ICBC’s Weifang Branch in Shandong Province successfully issued the first VAT special invoice automatically generated by the system for the customer on May 2, also representing the first fully electronically issued VAT special invoice since the implementation of replacing business tax with value-added tax. Currently, ICBC’s VAT related business system is faring well with accurate accounting, separated price and tax, as well as smooth invoice issuance. The pilot work of replacing business tax with value-added tax was going well.

Under the unified arrangement of the State Council, from May 1 2016, the financial sector was included to the pilot work. In order to guarantee the smooth implementation of the pilot work, ICBC has reviewed all products related to VAT, redeveloped tax rules, and developed a proposal for separation of price and tax related to VAT. It has also developed and upgraded the core and peripheral equipment, specified computation and accounting process of price and tax separation in all business segments. In addition, ICBC has specified computation method of VAT invoice issuance and deduction, generation of VAT payment return, as well as related procedures relating income and expense extraction system renovation. ICBC has made every effort to make sure that the new system is successfully launched.

As collecting customers’ tax-related information is fundamental to the transition,  accurate, correct and complete information input is a prerequisite for price tax separation, invoice issuance and deduction. Despite huge customer base and heavy workload of information collection, by posting notice at outlets and informing by customer managers, ICBC has collected all tax-related information required for VAT invoice printing in line with related regulations.