In a bid to reduce the cost of printing paper invoices and promote transparency in its transport system, the Shenzhen tax bureau has joined forces with leading Chinese conglomerate Tencent Holdings to launch a blockchain-based digital invoicing system, reports ChinaDaily on March 19, 2019.
Shenzhen Integrates Blockchain Technology
As reported by BTCManager in May 2018, Shenzhen’s State Administration of Taxation allied with Tencent to create a blockchain-based digital invoicing system that could be used by the entire metropolis.
“We hope to make every invoice checkable, verifiable, reliable and traceable. We will use blockchain technology to manage the entire circulation process of tax invoices,” Tencent said at the time.
Now, the tax bureau in the city of Shenzhen, South China, has partnered with tech giant Tencent to create a blockchain-based invoicing solution for the region’s transport system.
Per sources close to the matter, major transport systems in the city, including buses, taxis, and airport shuttles will integrate Tencent’s solution.
Starting from March 25, 2019, the existing paper-based invoicing system will be replaced with the blockchain solution and passengers will be issued electronic invoices each time they make payments.
According to the team, it costs the Shenzhen Metro about 400,000 yuan ($59,577) to print paper invoices each year, however, with the new electronic invoicing system, the agency will now channel that fund into other activities.
Promoting Transparency and Efficiency
Commenting on the initiative, Cai Yige, manager at the blockchain arm of Tencent, stated that aside from being more cost-efficient than the paper-based invoicing system, the immutability feature of blockchain technology can add an extra layer of security to the city’s system, as the new electronic invoices are tamper-proof.
Yige also noted that it has now become much easier for tax supervisors to verify the authenticity of invoices and the system would also help curb forgery, malpractices in taxation and simplify the processes of the agency.
Reportedly, the tax bureau is not the first to implement a blockchain-based invoicing solution in the Shenzhen province, as several local restaurants, banks and even supermarkets have integrated DLT into their processes since August 2018.
In related news, on March 8, 2019, reports emerged that Tencent had partnered with the University of Hong Kong to carry out more fintech and blockchain research.