North America

China Introduces Fully Digitized E-Invoice with New Pilot Program

Victor Duarte
February 1, 2022

This blog was last updated on February 1, 2022

The Tax Bureaus of Shanghai, Guangdong Province and Inner Mongolia Autonomous Region have all issued announcements stating they intend to carry out a new pilot program for selected taxpayers based in some areas of the provinces. The pilot program will involve adopting a new e-invoice type, known as a fully digitized e-invoice.

Introduction of a new e-invoice type

Many regions in China are currently part of a pilot program that enables newly registered taxpayers operating in China to voluntarily issue VAT special electronic invoices to claim input VAT, mostly for B2B purposes.

The new fully digitized e-invoice is a simplified and upgraded version of current electronic invoices in China. The issuance and characteristics of the fully digitized invoice are different from other e-invoices previously used in the country.

Characteristics of the fully digitized e-invoice

  • The fully digitized invoice is supervised by the local Taxation Bureaus as part of the pilot program
  • The legal effect and basic purpose are the same as those of existing paper invoices
  • Fully digitized invoices can be delivered in the form of data messages, which eliminates specific format requirements such as PDF or OFD
  • The basic content includes dynamic QR code, invoice number, invoice date, buyer information, seller information, quantity, unit price, amount, tax rate, tax amount, total, total price, and tax
  • After the pilot program taxpayer has passed a “real-name verification” they can immediately use the electronic invoice service platform to issue invoices without the need to use special equipment for tax control (e.g., UKey device)
  • Pilot taxpayers can automatically deliver fully digitized invoices through the tax digital account of the electronic invoice service platform and can also deliver fully electronic invoices themselves via email or other means

Verification of fully digitized e-invoices

Relying on the national unified electronic invoice service platform, tax authorities will provide selected taxpayers for this pilot program with services such as issuance, delivery, and inspection of fully digitized e-invoices 24 hours a day. Taxpayers will be able to verify the information of all electronic invoices through the electronic invoice service platform or the national VAT invoice inspection platform (https://inv-veri.chinatax.gov.cn ).

What’s next for e-invoicing in China?

This new pilot program has been effective in Shanghai, Guangzhou, Foshan, Guangdong-Macao Intensive Cooperation Zone, and Hohhot since 1 December 2021. Despite the lack of an official timeline for implementation, it’s expected that the scope of this pilot program will be extended in 2022 to cover new taxpayers and regions in China, paving the way for nationwide adoption of the fully digitized e-invoice.

Take Action

To find out more about what we believe the future holds for VAT, download the 13th edition of Trends. Follow us on LinkedIn and Twitter to keep up-to-date with regulatory news and updates.

Sign up for Email Updates

Stay up to date with the latest tax and compliance updates that may impact your business.

By checking the above box, you are consenting to Sovos’ privacy policy and electing to receive more information from us. Our goal here is not to bombard you with communications, but to provide you with specific information regarding our services that is most helpful to you. You may opt out at any time. Click here for more information.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Author

Victor Duarte

Victor is a Regulatory General Counsel at Sovos. Based in Stockholm and originally from Venezuela, he obtained a Law degree and a specialisation degree in Tax Law in his home country. Victor also earned a Master´s degree in European and Internal Tax Law from Lund University in Sweden.
Share this post

Supreme Court Peters v. Cohen
North America Unclaimed Property
August 5, 2025
Supreme Court Petition Challenges State Unclaimed Property Laws: Peters v. Cohen

This blog was last updated on August 5, 2025 Supreme Court Peters v. Cohen: Major Unclaimed Property Case By Freda Pepper, General Counsel, Unclaimed Property Sovos regulatory team is tracking the latest Supreme Court Peters v. Cohen, a landmark case that raises fundamental questions about how state unclaimed property laws handle dormant assets and the […]

NAUPA III file format
North America Unclaimed Property
August 5, 2025
NAUPA III File Format: What Compliance Teams Need to Know

This blog was last updated on August 5, 2025 The National Association of Unclaimed Property Administrators (NAUPA) has approved a major update to their electronic reporting standards with the introduction of the NAUPA III file format. This significant advancement in unclaimed property reporting represents a modernization effort that aims to streamline the submission process while […]

See for yourself how the Sovos Compliance Cloud can meet your business' unique tax compliance challenges.
Book a Demo
© 2025 Sovos Compliance, LLC. All rights reserved.
Why Sovos?
Resources
About
Products
Indirect Tax Suite
Information Reporting and Withholding Suite
Specialty Products
Solutions
By Tax or Document Type
By Industry
By Team or Initiative
By Region