China (GTS): Overview

Mandate

China operates a mandatory clearance-based e-invoicing system under the authority of the State Taxation Administration (STA). The system forms part of the long-standing Golden Tax System (GTS), which supervises VAT collection and invoice issuance nationwide. Unlike post-audit or reporting-based regimes, China follows a Continuous Transaction Controls (CTC) clearance model. VAT invoices are issued by the tax authority, not merely reported after issuance. An invoice has no legal effect until it is validated and issued by the STA.

Over the past decade, China transitioned from paper fapiao to electronic invoices (e-fapiao), and most recently to the Fully Digital Electronic Invoice (FDEI / 数电发票) regime. Under FDEI, suppliers submit invoice data in a structured format, while invoice numbering, validation, and issuance are performed centrally by the STA. Each cleared invoice is returned with a tax-issued 20-digit invoice number, an STA digital signature, a QR code, and a clearance timestamp. These artefacts collectively confirm legal validity and must be present for VAT deduction, accounting, and audit purposes.

China’s clearance model applies to both B2B and B2C transactions, including special VAT e-fapiao (VAT-deductible) and general VAT e-fapiao. Paper invoices and legacy formats are being phased out as part of the nationwide transition to fully digital e-invoicing.

Description

The final e-invoice is formatted as a JSON file.

Details