WeChat, a messaging, social media and economical services application owned by Tencent Holdings Constrained, has deployed a blockchain digital invoice method at Shenzhen Guomao Rotary Restaurant, earning the metropolis of Shenzhen the very first in China to difficulty invoices with blockchain technologies.
The blockchain invoice procedure, which encompasses payment, invoicing and reimbursement, was established in partnership with Shenzhen Taxation Bureau and Kingdee Software program.
This method was formulated to simplify the procedure of reimbursing organization personnel expenses. Previous paper and digital invoicing processes led to a cumbersome and elongated procedure of invoice verification, submission, critique, and tax returns filing ahead of finally settling with staff.
How It Functions
With this blockchain invoice method, the procedure is considerably shortened, eradicating all intermediary actions in between invoicing and reimbursement. Any payment produced via the WeChat self-checkout is hence efficiently a 1-simply click reimbursement procedure.
For case in point, an personnel of a organization soon after having a organization evening meal can make payment by way of the WeChat cellular payment platform. The data from that transaction is the “invoice” and the information and facts from this invoice is synchronized to the economical method of employee’s organization and the tax bureau in real time.
This way, information and facts is not tampered with or missing, therefore simplifying the procedure for all get-togethers included in the transaction specifically the merchant, the employer, tax authorities, and the personnel.
Merchants get to preserve on time and personnel considering the fact that the invoices are issued immediately at checkout, rather than handbook invoice difficulty and entry of relevant aspects of the employee’s organization for tax reasons. The employee’s organization on its aspect can very easily verify invoice by simply logging into its economical method.
The tax regulator can then monitor the entire procedure of invoicing, circulation and reimbursement in real time, guaranteeing entire and timely tax collection, even though the personnel can declare reimbursements online.
Tencent-Shenzen Partnership Begins to Pay out Dividends
The blockchain driven invoicing answer is a solution of the partnership declared in May well 2018 in between Tencent and The Shenzhen Municipal Office environment of the State Administration of Taxation.
Talking about the development, Li Wei, deputy director of Shenzhen tax bureau, claimed:
“The digital invoice based mostly on blockchain technologies has capabilities these kinds of as full traceability of the full procedure and non-disruptive information and facts, which steady with invoice logic, can efficiently prevent untrue invoices, and boost the invoice supervision procedure.”
At current, Shenzhen Guomao Rotating Restaurant, Baoan District Athletics Centre Parking Large amount, Kaixin Car Buying and selling Co., Ltd., and Picture Tencent Impact Espresso Shop are the very first merchants to accessibility and make the most of the blockchain digital invoicing method.
In April, CCN documented that Tencent was building its own blockchain platform named MySQL, a answer designed to give an business course blockchain infrastructure to help reputable blockchain cloud services.
Photographs from Shutterstock
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