Shenzhen has become the pilot city for launching blockchain electronic invoices or fapiao nationwide.
The new system which uses China’s “everything app” WeChat was created by Tencent, the Shenzhen Water Authority, and the software company Kingdee.
A fapiao is a legal receipt that serves as proof of purchase for goods and services.
The larger fapiao invoice system, however, is an essential component of China’s tax law, and compliance for businesses, according to Dezan Shira and Associates law firm.
Employees frequently submit invoices to their companies to get reimbursements.
As with most things related to tax, the fapiao system is regularly exploited.