CHINA INVOICING SYSTEM WITH ELECTRONIC FAPIAO

ACCOUNTING & AUDITING

What is Fapiao?

Other than invoice, fapiao is a legal receipt that serves as proof of purchase for goods and services. Nevertheless, it is an essential component of China’s tax law, and compliance for businesses. 

Development of Digitalized Fapiao 

July 2019

The State Administration of Taxation announced the preparation of Digitalised platform

October 2019

Launched online platform naming E-VAT 

November 2019

The State Council proposed the E-VAT will be launched by the end of 2020, while the Tax department is promoting and providing training classes and seminars on how to register, access and use the platform for business operations. 

March 2020

Confirmation that both paper and E-VAT have the same legal status for tax filing. While using the E-VAT system will allow companies to avoid needing to send the original hardcopy to their clients and running to the local tax office, while they only need to keep digital copy of the document.

July 2020

The State Council announced the E-VAT will be widely use throughout China from end of 2020.

At the same time, Shanghai Tax Bureau took Shanghai, Jiangsu, Zhejiang, Ningbo and Anhui district as a pilot region to roll out the public use of the E-VAT platform.

September 2020

Ningbo piloted the first E-VAT platform in selected area

Benefits of Electronic Fapiao to Enterprises 

Enterprises do not need to go to the local tax office in person for fapiao related processes. For example, application for paper fapiao or validating VAT fapiao. Besides, entrepreneurs can also save financial resources by not purchasing special printing and scanning machines. In terms of accounting, enterprises can save time and lessen the workload by using a paperless invoicing system. 

In conclusion, the advantages of E-Fapiao, we can summarised as below:

  1. Better Record Keeping & Controlling
  2. Centralized Information Platform
  3. Application logistic & Processing Advancement
  4. Technology Advancement & Connecting to ERP system

For further information, please contact us. 

You may want to read: CHINA TAXATION VS HONG KONG TAXATION FOR FOREIGN INVESTORS

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