From November 1, railway passenger transport will promote the use of fully digitalized e-invoices, and the "paperless" railway passenger transport invoice brings multiple benefits

To implement the requirements of the "Opinions on Further Deepening the Reform of Tax Collection and Administration" issued by the General Office of the CPC Central Committee and the General Office of the State Council regarding "orderly advancing the electronification of invoices in railway, civil aviation, and other fields," today the State Taxation Administration, the Ministry of Finance, and China Railway jointly issued an announcement that, starting from November 1, 2024, fully digitalized e-invoices—electronic invoices (railway electronic passenger tickets)—will be promoted and used in China's railway passenger transport sector.

Earlier, the State Taxation Administration and China Railway Group worked closely together to complete the connection and transformation of the railway invoice electronic information system. After piloting, the system has run smoothly and already meets the conditions for nationwide rollout. After the promotion and use of fully digitalized e-invoices in the railway passenger transport field, it will reduce invoice usage costs, improve invoice management and usage efficiency, and meet the needs of the general public of passengers to conveniently obtain e-invoices (railway e-tickets).

The issuance, delivery and use of electronic invoices (railway electronic tickets) will bring multiple benefits. For passengers, the biggest change is that they no longer need to print "railway tickets (paper reimbursement vouchers)" at railway stations, ticket agencies or self-service machines, making travel more convenient. For entities, finance personnel can carry out paperless reimbursement, recording, archiving and storage based on electronic invoices (railway electronic tickets), promoting the digital transformation of related business and "online handling." As a VAT deduction voucher, entities can log in to the electronic invoice service platform to query the VAT amount corresponding to the electronic invoice (railway electronic ticket) and select and deduct it according to regulations, eliminating the calculation procedure of converting based on the total price and reducing workload. In addition, as the use of railway tickets (paper reimbursement vouchers) decreases significantly, the costs of ticket printing and terminal self-service machine maintenance for railway transport enterprises will also be greatly reduced.

Li Xuhong, vice president and professor of Beijing National Accounting Institute, said that compared with the original invoicing method, fully digitalized e-invoices feature "one-stop" invoice services and will greatly facilitate travelers and organizations. Organizations can use them for integration with accounting and financial management informatization, reducing the cumbersome steps of paper invoice management and improving overall management efficiency.

The announcement explains the basic content of electronic invoices (railway electronic passenger tickets), invoice numbers and coding rules, and matters such as inquiry, verification, download, and use by passengers and entities. According to the announcement, after the journey ends or after paying refund or change fees, passengers can obtain electronic invoices (railway electronic passenger tickets) through Railway 12306 (website and mobile client) and inquire, download, and print them. Entities can inquire, verify, download, print, and confirm the use of electronic invoices (railway electronic passenger tickets) through the tax digital account, and can also throughNational VAT Invoice Verification PlatformVerification. If the entity is a VAT general taxpayer, the electronic invoice (railway electronic ticket) shall be used as the VAT deduction voucher, and the input tax amount shall be determined in accordance with current regulations.

It is worth noting that, to facilitate passengers and entities, railway passenger transport has set a transition period during the rollout of fully digitalized e-invoices, ending on September 30, 2025. During the transition period, "paper and electronic coexist," passengers can still use railway tickets (paper reimbursement vouchers) for reimbursement, and entities can also use railway tickets (paper reimbursement vouchers) for accounting and calculate input VAT deductions according to regulations.

Railways are the major transportation arteries between cities, and railway transport is an important way for people to travel. The implementation of fully digitalized e-invoices in the railway passenger transport sector will further advance railway transport services toward digitalization and intelligence, and better provide passengers and employers with nationwide unified, standardized, reliable, safe, and convenient services.

A relevant person in charge of the Tax Collection and Administration and Science and Technology Development Department of the State Taxation Administration introduced that tax authorities will work with China Railway Group to plan and produce a series of guidance products to help passengers understand the issuance process of electronic invoices (railway electronic tickets), and organize related coaching work so that passengers can issue invoices more simply and have a better experience.

Relevant heads of tax authorities and railway authorities stated that passengers are welcome to submit opinions and suggestions on the use of e-invoices (railway e-tickets), and relevant departments will continue to improve and enhance the user experience.

Source: China Tax News

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