E-Invoicing in China

Who is obliged to use e‑Invoicing in China

The Chinese State Administration of Taxation (SAT) has decided to implement the pilot program for mandatory electronic VAT special invoice (e-fapiao) among newly established and registered taxpayers in several regions in December 2021. However, the real e-invocing expansion started in 2022 as more regions were covered by mandatory fully-digitalisied e-fapiao issuing and acceptance regulations. SAT intends that special e-fapiao will be compulsory for all Chinese businesses by 2025.

What is the required format of an e-invoice

There are two types of fully-digitalised e-fapiao in China: special VAT e-fapiao and general VAT e-fapiao. Both have the same legal effect as the paper fapiao and the normal e-fapiao.

Accepted e-invoicing format is XML

E-invoicing process description

Each e-fapiao must contain the following information: invoice number, issuance date, buyer information, seller information, project name, specification and model, unit, quantity, unit price, amount, tax rate/levy rate, tax amount, total, ad valorem and tax total (in words and figures), dynamic QR code, remarks.

Archiving requirements for e‑Invoicing in China

Required storage period is 10 years from invoice date

Acts / Government sites

• (chinatax.gov.cn)