Collect penalty and invoice:
 First, the supplier (payee) collects liquidated damages.
 （1） Treatment method for breach of contract before contract implementation.
 If the supplier (payee) collects liquidated damages, and the other party breaches the contract before the implementation of the contract, and both parties fail to implement the contract finally, the liquidated damages do not belong to the settlement of business transactions of production and operation, and according to the provisions of the Invoice Management Measures, there is no need to issue an invoice.
 Receipts can be issued in accordance with the provisions of the Basic Accounting Work Standards. In areas where the tax authority supervises the production of receipts, the tax authority supervises the production of receipts.
 （2） Treatment method for breach of contract during contract implementation.
 If the supplier (payee) collects liquidated damages, and the other party breaches the contract during the implementation of the contract, and the contract content is VAT payable, according to the provisions of Article 6 of the Provisional Regulations on Value Added Tax and Article 12 of the Detailed Rules for the Implementation of the Provisional Regulations on Value Added Tax, namely, The sales amount of VAT refers to the total price and other fees charged by the taxpayer from the buyer for the sale of goods or taxable services, including liquidated damages.
 The second consignee (payer) collects liquidated damages.
 If the receiver (payer) collects liquidated damages, no matter when the other party breaches the contract, the party collecting liquidated damages only needs to issue a receipt to the other party. Because Article 20 of the Invoice Management Measures stipulates that "when units and individuals who sell goods, provide services and engage in other business activities collect money for external business operations, the payee shall issue invoices to the payer; in special cases, the payer shall issue invoices to the payee." That is to say, the premise of issuing invoices is to sell goods Production and operation income is obtained by providing labor services, while the liquidated damages received by the receiver (payer) are not production and operation income, so it is not necessary to issue an invoice.
 [Legal Basis]
 According to Article 6 of the Provisional Regulations of the People's Republic of China on Value Added Tax, the sales amount is the total price and extra price fees collected from the buyer by the taxpayer for the sale of goods or taxable services, but does not include the output tax collected.
 Sales are calculated in RMB. If a taxpayer settles the sales amount in a currency other than RMB, it shall be converted into RMB for calculation.