Many have heard that China is now also digitalizing its Fapiao system for the B2B market.
The new e-Fapiao is being rolled out countrywide and will eventually become the mandatory norm in 2025 (some regions earlier). Tholin has been realizing dozens of Golden Tax system integrations in China and is offering a standardized solution for the switch from paper based Fapiao to electronic Fapiao.
In case you’re not yet familiar with the Chinese Fapiao, a very good overview on e-Fapiao and its implementation in China can be found on the China Briefing blog of Dezan Shira and Associates here.
The article discusses the expansion of the e-invoicing program in China. Currently, several provinces and cities are implementing pilot programs for fully digitalized electronic invoicing. The program is being rolled out in stages, with selected taxpayers in different regions being allowed to issue fully digitalized e-fapiao through the electronic invoice service platform. The ultimate goal is to have the program implemented nationwide by 2025.
What is the purpose of the e-invoicing program in China?
The purpose of the e-invoicing program in China is to fully digitalize the process of issuing and managing invoices, known as e-fapiao. This program aims to reduce the workload of financial and accounting staff, increase efficiency in issuing invoices, and streamline the overall invoicing process for businesses. It also aims to improve tax compliance and provide a more convenient and accessible channel for taxpayers to access tax services. The program is being implemented through pilot programs in various provinces and cities, with the goal of eventually rolling it out nationwide by 2025.
SOURCE: https://www.china-briefing.com/news/e-invoicing-china-expansion-fully-digitalized-e-fapiao-program/
What are the benefits of fully digitalized e-fapiao compared to traditional paper invoices?
Fully digitalized e-fapiao offers several benefits compared to traditional paper invoices:
- Reduced workload: Fully digitalized e-fapiao greatly reduces the workload of financial and accounting staff in issuing and managing invoices.
- Increased efficiency: The digitalization of e-fapiao streamlines the process of issuing invoices, making it more efficient and time-saving.
- Cost savings: With fully digitalized e-fapiao, there is no need for physical paper, printing, or delivery costs associated with traditional paper invoices.
- Simplified procedures: Obtaining and issuing fully digitalized e-fapiao is a simplified process that eliminates the need for special tax control equipment and manual application to tax bureaus.
- Enhanced accuracy: The use of digital invoices reduces the risk of errors and improves the accuracy of invoice information.
- Real-time tracking: Fully digitalized e-fapiao allows issuers to track the usage of invoices by recipients in real-time through tax digital accounts.
- Integration with technology: The adoption of fully digitalized e-fapiao encourages businesses to adopt technologies that facilitate e-fapiao management, reimbursement management, accounting, tax, and supply chain management processes.
SOURCE: https://www.china-briefing.com/news/e-invoicing-china-expansion-fully-digitalized-e-fapiao-program/
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