Can Paper Invoices Still Be Issued? Digital Invoices Are Now Nationally Promoted, and Your Invoicing Habits Need to Change!

Can Paper Invoices Still Be Issued? Digital Invoices Are Now Nationally Promoted, and Your Invoicing Habits Need to Change!

Business owners in Yiwu's International Trade City often issue dozens of invoices a day. However, starting from December 1, 2024, fully digital electronic invoices (referred to as 'digital invoices') have been officially promoted nationwide, and newly registered taxpayers will no longer receive paper invoices. Many business owners in Yiwu are still using old invoicing habits, only realizing the changes when clients ask, "Why is the invoice number different?" or "Where is the invoice stamp?" Today, Jinfan Tax & Finance will help you understand what digital invoices are, how to issue them, and which pitfalls to avoid.

I. What Exactly Are Digital Invoices? How Do They Differ from Paper Invoices?

Digital invoices, or fully digital electronic invoices, are a new type of invoice promoted by the tax bureau. Their legal effect and basic purpose are exactly the same as paper invoices, and they can be used for reimbursement, accounting, and tax deductions, but their form has completely changed.

• No Tax Control Device Required: Previously, issuing invoices required a tax control device (such as a Golden Tax Disk or Tax Control UKey). Now, invoices can be issued directly on the electronic invoice service platform via a web page or mobile app, allowing you to issue invoices anytime with just a computer or a phone.
• No Need to Collect Invoices: Paper invoices had to be collected, verified, and canceled monthly. Digital invoices use a 'coding system,' where the system automatically assigns invoice numbers, allowing you to issue invoices 24/7 without any limits.
• No Invoice Stamp: Digital invoices do not display an invoice stamp. Instead, they show a dynamic 'invoice number + issuance date' verification code, which can be scanned to verify authenticity. This is a true 'electronic signature.'
• Automatic Aggregation: Issued and received invoices are automatically aggregated in the 'Tax Digital Account,' eliminating the need for manual invoice ledger entries.

II. Cost Calculation: How Much Can Digital Invoices Save Yiwu Business Owners in a Year?

Let's do a practical calculation. Previously, a small company needed to purchase tax control equipment (a tax control device costing several hundred yuan) and install invoicing software. Each time invoices were collected, a trip to the tax bureau or waiting for mail was required. If an invoice was incorrect, it had to be voided and reissued, causing significant hassle. More frustratingly, if more invoices were needed, an application for an increase had to be made, and during peak business periods, 'invoice shortages' were common.

For business owners in Beixiazhu who do live-streaming e-commerce or those in Huangyuan Market who do wholesale, with clients all over the country and even overseas, previously sending an invoice by mail would cost at least ten yuan and take one to two days. Now, after issuing the invoice, you can send it to the client via WeChat or email with one click, and the payment can be settled on the same day. Invoicing has gone from a 'legwork task' to a 'simple task,' saving time and courier fees, which can amount to several thousand yuan a year.

III. Important Reminder: New Businesses Will No Longer Receive Paper Invoices!

According to the Announcement of the State Administration of Taxation on the Promotion and Application of Fully Digital Electronic Invoices (Announcement No. 11 of 2024 of the State Administration of Taxation (国家税务总局公告2024年第11号)), starting from December 1, 2024, the promotion and application of digital invoices will be officially implemented nationwide. Newly registered taxpayers will no longer receive paper invoices (VAT special invoices, VAT general invoices) and will uniformly issue digital invoices through the electronic invoice service platform.

What does this mean? If your company is registered after December 2024, or if you are planning to register a new company in Yiwu for e-commerce or foreign trade, you will start with digital invoices, and there will be no paper invoices available. For companies that are still using paper invoices, the tax bureau is encouraging a gradual switch. Once the paper invoices are used up or the collection volume decreases, the system will guide you to switch to digital invoices.

Therefore, don't hold onto侥幸心理,早学早用,等客户指定要数电票、财务要求扫码验真的时候,你就从容多了。

IV. Three Common Pitfalls for Yiwu Business Owners

Pitfall 1: Clicking 'Void' When an Invoice Is Incorrect

With paper invoices, if an error occurred, the invoice could be voided on the spot. However, once a digital invoice is issued, it can only be corrected with a red invoice, not voided. Many business owners, out of habit, try to click 'void' and panic when they find there is no such option. The correct procedure is: if a digital invoice issued in the current month is incorrect, a red digital invoice should be issued through the electronic invoice service platform to offset the original, and the entire process can be completed online in a few minutes.

