Goodbye, paper invoices! Fully digitalized e-invoices are here! Tax bureau notice, officially effective from April 1!

Since early 2021, "fully digitalized e-invoices" emerged! Starting with pilots in 5 cities including Chongqing, Nanjing, and Hangzhou, e-invoices entered the public eye. Then on March 29 this year, the Guangdong Provincial Tax Service of the State Taxation Administration issued a document clarifying matters related to further carrying out pilot work on fully digitalized e-invoices.The arrival of comprehensive invoice digitalization is both an opportunity and a challenge for our enterprises!

Here we have summarized the relevant key points, so take good notes!

01

What is a fully digitalized e-invoice?

Fully digitalized e-invoice,Its full name is comprehensively digitalized e-invoice, abbreviated as "fully digitalized e-invoice,"It is not the previous VAT electronic special invoice/electronic ordinary invoice.

Relying on the nationwide unified e-invoice service platform (login address: https://etax.guangdong.chinatax.gov.cn/xxmh/), the fully digitalized e-invoice provides taxpayers in pilot areas with 24-hour online free services such as issuance, delivery, and verification, realizing electronicization of invoices across all fields, all stages, and all elements.

02

Advantages of fully digitalized e-invoices

Invoice validity: the legal validity and basic uses of fully digitalized e-invoices are the same as existing paper invoices.

1. Invoice collection process is more simplified, with "seamless connection" from business opening to invoicing.

A taxpayer does not need to obtain special tax control equipment in advance to issue invoices through the electronic invoice service platform, and does not need to perform the invoice inspection operation. Among these, fully digitalized e-invoices do not require invoice type approval or invoice acquisition.

Passed"code assignment system"Cancellation of application for specific invoice number ranges; after invoice information is generated, the system automatically assigns a unique invoice number; through"Credit authorization system"Automatically grant taxpayers a total invoicing amount quota, enabling invoicing "Zero prerequisites"。Based on this, newly established taxpayers can achieve "invoice issuance upon opening"

2. More convenient invoicing and invoice use, invoice anytime and anywhere

First, taxpayers can issue fully digitalized e-invoices not only through the computer web portal; after all functions of the electronic invoice service platform are launched, they can also issue fully digitalized e-invoices anytime and anywhere through the client and mobile phone app.

3. Efficient data aggregation, providing one-stop services

The electronic invoice service platform can perform a series of operations such as invoice issuance, delivery, verification, and purpose selection, enjoying "one-stop" service and no longer requiring logging into multiple platforms to complete related operations as before.

4. Comprehensive Data Application

Invoice data applications are broader. Through "one household" and "one person" invoice data collection, strengthen the linkage of various tax and fee data, laying the data foundation for realizing "one form integration" tax and fee filing pre-filling services.

5. Convenient invoice delivery, reducing invoice usage costs

Pilot taxpayers can throughThe E-invoice Service Platform Tax Digital Account automatically delivers fully digitalized e-invoices,Fully digitalized e-invoices can also be delivered by oneself via email, QR code, and other methods.

Fully digitalized e-invoices break specific format requirements,Added XML data message format for convenient delivery, while retaining PDF, OFD and other formats, reducing invoice usage costs and enhancing taxpayers' convenience and sense of gain in using invoices.The format of fully digitalized e-invoices is displayed differently according to different businesses, providing taxpayers with higher-quality personalized services.

6. Integrated tax services for smoother service channels

The E-invoice Service Platform provides functions related to taxpayer-tax authority interaction, such as adding intelligent consultation,During invoicing, receiving invoices, and other processes, the platform automatically receives problems existing in the taxpayer's business processing and performsIntelligent Q&A; add objection submission function, when a taxpayer objects to the total invoicing amount limit, they can raise it with the tax authority through the platform.

7. Integrated invoice posting and archiving

The E-invoice Service Platform provides pilot taxpayers withProvides invoice posting identificationServices, when pilot taxpayers use this function, the system will simultaneously assign a booking status label to the invoice for finance personnel to verify promptly and avoid duplicate reimbursement and booking.

By issuing electronic invoice data specifications and introducing national electronic invoice standards, full-process digital circulation of fully digitalized e-invoices is achieved, furtherAdvance the informatization of accounting, financial management of enterprises and administrative institutions。

(limited to the Dongguan area)

03

What exactly does a fully digitalized e-invoice look like?

Fully digitalized e-invoiceNo copy, the basic contents include: dynamic QR code, invoice number, invoicing date, buyer information, seller information, item name, specification/model, unit, quantity, unit price, amount, tax rate/levy rate, tax amount, total, total amount including tax (in words and figures), remarks, and issuer.

The invoice number consists of 20 digits, where: digits 1-2 represent the last two digits of the calendar year, digits 3-4 represent the province/city administrative division code, digit 5 represents information such as the issuance channel of the fully digitalized e-invoice, and digits 6-20 represent the sequential code.

Full version download method:

04

Practical questions about fully digitalized e-invoices

Question 1: During the pilot stage, how do enterprises apply for invoicing and receiving fully digitalized e-invoices?

Answer:Whoever points, moves!

The issuance and receipt of fully digitalized e-invoices are designated by local tax authorities as pilot scope for enterprises. Designated enterprises do not need to apply, and at the same time, tax bureaus do not accept proactive applications from enterprises not included in the designated pilot scope. (Summary: if your enterprise is designated, it participates; if not designated, proactive participation is not accepted.)

If an enterprise has been included in the pilot scope, it will receive a notice from the competent tax authority, and can also check the activation of relevant functional permissions on the provincial tax bureau's electronic tax bureau.

Question 2: Can pilot taxpayers issue invoices for specific businesses such as motor vehicles (including second-hand vehicles) and tolls?

Answer:The E-invoice Service Platform temporarily does not support the issuance of fully digitalized e-invoices for specific businesses such as motor vehicles (including second-hand vehicles) and toll fees, and the launch time of the function for issuing the above invoices will be announced separately. Before the function goes live, pilot taxpayers may issue the above invoices through the VAT Invoice Management System.

Before the relevant invoicing functions go live, pilot taxpayers may issue motor vehicle VAT special invoices, motor vehicle sales unified invoices, used vehicle sales unified invoices, roll-type invoices, toll roadtoll VAT electronic ordinary invoices, electronic special invoices, and electronic ordinary invoices through the VAT invoice management system.

Question 3: How to verify fully digitalized e-invoice information?

Answer:Through the electronic invoice service platform orNational VAT Invoice Verification Platform(https://inv-veri.chinatax.gov.cn) can verify the information of fully digitalized e-invoices.

Finally

The pilot and rollout of fully digitalized e-invoices undoubtedly provide important support for enterprises' financial digital transformation. Enterprises with the conditions should seize the opportunity of fully digitalized e-invoices to advance the digital and intelligent transformation of business-finance-tax management, achieve more compliant, more efficient, and more empowering business-finance-tax integration, and push the value of finance in serving business and management decision-making to another strategic high ground.