Taxpayers Begin to Use Electronic Invoices in Upgraded Version of VAT Invoice System in Some Regions

Date: 2016/9/4 22:31:30 Views：

Source: General Office of the State Administration of Taxation

According to the decision of the State Administration of Taxation (SAT), a pilot program will be conducted first in Beijing, Shanghai, Zhejiang and Shenzhen starting from August 1 for the use of electronic invoices in the upgraded version of VAT invoice system, which will be rolled out nationwide after the program succeeds. By then the electronic general VAT invoices will be uniformly prepared with the unified sample, technologies and business standards, which will facilitate the use by taxpayers, be conducive to tax administration and big data application and to promoting the fast and healthy development of e-commerce and domestic trade circulation. The kickoff ceremony for the trial operation of electronic invoices in upgraded the VAT invoice system was held on July 31 in Beijing, and JD.com issued the first electronic general VAT invoice in China, which marks a new high of the in-depth integration of the Internet and taxation as well as innovative development.

The promotion and the use of electronic invoices in the upgraded version of the VAT invoice system are favorable for building a healthy and equitable tax environment for taxpayers and a key measure taken by tax authorities to press ahead with tax modernization to fulfill the "Internet + taxation" strategy. To ensure the smoothness of this pilot program and subsequent rollout, the SAT recently launched standards for the data alignment of the upgraded version of the VAT invoice system with the electronic invoice system.

As a product of modern information society, electronic invoices are the electronic proof issued or received for receipts and payments involved in commodity purchases and sales, service delivery and acceptance as well as other operating activities. Unlike traditional paper invoices, electronic invoices allow taxpayers to apply for, issue, transfer and check the invoices through the unified online electronic invoice management system of the tax authorities, ensuring easy issuance of and convenient search for invoices. The specific benefits of electronic invoices are highlighted as follows:

First, favorable for companies to save operating costs. Electronic invoices require no paper and no producing, printing, storing and mailing costs, enabling companies to save relevant costs. Statistics show that JD.com uses 360 million copies of invoices every year, with the annual invoice cost of RMB 108 million. The use of electronic invoices diverge the use of some paper invoices, significantly reducing companies' operating costs.

Second, favorable for consumers to keep and use invoices. Consumers can receive electronic invoices while making deals, and search for and verify the information on the invoice at the website of a tax authority. After after-sale maintenance services under an electronic invoice, the invoice can be downloaded or printed, eliminating the drawbacks of inconvenient inquiry and storage of paper invoices.

Third, favorable for tax authorities to standardize administration and data application. After a company issues an electronic VAT invoice through the VAT invoice system, the data will be aligned with the tax authorities in real time, allowing tax officials to inquire, collect statistics and analyze the taxpayer's data on the invoice in a timely manner, so as to identify tax-related irregularities, improve work efficiencies and reduce management costs. Tax authorities can use the complete and timely data on the invoice to better serve macro decisions and the economic and social development.

(Source: the Shanghai Administration of Taxation)