China's first digital bill on the blockchain was issued in the southeastern city of Shenzhen, the local EEO news platform reports on August 10th.
This is the first implementation of a pilot blockchain ecosystem for invoices that was developed by Tencent – the developer of the 1 billion WeChat user social media platform – together with the Shenzhen Municipal Tax Office.
He is the only pilot to have received official approval from the State Tax Administration and is designed for full use by consumers, traders and tax authorities, according to EEO. In China, official invoices are dubbed "fapiao", indicating that they were issued by the Chinese tax office for goods and services purchased in the country.
EEO reports that the debut invoice was issued on August 10 by a local restaurant in Shenzhen. Many other local merchants have already had access to the system, including parking, a garage and a bar.
The system allowed payment by a consumer via WeChat to generate an invoice that would be suitable for inspection and management by the tax authorities. Cai Yunge, general manager of Tencent's blockchain, quotes EEO saying that the new system achieves a frictionless link between consumer scenarios and tax services.
In the traditional scenario, the processing of an invoice involves multiple and rather cumbersome steps, EEO notes. When a consumer completes a certain transaction, he / she must wait for the merchant to generate the invoice, store it securely, fill out a return form in the finance office, wait for the return to be processed and receive returns.
Using a blockchain-enabled electronic invoice means that the consumer can manage all these steps using a click on the WeChat app after the checkout, and is then able to track their repayment status in real time, writes EEO .
As an EEO note, blockchain the fundamental innovation of providing an immutable and transparent record registration system is highly consistent with the process of invoice supervision, as it effectively tracks the source, the authenticity and the accounting of invoices, thus resolving the problems of excessive reporting, false reporting and other false inconsistencies in the process of circulation of invoices.
The technology also has the advantage of improving data privacy through cryptographic methods and providing a
Cointelegraph has already reported on the ongoing cooperation of Tencent with the Shenzhen Municipal Office of the State Tax Administration to set up an "Intelligent Tax" innovation workshop focused on modernizing tax management and combating fraudulent "fapio" with blockchain technology.