China Launched the Blockchain E-Invoice with Shenzhen as the First Pilot City

China Launched the Blockchain E-Invoice with Shenzhen as the First Pilot City

Dec 27th 2018| Investment By:Elaine
Blockchain technology will be more and more applied in the fields of taxation and government affairs, gradually changing the lives of ordinary people.

On August 10, 2018, Shenzhen International Trade Revolving Restaurant issued the first blockchain e-invoice in China, which marked that Shenzhen became the first national blockchain e-invoice pilot city.

The process for getting a blockchain e-invoice is pretty simple. After meal, a user checks out at the counter with mobile phone, then there is an invoice entry at the bottom left of the payment voucher; just click on the "invoice" and fill in the information, the phone then immediately receives an invoice issuing information, and an e-invoice is saved in the WeChat card package automatically.

The national blockchain e-invoice pilot project in Shenzhen is leaded by Shenzhen Tax Service, State Administration of Taxation and has been approved and recognized by the State Administration of Taxation, with the underlying technology supported by Tencent. This move is committed to creating a whole-process and full-range invoice management application scenario of "WeChat payment -- invoicing -- reimbursement".

Notably, unlike before, this invoice is not made of paper, nor is it a traditional e-invoice, but an blockchain e-invoice. The biggest difference between blockchain e-invoices and traditional e-invoices lies in the way of anti-counterfeiting. Traditional e-invoices use tax control code, even if simply put the traditional e-invoice on chain, in essence, the anti-counterfeit technology has not changed. But blockchain e-invoice combines blockchain technology in depth, which radically changed the traditional anti-counterfeit method.

Tencent introduced that, compared with traditional e-invoices, the blockchain e-invoice bears the characteristics of complete traceability of the whole process, non-tamper with the information and so on. It can effectively improve the invoice supervision process, make cost-related information more secure, and solve many tricky problems such as multiple statements, false statements and false invoices. The blockchain e-invoice platform integrates "capital flow and invoice flow", combines invoice issuing with online payment, and links the whole process of invoice application, invoice issuing, reimbursement and tax declaration. That said, the data flow that required different parties to complete before can seamlessly connected through the security sharing database of blockchain.

On November 8, Wal-Mart Shenzhen Bao’an District Jin Hai Road store officially launched the blockchain e-invoice service, which not only makes the global retail giant Wal-Mart become the first supermarket providing blockchain e-invoice service in China, but also marks further expansion of application scenarios of the blockchain e-invoice.

Since the implementation of blockchain e-invoice in Shenzhen, large progress has been made so far. According to People.cn, statistics from the Shenzhen Tax Service, State Administration of Taxation show that seven service providers and one reimbursement platform have tapped into the blockchain e-invoice system in Shenzhen. As of December 12, 2018, a total of 17,570 blockchain e-invoices have been issued by 32 pilot enterprises, and 209 enterprises have been registered and connected.

It can be predicted that after the e-invoice, blockchain technology will be more and more applied in the fields of taxation and government affairs, gradually changing the lives of ordinary people.