Fully Digitalized Electronic Invoice Rollout Progress and Enterprise Response Strategy

Fully digitalized electronic invoices ("fully digital e-invoices") represent a major transformation in invoice management. In 2026, they have been rolled out nationwide, and enterprises must promptly adapt to the new invoicing and reimbursement model.

1. Key Features

Fully digital e-invoices require no dedicated tax-control equipment and no invoice type verification. They are issued through the Electronic Invoice Service Platform. The invoice face is simplified, eliminating fields such as invoice code, verification code, and machine number. Invoices are automatically delivered upon issuance, and recipients can retrieve them in their Tax Digital Account. Legal effect is equivalent to paper invoices.

2. Issuance and Receipt Workflow

Issuers generate fully digital e-invoices through the Electronic Invoice Service Platform or tax authority app, with the system automatically assigning a 20-digit invoice number. Recipients retrieve invoices in their Tax Digital Account and confirm the intended use (deduction / refund / bookkeeping). Enterprises may download PDF or OFD files as accounting vouchers. Batch issuance can be achieved through API integration.

3. Red-Flushing and Voiding

Fully digital e-invoices cannot be voided—they can only be red-flushed. Red-flushing requires the issuer or recipient to initiate a red-letter information confirmation form on the platform; after counterparty confirmation, a red-letter invoice is issued. Invoices already used for input VAT deduction require input VAT reversal upon red-flushing.

4. Enterprise System Adaptation

Enterprises must upgrade finance systems to support automated receipt, verification, bookkeeping, and archiving of fully digital e-invoices. Establishing an electronic invoice archive management system is recommended to ensure the authenticity, integrity, availability, and security of electronic accounting vouchers. Agree on invoice delivery methods with suppliers to avoid duplicate entries.