In the Era of Fully Digitalized E-Invoices, Come Learn the Upgrade Path of "Leqi Service"

Fully digitalized e-invoices have opened a corner of tax governance by data, and China Golden Tax Phase IV has opened the skynet era of the tax field. As pilot regions for fully digitalized e-invoices continue to expand, in the process of enterprise financial digital transformation, the application and processing of fully digitalized e-invoices has become an urgent task.

Multiple tax bureaus have successively issued the "Guidelines on the Specifications for Leqi Self-use Direct Connection Services," marking the official opening of "Leqi Services"!

Basic knowledge of "Leqi"

Leqi (Natural System) refers to the platform through which the State Taxation Administration provides eligible enterprises, by means of direct connection between the tax system and the enterprise's own information system, with rules-open, standards-unified tax-related services such as fully digitalized e-invoices (hereinafter referred to as "Leqi services").

What advantages does "Leqi" have?

"China Golden Tax Phase IV" requires enterprises to undergo financial digital transformation and upgrading, and "Leqi" is the best tool。

1. Reduce costs and increase efficiency

Launch Leqi Direct Connection to achieve data-element-driven operations. Enterprises can use data and fully digitalized e-invoices to manage and apply key business, financial, and tax information, connect and run through the entire business-finance-tax-invoice process, and achieve collaborative processing within the same workflow.

Enterprises can connect directly to the tax authority's electronic invoice service platform for invoicing, and perform reimbursement, booking, certification and other operations on the platform, meeting enterprise needs while reducing costs.

No tax control equipment, no invoice type verification, and no invoice requisition required, reducing the previously complex workflows of invoicing, invoice management, invoice receipt, and invoice storage. Achieve "saving labor," "saving media," and "saving shipping costs."

2. Demonstrate financial value

The tax authority processes various enterprise data through "Leqi," effectively ensuring the authenticity, continuity, and accuracy of the data.

Based on this trusted data, the tax bureau can assess enterprise credit risk without relying on third-party institutions; enterprise credit enhancement and financing can all be evaluated through enterprise data. Data becomes a manifestation of enterprise value.

3.Tax-enterprise direct connection, risk alerts

Through "Leqi Services," group enterprises can effectively achieve a comprehensive "headquarters-to-headquarters" tax-enterprise direct connection tax-related data management center, thereby supporting the establishment of a first-class finance and tax management system and reducing the degree of information asymmetry between tax authorities and enterprises.

Based on the direct connection system between the group headquarters and the tax administration, build an invoice pool covering all channels and all invoice types, and further create a tax-related data center.

Centralized and automated invoice management, integrating other business systems to achieve an integrated "business-finance-tax" management system.

As the tax authorities continue to open up capabilities such as direct-connection filing and risk warnings on the Leqi platform, tax digital transformation can be promoted at low cost and high efficiency.

Analysis of difficulties in enterprise Leqi launch

1.High IT expertise required, many interfaces and heavy integration workload, high demand for professional knowledge

Leqi services are a platform provided by the tax bureau for enterprises to connect directly to the tax bureau for tax interaction.

The logic of the Leqi interface is complex. Enterprises need to expend considerable effort and time to understand the "Taxpayer Leqi Access Guide" and carry out R&D integration, resulting in high costs.

At the same time, tax bureau upgrades and changes are frequent. Once a change occurs, system transformation and integration testing must be completed synchronously within 30 days. If updates are not timely, normal business operations will be affected.

2.Leqi only provides invoicing capabilities, invoice information verification, and red-letter reversal balance verification; risk control rules and alerts need to be developed by enterprises themselves.

Leqi services open up all basic capabilities, so enterprises need to preset a large number of basic validations to avoid tax risks, such as invoicing quota validation, taxpayer risk validation, invoice information validation, reversal validation, and so on. Any omission in any step can lead to unpredictable tax risks. In addition, the tax bureau has also put forward corresponding audit requirements, requiring enterprises to build audit platforms in accordance with the requirements.

3.Because interface instability often occurs due to iterations, a complete compensation mechanism needs to be established, with an RPA channel as backup

The tax authority is currently upgrading very frequently. In particular, Leqi services are just at the initial 1.5 version. When future tax upgrades cause interface changes, enterprises need to set up a dedicated R&D team to respond to such issues at any time, and the tax authority is also more demanding about the timeliness of upgrades.

When a large number of enterprises connect to Leqi, interface congestion may occur. Compensation mechanisms need to be established to maintain highly available invoicing capabilities, such as idempotency, timeout synchronization switching to asynchronous invoicing, later synchronization of the ledger for automatic red-letter reversal and deduplication, retries during idle nighttime hours, and notifying relevant personnel the next day for manual invoicing, etc.

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, fully digitalized e-invoice and Leqi interfaces 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.