Application guide for "Leqi Service"

The comprehensive rollout of the "fully digitalized e-invoices" pilot combined with the new technology empowerment of "Leqi Services" brings dual opportunities and challenges to enterprises, especially for large group enterprises with cross-regional operations, numerous tax entities, and diversified businesses. How to fully apply "Leqi Services" and smoothly transition to the "fully digitalized e-invoices" model has become the primary topic of concern in current enterprise tax management and smart tax construction.

I. Basic concepts of "Leqi Service"

1. What is "Leqi service"?

According to public documents from the tax bureau, Leqi (Natural System) refers to a platform through which the State Taxation Administration provides qualified enterprises with tax-related services such as fully digitalized e-invoices with open rules and unified standards through direct connection between the tax system and the enterprise's own information system (referred to as "Leqi Service").

Leqi for self-use (Natural System Connection for Self-use, 'NSCS') means that the Leqi services provided by the enterprise's own information system apply only to the entity itself and its subordinate entities, and not primarily for obtaining economic benefits. Subordinate entities include group enterprise member entities, equity-controlled entities, etc.

In summary, "Leqi Service" is, under the tax-enterprise direct connection model, building a digitally controllable access platform for "fully digitalized e-invoices," establishing "fully digitalized e-invoice" information exchange standards covering the three domains of "business, finance, and tax," and through multiple access methods such as SDK engines, API services, and database tables, achieving data empowerment, secure access, and effective supervision, thereby improving the invoice service experience, raising collection and management efficiency, reducing collection and payment costs, and promoting enterprise development.

Currently, the positioning of Leqi Services has upgraded from version 1.0, providing invoice issuance and usage services for some enterprises, to version 1.5, empowering enterprise digital transformation.

2. Service targets of "Leqi"

The service targets of Leqi involve two categories: direct connection entities and user entities.

The direct connection entity refers to the owner of Leqi self-use, i.e., the main responsible entity, which should be the head office of a head office and branches, the headquarters of a group enterprise, the actual controlling entity with equity control relationships, etc.

A user entity refers to a user that uses relevant Leqi services through Leqi self-use, and should be a head office or branch of a head office-branch structure, a group enterprise headquarters and its subordinate member enterprises, or an affiliated enterprise with an equity control relationship with the direct connection entity, etc.

3. Access conditions for "Leqi Service"

According to public documents from the tax bureau, the access conditions for "Leqi Service" set a certain threshold.

The access conditions for the direct connection entity are summarized as follows:

(1) Large and medium-sized enterprises with operating revenue of over RMB 50 million in the previous year and a combined cumulative invoice issuance and receipt volume of no less than 50,000 in the preceding 12 months;

(2) Enterprises that have had no major tax violations in the past three years and can provide relevant tax-related data as required by the tax authorities;

(3) Enterprises with strong informatization capabilities must open interfaces to the tax authorities for tax authority auditing.

The access conditions for user entities are summarized as follows:

(1) Being a direct connection entity or an enterprise that is a head office and branch of the same entity, a group enterprise, or has mutual equity control relationships with it;

(2) Enterprises that have no major tax violations determined by tax authorities within three years;

(3) Enterprises that can cooperate with direct connection units to provide relevant tax-related data in accordance with the law and the requirements of the tax authorities.

4. Core capabilities of "Leqi Service"

Public documents from the tax authority state that Leqi is a platform that provides tax-related services such as digitalized e-invoices with open rules and unified standards through direct connection between the tax system and enterprises' own information systems (referred to as "Leqi Services"). This means that "Leqi" provides more than just "fully digitalized e-invoice" service capabilities; currently only "fully digitalized e-invoice" services are available, but other service capabilities (such as filing services, tax information push services, etc.) are expected to be opened in the future.

The basic service capabilities of "fully digitalized e-invoices" include automated invoice issuance, automated deduction selection, automated statistical confirmation, as well as tax refund selection, invoice booking, invoice verification, etc.

II. The significance of enterprises connecting to "Leqi Service"

In the era of China Golden Tax Phase IV, with the increasing refinement of the "data-driven tax governance" precision supervision model and the accelerated development of the smart tax system, large enterprises face multiple challenges in centralized tax management, risk and compliance control, and secure data flow. Improving the digital and intelligent level of tax management has become a must-answer question for enterprises.

"Leqi Service" is not only the infrastructure for enterprises to achieve intelligent tax management, automated business processes, and centralized tax-related data, but also a system upgrade for building a tax-enterprise direct connection model and realizing "tax governance by data" tax supervision. Therefore, the promotion and application of "Leqi Service" has far-reaching significance for enterprises.

III. What troubles has dual-track parallel invoice management brought to enterprises?

Currently, in the early stage of promoting fully digitalized e-invoices, invoice management is in a stage of "paper and electronic dual-track operation." Large enterprises generally face challenges such as multiple invoicing methods, multiple delivery methods, multiple invoice types, multiple application methods, and multiple invoicing systems, posing considerable challenges to invoice management.

1. Multiple invoicing methods

Includes methods such as manual invoicing, import batch invoicing, automatic invoicing by invoicing assistant, and automatic invoicing via API interface;

2. Multiple delivery methods

The seller and the invoice recipient must clarify the delivery method for different types of invoices; careless delivery can easily cause invoice loss;

3. Many invoice types

Includes traditional paper invoices, electronic invoices, and fully digitalized e-invoices. The issuance requirements for different invoice types are inconsistent, making confusion and errors likely in practice;

4. Multiple application methods

Tax control invoices require invoice type verification, determination of invoicing limits and maximum quantities to be obtained, and handling of collection, etc.; after real-name verification, fully digitalized e-invoices can be issued on the electronic invoice service platform, and no tax control dedicated equipment is required;

5. Many invoicing systems

Currently, there are multiple invoicing systems, including the electronic invoice service platform, VAT invoice management system, self-built invoicing service platform, third-party invoice service platform, Leqi services, and enterprise tax digital accounts.

Source: internet

Beijing Kailing Technology Co., Ltd.——an enterprise business-finance-tax digitalization solution service provider.

Kailing Technology provides solutions for sales management systems, procurement management systems, output invoicing systems, input invoice collection systems, imaging management systems, financial posting systems, electronic accounting archives, fully digitalized e-invoice and Leqi interfaces and other businesses according to enterprise needs, professionally and efficiently helping enterprises transform and upgrade their business-finance-tax digital management.

If you have any business-finance-tax digital transformation needs, welcome to contact us. Beijing Kailing Technology will serve you wholeheartedly.