Can individuals issue fully digitalized e-invoices? From the enterprise side, how to efficiently and conveniently obtain reasonable expense invoices

In recent years, with the rise of flexible employment and freelancing, demand for invoice issuance for individuals has continued to increase. However, behind this seemingly simple operation lie many risks. Under the strict supervision of China Golden Tax Phase IV, how enterprises can ensure that the invoice issuance for individuals they obtain is both compliant and efficient and convenient has become the focus of many enterprise managers. As a professional business-finance-tax digital solution service provider, Kailing Technology relies on its self-developed invoice issuance for individuals platform to provide enterprises with full-process online, intelligent risk, and compliance-closed-loop issuance services, helping enterprises efficiently obtain reasonable expenditure invoices within a compliance framework.

I. Current State and Risks of Invoice Issuance for Individuals

1. Concept of Invoice Issuance for Individuals

Invoice issuance for individuals refers to the act of an individual applying to the tax authority to issue a VAT ordinary invoice or special invoice on their behalf after providing labor, services or selling goods. It is common in scenarios such as freelancers, temporary workers and part-time workers.

2. Risks of Invoice Issuance for Individuals

▪ No corresponding real business:A genuine business basis is the cornerstone of invoice issuance for individuals. Without genuine business, not only is the act of invoice issuance itself illegal, but the enterprise may also face back taxes, late fees, fines, and even criminal liability.

▪ Asking someone else to issue an invoice: asking another person to issue an invoice, even if that person is a natural person, constitutes false invoicing, and both parties bear legal liability.

▪ Arbitrary selection of invoice issuance location:Invoice issuance for individuals usually has territorial management requirements, and should generally be in the individual's place of household registration, place of habitual residence, or the place of goods sale, place of labor occurrence, place of service provision, place of engineering construction, etc. Randomly choosing the invoice issuance location may render the invoice invalid.

▪ Chaotic tax categories for invoice issuance:The business is authentic, but the tax item on the invoice is wrong, such as changing "labor remuneration" to "business income", which may be suspected of tax evasion.

▪ Failure to withhold and remit individual income tax in a timely manner:When enterprises receive invoices issued by natural persons through agency issuance for labor remuneration income, author's remuneration income, and royalty income, they need to withhold and remit individual income tax. If this is not carried out in accordance with regulations, the invoices may not serve as lawful and valid pre-income-tax deduction vouchers.

▪ Obtaining a large number of invoices issued by "tax havens" and some parks:Under the powerful monitoring of China Golden Tax Phase IV, a large number of issuances from "tax havens" and preferential parks are easily identified as purchased invoices, triggering tax audits.

▪ Inconsistency among the four flows:China Golden Tax Phase IV has strict requirements on the consistency of "contract flow, invoice flow, capital flow, and goods flow." If inconsistent, it may be suspected of fraudulent invoicing, and enterprises will face risks such as tax supplements, late fees, fines, and even criminal liability.

II. Challenges Facing Enterprises under China Golden Tax Phase IV

1. Regulatory Upgrade

China Golden Tax Phase IV, through big data, integrates multi-dimensional information such as enterprise tax data, bank statements, social security contributions, and upstream and downstream transactions to build a full-process monitoring system, achieving penetrating analysis of fund flow, business flow, and personnel information. The exposure cycle of enterprise tax risks is greatly shortened, and acts such as false invoicing and tax avoidance through private accounts are easily identified.

2. Increased compliance requirements

Enterprises need to strictly verify the authenticity of invoice issuance for individuals business and retain a complete "four flows consistent" evidence chain. At the same time, the issuance process is cumbersome, communication costs are high, and individuals have low willingness to cooperate, resulting in prolonged invoicing cycles and frequent invoice content errors.

III. Kailing Technology invoice issuance for individuals platform: full-process digital solution

1. Technical Solution and Advantages

▪ Full-process online operation:Natural persons can register automatically through the platform, requiring real-name authentication and face scanning for the first time. EnterprisePre-upload invoicing information in batches, including recipient information, issuer information, invoice details, place of taxable occurrence, etc., individuals only need to confirm and authenticate before invoicing. The platform supports multiple tax payment methods on the invoice face, such as WeChat/Alipay QR code scanning payment, batch payment, and UnionPay payment. Individuals can also download invoices and tax payment certificates through the platform, and perform operations such as red-letter reversal and tax refunds. This greatly simplifies the invoicing process, reduces communication costs, and improves invoicing efficiency.

