E-invoicing compliance and regulatory updates - China

Electronic Invoicing in China

Is e-invoicing mandatory in China ?

E-invoicing is not mandatory in China. While General VAT e-fapiao has been available nationwide since 2015, the use of Special VAT e-fapiao remains in a pilot phase and is mostly voluntary.

Who is affected?

The compliance requirements are in pilot phases, which means that the individual companies are invited to join the pilot. Any company can choose to send e-invoices, and no company can reject receiving e-invoices.

Compliance requirements

Special VAT e-invoices must be cleared through the STA platform before being sent to the buyer.

Want to learn more about e-Invoicing compliance?

Download our Global e-invoicing and Tax Compliance fact sheet here for more information.

Key Deadlines 

• No upcoming deadlines

Standards & Platforms  

Platform

Yes, the Chinese government has established the national platform STA. Invoices are to be cleared via the STA platform.

What formats are required in China?

The fapiao e-invoices, are to be sent to the STA-platform in a structured format via the STA national e-invoice platform or by API connection.

Archiving in China  

What are the archiving requirements in China?

From a Chinese accounting perspective, all accounting records (including accounting vouchers, supporting documents, etc.) must be stored for a period of 30 years. From a Chinese VAT perspective, e-invoices are typically considered part of the accounting records. Therefore, they must also be stored for 30 years to comply with the regulations. The authenticity of origin, integrity of content, and readability of the invoices must be guaranteed throughout the storage period.

Legal invoice

• For suppliers: The legal e-invoice is the structured XML document complying with STA requirements.
• For buyers:The legal e-invoice is the structured XML document complying with STA requirements.

Want to know more about Basware’s archiving services?

Download our Basware Vault fact sheet here to learn more about our flexible and scalable solution.

Key Actions

• Ensure compliance - Be prepared to clear and possibly distribute invoices.
• Engage with stakeholders - Invoice senders and receivers should communicate with their customers and suppliers to explore electronic invoicing options. This can drive cost reduction, increased automation, and improved collaboration.

Chinese e-invoicing and archiving requirements at a glance:

Supplier requirement: A Chinese supplier shall have the ability to send STA-cleared Special VAT fapiao.

Buyer requirement: A Chinese buyer shall have the ability to receive and process cleared Special VAT fapiao.

Archiving requirement: E-invoices must be stored for a period of 30 years to comply with the regulations.