“A fake invoice caused a collapse of a trade giant worth billions of dollars; the ‘invoice-based economy’ overseas failed”
# A fake invoice caused losses of up to $10 billion for a multinational trade giant; the “invoice economy” overseas collapsed In 2025, a US-based multinational trade giant suffered losses of up to $10 billion due to a forged value-added tax invoice. The invoice was issued by a third-party company in China and was used to deduct the value of imported goods from US imports. ## Event Overview In March 2025, a large US retailer purchased goods worth $1 billion from a Chinese supplier. The supplier then issued an invoice worth $1 billion. After receiving the invoice, the retailer used it as a deduction certificate, successfully reducing the purchase cost. However, the supplier did not provide a copy of the invoice to the retailer, nor did it inform the retailer of the invoice’s authenticity. After receiving the invoice, the retailer did not report the transaction to the tax authorities; instead, it used the invoice directly as a deduction certificate. ## Tax Audit In June 2025, the US Internal Revenue Service (IRS) conducted a tax audit on the retailer. The investigators found that the retailer did not include the invoice amount in its annual corporate income tax declaration...