Wednesday, January 29, 2014

The "Fa Piao" Loophole.

While enjoying a Chinese New Year Dinner with a couple friends, I noticed that CX asked for a fa piao. The waitress said something to him so fast that I couldn't catch what she said, but when she returned, there was a Coke on the table. 

A bit of a Chinese lesson before I continue with this post. In Chinese, "fa piao" means "receipt." 

In the Chinese tax system, when a business writes out a receipt, that's keeping a record, and they have to pay taxes on the amount of money that the business has made. CX explained that he learned from his mother that some places will go around that little obstacle and offer something for free so that they change their mind on the receipt. The customer is happy because he or she ends up with something for free. The business is happy because they don't need to write a receipt, therefore not needing to keep a record for the government to have them pay taxes. A win-win situation. 

Now, this doesn't mean that a foreigner can walk into a McDonald's and get the same kind of treatment. This is more for the small restaurants in China that do this. The big businesses, like KFC, wouldn't be able to do that because of the amount of foot-traffic in these places. They would probably end up losing money if they tried doing that. As for the smaller restaurants, it's hit and miss. 

Not every small restaurant will offer a person something for free. It's pretty much trial and error for what places will offer free stuff when you ask for a receipt. 

Tianjin pic of the day!


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