Chinese City Announces Blockchain Receipt

The Chinese city of Shenzhen is introducing a new ‘fapiao,’ a legally accepted receipt used for tax purposes. The new fapiao unveiled by the municipality is in digital form, or more specifically a blockchain receipt, reports EEO.

The move makes the southern city of Shenzhen the first pilot city for blockchain electronic invoices nationwide. The new electronic invoice is aptly called Implementation of Blockchain Receipts by Shenzhen Municipal Tax Bureau and State Administration of Taxation.

The report writes:

“The blockchain electronic invoices introduced by the Shenzhen Municipal Taxation Bureau and Tencent provide the underlying technology and capabilities are the first ‘blockchain invoice’ ecosystem application research results nationwide, which has been approved and recognized by the State Administration of Taxation.”

The report also identified the Shenzhen Guomao Rotating Restaurant, Shenzhen Treasure Parking Lot, Pingshan Auto Repair Shop, Image Tencent Impression Coffee Shop, and others, as the first merchants to access the system.

In the first phase of the pilot application, the Shenzhen Taxation Bureau, together with Tencent and Kingdee Software, created a full-process and complete invoice management application scenario of WeChat payments involving ​​invoice issuing as well as reimbursement.

Li Ronghui, director of the Information Center of Shenzhen Taxation Bureau, said the electronic blockchain invoice was implemented by the Shenzhen Taxation Bureau and Tencent Company. He added that through the blockchain invoice, enterprises could complete invoice claim and tax return on the blockchain. It also allows users to accomplish chain reimbursement and collection as well as harmonizing the system for tax regulators and management tax bureaus.

“Blockchain allows regulatory technology innovation, that is paperless intelligent tax management, and more controllable processes,” Li added.

According to the report, blockchain receipts signals a big leap forward in technology, while at the same time retaining some of the old systems. The receipts can still be printed, recognized and regulated and used in the same way traditional receipts are traditionally used.

Only recently, the China Aerospace Science and Industry Corporation Ltd. (CASIC) announced it is turning to blockchain to solve its invoice billing problems that number in billions.

The official People’s Daily said the State Administration of Science, Technology and Industry for National Defence also outlined ways how to use blockchain to innovate invoices for tax purposes across the country.