The State Taxation Administration of China has recently extended the scope of the fully digitized e-fapiao pilot again. Starting from 1 November 2023, selected taxpayers from Beijing, Hunan, Anhui, Guizhou, Qinghai, Ningxia, and Shandong are required to issue fully digitized e-fapiao.

The following is the most recent summary of the pilot scope:

Who should issue fully digitized e—fapiao: pilot taxpayers based in Xiamen, Chongqing, Shaanxi, Tianjin, Qingdao, Dalian, Inner Mongolia, Sichuan, Guangdong, Shanghai, Jilin, Fujian, Henan, Ningbo, Shenzhen, Yunnan, Shanxi, Liaoning, Jiangsu, Jiangxi, Guangxi, Gansu, Zhejiang, Hainan, Hebei, Xinjiang, Hubei, Heilongjiang, Beijing, Hunan, Anhui, Guizhou, Qinghai, Ningxia, and Shandong. (35)

Who should receive fully digitized e-fapiao: all taxpayers in the country are able to accept fully digitized e-fapiao.

Pilot taxpayers were previously only permitted to issue fully digitized e-fapiao via the government web portal, which required high levels of manual processing, such as ID verification, app verification, and SMS code generation. Alternative to this, the STA has introduced a certified service provider - Leqi , who offers direct integration with the STA e-fapiao system.

Overview of Leqi system

Leqi is an API-based platform that allows direct invoicing data transmission with minimal manual intervention. Most government web portal services can be provided by this platform, such as e-Fapiao validation and e-Fapiao purpose confirmation. Taxpayers who meet the required criteria, e.g. A/B taxpayer credit rating, 50M RMB revenue in the previous year, may connect with Leqi by applying to their local tax administration. Upon approval, taxpayers will be granted 2 years' validity of the Leqi system and can extend this before expiration.

Leqi is currently available in 24 of the 35 regions that allow issuance of fully digitized e-fapiao. The STA anticipates that Leqi will add more features very soon.