China Announces First Official Tax Authority
As per local news reports, China has just issued the first digital invoice on the blockchain in Shenzhen. This marks the first introduction of a test blockchain environment designed for invoices and developed under the hands of Tencent, the same company of the billion plus WeChat application in collaboration with Shenzhen’s taxation agency.
As of now, this pilot is the only one to be granted official SAT approval and designed for advanced purposes by buyers, sellers and tax enforcers as per reports by the EEO. In the country, authorized invoices are referred to as fapiao and display authentic approval of issuance by the Chinese Tax Bureau (CTB) in terms of products and services acquired within China.
Reports by the EEO have stated that the original invoice was published on the 10th of August by a restaurant located in Shenzhen. Many other local vendors are already assigned access including a café and parking garage. The new system permitted WeChat payments as a means of producing an invoice that would be certifiable upon inspection and handling by tax officials. Blockchain GM at Tencent, Cai Yunge has stated that the new solution facilitates a seamless connection between buyers and tax authorities.
Traditionally, processing any invoice includes a few requirements as per the EEO. Once a transaction is concluded by any consumer, a waiting period is mandated until the seller has produced the invoice and stored it securely, finalizes a returns report with the department of finance, await processing and then acquires their rightful returns. Additionally, any user can fully monitor their transactions and returns through the click of a button on WeChat. The EEO also states that the innovation of offering an unchangeable and fully open recording system is perfectly suited for the managing invoices due to its efficient tracking methods, validation systems, and invoice processing.
More so, the tech itself has granted additional benefits in terms of enhancing personal and private data through intricate encryption and offering a cheaper method of accelerating any process. Previous reports have also mentioned the continuous collaboration between Tencent and the Tax Administration in Shenzhen to launch a smart tax lab for related innovations dedicated to updating tax management and combating fake invoices.