VATLive > Blog > China > China nationwide special fapiao e-invoice end of 2020

China nationwide special fapiao e-invoice end of 2020

  • Nov 20, 2020 | Richard Asquith

Following successful electronic special fapiao invoice trials in the Ningbo city of Zhejiang province in September, subsequently expanded in October to Hangzhou city in Zhejiang and Shijiazhuang city in Hebei,  the trials have been extended.

On this basis, fapiao special e-invoices will be rolled out nationwide by the end of the year.  The special e-invoice may be used for input VAT deductions. The general e-fapiao, which acts as a receipt without right to deduct input VAT, has been available since trials and roll out in 2015.

E-invoices replace paper fapiaos

Traditional VAT Fapiaos paper invoices are produced on government approved software with unique invoices numbers which are registered with the Chinese Tax Bureau. Businesses have to physically visit the certified providers of these to obtain batch blank sales invoices. This covers both VAT fapiaos, which give the right to deduct input VAT, and general fapiaos which serve only as evidence of payments for sales. E-invoice fapiaos have the same legal basis as the existing paper special VAT fapiaos.

With e-invoice fapiao’s business can instead access a certified blank invoice via a government tax bureau portal remotely. They are issued with a special ‘U Key’, which holds the company’s unique digital certificate to access invoices via the ‘Comprehensive Service Platform’. This enables other parties to verify the validity of the e-invoice and digital signature via the National VAT Invoice Verification Platform. This also stores the special e-invoice fapiao.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.
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