What is Fapiao?
Other than invoice, fapiao is a legal receipt that serves as proof of purchase for goods and services. Nevertheless, it is an essential component of China’s tax law, and compliance for businesses.
Development of Digitalized Fapiao
The State Administration of Taxation announced the preparation of Digitalised platform
Launched online platform naming E-VAT
The State Council proposed the E-VAT will be launched by the end of 2020, while the Tax department is promoting and providing training classes and seminars on how to register, access and use the platform for business operations.
Confirmation that both paper and E-VAT have the same legal status for tax filing. While using the E-VAT system will allow companies to avoid needing to send the original hardcopy to their clients and running to the local tax office, while they only need to keep digital copy of the document.
The State Council announced the E-VAT will be widely use throughout China from end of 2020.
At the same time, Shanghai Tax Bureau took Shanghai, Jiangsu, Zhejiang, Ningbo and Anhui district as a pilot region to roll out the public use of the E-VAT platform.
Ningbo piloted the first E-VAT platform in selected area
Benefits of Electronic Fapiao to Enterprises
Enterprises do not need to go to the local tax office in person for fapiao related processes. For example, application for paper fapiao or validating VAT fapiao. Besides, entrepreneurs can also save financial resources by not purchasing special printing and scanning machines. In terms of accounting, enterprises can save time and lessen the workload by using a paperless invoicing system.
In conclusion, the advantages of E-Fapiao, we can summarised as below:
- Better Record Keeping & Controlling
- Centralized Information Platform
- Application logistic & Processing Advancement
- Technology Advancement & Connecting to ERP system
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