According to a government announcement posted by State Administration of Science, Technology and Industry for National Defence, China Aerospace Science and Industry Corporation Ltd will be fulfilling state plans for using blockchain for invoicing for tax purposes.
The government website article reportedly suggested that 1.31 billion electronic invoices were circulating its system in 2017 and forecast that this would rise to 54.55 billion by 2020. The article claims that the government has issued some 2.5 billion such invoices to date which cover such services as delivery, filing, inspection and tax reimbursement.
With a system which appears to be severely overburdened, it appears to be also suffering from other issues such as over-reporting along with false reports and traceability problems. China Aerospace’s blockchain system for electronic invoices is designed to overcome some of these administrative hurdles and what it has called “pain points” and streamline tax data sharing making it more efficient and cost-effective.
In May, the State Administration of Taxation in China’s fourth-largest city Shenzhen teamed up with tech giant Tencent to deal with a similar issue relating to tax loopholes and accountability. That blockchain system targets efficient circulation and issuance of tax invoices and protects the authenticity of legal documents.
In other news from China, Ripple has suggested that it is targeting the country with a DLT solution to speed up cross-border payments. Jeremy Light, vice president of European Union strategic accounts at Ripple confirmed:
“China is definitely of interest, it is definitely a target… China is definitely a country and region of interest.”
Ripple’s interest in the region is no secret after it struck a deal earlier this year with Hong Kong-based financial services firm LianLian International targeting cross-border transactions.
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