Update on Fully Digital E-invoicing under the Age of Big Datarussonxiao
Recently, with the increasing promotion and use of fully digitalized electronic invoices (hereinafter referred to as “all-electronic invoices”), the general taxpayers’ concern about all-electronic invoices is also increasing day by day.
You may refer to the article on our website at the end of 2021 regarding the pilot of all- electronic invoicing in Shanghai:
Starting from 1 December 2021, Guangdong Province (excluding Shenzhen), Shanghai Municipality and Inner Mongolia Autonomous Region, one province, one municipality directly under the Central Government and one autonomous region, began to conduct pilot all-electronic invoicing, i.e. the pilot taxpayers in these three provincial administrative regions can issue all-electronic invoices, and of course, taxpayers under the jurisdiction of these three provincial tax authorities can also accept all-electronic invoices issued by pilot taxpayers in their own provinces.
Starting from 10 May 2022, Sichuan Province is included in the pilot scope of all-electronic invoices acceptance; starting from 21 June 2022, 5 provinces and cities, including Beijing, Jiangsu Province, Shandong Province (excluding Qingdao), Zhejiang Province (excluding Ningbo) and Shenzhen City, are included in the pilot scope of all-electronic invoices acceptance; starting from 21 June 2022, Guangdong Province (excluding Shenzhen), Shanghai City and Inner Mongolia Autonomous Region accept each other’s all-electronic invoices issued by the pilot taxpayers; 9 provinces and cities, including Hunan Province, Hubei Province, Henan Province, Hebei Province, Anhui Province, Fujian Province, Jiangxi Province, Shaanxi Province and Chongqing Municipality, are included in the pilot scope of all-electronic invoices acceptance starting from 18 July 2022.
At this point, the number of provinces that can issue all-electronic invoices nationwide remains at three: Guangdong Province (excluding Shenzhen), Shanghai and Inner Mongolia Autonomous Region.
There are 14 provinces (except Guangdong, Shanghai and Mongolia) that can accept all-electronic invoices nationwide: Sichuan Province, Beijing, Jiangsu Province, Shandong Province (excluding Qingdao), Zhejiang Province (excluding Ningbo), Hunan Province, Hubei Province, Henan Province, Hebei Province, Anhui Province, Fujian Province, Jiangxi Province, Shaanxi Province and Chongqing Municipality; in addition, there is one planned city: Shenzhen.
- What is an all-electronic invoice?
- Not in paper form
- No media support
- No application required for collection
All-electronic invoices with the same legal effect as paper invoices are a comprehensive digitization of the paper invoice’s ticket information, a change of multiple ticket types into a single electronic invoice, and a record under an enterprise’s digital account for tax purposes.
- Difference between paper-based electronic invoices and all-electronic invoices
- Management style
|Paper-based electronic invoice
Still under paper invoice management mode
Company Setting-up for invoicing
|Tax-controlled special equipment required||No tax-controlled special equipment required|
|Invoice approval, collection and validation required||No need for invoice approval, collection and validation|
|Maximum invoicing limit approval, additional types and limits on application||Automatic credit given for the total invoiceable amount and dynamically adjusted|
- Means of delivery
Paper-based electronic invoice
|Delivery by email or SMS by the invoicing party, manual download and printing by the receiver||Invoice data files are automatically sent to the tax digital accounts of the invoicing and receiver parties|
|The invoice receiver needs to collect, collate and record||Full volume of invoice data is automatically aggregated, eliminating the need for manual receipt and issuance, posting and other operations|
- Invoice Ecology
|Paper-based electronic invoice
“Invoice control” through special tax-controlled equipment
“Background control” through big data information related to invoicing
|Invoicing, delivery, ticking and checking platforms are independent of each other||Deep integration of invoicing, delivery, ticking and checking applications|
|The invoicing platform is relatively homogeneous||Taxpayers can enjoy “one-stop” services and the invoicing platform functions are transformed into an open ecosystem|
We will continue to follow the progress of the application of all-electronic invoicing in China, especially in Shanghai.
If you have further questions, please do not hesitate to contact us.
For any questions, please feel free to contact us.