State-owned China Aerospace Science and Industry Corporation Ltd. is turning to blockchain technology to innovate its cumbersome electronic invoicing system, according to an announcement republished on a government site on August 13th.
The article, from the official state newspaper People & # 39; s Daily was published yesterday by the State Administration of Science, Technology and Industry for National Defense and illustrates how blockchain will help to innovate the supervision of invoices for tax purposes at national level.
As the article notes, the statistics indicate 1.11 billion Chinese electronic invoices They were circulating in 2017. By 2022 it is expected that the number will reach 54.55 billion, according to an expected average growth rate per year more than 100%.
China Aerospace's existing electronic billing services are end-to-end, covering the issue, delivery, filing, inspection and redemption for taxpayers and authorities in the country. It has already issued about 2.5 billion invoices to date, notes the article.
While e-invoicing has entered a "full promotion and adoption" phase, the article suggests that the existing system faces intractable barriers, including excessive reporting, false reporting and traceability problems in the process of circulation of invoices.
China Aerospace has now created a blockchain system for electronic invoices to allow the issuing of authenticated and "credible" invoices, traceable circulation and efficient and tax-efficient supervision. The authorities, according to the report.
A representative of the company told the People & # 39; s Daily that the blockchain will solve the "weaknesses" of the industry and make tax data that share a reality effective and secure.
As reported by Cointelegraph, the south-eastern city of Shenzhen in China has recently implemented a pilot blockchain ecosystem for invoices that was developed by Tencent – th and developer of the 1 billion WeChat users' social media platform – together at the Shenzhen Municipal Taxation Office.