- Blockchain e-invoicing will be tested in Beijing by the State Taxation Administration
The State Taxation Administration, Beijing, responsible for collecting tax and enforcing tax laws, is set to pilot blockchain invoicing application in Beijing. At present, blockchain invoicing will be extended to parking invoices and park tickets.
As per the report, this is an attempt to create an efficient tax environment by cutting down operational costs and saving on resources. The paperless invoicing application has already been tested in Shenzhen.
Blockchain e-invoicing is the fusion of two disruptive technologies to transform payment processing. The invoice is recorded on the decentralized ledger and can be accessed by several people, but can be altered by none. This will also ensure transparency as the tax authorities plan to monitor and control invoicing frauds. As reported, the blockchain electronic invoices make use of smart contracts, consensus mechanisms, and encryption algorithms, among others, to prevent forgery and ensure the provision, storage, transmission and security of these invoices.
Moreover, as opposed to the traditional methods, the taxpayers do not have to go through an excruciating tax filing process, but only require a computer or a smartphone to issue tax invoices. Needless to say, this will open up opportunities to improve cash flow and perhaps lead to the possibility of dynamic discounting for swift payments.
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