China Golden Tax System VAT invoices - fapiaos

The Chinese Golden Tax System (GTS) is a broad tax IT system owned by the government.

A key function is the control of the creation of VAT invoices, 'fapiaos', to help reduce the incidence of tax fraud. It was created by the China Tax Bureau to register invoices prior to issuance, and for purchasers to verify VAT charged to them. It was originally developed in the 1990's, and is now on Phase III.

Tax registered businesses must request unique invoices from the GTS software. Usually this is done on a two-weekly basis. Invoices may not be sent to customers or posted in businesses' ledgers prior to approval by the GTS.  Once checked, the invoices will be issued with unique invoice numbers issued by GTS. The invoice is consequently in the GTS system and registered for the Chinese Tax Bureau / the Chinese State.

Draft invoices, prepared by certified VAT software, are submitted via locked GTS terminals made available to businesses by the government. The government can use this terminal connection to track and verify VAT calculations and subsequent reporting. Validated invoices must still be printed.


The Golden Tax system prints the invoice on a preformatted form and generates a flat file that businesses can reload into their accounting software.



Unraveling the mysteries of Chinese VAT

Webinar: Unraveling the mysteries of Chinese VAT

Join Avalara and KPMG as we review China’s VAT system and how it differs to common VAT systems around the world. 



Latest Chinese news

China further 3% VAT cut to 10%

Oct 12, 2019

China is likely to announce this week that it will cut its main standard VAT rate from 13% to 10%. It has already reduced its VAT rate from 16% to 13% on 1 April 2019. China's economy is slowing rapid

China VAT cut to 13% on tariffs concerns

Mar 4, 2019

China is to cut its standard VAT rate from 16%  to 13% in 2019 to help its manufacturers struggling with US tariffs, slowing global demand and a domestic debt overhang.

China raises VAT registration threshold

January 14, 2019

China has raised its VAT registration threshold from 1 January 2019 from CNY30,000 to CNY100,000 for small businesses. The measure is temporary for the next two years.