With the collaboration of the Ministry of Finance and the Civil Aviation Administration of China, the promotion of fully digitalized electronic invoices (e-fapiao) for civil aviation passenger transport will take effect on December 1, 2024.

This marks China’s strong commitment to the promotion of e-invoicing and its steady advancement.

Let’s take a look at the progress of this process over the past few years.

• • Civil Aviation: From December 1, 2024, civil aviation passenger transport companies and registered sales agencies are permitted to issue electronic invoices (e-fapiao). The electronic itinerary serves as an invoice, containing essential information (invoice number, passenger ID, itinerary, fares, VAT, etc.). Passengers can still use paper itineraries for reimbursement until September 30, 2025.
  • Railway: From November 1, 2024, electronic invoices will also be promoted for railway passenger transport. Passengers can obtain electronic invoices through the 12306 website and mobile app, allowing for queries, downloads, and printing. Paper and electronic invoices will be used concurrently until September 30, 2025.
  • Pilot Programs:
  • Tibet Pilot: Starting December 1, 2023, Tibet will implement a pilot program for electronic invoicing.
  • Seven Provinces Pilot: From November 1, 2023, seven provinces and cities, including Beijing, Hunan, Shandong, Anhui, Qinghai, Ningxia, and Guizhou, will begin their electronic invoice pilot.
  • Other Regions: From March 2023, provinces such as Guangdong, Zhejiang, Fujian, Yunnan, Henan, Jilin, and Chongqing have gradually expanded electronic invoicing pilot programs.

Invoice Usage Rules:

• • Electronic invoices can serve as VAT deduction vouchers, with input tax amounts calculated according to current regulations.
  • Paper and electronic invoices cannot be issued multiple times.

Key Dates

• December 1, 2023: Nationwide implementation of the electronic invoice pilot in Tibet.
• November 1, 2024: Promotion of electronic invoices for railways.
• December 1, 2024: Promotion of electronic invoices for civil aviation.
• September 30, 2025: End of the transition period for the concurrent use of paper and electronic invoices.

What is fully digitalized e-fapiao?

Definition: Fully digitalized e-fapiao is a new type of electronic invoice that has the same legal validity as traditional paper fapiao but does not use physical sheets.

Structure: Unlike paper fapiao, which includes multiple copies (stub, deduction, and account-keeping), the fully digitalized e-fapiao consists of a single document.

Content: It features 17 key items, including: dynamic QR code, invoice number, issuance date, buyer information, seller information, project name, specification and model, unit, quantity, unit price, amount, tax rate/levy rate, tax amount, total, ad valorem and tax total (in words and figures), remarks, and invoice.

Coexistence: With the introduction of fully digitalized e-fapiao, China will have six types of fapiao during its ongoing reforms:

• Special VAT fapiao
• General VAT fapiao
• Special VAT e-fapiao
• General VAT e-fapiao
• Fully digitalized special VAT e-fapiao
• Fully digitalized general VAT e-fapiao

New Features of Fully Digitalized E-Fapiao

1. Simplified Procedures for Obtaining and Issuing:

• No Special Equipment Needed: Pilot program participants can issue fully digitalized e-fapiao directly through the national e-invoicing service platform without needing special tax control equipment in advance.
• Automatic Invoice Number Assignment: The e-invoicing service platform automatically assigns a unique invoice number when the invoice information is generated, eliminating the need for application.

2. Management of Total Amount Based on Taxpayer Credibility: Tax authorities will dynamically adjust the monthly maximum amount of invoices a taxpayer can issue based on their credit rating and actual business conditions.

3. Convenient Ways to Issue, Deliver, and Verify Invoices:

• Diverse Issuance Channels: Taxpayers can issue e-fapiao through the unified e-invoicing service platform and may also use terminals or mobile apps in the future.
• One-Stop Service Platform: A single platform will handle the issuance, delivery, and verification of invoices, reducing the need for multiple platforms.

4. Widely Applicable Invoice Data: Invoice information will automatically be sent to the taxpayer’s tax digital account for easy inquiry, downloading, and printing, allowing real-time tracking of invoice usage.

5. No Specific Digital Format Required: Fully digitalized e-fapiao does not need to be saved in a specific format; it can be delivered through digital accounts, email, QR codes, etc., lowering delivery costs.