New opportunities for enterprise tax management brought by "Leqi"

Currently, all 36 provinces, municipalities, and autonomous regions nationwide have launched pilots for fully digitalized e-invoices and issued specification guidelines for Leqi self-use services.

The comprehensive expansion of the "fully digitalized e-invoices" pilot combined with the platform empowerment of "Leqi Services" brings major development opportunities for enterprise tax digital upgrading, while also facing technology and security、planning and other multiple challenges. 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-invoice" model has become a primary topic of concern in current enterprise tax management and smart tax construction.

KailingKailing Technology has long actively followed the reform and pilot promotion process of "fully digitalized e-invoices" and helped many medium and large enterprises successfully access Leqi services. Today, through a guide we introduce the definition, capabilities, significance, and application strategies of "Leqi services," explaining all key points thoroughly and providing comprehensive solutions for fully digitalized e-invoices and Leqi services for large group enterprises.

01 Basic concepts of "Leqi"

1. What is Leqi

"Leqi Service" is, under the tax-enterprise direct connection model, the construction of 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, realizing data empowerment, secure access, and effective supervision, thereby improving the invoice service experience, enhancing collection and administration efficiency, reducing collection and compliance costs, and promoting enterprise development.

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 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.

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 equity control

3. Access conditions for "Leqi"

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.

02 Opportunities brought by "Leqi" for enterprise tax management

1. Help enterprises achieve deep business-finance-tax integration

The comprehensive digitalization of invoices provides the foundation for the comprehensive digitalization of finance and tax. Full-process online invoice circulation improves the automation and paperless level of tax management, helping business-finance-tax data matching and circulation become more efficient and smooth.

2. Reshape the enterprise fiscal and tax management process

China Golden Tax Phase IV takes invoice digitalization as a breakthrough point. On one hand, it advances enterprise-wide, full-process, all-element electronic management; on the other hand, tax authorities raise supervision requirements through digital means, requiring enterprises to re-sort business, finance, tax, invoice, fund, and archive management processes to improve management efficiency and compliance.

3. Solidify the foundation for business-finance-tax digital transformation

The deep integration of fully digitalized e-invoices with new technologies such as big data and artificial intelligence improves enterprise management quality and efficiency while enabling digital management, forming enterprise data assets, empowering business application scenarios, laying a solid foundation for digital transformation, and thereby achieving high-quality development.

03 Kailing TechnologyComprehensive Solution for Leqi Services

From the regulatory guidance of "Leqi Services," it can be understood that Leqi Direct Connection not only reviews an enterprise's business scale, but also sets higher standards for an enterprise's digital and intelligent infrastructure construction.

AsA key builder of "China Golden Tax Phase IV" andBusiness-Finance-Tax DigitalizationAs a service provider, Kailing Technology has ample project experience and can customize business-finance-tax digitalization plans for various industries to achieve fully digitalized upgrades.

In terms of Leqi Direct Connection, the Kailing tax digitalization invoice management platform builds a set of Leqi front-end systems locally at the enterprise or in the cloud, creating a digital high-speed channel between the enterprise and the Leqi digital open platform, helping enterprises effectively manage various business processes of fully digitalized e-invoice issuance and use. It can also excellently be compatible with the issuance of original tax control invoices and fully digitalized e-invoices, assisting group enterprises in calmly responding to the tax bureau's and customers' multi-scenario invoice business needs during the transition period of "digital + paper" dual-track operation.

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.