China

eInvoicing China

Use of eInvoicing has expanded from eCommerce and telecommunications to many other sectors in China

Do you need to invoice businesses in China?

If you answered yes, you may need electronic invoice processing.

Transalis eInvoice™ is a trusted provider of digital invoice processing with companies in China

More and more countries, including China, are looking for new ways to streamline their processes, eliminate tax avoidance and collect more VAT. Already across the EU, government and public sector organisations are required to use B2G eInvoice processing, and B2B suppliers are being encouraged do the same.

An eInvoice solution from Transalis will streamline your invoice processing with trading partners in China.

• Reduce time spent on administrative tasks
• Improve accuracy and minimise disputes
• Remain compliant with complex cross-border regulatory and tax requirements
• Automate invoice validation
• Speed up the entire billing process

eInvoicing in China

eInvoicing with Transalis eInvoicing in China

China eInvoicing regulations

In China invoices are referred to fapiao, a physical legal receipt. There are different types of fapiao for example:

General VAT fapiao – no deductible tax is present, and is primarily used in a Business-to-Customer (B2C) context.
Special VAT fapiao – allows tax deduction and is typically used in Business-to-Business (B2B) transactions
In 2015, China rolled out the General VAT e-fapiao as its e-invoice equivalent nationwide.

Regarding Special VAT invoices, there is a large portion of invoices that remain in paper. In these cases, organizations must register each invoice in the governmental portal or the ‘Golden Tax System’ to retrieve a unique number and print the invoice from a government provided printer.

However, the B2B invoice landscape in China is continuing the develop. For Special VAT invoices, a pilot program was launched in 2020 on a voluntary basis, encompassing different regions for Special e-fapiao expansion. The e-invoice is based on the clearance model: The supplier must clear the Special VAT e-invoice with the STA platform, before distributing to the buyer/recipient.

The pilot program is expected to grow in mega cities in 2022 and nationwide in 2023.

China is moving towards Phase 4 of the Golden Tax System pilot, allowing managing tax via Big Data exclusively for large companies with annual turnover surpassing 6 million euros. Stay tuned!