State Taxation Administration: Special Rectification of Medical Devices Recovers 5.9 Billion Yuan in Tax Arrears, 3,611 Medical Device Dealers Placed on File

Source: State Council Information Office

DentalGoodNews｜On July 28, 2026, the State Administration of Taxation disclosed at the State Council Information Office's press conference themed "Starting the '15th Five-Year Plan' with a Strong Beginning" that in the first half of this year, tax authorities launched a special campaign targeting issues such as falsified and inflated invoices in the medical devices industry. Nationwide, 3,611 medical devices distribution enterprises were investigated, with 5.9 billion yuan in back taxes recovered.

Deputy Director of the State Administration of Taxation, Wang Daoshu, stated during the Q&A session that this campaign is part of the tax authorities' efforts to strengthen compliance management and specifically target high-risk industries. The medical devices distribution industry was singled out due to prevalent invoice falsification and inflation, making it a key focus area in the governance of the "invoice economy."

At the same press conference, Director of the State Administration of Taxation, Hu Jinglin, further elaborated on the ripple effects of the "invoice economy" crackdown in the medical devices sector. He stated: "In addressing the 'invoice economy' issues in the medical devices distribution industry, we collaborated with relevant departments to use the crackdown on falsified and inflated invoices as a breakthrough. This has driven efforts to rectify risks such as 'pay-to-prescribe' practices, illegal rebates, and the trafficking of 'three-no' medical devices."

This special campaign is part of the tax authorities' broader enforcement actions in the first half of the year. Press conference data showed that in the first half of 2026, tax authorities nationwide recovered 180.6 billion yuan in tax losses from various illegal tax activities, a year-on-year increase of 20.8%. Among these, over 3,200 enterprises were investigated for fraudulently or improperly claiming tax benefits, recovering 12 billion yuan in back taxes. The medical devices distribution sector contributed 5.9 billion yuan, accounting for approximately 3.3% of the total 180.6 billion yuan.

Overall governance data for the "invoice economy" in the first half of the year was also disclosed: enterprises identified as having "invoice economy" issues saw a 37.7% year-on-year decrease in invoicing amounts. A total of 1.29 million "shell" enterprises were identified, with nearly 700,000 already pushed toward deregistration.

Regarding enforcement methods, Deputy Director Wang Daoshu noted that tax authorities ensure normal invoice issuance for compliant enterprises. For problematic enterprises, progressive measures such as invoice restrictions are applied to drive rectification. For illegal activities like invoice fraud, authorities resolutely investigate and penalize in accordance with the law, adhering to a "dual investigation" approach that simultaneously probes tax officials and irregular tax intermediaries colluding with wrongdoers.

Hu Jinglin stated that in the next steps, tax authorities will further enhance their "discernment capabilities," improve "precision," and deploy a "combined approach" to advance the normalized governance of the "invoice economy."

As of press time, the State Administration of Taxation has not disclosed the specific list of enterprises or regional distribution involved in this campaign.