process and compliance remain the same in both scenarios.

3. Yes, monthly invoices are generated based on the advertising charges for the billing cycle. These invoices detail charges, tax (including VAT), and payment remittance instructions for the bill-to advertiser. The invoices are calculated by adding up the billing activity for all ad groups during the month for Microsoft Advertising. Monthly invoices are available as PDFs in the UI by the second of each month.

Invoices are sent automatically. For China, paper copies of invoices are mailed on a monthly basis to the registered billing address without any action needed by the advertiser. Additionally, electronic invoices are sent to the Accounts Payable contacts. Customers can manage AP contacts to ensure the correct recipients receive the invoices. The documents specify that electronic invoices are sent to AP contacts via email, but for China, paper copies are mailed monthly as required by law. The documents do not state that electronic invoices are accepted as an alternative to paper invoices in China. Therefore, for compliance, the paper invoice is the official document provided.

4. As mentioned above, billing is managed by Microsoft Online, Inc., in the United States, and Microsoft Advertising is not required to charge taxes on advertising costs. Microsoft Advertising cannot provide guidance on tax or VAT. Please contact your tax advisor or local tax office if you have questions.
5. The relevant documents do not specify the VAT rate or other applicable taxes for a mainland Chinese company using Microsoft Advertising. They also do not provide information about additional taxes, fees, foreign-exchange charges, or other charges required by Microsoft for Chinese advertisers. Furthermore, there is no information about the payment methods available for a mainland Chinese company to fund its own account directly. The available payment methods for China are the following:

6. Yes, there are specific requirements for a mainland Chinese company that wants to use a self-managed Microsoft Advertising account to advertise internationally. All of the details are available on the following help articles:

About China Advertiser identity verification

Advertiser identity verification

Advertiser identity verification appeals

Identity verification status

7. Yes, if a Chinese company registers and funds its Microsoft Advertising account directly, it will retain full ownership and administrative control over the account. This includes control over billing, payment methods, campaigns, data, and account access. The company can choose to manage the account itself or grant access to an agency or other users as needed. The responsibility for paying the bills (the bill-to customer) can remain with the company or be transferred to an agency if desired. The company can also unlink an agency at any time and retain control of the account, provided the account was not originally created under the agency’s manager account.

There are no requirements for a Chinese company advertising internationally (i.e., targeting markets outside of China) to use an agency partner. Self-management is allowed and supported for outbound advertising. However, if the company wishes to advertise to customers within mainland China (domestic advertising), it is required by law to work with an in-market agency partner. Direct self-management is not permitted for domestic China campaigns.

8. Yes, there is a formal Microsoft Advertising Agreement between your company and Microsoft. This agreement governs the use of Microsoft Advertising, including payment, prohibitions, termination, and dispute resolution. It is a legally binding contract for all customers using Microsoft Advertising, including advertisers, agencies, and resellers. The agreement is automatically accepted when your company registers for or starts using Microsoft Advertising. You accept the Microsoft Advertising Agreement by signing up for or placing an order for Microsoft Advertising, or by continuing to use the service after being notified of any changes to the agreement. Unmanaged customers (those who self-manage their accounts) are not eligible for a countersigned agreement and are only eligible for the “click to accept” terms and conditions. Further details can be seen here.

You can view the Microsoft Advertising Agreement at any time by selecting Legal at the bottom of any Microsoft Advertising help page. Microsoft Advertising Network policies help advertisers and partners learn what makes a great ad, as well as what is and isn’t allowed in them. We require our advertisers and partners to comply with our policies at all times. These policies apply across the Microsoft Advertising Network.

I hope the above information is of use to you.

Our support teams are also happy to discuss your account in more detail via phone, chat or email to provide review assistance, please see our support page.

Kind regards, 

Vahid | Microsoft Advertising Support Specialist | 800-518-5689

Thank you, Vahid, for your detailed clarification. This is very helpful.

To make sure we fully understand the requirements before we make our first payment, I would like to confirm several points regarding a Chinese mainland company's self-managed Microsoft Advertising account.

Our company is legally registered in mainland China. We want to use Microsoft Advertising to promote our international website and target customers globally. We have already created a Microsoft Advertising account, but we have not funded it yet.

Our company can accept either paper invoices or electronic invoices. The important requirement for our finance department is that the invoice must be a valid Chinese VAT invoice (增值税发票 / VAT fapiao) that can be used by our company for accounting and tax purposes.

Could you please confirm the following points for a Microsoft Advertising account registered with a mainland China business address?

1. Chinese VAT invoice

• When Microsoft says that it will provide “compliant tax invoices” for Chinese accounts, does this specifically mean a Chinese VAT invoice (增值税发票 / VAT fapiao)?

Can the invoice be issued to our Chinese company's legal registered name and include our Unified Social Credit Code (统一社会信用代码)?

