The era of fully digitalized e-invoices has arrived. What challenges do enterprises face, and how should they respond?

As of December 5, the promotion of fully digitalized e-invoices has covered 36 regions nationwide, marking that China has officially entered the fully digitalized era. For group enterprises, legacy issues such as differences in regional promotion no longer exist. However, some erroneous signals still exist in the market.

Erroneous signals existing in the market

1. Tax control media need to run in parallel with fully digitalized e-invoices for 3-5 years

Some tax service vendors on the market incorrectly claim that the rollout of fully digitalized e-invoices is slow and that tax control media need to run in parallel for a long time, thereby dissuading enterprises from slowing down fully digitalized e-invoice adoption in order to extend the service life of tax control hardware and software. With the rapid rollout of fully digitalized e-invoices, these rumors have been proven false, and the phasing out of tax control hardware media is an inevitable trend.

2. There is not much difference between the invoicing and invoice receipt models of fully digitalized e-invoices and traditional invoices

Some enterprises mistakenly believe that fully digitalized e-invoices merely remove hardware devices, and that the invoicing and invoice receipt processes are not much different from the original paper invoices and electronic invoices. In fact, the invoicing and invoice receipt processes of fully digitalized e-invoices have changed considerably. The original paper invoices and electronic invoices all relied on tax control hardware devices for management, while fully digitalized e-invoices achieve media-free invoicing and simplify the invoicing and invoice receipt processes.

3. Fully digitalized e-invoices can be booked, reimbursed, and archived in the same way as the original electronic invoices

Although many enterprises have not yet issued fully digitalized e-invoices, their employees have already received a large number of fully digitalized e-invoices during business trips, yet they still follow the original paper invoice and electronic invoice model, requiring the PDF and OFD format layout files of fully digitalized e-invoices to be printed out for reimbursement. In fact, this approach not only fails to comply with the relevant regulations of the State Taxation Administration, the Ministry of Finance, and the National Archives Administration, but also cannot effectively avoid problems such as duplicate reimbursement and altered invoice files.

4. SMEs need not worry about or pay attention to fully digitalized e-invoices

SMEs believe the promotion of fully digitalized e-invoices is unrelated to them and, due to smaller business volumes, do not actively follow developments in fully digitalized e-invoices. However, the promotion of fully digitalized e-invoices has a major impact on many aspects of tax management processes, systems, and methods, and SMEs should also pay more attention to and communicate more about content related to fully digitalized e-invoices. Plan early and transition smoothly to fully digitalized e-invoices as soon as possible.

During the promotion of fully digitalized e-invoices, many companies were affected by a large amount of erroneous signals, leading to confusion in business-finance-tax planning, informatization construction, and other processes. Therefore,WeWe call on enterprise users to carefully judge market trends and sort out erroneous information absorbed in daily work; they may also contactKailing TechnologyExpertTeamProvide answers.

Fully digitalized e-invoiceIssueChallenges brought to enterprises by invoices and how to respond

1.Fully digitalized e-invoice layouts are more concise, and invoice management is more convenient

• The invoice reviewer and payee are canceled, so enterprises no longer need to struggle with the duplication of the original three invoicing roles;

• The addresses, telephone numbers, bank and account numbers of the purchaser and seller are canceled; if the enterprise stipulates that a special invoice must include them, such information can be filled in the remarks column;

• The enterprise special invoice seal in the lower right corner, the password area, invoice code, verification code and other information are canceled.

After the enterprise's tax handler completes facial recognition via the bureau-side APP through "real-person authentication," they can use the invoice issuance capability. Fully digitalized e-invoices allow enterprises to "issue invoices upon opening and deliver invoices upon issuance." Therefore, we recommend that enterprises fully understand the differences between fully digitalized e-invoices and traditional invoices, and promptly complete the review of basic matters such as supplier selection, determination of invoice access methods, and the scope of pilot enterprises, as well as the building of a fully digitalized management platform.

2. The invoicing process for fully digitalized e-invoices is simplified, placing higher demands on group enterprises' invoice management

• Adopt a credit-based system, which places higher requirements on enterprises' tax credit ratings;

• No longer limited by invoice version quotas. Enterprises can issue invoices of any amount within the credit limit relatively freely. While bringing convenience, this also imposes higher requirements on group enterprises to control branch invoice issuance.

• The sales list is canceled; fully digitalized e-invoices can display all invoicing information, which facilitates invoice circulation.

For enterprises, they should fully review existing business and tax management processes, simplify existing invoicing processes during the promotion of fully digitalized e-invoices, and at the same time set new monitoring nodes in compliance management, invoicing roles, permissions and quota management, fully enjoy the convenience brought by fully digitalized e-invoices, and prioritize preventing invoice risks brought by invoices and manual operations through informatization; enterprises meeting Leqi application standards should actively apply and connect to Leqi to achieve true tax-enterprise direct connection and accelerate digital management and digital transformation.

3. Fully digitalized e-invoices support multiple invoice forms, making enterprise invoice receipt management more convenient

• Input VAT invoices can be automatically collected through the tax digital account;

• Fully digitalized e-invoices are gradually expanding to include train tickets, flight itineraries and other toll invoices, making it more convenient for enterprises in corporate payment and personal reimbursement businesses.

In terms of invoice receipt management, enterprises should fully evaluate the compatibility of existing expense control reimbursement and OA systems, quickly adopt fully digitalized e-invoices and complete integration with existing systems, truly achieving paperless, online, intelligent, and integrated enterprise invoice receipt management. At the same time, enterprises with the conditions should build their own tax data centers and obtain full tax invoice data through bureau-side channels. At the group level, build an input VAT invoice management platform, connect the entire input VAT invoice management process, and realize comprehensive automated management of business processes such as reimbursement-collection-verification-duplicate checking-booking-certification-statistics-analysis, truly entering a new stage of enterprise tax administration by data.

4. Fully digitalized e-invoices place higher demands on enterprise archiving management

First, the enterprise's business systems need to be transformed to directly recognize XML-format fully digitalized e-invoices, avoiding unrecognizability during the circulation of fully digitalized e-invoices; second, the Ministry of Finance is piloting electronic vouchers, whose archiving format is XBRL files. Invoices and vouchers are closely related, so it is recommended that enterprises, while fully considering invoice digitalization, prepare in advance response measures for voucher electronization; finally, it is recommended that enterprises achieve comprehensive digitalization and compliance of enterprise archive management through electronic accounting archives management systems. Gradually turn original paper documents into electronic ones, and step onto the path of digital management of enterprise existing documents through electronic archives.

5. Fully digitalized e-invoices impose increasingly strict requirements on enterprise risk control

While fully digitalized e-invoices bring convenience, they also bring enterprises pain points such as duplicate reimbursement of invoices, altered invoices, malicious red-letter reversal by suppliers, fraudulent invoicing, and invoice status issues. Relying solely on manual methods to control these new risks is too difficult; enterprises need to fully leverage information technology. By building a tax management platform and using information technology to control each stage of tax management, enterprises can fully prevent tax invoice risks.

Source: internet

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 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.