Guidelines of the Beijing Municipal Tax Service of the State Taxation Administration on Leqi Self-Use Direct Connection Services

Chapter One Overview

I. Related concepts

Leqi (NaturalSystem), 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 tax-related services such as fully digitalized e-invoices featuring open rules and unified standards (hereinafter referred to as 'Leqi services').

Leqi for self-use (NaturalSystemConnectionforSelf-use, 'NSCS'), refers to the Leqi services provided by an enterprise's own information system directly connected to Leqi (hereinafter referred to as the 'direct connection platform') being applicable only to the unit itself and its subordinate units, and not primarily for obtaining economic benefits. Subordinate units include group enterprise member units, equity-controlled units, etc.

II. Service Targets

The service targets of Leqi involve two categories: direct connection entities and user entities.

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.

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.

III. Entity Responsibilities

The direct connection entity and user entities respectively assume the following responsibilities:

The direct connection entity is responsible for interfacing with the Leqi Platform, inviting or authorizing user entities to use Leqi services and promptly maintaining the ledger of association relationships between both parties; in accordance with tax authority requirements, supervising the operation of the direct connection platform and the daily tax-related behavior of user entities, urging user entities to promptly summarize and upload issued invoice data; promptly reporting relevant tax-related data as required by tax authorities, and bearing security responsibility for relevant data within the direct connection platform; may authorize its affiliated enterprises to build and manage the platform, and may also authorize third-party enterprises without affiliation to build the platform. The direct connection entity shall properly perform maintenance and support work related to change reporting, version updates, qualification renewal, and termination management.

A user entity shall accept the tax-related supervision implemented by the direct connection entity in accordance with tax authority requirements, and upload relevant tax-related data on time as required by the tax authority.

Chapter 2 Access Conditions

I. Access conditions for the direct connection entity

(1) Basic Conditions to Be Met

1. Has been included in the scope of pilot taxpayers for fully digitalized electronic invoices (hereinafter referred to as "fully digitalized e-invoices");

2. Tax credit rating is Grade A or B;

3. The enterprise and the enterprises that simultaneously request to become its user entities had total operating revenue of more than 50 million yuan in the previous year;

4. The enterprise and enterprises that simultaneously request to become its user units must have a combined cumulative invoice issuance volume and invoice receipt volume of no less than 50,000 in the 12 months prior to the month of initiating the access request, or a cumulative invoice issuance and receipt volume of less than 50,000 but an invoicing amount of no less than RMB 500 million;

5. No major tax violations determined by tax authorities in the past three years;

6. Be able to provide relevant tax-related data in accordance with the law and the requirements of tax authorities, including but not limited to the identity information of the user entity, remuneration account information, operating income status, etc., as well as other tax-related data that need to be specially provided, such as goods flow, capital flow, and cash flow;

7. For taxpayers in industries related to people's livelihood such as hospitals, thermal power and public transportation, whose operating revenue and invoice issuance/receipt volume do not meet the above conditions, tax authorities may appropriately lower the access condition standards according to actual circumstances;

8. Or meeting other conditions determined by the tax authority.

(II) Technical and security conditions that should be met

1. Comply with network security and data security regulations, follow the relevant management requirements of tax authorities, truthfully report major changes and user entity situations to tax authorities, and bear joint liability for serious consequences caused by illegal or non-compliant acts of user entities;

2. Possess professional informatization construction, service, and operation and maintenance capabilities; the enterprise's own information system has software copyrights, usage rights, or relevant authorization;

3. Data must be stored in accordance with the requirements of tax authorities with embedded risk control rules, and interfaces must be opened to tax authorities for online verification.

(3) Other conditions determined by the tax authorities

II. User entity access conditions

(1) Basic Conditions to Be Met

1. Already included in the pilot taxpayer scope for issuing fully digitalized e-invoices;

2. Be a direct connection entity or an enterprise that is in the same head office and branch relationship, group enterprise, or has mutual equity control relationship with it;

3. Tax credit rating of A, B, or M (B and M taxpayers need to regularly provide relevant data on goods flow, capital flow, and cash flow; except for non-independent accounting branches that may not participate in tax credit evaluation);

4. No major tax violations determined by tax authorities in the past three years;

5. Able to cooperate with the directly connected entity to provide relevant tax-related data in accordance with tax authority requirements. Follow tax authority management requirements and truthfully report major changes and usage to the tax authority.

(II) Other Conditions Determined by Tax Authorities

Chapter 3 Request access

I. Initiate access request

Enterprises that meet the access conditions listed in Chapter II shall, in the Leqi platform module of the electronic tax bureau (hereinafter referred to as"Leqi platform") to initiate an access request.

