How can enterprises fully prepare for applying for and responding to Leqi opportunities?

Since fully digitalized e-invoices were piloted on December 1, 2021 in Inner Mongolia Autonomous Region, Shanghai, and Guangdong Province (excluding Shenzhen), they have been accelerating. As of December 1, 2023, 36 provinces (autonomous regions, municipalities directly under the Central Government, and cities with separate state planning) nationwide entered the pilot for issuing fully digitalized e-invoices; as of January 16, 2024, all 36 provinces, regions, and cities nationwide had issued the "Guidelines on the Specifications for Leqi Self-use Direct Connection Services", marking that all 36 tax regions nationwide have fully entered the Leqi pilot stage. Access applications for "Leqi services" are officially open to qualifying large and medium-sized enterprises.

Leqi is an essential path for large enterprises to advance digital upgrading. Through the construction of Leqi, large enterprises are empowered to be data-driven, using fully digitalized e-invoices as key information connecting business-finance-tax throughout the entire business activity, thereby strengthening tax management, reducing compliance costs, and driving digital transformation.

In the process of China Golden Tax Phase IV accelerating enterprise digital transformation, as a leading domestic tax digitalization service provider,Kailing TechnologyActively participated in the construction of fully digitalized e-invoice Leqi projects, formed a professional project team, closely followed tax authority policies, comprehensively upgraded products, and leveraged the dual advantages of hard technical strength + soft service strength, along with rich practical experience in Leqi fully digitalized e-invoice projects, to meet the Leqi connection and invoicing/use needs of massive enterprises in pilot regions.

01 Leqi Triggers a Transformation in Enterprise Digital-Intelligence Capabilities

"Leqi Service" is an important lever of China Golden Tax Phase IV and key infrastructure for the new tax collection and administration policy reform. Digital tax collection and administration in the era of fully digitalized e-invoices will shift from tax control by invoice to "tax governance by data." Under the trend of China Golden Tax Phase IV's precise supervision model and increasingly intelligent tax and fee service system, large enterprises will be continuously required to improve the intelligence and digitalization level of tax management.

02 What changes has Leqi brought to enterprises?

Through Leqi, enterprises can achieve comprehensive head-office-to-head-office direct tax-enterprise connection, further promoting enterprise invoice and tax digital control and collaborative application, thereby improving invoice service experience, enhancing collection and management efficiency, and reducing collection and payment costs. Enterprises should seize the Leqi opportunity to achieve leapfrog development.

03 What value and advantages does Leqi have?

Relying on "Leqi Services," enterprises can carry key business, financial and tax information through digital invoices, running through the entire process and all links of invoice issuance, management, receipt, storage and use (seven core capabilities including invoicing, collection, verification, deduction selection, tax refund selection, agency selection and accounting), and there are also new functions such as tax risk warnings, which will bring multiple value improvements in experience, efficiency and management to enterprises.

Leqi brings so much convenience to enterprises. What conditions are required to apply? How should Leqi be built?

-Leqi includes three modes

Leqi includes three modes: Leqi self-use, Leqi joint use, and Leqi other use. At present, the mode widely promoted and applied is Leqi self-use.

-Leqi for self-use application and usage requirements

Leqi self-use targets involve two types: direct connection units and user units:

Direct Connection Entity

The direct connection entity refers to the owner of the direct connection platform, 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.

User entity

A user entity refers to a user that uses relevant Leqi services through the direct connection platform, 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. (The following are the qualification requirements for direct connection entities and user entities.)

04 How should Leqi Platform construction be chosen? Self-builtOrThird party?

The Leqi guideline documents provided by the State Taxation Administration are clear and detailed in steps, and for those with a high degree of informatization and a strong IT technical team，For enterprises able to meet continuous operation and upgrade needs, whether in terms of coordination or cycle control, they have unique advantages; enterprises with such comprehensive capabilities can choose self-building.

Conversely, if an enterprise has limited informatization, insufficient IT team integration experience, and immature business-finance-tax data organization, choosing an experienced third-party service with a good industry reputation to assist in building will be the best choice for improving efficiency and reducing costs.

Choosing an experienced third-party service provider offers the following major advantages:

Kailing TechnologyFully digitalized e-invoice Leqi integrated solution helps Leqi construction empower enterprise operations and improve efficiency

Kailing Technology as a professional, efficient, and reliable business-finance-tax digital solution provider, it has so far assisted multiple Leqi pilot enterprises in completing connection debugging and completing invoicing services, invoice usage services, and delivery services. It has rich Leqi implementation experience and has also developed a standard integrated fully digitalized e-invoice and Leqi solution, which is highly compatible with both original tax-control invoice issuance and fully digitalized e-invoice issuance，During the transition period of dual-track operation of "fully digitalized e-invoices + paper invoices"，Help group enterprises easily respondFor the multi-scenario invoice business needs of tax authorities and customers.

By improving the three major systems—tax standardization system, centralized tax management and control system, and tax analysis and planning system—and six capabilities, we accelerate the digital transformation and upgrading of tax management for large enterprises, build an advanced smart tax management system to address external tax regulatory risks, shift from passive to proactive, enhance internal management, and create data value for enterprises.

Kailing TechnologyThe fully digitalized e-invoice Leqi integrated solution has been practically applied in numerous industries and leading enterprises, with mature construction capabilities, compatibility capabilities, integration capabilities, and implementation and delivery capabilities. It can provide enterprises with full-process, full-region one-on-one consulting and technical support services for fully digitalized e-invoice Leqi.

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.