On 24 November 2024, China’s SAT issued an Announcement on Promoting the Application of Fully Digitalised Electronic Invoices, which took effect on 1 December 2024.
In the document, the SAT announces the comprehensive adoption of fully digitalised e-invoices across the entire country. The nationwide endeavour aims to streamline and standardise invoicing practices, enhance efficiency, and wean enterprises off reliance on traditional paper-based invoices. It represents a significant step forward in the digitalisation of tax administration, simplifying paperwork for both issuers and recipients.
The fully digitalised e-invoice, more commonly known as e-fapiao, is granted the same legal validity and practical utility as its paper counterpart under the Administrative Measures of the People’s Republic of China on Invoices. Unlike the paper-based version, which entails the retention of multiple different copies, including the account-keeping copy, deduction copy, and stub copy, the e-invoice eliminates the need for additional sheets or duplicates.
The new e-invoice will feature a cleaner and more user-friendly design, containing just 17 items: QR code, buyer as well as seller information, invoice number, issuance date, name of the project, specification details, item code, unit price, quantity, subtotal, total amount, tax rate, tax amount, ad valorem and total tax payable, supplementary notes, and seal affixed to the invoice.
In addition, a unique identification number is assigned to every e-invoice. The 20-digit code is made up of the final two digits of the year in which the invoice is issued, a regional designation for the competent provincial tax authority, a numeral denoting the issuance method, and a sequential reference number.