Is the invoice issued in a form that can be used by a mainland Chinese company for normal accounting and tax purposes?

2. Self-managed account and invoicing

Can a Chinese mainland company register, fund, and manage its Microsoft Advertising account directly through the official Microsoft Advertising website, without using an agency, and still receive the same compliant Chinese VAT invoices?

Is there any difference in invoice eligibility or invoice type between a self-funded account and an agency-managed account?

3. Invoice frequency and delivery

Will the VAT invoice be issued monthly based on the advertising charges/spending?

Will Microsoft send the invoice automatically, or does the advertiser need to request it each month?

You mentioned that hard-copy invoices are required for China. Is the paper invoice mailed to the billing address registered in the account?

If electronic VAT invoices are also available for China, are they acceptable as an alternative to paper invoices?

4. Billing entity

Which Microsoft legal entity will issue the invoice for a Microsoft Advertising account registered and funded directly by a mainland Chinese company?

Will the invoice be issued by a mainland Chinese Microsoft entity, or by an overseas Microsoft entity?

5. Tax and payment

What VAT rate and other applicable taxes will be included in the invoice for a mainland Chinese company?

If a Chinese company funds the account directly, are there any additional taxes, fees, foreign-exchange charges, or other charges that Microsoft requires the advertiser to pay in addition to the advertising amount?

What payment methods are currently available for a mainland Chinese company that wants to fund its own account directly?

6. China-specific requirements

Are there any restrictions or special requirements for a mainland Chinese company that wants to use a self-managed account to advertise internationally?

Does the company need to complete China Advertiser Identity Verification and provide any additional tax or business documentation before making the first payment?

7. Account ownership and administration

If we register and fund the account directly, will the Chinese company retain full ownership and administrative control of the Microsoft Advertising account, including billing, payment methods, campaigns, data, and account access?

Are there any circumstances under which a Chinese company advertising internationally would still be required to use an agency partner?

8. Microsoft Advertising agreement / contract

Our company's finance department may require a formal contract or agreement with the service provider before approving advertising expenses and making payments.

When a Chinese company registers and uses Microsoft Advertising directly, is there a formal Microsoft Advertising Agreement / service agreement between the company and Microsoft?

Is this agreement automatically accepted when the company registers for or starts using Microsoft Advertising, or does the company need to sign a separate contract?

Where can we obtain or download a copy of the applicable Microsoft Advertising Agreement for a mainland Chinese company?

Which Microsoft legal entity is the contracting party under this agreement?

If our finance department requires a formal contract for internal approval and payment, can Microsoft provide an official copy of the agreement or other contractual document that we can submit to our finance department?

Is there any additional agreement, insertion order, purchase order, or other document that a Chinese company needs to sign before making its first payment?

We are asking these questions because our company is currently deciding between direct self-managed Microsoft Advertising and using an agency.

Our main requirements are:

We want to own and manage the advertising account ourselves;

We need a valid Chinese VAT invoice (增值税发票) for our company's accounting and tax purposes;

We want to understand the actual Microsoft contracting/billing entity;

We need to know whether there are any additional taxes, fees, or charges when funding the account directly; and

We need to know what contract or agreement our finance department can use as the basis for approving the advertising expenditure.

If possible, we would greatly appreciate confirmation of the above points in one response so that we can complete our internal approval process and proceed with our first payment correctly.

Thank you very much for your assistance.

Hello 龙 徐,

Thank you for using our Microsoft Advertising Learn Q&A Platform! 

I understand that you have already set up an account and would like to target your customers globally across borders. Depending on your business model and targeting options, you may have to go through an agency partner and the appropriate partner contacts. There are certain restrictions, as well as rules and regulations, pertaining to China. Rest assured, Microsoft Advertising can provide tax invoices that comply with Chinese corporate requirements. For accounts with billing addresses in China, postal mail invoices (hard copies) are required and will be issued to you. All invoicing is delivered via email (paperless invoicing) except for certain regions, including China, where hard copy invoices are required by local regulations. Therefore, you will receive compliant tax invoices by postal mail each month for your Microsoft Advertising account registered in China, even if you fund your account directly and do not use an agency.

Tax or VAT requirements depend on your business location, which is the country/region where your business is legally registered. For further information, please see the following help articles:

Tax or VAT information

About China Advertiser identity verification

Choosing a payment method for Microsoft Advertising

Our support teams are happy to discuss your account in more detail via phone, chat or email to provide review assistance, please see our support page.

I hope the information provided here will at least partly answer your question.  If you have any additional questions please do not hesitate to reach out to our support. As mentioned, I have also sent you a private message asking for further details. You are more than welcome to respond to me if you have any further queries.

Kind regards, 

Vahid | Microsoft Advertising Support Specialist | 800-518-5689