The Chinese government launched a pilot system of e-Invoicing in 2020 with 3 regions and since then the new e-Invoicing system has been expanding by region for now around 40 provinces try to integrate fully digitized invoice systems. The last participants are Guangdong, Inner Mongolia, and Shanghai which are announced by the State taxation administration in December 2021. The Chinese invoicing system is called the Fapiao System. It is not fully implemented and the invoice in a paper format is still valid. Several types of taxpayers are not suitable for the pilot system, for now, such as taxpayers who do not use the internet for purposes and also according to the relevant legislation, those who do not have internet conditions. All electronic invoices are generated under the supervision of the State Tax Administration of that region. Published sample e-Invoice shows that e-invoice should include;
– buyer and seller information
– invoice number and date
– dynamic QR code
– unit quantity and price
– tax rate and amount
– and total price.
The full implementation of the electronic invoice is expected to be completed in 2025.
