China has taken important steps in the cryptocurrency industry and has openly admitted the use of blockchain technology to develop new products This was also illustrated recently when the country’s central bank filed more than 80 patents related to blockchain technology.
To make sure all its bases are covered, the Beijing Municipal Taxation Bureau recently released a publication that talked about the issues related to the implementation of blockchain electronic ordinary invoices.
The Bureau spoke about how the government has managed to make life easier for its citizens through new laws and regulations. According to the organization introducing blockchain technology will be time-consuming because it has to be put on top of the existing features.
The scope of invoicing of electronic ordinary invoices was in addition to the scope of issuance of VAT special invoices. This also included electronic ordinary invoices for VAT taxes on goods and services.
The invoice code provided by the ministry is a 12 digit number with the first number representing taxation and the next four numbers being the Beijing Municipality code 1100.
The bureau added that if the issuer and the receiver of an electronic ordinary invoice requires a paper invoice, they can be printed by themselves. Ensuring quick implementation has always been a priority which meant that the latest law came into effect as soon as it was revealed.
An official release from the Taxation Bureau stated:
“The State Administration of Taxation, Beijing Municipal Bureau of Taxation will gradually carry out the pilot promotion of blockchain electronic ordinary invoices throughout the city. At present, some taxpayers’ parking general invoices and attractions park tickets have been selected for promotion, and taxpayers from other industries will be included in the pilot scope of blockchain electronic ordinary invoices in due course.”
Blockchain technology has been used in the latest product because of the privacy and immutability advantages identified by the Bureau. Here, the issuer realizes the in-chain application issue, inspection, and accounting. After that, on-chain storage, circulation, and reimbursement are carried out by the acceptor. Technology also facilitates the whole process control of the tax office and also incorporates paperless, intelligent tax management.
China’s main objective is to make its financial model much more effective than the existing framework at a much cheaper rate. The application of blockchain technology on a daily basis is also designed to achieve unprecedented transparency and traceability. The above news comes just days after the country has postponed its digital yuan work due to the Coronavirus outbreak.
The delay did not mean that the project was affected in any way as the departments had enough resources to carry on building a CBDC. Sources claim that the token will be launched by the end of this year or early 2021. Shenzhen and Suzhou are the two cities that will pilot China’s digital token.