▪ Intelligent risk prevention and control:The platform establishes a dynamic risk indicator model to identify abnormal data in real time and automatically issue warnings. During invoicing, it automatically intercepts risks such as category mismatches and anomalies, ensuring invoice compliance and reducing enterprise tax risks.

▪ Strong policy adaptability:The platform embeds a multi-province policy rules database, automatically matching local tax rates and adapting to tax policy differences across regions. For example, when handling inconsistent standards for determining labor remuneration versus business income, it can accurately issue invoices based on regional policies, avoiding invoice rejections and tax risks caused by policy differences.

▪ Complete evidence chain management:The platform automatically archives the business evidence chain, including contracts, fund payment vouchers, business achievement records, invoices, etc., supporting one-click retrieval for tax bureau audits. Under the strict supervision of China Golden Tax Phase IV, it helps enterprises meet the "four flows in one" requirements and provides strong tax compliance assurance.

2. Classic case display

▪ Invoice issuance for individuals optimization project in the new energy sector

A technology service platform provides a technical solution for invoice issuance for individuals to enterprises in the photovoltaic industry. By simplifying core steps such as face-scan authentication and tax payment for individuals, it significantly improves individuals' cooperation with invoicing. After implementation, the proportion of input VAT invoices obtained by cooperating enterprises increased from less than 5% to about 80%, and the related technology has been implemented in some areas among multiple business regions.

▪ Invoice issuance efficiency upgrade for a human resources service enterprise

A technology platform developed an automated system for payroll and tax service scenarios, achieving full-process automation of "face-scan authentication - intelligent tax calculation - direct connection for e-invoices." The processing time per invoice was compressed from 72 hours to 5 minutes, and labor costs decreased by about 80%. The system embeds a policy rule library for multiple provinces, intelligently intercepts tax risks, and reduced the invoice return/change rate from 15% to 1.2%. Through full-domain closed-loop risk control management, the number of warning work orders from cooperating clients was reduced to zero in 2024, helping achieve the goal of "zero tax penalties."

▪ Invoice issuance optimization for meeting scenarios at a medical technology enterprise

A certain technical solution integrates a professional qualification verification interface for healthcare industry clients, with facial recognition authentication automatically linking to practice information. Over 500 invoices for a single conference can be batch-generated, with invoicing turnaround shortened from 3 days to 1 hour. The system automatically archives the business evidence chain, supporting one-click audit retrieval, completely avoiding false invoicing risks, with a 100% audit pass rate for cooperating clients in 2024. Through intelligent tax calculation, annual return/modification cost savings exceed 2 million yuan.

Under the strict regulatory framework of China Golden Tax Phase IV, invoice issuance for individuals of fully digitalized e-invoices is not only feasible, but also requires "compliance" and "efficiency" as dual-core engines. For enterprises, whether they can efficiently and conveniently obtain invoices for reasonable expenditures is essentially a dual test of their ability to control business authenticity and their ability to adapt digital tools.

Kailing Technology invoice issuance for individuals platformEnableEnterprises can not only use digital tools to solve traditional pain points such as low cooperation from natural persons, cumbersome processes, and chaotic tax categories, but can also build a business-finance-tax management system with authentic and traceable business, compliant and valid invoices, and intelligently controllable risks under the penetrating regulation of China Golden Tax Phase IV.

Relevant enterprises seeking detailed solutions are welcome to consult Kailing Technology:https://www.kailingteck.com/h-col-126.html 。

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 sales contract management system, procurement contract management system, fully digitalized Leqi interface project, automatic output VAT invoicing system, invoice issuance for individuals system, employee expense control and reimbursement system, input VAT invoice management system, supply chain collaborative reconciliation system, imaging OCR recognition system, automatic financial bookkeeping system, electronic accounting archives system and other businesses, comprehensively advancing 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.