China
China Monthly Tax Update: November 2024
On November 24, the State Taxation Administration announced the nationwide rollout of fully digital electronic invoices (e-fapiao) effective December 1, 2024. This follows a successful pilot program. Digital invoices, legally valid, feature unique 20-digit numbers and streamline tax processes.
On November 24, the State Taxation Administration (STA) announced the official nationwide rollout of fully digitalized electronic invoices (e-fapiao) through its website. This decision follows the successful pilot program, which has been implemented smoothly across various regions. The pilot program has delivered notable achievements, including optimizing the business environment, improving administrative efficiency, and facilitating the digital transformation of the economy and society.
The nationwide rollout will take effect on December 1, 2024. According to the STA, digital invoices are classified as a type of “electronic invoice” under the Regulations on the Administration of Invoices of the People’s Republic of China and hold the same legal validity as traditional paper invoices. Unlike paper invoices, digital invoices exist solely in digital format and are issued as single-copy documents. Each digital invoice features a unique 20-digit number, structured to include the last two digits of the calendar year, a regional code for the provincial tax authority, a digit indicating the issuance channel, and a sequential code.
After receiving the electronic invoice, if the recipient needs to use it for declaring and deducting input VAT, fuel consumption tax, applying for export tax rebates, handling tax refunds on behalf of others, or selecting fuel inventory, they should confirm the purpose through the digital tax account.
Key points of the STA announcement are summarized in the table below:
Read more about fully digitalized e-fapiao, its impact, and how to prepare for it.
On November 6, 2024, the State Taxation Administration announced the promotion of fully digitalized electronic invoices (e-fapiao) for civil aviation passenger transport. The announcement, made in collaboration with the Ministry of Finance (MOF) and the Civil Aviation Administration of China, will take effect on December 1, 2024. This announcement specifies that public air transport companies and registered air transport sales agencies in China are permitted to issue electronic invoices for domestic passenger transport services.
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