Practical Insights | Complete Guide to Leqi Self-Use Application Materials and FAQs

The State Taxation Administration's public document "Guidelines on the Standards for Leqi Self-Use Direct Connection Services" stipulates that eligible Leqi self-use taxpayers may submit a request to use Leqi to their competent tax authority through the Leqi digital open platform. So what is Leqi? What conditions are required to apply? Let's learn about "Leqi" together!

What is Leqi?

Leqi refers to the platform through which the State Taxation Administration provides eligible enterprises, via direct connection between the tax system and the enterprise's own information system, with rule-open, standard-unified fully digitalized e-invoices and other tax-related services (hereinafter referred to as "Leqi Services").

Leqi for self-use means that the Leqi services provided by the enterprise's own information system directly connected to Leqi (hereinafter referred to as the "direct connection platform") apply only to the entity itself and its subordinate entities, and not primarily for obtaining economic benefits. Subordinate entities include group enterprise member entities, equity-controlled entities, etc.

What advantages does Leqi have?

Leqi is a channel through which tax authorities compliantly open rules and data to qualified taxpayers. Tax authorities provide functions such as upload, clearing, and download to help issuers and recipients complete invoice delivery and help invoice users upload invoice usage data; taxpayers embed the open rules into their own business systems and complete invoicing and invoice usage within their own business systems and are responsible for the results, thereby effectively reducing enterprise invoice management costs.

Who are the targets of Leqi for self-use?

Leqi self-use targets involve two types: direct connection units and user units:

1. Direct Connection Entity

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.

2. User entity

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.

If you want to apply for Leqi self-use, what conditions need to be met?

The conditions that the direct connection entity and user entities need to meet are as follows:

If I am a direct connection entity, what materials do I need to prepare?

According to the principle of territorial management, eligible direct connection units initiate an access request to their competent tax authority through the Leqi platform and submit the following materials:

1. Leqi Direct Connection Service Access Information Form (attached: list of user entities);

2. Leqi Direct Connection Service Agreement;

3. Software copyright or usage right certificate for the enterprise's own information system;

4. "Project Report": should include the business part, technical part, and management part. The business part should at least include the description of the access application development project, project planning, business volume, etc. The technical part should at least include network environment, security plan, hardware environment, system design, technical implementation, etc. The management part should at least include technical support management, security management, operation and maintenance management, etc.;

5. Leqi Direct Connection Service Authorization Letter (provided when the direct connection entity authorizes its affiliated enterprise to build and manage the platform, or authorizes a non-affiliated third-party enterprise to build the platform);

6. "Leqi Direct Connection Service Network Address Filing Form";

7. Other materials required by the tax authorities.

If I am a user entity, what materials do I need to prepare?

A user entity needs to submit the following materials:

1. The user entity shall provide relevant materials proving its affiliation with the direct connection entity. If the user entity is a railway, civil aviation, highway, or similar entity under unified government business supervision as determined by a provincial or higher tax authority, such materials are not required;

2. Other materials required by the tax authority.

Two ways for a user entity to initiate a usage request:

1. If invited by a direct connection entity, the user entity receives the invitation notice, confirms the invitation information through the Leqi platform and fills in the competent tax authority and the relationship with the direct connection entity, then initiates a usage request to the user entity's competent tax authority;

2. If a user entity applies for authorization, the user entity initiates an authorization application to the direct connection entity through the Leqi platform, and after obtaining the direct connection entity's consent, initiates a usage request to the competent tax authority of the user entity.

After an enterprise activates Leqi, the direct connection unit can initiate a capability subscription request on the Leqi platform. The Leqi platform test center provides a simulation test environment for capability use for the direct connection unit. After the direct connection unit completes development by referring to the capability description documents provided by the tax authority, it enters the Leqi platform test center for joint debugging tests on capability use. After passing the tests, a test report is generated. After confirmation, it can be submitted to the tax authority for confirmation. Once confirmed, the corresponding capability can be activated.

Source: Shanghai Tax official account

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