How Digital Invoicing Is Redefining Tax Services and Enterprise Workflows

01. Origin

The "Golden Tax" project began in 1994 as a national e‑government initiative to support tax policy implementation and tax collection. By 2021, the fourth phase (Golden Tax IV) was launched, using invoices as the entry point to build a unified electronic tax administration platform, often referred to as the "Digital Invoice Era".

02. Digital Invoice System Construction Methodology

Digital invoices coexist with traditional tax‑control invoices, but the former are fully electronic, tag‑managed, and support nationwide unified coding and automatic circulation. Enterprises can join early, integrating finance, tax, and business data to achieve cost reduction and efficiency gains.

Two main data‑exchange entry points are offered by the tax bureau: the "Electronic Tax Bureau" (web portal) and the "LeQi" interface for system‑to‑system integration. Both support invoicing and invoice usage.

2.1 Invoice System Overview

An invoice is a payment voucher issued for goods, services, or other economic activities. Its purposes include recording economic transactions, serving as primary accounting evidence, and providing tax authorities with a basis for tax collection and supervision.

Record of economic activity

Primary accounting document

Basis for tax collection

Tool for state supervision of economic order

2.2 System Architecture

The architecture is divided into three modules: a ticketing middle‑platform, invoice business processing, and an invoice pool. The middle‑platform connects external systems, standardizes data, and forwards it to the business module for invoicing or deduction processing. All issued and received invoices are stored in the pool for downstream calls and analysis.

2.3 Pre‑Implementation Preparation

Enterprises must obtain taxpayer qualification (general or small‑scale) and choose a processing method such as tax‑control devices, electronic tax bureau, or LeQi interface. Hardware devices are being phased out; most large enterprises now prefer direct LeQi integration.

2.4 Invoice Issuing Design

Issuing responsibilities vary by industry (e.g., front‑desk for hotels, finance for manufacturing). The core issuing workflow includes data preparation, business processing, tax processing, compliance validation, invoice generation, and delivery. Delivery methods include email, SMS, API, QR code, and printed paper for special cases.

2.4.1 Business Data Processing

Key steps: determine documents needing invoicing, submit invoicing request, associate business documents with the request, and optionally merge or split documents. Data must be transformed to match tax‑bureau requirements (buyer/seller info, transaction details, special elements).

2.4.2 Red‑Flush and Cancellation

If errors occur, invoices can be red‑flushed (red‑letter) or cancelled. Tax‑control invoices require a red‑letter form for special invoices, while digital invoices require a red‑letter confirmation document approved by both parties.

2.4.3 Invoice Delivery

Delivery channels include email, SMS, API, QR code, and printed paper for legacy needs. The article provides UI examples of delivery pages.

2.4.4 Data Statistics

Statistical reports support operational decision‑making and tax filing, aggregating amounts and tax amounts by rate, and providing data for tax declarations.

03. Case Study – Didi Chuxing

An employee uses Didi for a ride, later requests an invoice for reimbursement. The invoice is generated, delivered via email or SMS, imported into the company’s reimbursement system, approved by finance, and finally recorded in the accounting system.

04. Ten Typical Invoicing Scenarios

4.1 Rare‑Earth Invoicing

Special invoices track rare‑earth material sales to ensure legal sourcing and prevent illegal trade. Validation includes separate coding for rare‑earth products and unit selection (kg or ton).

4.2 Agricultural Products

Three invoice types exist: regular, agricultural purchase, and self‑produced agricultural sales. Specific fields such as product type, quantity, and unit (kg/ton) are required.

4.3 Real‑Estate Leasing

Leasing services (housing, parking, etc.) require invoices with property address, lease period, cross‑city flag, and property certificate number.

4.4 Freight Transport Services

Transport invoices must include vehicle type, license plate, origin, destination, and cargo description, supporting multiple lines for complex shipments.

4.5 Real‑Estate Sales

Sales invoices need property unit code, contract number, address, land‑value‑tax project ID, assessed price, and transaction amount.

4.6 Construction Services

Construction invoices require land‑value‑tax project ID, cross‑city flag, project name, and service location.

4.7 Vehicle‑Tax Collection

Insurance companies collecting vehicle tax issue invoices with policy number, plate number, tax period, tax amount, and vehicle identification number.

4.8 Medical Services

Medical invoices (outpatient, inpatient) include hospital information, insurance details, patient data, and payment breakdowns.

4.9 Tractors and Harvesters

Registration‑related invoices must record engine number and chassis/frame number; non‑registration invoices omit these fields.

4.10 Photovoltaic Acquisition

Power purchase invoices for photovoltaic energy have no special elements beyond standard transaction data.

05. Conclusion

When new digital invoicing collides with legacy paper processes, enterprises must rethink system architecture, automate diverse business scenarios, and align regulatory requirements with operational efficiency. Understanding the full lifecycle—from invoice issuance to usage—enables businesses to build a robust, future‑ready tax service platform.