Chinas E-Fapiao

In the operations of modern enterprises, invoices play a pivotal role. With the evolution of technology, the traditional process of obtaining paper invoices from the tax bureau has transformed. The Golden Tax IV system has ushered in a new era of electronic invoicing, rendering traditional methods obsolete.

Digital electronic invoices, encompassing value-added tax special invoices and ordinary invoices, mirror the efficacy of their paper counterparts. In this article, we’ll explore key considerations surrounding digital invoices and how they benefit businesses. Here’s a concise analysis from ECOVIS:

Question: Do digital invoices require a special seal upon printing and delivery?

Answer: Taxpayers utilizing paper copies of electronic invoices as tax vouchers need not demand an invoice special seal. However, preservation of the complete electronic invoice electronic files used for printing is imperative.

Question: What are the limitations on digital invoice issuance?

Answer: Consider this example: previously, small and medium-sized enterprises faced a 100,000 Yuan limit per paper invoice (new companies were allowed up to 50 per month). If an order amounted to 300,000 Yuan, three invoices were mandatory. The upgrade to digital invoices eradicates these restrictions, enabling unrestricted issuance within the total amount.

Question: Is a sales list necessary for digital invoices?

Answer: No, digital invoices serve as comprehensive electronic documents with unlimited invoicing lines. Transaction details are fully displayed within the electronic invoice. When enterprises issue digital invoices for multiple goods, a separate sales list isn’t required.

Question: What are the advantages of digital invoices?

Answer:

• Elimination of invoice purchase: The need to buy digital invoices is eradicated, saving time and costs associated with traditional paper invoices.
• Authenticity ensured: Digital invoices are issued by certified financial personnel within the enterprise, enhancing authenticity.
• Express delivery obviated: Digital invoices are electronic, circumventing the issues of physical delivery and reducing associated costs.

Digital invoices, despite being in a trial phase, exhibit clear advantages. However, they necessitate enhanced management practices from enterprises, including electronic invoice storage and record-keeping. For comprehensive assistance, don’t hesitate to contact our highly specialized ECOVIS teams in Heidelberg and Shanghai here!