China Links Blockchain-based Platform to Wechat Payment to Aid Tax Invoicing

Shenzhen Taxation Bureau, China’s  Administration of Taxation has partnered with Tencent Holdings Limited, the developer of WeChat to improve the way tax invoices are issued. These are receipts that are presented to a buyer, stating the prices they have to pay for their goods. Therefore, it will make invoicing faster and traceable on the Blockchain.

WeChat, Used by a Large Number of Internet Users in China

Tencent researched in September 2018 and discovered that there were about 1 billion users on Wechat. There were also 1.34 billion internet users in China and about 48% of them, made their payments using Wechat and other third-party mobile payments platform. Therefore, Wechat was selected to incorporate Blockchain in everyday life of the ordinary user and help them to make invoice payments swiftly.
Before the introduction of the new system, a shop owner or retailer could issue a limited number of invoices in a day. The process of also sending an invoice to someone was difficult and time-consuming. Moreover, it could get confusing for the seller as well as the buyer. This was the case even though an electronic process was used.

Blockchain Invoice System Replaces Traditional Electronic Invoicing

This traditional methods of processing invoices have now been replaced with Blockchain technology. Here, a Blockchain invoice system has been linked to the Wechat payment platform to bring about transparency and traceability. This platform will also remove the limitations on the number of invoices that can be issued in a day.
Lin Chushan, a store manager who has tested the new system revealed that he no longer has to go to the tax bureau to purchase invoices. The purchase is now a simple process which does not require special technological know-how or special devices before it can be achieved. He added that “this solves the problem of slow invoicing and insufficient tickets in the store.”

More Companies Are Adopting the Blockchain Technology

Most companies adopting the Blockchain Technology have also narrowed it down to the same reasons. This includes its ability to secure its stored data which cannot be tampered with easily. It also aids in the traceability of transactions that have occurred to verify claims that may be made.
It is also worthy to note that China is one of the countries that are encouraging its use. There is even a Chinese Internet Court that uses a Blockchain-based platform to protect the copyright of literary works. It prevents the work of registered authors of the platform from being stolen and Mets out the necessary punishment to offenders.