E-fapiao for enterprises
Since 2016, the STA has piloted the e-invoicing system for general VAT fapiao for many cities such as Shanghai, Beijing, Shenzhen, and Zheijiang Province. From then, service-based companies could utilize the general VAT e-fapiao for their business transactions.
On the other hand, Ningbo piloted the first e-invoice program for special VAT fapiao in August 2020 which was later fully implemented by September 2020. From October 16, 2020, the STA began expanding the e-invoicing system for special VAT fapiao in Zhejiang province. According to the announcement, the electronic invoice shall use electronic signatures instead of the special invoice stamp. Furthermore, if the enterprise uses the printout of the e-fapiao as a tax voucher, it should also ensure that the original VAT e-fapiao is safe and secured. In case of loss, the holder of the e-fapiao can download the original e-fapiao from the National VAT Invoice Verification Platform. Meanwhile, the issuer of the invoice may still provide the original e-fapiao if the paper copy of the e-fapiao is lost.
The tax administration also noted that electronic image files such as photographs, screenshots, scans, etc. are not considered as electronic accounting documents. Therefore, they cannot be used for reimbursement purposes but can only be filed as electronic copies. Nevertheless, the bureau emphasized the availability of “unstamped” e-fapiaos in the future as the main trend for electronic invoices.
3 ways to generate the e-fapiao system
- Obtain approval for the type and maximum limit of the invoice.
- Receive the Ukey from the tax bureau which is a tax control equipment containing a digital certificate.
- Log onto the State Public Service Platform of Electronic VAT Invoice to issue the special VAT e-fapiao.
On the other hand, enterprises can also build their own e-fapiao platform or use a third-party with the e-fapiao service platform to issue an electronic invoice.
Advantage of e-fapiao to enterprises
Enterprises do not need to go to the local tax office in person for fapiao-related processes such as applying for paper fapiao or validating special VAT fapiao. Besides, they can also save financial resources by not purchasing special printing equipment for scanning fapiaos. In terms of accounting, enterprises can save time and lessen the workload by using a paperless invoicing system.
Contactless tax payment
During the COVID-19 outbreak in China, tax administrators launched several tax payment policies for individuals and businesses. Moreover, they implemented eight new measures to facilitate the tax contributions of enterprises. Some of those include:
- Building online appeals and direct exchange channels of taxpayers’ opinions. To widen the scope of opinion gathering, and accurately analyze and give timely feedback on the actual demands of micro-enterprises.
- Optimizing the tax-related illegal information inquiry services. To enhance compliance with tax laws upon small enterprises, the provincial tax bureaus rely on the electronic tax bureau to provide small micro-enterprises with tax-related illegal online inquiry services.
Tax authorities have also actively expanded the “contactless” tax payment matters while providing safe, efficient, and convenient services to taxpayers, and effectively reduce the risk of spreading the epidemic. They have launched several online transaction platforms including the tax bureau website and its mobile app version where taxpayers can have a better experience. Through the tax app, taxpayers and businesses can manage IIT return and refund applications, as well as performing inquiries on their tax statutes.
Have a look at our previous article on IIT Return App for Taxpayers in China
Sample of special VAT e-fapiao from the State Taxation Administration