Leqi Application Guide to Help Enterprises with Business-Finance-Tax Digital Transformation

The introduction of China Golden Tax Phase IV has brought the tax field into a brand-new era. The popularization of fully digitalized e-invoices has further opened a new chapter in tax governance by data. As the pilot regions for fully digitalized e-invoices continue to expand, the digital transformation of corporate business-finance-tax has become urgent, and the application of fully digitalized e-invoices has become a major task.

As an important component of advancing enterprise business-finance-tax digital transformation, deepening and expanding tax big data applications, and improving digital-intelligent governance efficiency, the pilot promotion speed and application implementation level of fully digitalized e-invoice Leqi affect the long-term development of the digital economy at the data foundation level.

As of March 1, 2024, all 36 provinces, regions, and municipalities nationwide have 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 qualified large and medium-sized enterprises.

1. What is Leqi

Leqi (Natural System) refers to the platform through which the State Taxation Administration provides eligible enterprises, by means of direct connection between the tax system and the enterprise's own information system, with rules-open, standards-unified tax-related services such as fully digitalized e-invoices.

Under the tax-enterprise direct connection model, build a digitally controllable access platform for fully digitalized e-invoices, establish a fully digitalized e-invoice information exchange standard covering the entire "business, finance, and tax" domain, and through multiple access methods such as SDK engines, API services, and database tables, achieve data empowerment, secure access, and effective supervision, thereby improving the invoice service experience, enhancing collection and administration efficiency, reducing collection and payment costs, and promoting enterprise development.

2. Leqi application conditions

-Has been included in the pilot taxpayer scope for fully digitalized e-invoice (hereinafter referred to as "fully digitalized e-invoice") issuance;

-Tax credit rating is A or B;

-The combined operating revenue of this enterprise and enterprises simultaneously requesting to become its user units in the previous year exceeds RMB 50 million;

-The combined invoice issuance volume and invoice receipt volume of this enterprise and enterprises simultaneously requesting to become its user units in the 12 months prior to the month of initiating the access request is no less than 50,000 invoices, or the combined invoice issuance and receipt volume is less than 50,000 invoices but the invoiced amount is no less than RMB 500 million;

-No major tax violations determined by tax authorities in the last three years;

-Able to provide relevant tax-related data in accordance with the law as required by tax authorities, including but not limited to user entity identity information, remuneration account information, operating income status, etc., as well as other tax-related data that needs to be specially provided such as goods flow, capital flow, and cash flow;

-For taxpayers in livelihood-guarantee industries such as hospitals, thermal power, and public transportation, whose operating revenue and invoice issuance/receipt volume do not meet the above conditions, tax authorities may appropriately lower the access threshold standards based on actual circumstances.

3. Leqi application process

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 an equity control relationship with the direct connection entity, etc.

4. Main functions of Leqi

Leqi's current main functions include: invoicing, aggregation, verification, booking, deduction selection, refund selection, agency selection and other modules.

5. What advantages does Leqi have

Leqi has many unique advantages in use. Private deployment of accounts ensures the data security of invoicing. Under the condition of direct tax-enterprise connection, invoicing can be carried out without frequent face recognition authentication. It also supports offline invoicing and independently controls invoicing risks. Technically, it also has a high-concurrency underlying architecture and high-availability guarantees.

Kailing Technology Leqi Solution

For enterprises, lack of understanding of policies, lack of professionalism regarding interfaces, and unfamiliarity with logic greatly affect the enterprise's implementation and use of the corresponding Leqi service platform. As a comprehensive business-finance-tax digitalization service provider, Kailing Technology, with its professional team, not only demonstrates efficiency in qualification application timelines, but also responds quickly in system implementation time, while demonstrating excellent professionalism in business. These advantages not only greatly reduce enterprise labor costs, but also reduce the complexity of multi-party coordination, saving enterprises a great deal of valuable resources.

As a professional, efficient, and reliable business-finance-tax digital solution provider, Kailing Technology has assisted multiple Leqi pilot enterprises in completing integration testing and completing invoicing services, invoice usage services, and delivery services. It has rich Leqi implementation experience and has also developed a standard fully digitalized e-invoice and Leqi integrated solution that can well support both original tax-control invoices and fully digitalized e-invoice issuance. During the transition period of dual-track operation of "digital invoices + paper invoices," it helps group enterprises easily respond to the multi-scenario invoice business needs of tax bureaus and customers.

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.