Last year Tencent, the company behind the WeChat messaging and WeChat Pay, introduced an e-invoicing blockchain. China Merchants Bank (CMB) was one of the organizations to take part in the Shenzhen Taxation Bureau pilot of the blockchain and issued its first invoice in November. Yesterday the
China Electronic Banking Network reported that the bank has expanded its usage, and both the China Merchants Fund subsidiary is using it as well as consumer finance subsidiaries.
In addition to using the platform in-house, the bank plans to enable clients to use the tax bureau’s blockchain. The idea is to extend the bank’s integrated payment solution to provide e-invoicing for SME merchants without the merchants needing to get involved in software development.
The tax departments are keen for the integration because it makes it harder for companies to duplicate invoices when claiming deductions. Several countries are exploring or have rolled out tax e-invoicing platforms, though most don’t yet use blockchain. In addition to the deductions issue, they can monitor sales tax or VAT receipts.
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