Digital E-Invoicing Nationwide Rollout from December 2024
To implement the Opinions on Further Deepening the Reform of Tax Collection Administration issued by the General Office of the CPC Central Committee and the General Office of the State Council, and further promote the reform of E-invoicing, the State Administration of Taxation (SAT) released an Announcement formally promote the application of digital invoices nationwide from 1 December 2024.
What is the digital invoice form?
The number of the Digital E-Invoices is 20 digits, of which the first two digits represent the last two digits of the calendar year, the third four digits represent the area code of the provincial tax bureau where the invoicing party is located, the fifth digit represents the channel of issuance and other information, and the sixth 20 digits are the sequential code.
Digital E-Invoices have a unified and standardized style. Compared with anti-counterfeit tax-control invoices, they abandon the paper carrier form of traditional invoices and change from multiple copies to one copy.
Digital E-Invoices exist in the form of electronic data files, whose basic content covers buyer and seller information, invoice code, number, invoicing date, checking code, and other conventional invoice elements.
Taxpayers can also flexibly display detailed information such as name, service item, specification, quantity, unit price, amount, tax rate, tax amount, etc. of commodities or taxable services under different business scenarios.
What are the advantages of digital invoices?
A more simplified process of receiving invoices
Digital E-invoices have been “de-medialized”, and taxpayers no longer need to receive special tax-control equipment in advance; through the “assignment system”, specific invoice numbers are canceled, and the system automatically assigns a unique invoice number after the invoice information is generated. The total amount of invoices is automatically assigned to taxpayers through the “quota system”. Based on this, eligible new taxpayers realize that they can issue invoices upon the company’s setup and start the business.
More convenient invoicing
Taxpayers can log in to the National Unified Standardized E-Tax Bureau to carry out a series of operations, such as invoice issuance, delivery, reviewing, and checking, as well as selecting the use of the invoice, and enjoying “one-stop” services. Compared with the past, it is no longer necessary to log in to multiple platforms to complete these operations.
In addition, if taxpayers encounter problems in the process of invoicing or receiving invoices, they can inquire about the answers to their questions through “Smart Consultation”. If there are any objections to the total amount of invoices granted, they can also raise them online.
While retaining the formats of PDF and OFD, Digital E-invoices also add the format of XML to facilitate delivery, reduce the cost of invoice usage, and enhance the convenience and sense of gain of taxpayers in using invoices. The styles of Digital E-invoices can be differentiated and displayed according to different businesses, providing taxpayers with better personalized services.
(You may click here to refer to the sample of all kinds of Digital E-Invoices)
Integration of recording and archiving
Through the formulation and issuance of data specifications for electronic invoices and the introduction of national standards for electronic invoices, the digitalization of the entire process of Digital E-invoices has been realized.
At the same time, the Digital E-invoices downloaded through the tax digital account contain digital signatures and can be filed without invoice seal.
Digital E-Invoices bring new changes in finance and taxation, and our share is just the beginning. Afterwards, we will dig deep into more details and practical advice. Stay tuned and see you in the next article for sharing!
