We discuss the expansion of e-invoicing in China as the digital e-fapiao program widens its pilot roll-out with unique features.
Fully digitalized e-fapiao, which are electronic invoices (e-invoices), is a completely new type of electronic invoice, which is different from the previously introduced normal value-added tax (VAT) e-fapiao and the traditional paper fapiao but has the same legal effect.
The pilot program of fully digitalized e-fapiao kicked off on December 1, 2021, when selected taxpayers in in Shanghai, Guangdong (Guangzhou, Foshan, Guangdong-Macao Intensive Cooperation Zone), and Inner Mongolia (Hohhot) started to issue and accept fully digitalized e-fapiao.
In 2022, the pilot program of fully digitalized e-fapiao was further expanded, with a broader scope of taxpayers being able to issue and accept fully digitalized e-fapiao.
Under the fully digitalized e-fapiao programs, a national unified…