Traditionally, Chinese businesses have used a deeply-rooted physical fapiao tax receipt system. A push to digitalize the Chinese invoicing ecosystem entered an active phase in 2021 when the first provinces initiated the e-fapiao pilot.
However, this is soon to change - as of November 2023, all Chinese provinces (excluding Tibet) have introduced their own provisional electronic fapiao systems. The most recently joined provinces include Anhui, Beijing, Guizhou, Hunan, Ningxia, Qinghai, and Shandong.
The prospective electronic invoicing system is set to replace traditional paper fapiaos and previously introduced regular e-fapiaos. A newly introduced invoice numbering system is planned to reduce VAT fraud and streamline the fapiao obtaining process.
It is important to monitor development regarding this system, as the departure from preprinted traditional fapiao with the introduction of digitalized tax e-fapiao constitutes a revolution for Chinese businesses.