Taxpayers invoicing and consumer claims have been the biggest troublemakers for Chinese citizens when small and medium-sized micro-enterprise payments are considered. As per a recent report, a solution to this social problem, the State Administration of Taxation Shenzhen Municipal Taxation Bureau and Tencent Co. The “Zhi Tax Lab”, came up with a blockchain electronic invoice system in integration with the WeChat payment platform on December 11, 2018. With the launch of such a payment platform, merchants will be able to access and issue invoices at zero cost.
First Implemented in Shenzhen, China
Shenzhen Special Economic Zone which was first of its kind after which 7 other special economic zones were established in the Republic of China. In 1997, Shenzhen was declared the national model city for environmental protection, and in 2002, received the United Nations Environment Programme (UNEP) award of Global 500 Roll of Honor based on the city’s efforts to yield gains concerning both the economy and the environment.
This city of a population of 4.33 million was fortunate to experience the blockchain invoice system launched in their city. There is a Coffee shop named Shenzhen Guomao Rotary Restaurant which is located in Nanshan District of Shenzhen that has huge sales of coffee drinks and meals during the weekdays. The problem faced by the coffee shop was that they received only a limited number of fixed invoices as the speed of processing of invoices was that slow making long waiting time for the customers. With the launch of the new blockchain based product in town, the shop owners first thing in the morning completed the Electronic Invoice Registration procedure at the Electronic Taxation Bureau of Shenzhen Taxation Bureau. Along with the registration at the Taxation Bureau, the shop also made it a point to register for the opening of electronic invoice on the WeChat payment merchant platform and thence officially launched the blockchain electronic invoice service. This shop was the first to open the blockchain electronic invoice.
Till now, blockchain electronic invoices have been successively implemented in Baoan District Sports Center Parking Lot, Kaixin Auto Trading Co., Ltd. (Pingshan Auto Repair Shop), Image Tencent Impression Coffee Shop, China Merchants Bank, Wal-Mart, and other key places.
WeChat – China’s App for Everything
WeChat is a Chinese multi-purpose messaging, social media and mobile payment app developed by Tencent. It is also known as China’s App for Everything and Super App.
The process to use WeChat is way too simple for the customers for daily usage. The customer needs to open his own WeChat payment code and needs to get the QR code scanned at the scanning code instrument placed at the checkout counter then he/she needs to click on the Invoicing button inside the application. Lastly, click on the “My Invoice Header” function to submit the application to complete the billing operation. The whole process takes even less than a minute to complete. The customer request is then approved by the merchant, then notified regarding the same and receive invoices in WeChat card package.
According to Li Ronghui, Director of the Information Center of Shenzhen Taxation Bureau of the State Administration of Taxation, the main point of difference between blockchain electronic invoices and traditional electronic invoices is that the former is based on the blockchain technology which possesses encryption processing with key features like distributed storage, traceability, and non-tamperable. By the combination of Fund Flow and Invoice Flow, this blockchain electronic invoice realizes transaction data i.e. invoice data.
Blockchain Stocks has not been paid to mention any stock /company within this article nor do we own any stock in any company mentioned in this article. More information about our full disclosure can be found here – Full Disclaimer.