Key Features of the New Digital E-Invoices

The reform allows railway companies associated with China Railway Group, including non-holding joint ventures and local railway enterprises, to issue fully digitized electronic invoices (railway e-tickets) for domestic passenger transport. This applies to a range of ticketing transactions, including initial ticket purchases, refunds, and itinerary changes, all processed through the railway’s central sales and reservation system.

Essential Elements of the E-Invoice

The e-invoice for railway passengers is designed to be user-friendly and comprehensive, providing necessary travel and payment details for passengers and businesses alike. Key components include:

• Invoice number (20-digit format)
• Date of issuance
• Buyer and passenger identification details
• Itinerary and fare information
• QR codes for easy access and verification

Passengers can access their electronic invoices through the railway’s 12306 platform or receive them by email. This shift not only enhances convenience but also aligns with modern digital transaction standards, offering seamless access, retrieval, and processing.

Streamlined Reimbursement and VAT Deduction

For passengers seeking reimbursement, the electronic invoice serves as an official record. Through digital submission, the reform encourages a paperless reimbursement process in line with national electronic accounting standards. Traditional paper reimbursement vouchers will remain valid for travel before September 30, 2025, but both paper and electronic invoices cannot be issued simultaneously for the same journey.

General VAT taxpayers purchasing railway transport services can use these e-invoices as valid VAT deduction vouchers. For paper tickets with a travel date before 30 September 2025, input VAT will still be handled per the 2019 VAT reform policies.

Rectification Process for E-Invoice Errors

In cases where invoice details need correction, railway companies can issue a red-letter electronic invoice. If the purchaser has not yet used or confirmed the invoice in their accounting system, a straightforward rectification is possible by submitting a “Red Letter Invoice Information Confirmation Form.” If the invoice has already been accounted for or used in VAT declarations, the buyer must temporarily adjust the VAT amount before obtaining the corrected red-letter e-invoice.

Integration with National Tax Platforms

China Railway Group will upload e-invoice data to the tax department’s digital platform, which will then be available to buyers through their tax digital accounts. The new system ensures transparency, as users can verify, download, and print invoices through the national VAT invoice inspection platform or the individual income tax app.

For general VAT taxpayers, confirmation and deduction of input VAT can be conveniently handled through the tax digital account, simplifying VAT credit procedures.

Effective Date and Long-Term Vision

The fully digitized e-invoice reform goes into effect on 1 November 2024, marking another step in China’s push toward digital transformation in tax and transportation management. By transitioning to electronic invoicing, the initiative aims to reduce paperwork, increase efficiency, and support China’s commitment to digital economic development.

This announcement reflects a proactive approach by the Chinese government to integrate tax and transportation systems, creating a streamlined, paperless experience that is expected to benefit businesses, passengers, and tax authorities alike.