The tax bureau is fully promoting fully digitalized e-invoices, revolutionizing expense reimbursement and electronic invoice management

1. Key Policy Points Interpretation: Promotion and Application of Fully Digitalized E-Invoices

To implement the Opinions on Further Deepening the Reform of Tax Collection and Administration, the State Taxation Administration decided to comprehensively promote the application of fully digitalized e-invoices (hereinafter referred to as fully digitalized e-invoices) starting from December 1, 2024. This action will have a significant impact on enterprise expense reimbursement management and electronic invoice management, strongly driving China's tax management digital transformation into a new stage.

Fully digitalized e-invoices fall within the category of 'electronic invoice' stipulated in the Measures of the People's Republic of China for the Administration of Invoices and have the same legal effect as paper invoices. Through full digitalization and nationwide unified numbers, they make expense reimbursement and electronic invoice management more efficient, convenient, and secure for enterprises.

The promotion and application of fully digitalized e-invoices bring changes to enterprises in many aspects:

▪ Reimbursement process simplification:Fully digitalized e-invoices "remove the medium", so employees do not need to provide paper invoices when reimbursing; they can directly query, download and print invoice information in the electronic tax bureau or tax digital account, significantly simplifying the reimbursement process.

▪ Improved management efficiency:The enterprise finance department uses the tax digital account to centrally manage fully digitalized e-invoices, enabling rapid retrieval, verification, and archiving of invoice information, effectively improving financial management efficiency.

▪ Enhanced Tax Compliance:The full-process digital circulation of fully digitalized e-invoices helps enterprises strictly comply with tax regulations and reduce tax risks caused by improper invoice management.

▪ Environmental protection and cost savings:Promoting fully digitalized e-invoices reduces the use of paper invoices, both lowering enterprise costs and aligning with environmental concepts, helping enterprises achieve sustainable development.

The State Taxation Administration emphasizes that the promotion and application of fully digitalized e-invoices will strictly implement the Measures of the People's Republic of China for Invoice Administration and its implementation rules and other relevant provisions to ensure the legality and security of fully digitalized e-invoices. At the same time, the promotion of fully digitalized e-invoices is also an important milestone in the digital transformation of China's tax collection and administration, indicating that China's tax administration will enter a brand-new digital era. For enterprises, the promotion of fully digitalized e-invoices is also an important opportunity for enterprise digital transformation, helping enterprises improve internal management and enhance market competitiveness.

2. What challenges does the policy rollout of fully digitalized e-invoices pose to enterprises?

▪ Diverse challenges and key transformation points of enterprise invoice management under the coexistence of paper and electronic invoices

In the current invoice management landscape, the coexistence of paper invoices, electronic invoices, and fully digitalized e-invoices has become a prominent feature. During this special transition period, invoice issuance platforms are diversified, making it difficult to achieve efficient and unified data integration. At the same time, changes in invoice circulation forms have brought many challenges to enterprises. Under these circumstances, how to ensure that systems can switch smoothly and quickly, and how to achieve seamless connection and synchronization of business data, have become urgent and pressing challenges that enterprises must overcome in invoice management.

▪ Tightening tax audits and prominent compliance risks

With the deepening advancement of the "tax governance by data" concept, tax big data is increasingly widely applied in the tax collection and administration system. Against this backdrop, various types of information previously hidden at the bottom and behind the scenes of transactions are gradually being uncovered and becoming transparent. In addition, the control model of "dynamic credit limits" is increasingly showing real-time characteristics. For enterprises, this means that the tax audit risks they face have increased in both depth and breadth, and how to effectively ensure the compliance of enterprise business-finance-tax activities has become an important challenge that enterprises must face and properly address today.

▪ Paperless Archiving Requirements in the Era of Fully Digitalized E-Invoices

With the full arrival of the era of fully digitalized e-invoices, the volume of e-invoice data will show explosive growth. Under these circumstances, how to effectively integrate e-invoice and business data to achieve paperless archiving of accounting vouchers has become another key task for enterprises in the field of invoice management. To achieve this goal, enterprises need to promptly transform and upgrade their existing systems and accelerate digitalization to build an archive management system that meets the needs of the fully digitalized e-invoice era.

▪ Business-finance integration drives the wave of digital-intelligent transformation

At the current stage, many enterprises have problems such as mutual independence and disconnected data between internal business systems and financial systems, thus forming the so-called business-finance "data silos" phenomenon. This phenomenon severely restricts the mining and utilization of enterprise data value and hinders the improvement of enterprise management efficiency. To break this dilemma, enterprises urgently need to introduce advanced technical means and management concepts, organically link multiple systems such as business, finance, and taxation, realize deep business-finance-tax integration, and on this basis comprehensively improve the full-process digitalization level of business-finance-tax management, promoting enterprises to take solid steps on the path of digital and intelligent transformation.

3. How should enterprises respond to the trend of fully digitalized e-invoices?

Kailing Technology·Business-Finance-Tax Digital Solutions for Large Enterprises

▪ Leqi Direct Connection services

KailingAble to provide enterprises with convenient access paths adapted to the latest Leqi platform based on their unique business processes and existing software and hardware conditions, and carefully create a dedicated "fully digitalized e-invoice" solution. This solution aims to minimize the difficulty and complexity enterprises face in understanding and calling Leqi interfaces, helping enterprises smoothly and efficiently navigate the transition period between old and new invoice management models, comprehensively meeting the diverse financial management needs of enterprises during the parallel phase of paper invoices and electronic invoices, and ensuring the continuity and stability of enterprise financial operations.

