China Electronic Fapiao Special Invoice nationwide 2021
- Dec 30, 2020 | Richard Asquith
China’s pilot for fapiao electronic Special Invoice for VAT invoices has been extended last week to a further 25 regions. 11 regions have already gone live in the pilot. It will go countrywide later in 2021, a slight delay on earlier plans.
The fapiao electronic Special Invoices gives the right of deduction for VAT for the customer or can be used for export VAT rebates. By contrast, the general electronic invoice is merely a receipt of the transaction, and has been in electronic format since a 2015 pilot.
Businesses selected for the pilot use the state Public Service Platform of Electronic VAT Invoice once they have been certified and given ‘U Key’ login terminal to enable an electronic signature on invoices. They then request approval for the type and number of sales invoices they wish to issue. Invoices are permanently stored on the public platform for easy retrieval. Credit notes must be applied through the Portal via ‘red-lined’ special invoices.
This system eventually will replace the existing fapiao paper-based invoices which requires businesses to visit and obtain pre-numbered paper invoices for use in their transactions. For the time being it is no mandatory.