DEPLOYING NETSUITE IN CHINA PART 3- INTEGRATE NETSUITE WITH GOLDEN TAX

2021-04-20

If you are doing business in China, you need to be familiar with “Golden Tax”, the system used by the Chinese government that prints special invoices (known as “fapiao 发票”) to monitor and control the tax paid on business transactions that are subject to value-added tax.

This means that any business providing goods or services that are subject to China’s value-added tax are legally required to issue VAT invoices, using the Golden Tax System (GTS). This system consists of software, electronic printing and specialized numbered invoicing paper designed to prevent counterfeiting.

Companies with entities in China need to apply for permission from the Tax Authority to issue VAT invoices (fapiao) using the Golden Tax System, and must also purchase the software and devices that are authorized to print fapiao.

    VAT invoices are an increasingly important part of managing a business in China; there are two major types of tax for business transactions in China: VAT tax and business tax. But after tax reforms implemented in 2016, the number of transaction types that are subject to VAT instead of business tax have increased significantly, making the management of printed VAT invoices (zenzhishui fapiao 增值税发票)

    If your company is issuing a large number of VAT invoices in China for goods and services sold every day, this can create a heavy workload for your finance team when it is time to record this data in your accounting system. It may be necessary to automatically synchronize the invoice data in your Golden Tax system with your NetSuite system. 

    This can help you achieve the following benefits:

    • Improved compliance and control: facilitation of company audits and real time, accurate finance reports
    • Reduce the risk of human error
    • Time costs savings by reducing the manual workload of your finance team

     Trigger Networks has developed a NetSuite Golden Tax Integration Module in NetSuite to enable batch printing of China VAT Fapiaos capabilities and recording of VAT info in NetSuite. This solution enables automated 2-way synchronization between NetSuite and China’s “Golden Tax” VAT printing system via a Web-API-based connector.

    To learn more about our Golden Tax Integration Solution and receive a detailed FAQ about “Golden Tax” VAT Invoice management, please contact your Trigger Networks representative