- China is mandating real-time digital VAT invoicing (e-fapiao) for all VAT-registered businesses by late 2025.
- E-fapiao uses standardized electronic invoices with digital signatures and QR codes, issued via a national platform or API, and enables instant reporting to tax authorities.
- Invoices must be archived for 30 years, and non-compliance can result in fines, loss of tax credits, or criminal penalties.
- The system allows real-time access to invoices for both buyers and sellers, eliminating separate e-reporting deadlines.
- While pre-filled VAT returns are not yet available, the e-fapiao system is paving the way for future automated VAT reporting.
Source: fiscal-requirements.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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