▪ Collaborative innovation of upstream and downstream fully digitalized e-invoices

Given the digital collaboration advantages of "fully digitalized e-invoices,"KailingThe product deeply integrates the fully digitalized e-invoice solution, committed to helping enterprises build a brand-new upstream and downstream invoice digital collaboration ecosystem platform. Through this platform, enterprises can achieve the dual goals of automated and compliant invoice management, effectively improving invoice processing efficiency and quality, thereby driving the digital upgrade and transformation of the entire industry chain in invoice management and enhancing the overall competitiveness and collaboration of the industry chain.

▪ Driven by full-process automation of accounts receivable and payable

Under the framework of the Leqi service model,KailingHelp enterprises achieve instant sharing and deep integration of "fully digitalized e-invoices," and use this as an engine to drive close collaboration in upstream and downstream business processes. This specifically covers core links such as reconciliation collaboration, three-way matching, and payment collection collaboration, successfully building an end-to-end automated flow mechanism for payables and receivables. The establishment of this mechanism not only significantly reduces manual intervention and lowers the risk of operational errors, but also greatly improves enterprise capital turnover efficiency and financial management precision, injecting strong momentum into enterprise operations management.

▪ Deep integration of business-finance-invoice-tax-archive

Through the tax-enterprise direct connection channel built by "Leqi Services",KailingActively assist enterprises in integrating financial and business systems to achieve real-time data synchronization and efficient collaboration, precisely realizing the management vision of "business-finance integration." At the same time, further expand the management scope to achieve full-process automated processing from the issuance of fully digitalized e-invoices to the completion of electronic archiving, successfully building a modern management system integrating business, finance, invoices, tax, and archives. This system breaks down information barriers between various stages under traditional management models, achieves seamless data flow and deep mining and utilization, and comprehensively improves the enterprise's overall management efficiency and decision support level.

▪ Three-dimensional intelligent risk control guarantee system

In the strict and precise regulatory environment of China Golden Tax Phase IV's "tax governance by data," leveraging the powerful functions and extensive connectivity of "Leqi Services,"KailingCollaborate with enterprises and their upstream and downstream partners to jointly advance the integrated management and control of business data, financial data, and invoice data. By building a comprehensive three-dimensional risk control system covering pre-event prevention, in-process monitoring, and post-event assessment, conduct real-time, comprehensive, and in-depth monitoring and analysis of enterprise tax-related data and upstream and downstream affiliated enterprises. This builds a solid risk prevention barrier for enterprises, ensuring they can operate steadily and develop sustainably in a complex and ever-changing tax administration environment, achieving the organic unity of long-term strategic goals and healthy sustainable development.

Kailing Technology·Business-Finance-Tax Digital Solutions for SMEs

▪ Tax-enterprise direct connection service

Because the new electronic invoice service platform is limited by the tax authority's identity authentication methods, enterprises often need to perform cumbersome manual operations such as manually entering account passwords and frequently submitting mobile verification codes.KailingWith advanced system configuration functions, it can assist customers in automating the authentication process and directly connect to tax authority systems to achieve synchronous acquisition of invoice data, greatly reducing the workload of enterprises in the invoice data acquisition step and improving the efficiency and accuracy of data acquisition.

▪ Comprehensive support for online management of fully digitalized e-invoices

KailingEquipped with powerful capabilities to support online issuance of fully digitalized e-invoices, able to intelligently complete invoicing operations according to the specific requirements of different customers, and deliver invoices to relevant parties through various automated methods. Moreover, it can empower suppliers with the ability to issue fully digitalized e-invoices, enabling online transmission and receipt of invoices between enterprises and suppliers, while synchronously obtaining XML originals, achieving full online circulation and unified management of output and input VAT invoices, effectively enhancing the digitalization level and overall efficiency of enterprise invoice management.

▪ Construction of a Comprehensive Unified Invoice Management System

KailingThe carefully crafted special solution for "fully digitalized e-invoices" helps enterprises build a centralized management platform for the three main invoice types of "paper invoices, electronic invoices, and fully digitalized e-invoices," while also building an "enterprise one-household" invoice management resource pool. Through the coordinated operation of this platform and resource pool, full-process closed-loop management of input invoice management and output invoicing has been successfully achieved, making enterprise invoice management more standardized, orderly, and efficient, and facilitating comprehensive control and in-depth analysis of invoice data.

▪ Deep data interaction in business-finance integration

KailingCommitted to promoting the digital transformation of enterprises' fully digitalized e-invoices across all channels. Through direct connection and interaction among multiple ports of business systems and financial systems, various documents can automatically establish close associations. This full-process business-finance data interconnection mechanism strongly guarantees the accuracy and timeliness of data transmission between business and finance, truly achieving the management goal of business-finance integration, providing more reliable data basis for enterprise decision-making, and promoting the improvement of overall enterprise operations management.

▪ Enhanced invoice data risk management

KailingAssist enterprises in building a fully digitalized e-invoice management platform, forming a complete data pool through the statistics and integration of full input and output invoice data. With multiple invoice risk verification methods and polling mechanisms, it can promptly and effectively identify and avoid various invoice issues such as erroneous invoices, false invoicing and delayed delivery, achieving full-process monitoring and management of invoices, thereby significantly reducing the tax-related risks enterprises face in invoice management and safeguarding their stable operations.

As a comprehensive business-finance-tax digitalization solution service provider, Kailing Technology provides business-finance-tax management digital transformation products and operational services for various government agencies, institutions, and large, medium, and small enterprises. The product line includes:

Solutions for businesses including sales contract management system, procurement contract management system, fully digitalized Leqi interface project, output automatic invoicing system, employee expense control and reimbursement system, input VAT invoice management system, supply chain collaborative reconciliation system, image OCR recognition system, automatic financial bookkeeping system, and electronic accounting archives system, comprehensively driving the digitalization process across various fields.

If you have any business-finance-tax digital transformation needs, welcome to contact us. Beijing Kailing Technology will serve you wholeheartedly.