Pitfall 2: Clients Say Invoices Without Stamps Are Non-Compliant

Digital invoices do not require an invoice stamp, but some clients may still insist on it. You can provide the policy basis from Announcement No. 11 of 2024 of the State Administration of Taxation (国家税务总局公告2024年第11号) to the client, explaining that the legal effect of digital invoices is the same as paper invoices, and they can be verified on the National VAT Invoice Verification Platform. Never print the invoice and add a stamp, as this can make the invoice information abnormal.

Pitfall 3: Filing Without Confirming the Use of Received Digital Invoices

The input VAT deduction for digital invoices must be confirmed in the Tax Digital Account (by selecting and confirming). Some business owners simply file the invoices without confirming, resulting in a loss of input VAT. It is recommended to confirm all received digital invoices in the digital account before filing each month.

V. What Should Yiwu Business Owners Do Now? A Three-Step Guide

• Step 1: Register and Log In - Access the electronic invoice service platform through the Electronic Tax Bureau (or the provincial Electronic Tax Bureau entry), confirm invoicing permissions, and set up invoicing personnel.
• Step 2: Test Invoicing - First, issue a small-value digital invoice to yourself or a familiar company, and go through the entire process of 'invoicing - delivery - red correction' to gain confidence.
• Step 3: Notify Upstream and Downstream Partners - Send a notification to suppliers and clients stating, 'Our company has switched to digital invoices and will no longer issue paper invoices,' to avoid non-recognition by the other party's finance department.

If you are too busy or if your company's finance staff is unfamiliar with the Electronic Tax Bureau operations, you can entrust Jinfan Tax & Finance to handle it for you. From opening invoicing permissions, guiding the issuance of digital invoices, to monthly invoice aggregation, selection confirmation, and tax filing, we provide one-stop services to let you focus on your business.

Frequently Asked Questions (Q&A)

Q1: What if clients do not recognize digital invoices without an invoice stamp?

The legal effect and basic purpose of digital invoices are exactly the same as paper invoices, and the electronic signature is its 'stamp.' You can provide the Announcement No. 11 of 2024 of the State Administration of Taxation (国家税务总局公告2024年第11号) to the client and guide them to verify the invoice on the National VAT Invoice Verification Platform or the 'Tax Digital Account.' Once the client scans and sees 'Verification Passed,' they will feel reassured.

Q2: Can small-scale taxpayers issue digital invoices? Can they issue special invoices?

Yes. Small-scale taxpayers can also issue digital invoices through the electronic invoice service platform. They can issue ordinary invoices and self-issue VAT special invoices, as well as 'VAT invoices' (a general term for fully digital ordinary and special invoices). The invoicing quota is determined based on actual business conditions.

Q3: If a digital invoice is issued incorrectly, can it be voided?

No, it cannot be voided; it can only be red-corrected. After issuing a red digital invoice, the original blue invoice will be offset. The red correction process is entirely online, and there is no need to visit the tax service hall. Red corrections can be made in the same month or across months, and the invoicing quota for the month will be restored accordingly after the red correction.

Q4: I am an existing company with a stock of paper invoices. Do I need to switch immediately?

No, you do not need to switch immediately. Already collected paper invoices can continue to be used until they are exhausted, but the frequency and quantity of collection will gradually be restricted, and the system will guide the switch. It is recommended to switch after the paper invoices are used up, as early switching will save you trouble.

Q5: Do digital invoices need to be printed for bookkeeping?

Digital invoices can be legally recorded in electronic form. Taxpayers can use electronic vouchers for reimbursement, accounting, and archiving (as long as they meet the requirements for accounting archive management). Of course, for convenience in reimbursement and circulation, printing a paper copy is also acceptable, but it is important to keep the XML and other electronic originals and not just the printed copies.

Policy Basis

Announcement of the State Administration of Taxation on the Promotion and Application of Fully Digital Electronic Invoices (Announcement No. 11 of 2024 of the State Administration of Taxation (国家税务总局公告2024年第11号)): Starting from December 1, 2024, the promotion and application of fully digital electronic invoices will be officially implemented nationwide. Newly registered taxpayers will no longer receive paper invoices and will issue digital invoices through the electronic invoice service platform.

For specific operations, please visit the official website of the State Administration of Taxation (www.chinatax.gov.cn) or the Zhejiang Provincial Electronic Tax Bureau, or contact Jinfan Tax & Finance at any time.

Jinfan Tax & Finance, Your Trusted Financial and Tax Advisor in Yiwu

For 10 years, Jinfan Tax & Finance has been rooted in Yiwu, serving thousands of trading, e-commerce, and foreign trade enterprises. Whether it's switching to digital invoices, bookkeeping, export tax rebates, or tax planning, if you have any questions about financial and tax matters, feel free to contact us. Professional accounting, entrusted to professionals.