{"id":10340,"date":"2022-01-10T07:32:59","date_gmt":"2022-01-10T06:32:59","guid":{"rendered":"https:\/\/thesmartcityjournal.cibeles.net\/sin-categoria\/e-invoicing-in-china-gets-push-with-advanced-version-piloted-in-shanghai-guangdong-and-inner-mongolia\/"},"modified":"2022-01-09T19:57:09","modified_gmt":"2022-01-09T18:57:09","slug":"e-invoicing-in-china-gets-push-with-advanced-version-piloted-in-shanghai-guangdong-and-inner-mongolia","status":"publish","type":"post","link":"https:\/\/www.thesmartcityjournal.com\/en\/business\/e-invoicing-in-china-gets-push-with-advanced-version-piloted-in-shanghai-guangdong-and-inner-mongolia","title":{"rendered":"E-Invoicing in China Gets Push with Advanced Version Piloted in Shanghai, Guangdong, and Inner Mongolia"},"content":{"rendered":"

This has been the latest move by the Chinese government to upgrade the digital infrastructure and bureaucratic process of tax collection and administration<\/em><\/p>\n

On November 31, 2021, tax authorities from Shanghai, Guangdong, and Inner Mongolia released respective announcements to implement pilot programs of fully digitalized invoicing (also known as e-fapiao<\/strong><\/em><\/a> in China) among selected taxpayers in Shanghai, Guangzhou, Foshan<\/strong><\/a>, Guangdong-Macao Intensive Cooperation Zone<\/strong><\/a>, and Hohhot from December 1, 2021.<\/strong><\/p>\n

How are the \u2018fully digitized\u2019 e-fapiao different from other types of e-invoices in China?<\/h2>\n

The fully digitalized e-fapiao<\/em> is a completely new type of electronic invoice, different from the normal value-added tax (VAT) <\/strong>e-fapiao<\/strong><\/em><\/a> introduced last year and the paper fapiao<\/em>. The fully digitalized e-fapiao<\/em> consists of two sub-types: fully digitalized special VAT e-fapiao<\/em> and fully digitalized general VAT e-fapiao<\/em>.<\/p>\n

With their introduction, there will be a total of six kinds of fapiao<\/em> co-existing in China during the country\u2019s ongoing fapiao<\/em> system reforms. The six types are special VAT fapiao<\/em>, general VAT fapiao<\/em>, special VAT e-fapiao<\/em>, general VAT e-fapiao<\/em>, fully digitalized special VAT e-fapiao<\/em>, and fully digitalized general VAT e-fapiao<\/em>.<\/p>\n

In the fully digitalized e-fapiao<\/em> programs, a national unified e-invoicing service platform will provide pilot taxpayers 24-hour online services to issue, deliver, and verify fully digitalized e-fapiao<\/em> free of charge. This means the special tax control equipment, such as golden tax USB disk, tax control USB disk, and tax UKey, is no longer needed.<\/p>\n

Following the introduction of the normal value-added tax (VAT) e-<\/strong>fapiao<\/strong><\/em><\/a> and the construction of the Golden Tax System Phase IV<\/strong><\/a>, the fully digitalized e-fapiao<\/em> marks the latest effort by the Chinese government to promote the digital upgradation and intelligent transformation of tax collection and administration and reduce the cost of tax management.<\/p>\n

What are the key features of the fully digitalized e-fapiao<\/em>?<\/h2>\n

The fully digitalized e-fapiao<\/em> has the same legal effect and usage as the existing paper fapiao but has no sheets. Like other VAT electronic fapiao<\/em>, it has no invoice copies (normal paper fapiao<\/em> consists of the stub copy, the deduction copy, and the account-keeping copy for the fapiao<\/em> issuers and receivers to keep and use).<\/p>\n

The fully digitalized e-fapiao<\/em> will also look neater, with only 17 items of content: dynamic QR code, invoice number, issuance date, buyer information, seller information, project name, specification and model, unit, quantity, unit price, amount, tax rate\/levy rate, tax amount, total, ad valorem and tax total (in words and figures), remarks, and invoice issuer.<\/p>\n

As a brand new electronic invoice variety, fully digitalized e-fapiao<\/em> will have new features as explained below.<\/p>\n

Simplifying procedures to obtain and issue fully digitalized e-fapiao<\/h2>\n