08.19.22

Developments on the fully-digitalized e-fapiao system

The fully digitalized e-fapiao system has progressed swiftly since its launch, below is a timeline of key events:

• Dec 2021: China kicked off the Fully digitized e-invoice pilot with selected taxpayers in Guangdong, Inner Mongolia, and Shanghai. taxpayers should use the dedicated e-invoicing portal to issue and transmit fully digitized e-invoice.
• April 2022: the pilot expanded further in Guangdong and Inner Mongolia.
• May 2022: Taxpayers in Sichuan joined the pilot as “Receiver”, receiving fully digitized e-invoice from taxpayers in Guangdong, Inner Mongolia and Shanghai.
• June 2022: State Tax Administration (STA) announced an expansion of the “Receiver” scope across the country in phases.
• June 2022: the STA announced that 5 more provinces (Shenzhen, Beijing, etc) to join the pilot as “Receiver” starting on 21 June
• July 2022: the STA further confirmed 9 more provinces to participate the pilot as “Receiver” from 18 July

Although the STA intends to achieve fully invoice digitization by 2025, the top-tier provinces are expected to reach the goal earlier. We are closely monitoring the developments in China and will continue to inform our customers of any updates.