(1) Direct connection entity

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;

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. Power of Attorney (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 Service Network Address Filing Form";

7. Certificate of Exclusive Use of Fixed IP;

8. Other materials required by the tax authority.

(2) User unit

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

（1) If invited by the 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 its relationship with the direct connection entity, and initiates a usage request to the competent tax authority of the user entity;

（2) If a user unit applies for authorization, the user unit initiates an authorization application to the directly connected unit through the Leqi platform, and after obtaining the consent of the directly connected unit, initiates a use request to the competent tax authority of the user unit.

2. A user entity needs to submit the following materials:

（1) The using unit shall provide relevant materials that can prove its affiliation with the direct connection unit. If the using unit is a railway, civil aviation, highway, etc. entity under unified government business supervision determined by a tax authority at or above the provincial level, it is not required to provide such materials.

（2) Other materials required by the tax authority.

II. Request result query

Enterprises that initiate the request can query the confirmation results and related opinions sent by the tax authority in the Leqi platform.

Chapter 4 Capability Subscription

Capabilities refer to the set of open rules provided by the Leqi platform for handling tax-related business. Leqi self-use embeds relevant rules into its direct connection platform to integrate and link corresponding tax-related business with its own business systems, achieving multi-scenario, large-scale, compliant, and automated handling of tax-related business. Among them, public basic capabilities do not require an activation request, while direct connection entities with special industry or field operating qualifications may submit activation requests for non-public basic capabilities.

Capability subscription refers to a direct connection entity requesting permission to activate and use relevant capabilities of the Leqi platform.

I. Capability Subscription Request Initiation

After an enterprise activates the Leqi service, the direct connection unit can view the activation status and validity period of relevant capabilities through the Leqi platform capability center, and initiate capability subscription requests for capabilities that have not been activated.

II. Capability Subscription Test

After the direct connection entity initiates a capability subscription request, the Leqi Platform Test Center provides a simulation test environment for capability use to the direct connection entity. The direct connection entity completes Leqi self-use development by referring to the capability description documents provided by the Leqi Platform, then enters the Leqi Platform Test Center for capability use joint debugging testing. After passing the test, a test report is generated, and after confirmation, it can be submitted to the tax authority for confirmation.

III. Capability Activation

After the capability test report submitted by the direct connection entity is confirmed and approved by the tax authority, the corresponding capability can be activated.

IV. Capability Authorization

The direct connection entity may initiate capability authorization to user entities, inviting them to use capabilities already activated on its direct connection platform. After the user entity confirms the authorization, it can use the capability through the direct connection platform.

For some capabilities targeting special industries or uses, the user unit shall meet the corresponding industry qualification and other requirements.

Chapter 5 Service management requirements

I. Matter change

Entities related to Leqi for self-use shall report relevant changes to the tax authority in accordance with the tax authority's service management requirements. If important registration information such as the identity, contact information, or institutional address of the legal representative or financial officer or project leader of the direct connection entity or user entity changes, it must be promptly submitted to the competent tax authority through the Leqi platform; if information such as the legal representative of the direct connection entity changes, the direct connection entity must re-sign and submit the "Leqi Direct Connection Service Agreement" and other relevant agreements; if affiliated relationships such as head office-branch, parent-subsidiary, or controlling relationships change, the direct connection entity must, after the changeReport to the competent tax authority within 3 days.

II. Version update

Tax authorities will issue a version upgrade notice when the Leqi platform undergoes a functional upgrade. Directly connected units shall, withinComplete system transformation and integration testing within 30 days.

III. Qualification Continuation

The initial access period for the direct connection entity of Leqi for self-use is2 calendar years. If continued use is required, an extension request should be initiated 3 months before expiration. If the directly connected unit fails to initiate an extension request within the prescribed period, the tax authority will send a reminder and limit the platform's business processing concurrency; if the extension request is still not submitted upon expiration, the tax authority will terminate its access qualification.

IV. Termination management

If the owner of Leqi for self-use terminates the provision of tax-related services such as fully digitalized e-invoices to its user entities, it shall, at least in advanceFile for termination of service with the competent tax authority of the direct connection unit within 30 days.

Chapter 6 Other Matters

Leqi service integration involves both tax and enterprise parties cooperating to modify systems, taking a long time and requiring high technical capability. To ensure the smooth and orderly access of Leqi self-use direct connection entities and ensure the smooth use of invoices in taxpayers' daily production and operations, the Beijing Municipal Tax Service of the State Taxation Administration will make overall arrangements, in batches and stages, advancing household by household.

Attached:1. Leqi Direct Connection Service Access Information Form

2. Leqi Direct Connection service agreement

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

4. Project Report

5. Leqi Direct Connection service authorization letter

6. Leqi Direct Connection service network address filing form

7. Fixed IP dedicated use certificate

8. Leqi User Entity Access Information Form

9. Commitment that systems related to Leqi connection do not use third-party hosting

10. Commitment on Leqi Direct Connection Being for Self-Use Only

Source: Beijing Municipal Tax Service, State Taxation Administration, you can view the original policy text and download attachments

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