ISSUING AUTHORITY:

Various, including State Administration for Taxation

DATE OF ISSUANCE:

September 28, 2020

In a joint announcement, 13 Departments across China’s administration stated that tax paying processes in China will be significantly streamlined, both in terms of costs and processes, by the end of 2021 through the joint efforts of the 13 departments, including the State Administration for Taxation, National Development and Reform Commission, Ministry of Finance and many others. The 13 departments set out a joint Guideline setting out a number of areas on which to concentrate and also goals to be achieved.

One of the main goals of the Guideline is the creation of an electronic invoice service platform through which businesses can reduce the labour intensive invoice production costs. Traditionally the invoice system has involved  a physical journey to the tax office, the bulk advance purchases of invoices together with the careful storage and issue of those invoices. One of the principal problems encountered by business in China is the cost and time associated with this invoicing system. For obvious reasons a move to a more streamlined electronic system is to be welcomed, particularly for foreign owned enterprises that may not be familiar with China’s paper invoice system.

Further goals set out in the Guideline are: 

● Departments will work closely together to improve the speed at which VAT refunds are given

● The most common tax payment services should be available online

● Departments should work together to provide electronic VAT invoices for new taxpayers by the end of 2020

● Taxation big data systems and risk management mechanisms should be utilised to build a new “credit plus risk” management system

● Government departments should provide an evaluation system to improve tax and fee payers experience

Reference:

税务总局等十三部门《关于推进纳税缴费便利化改革优化税收营商环境若干措施的通知》