China: Tradeshift enters agreement with Baiwang

This shift represents a transition from business tax (BT) to VAT in China, which means the country will increasingly be aligned to international tax practices and is likely to further facilitate cross-border trade with greater transparency than before.

With the new VAT requirements, China will have one of the most complex sets of business tax codes and compliance requirements on a global basis — its complexity rivals that of Brazil — which is why this partnership is important.

Tradeshift’s platform will deliver billing, e-invoicing and procurement services to Chinese businesses. Furthermore, it will create a seamless transition to VAT, and make cross-border trade easier for global companies, including those in the US.

China’s VAT reforms and new requirements are planned to be completed and implemented during calendar year 2016. Yet not all industries will be affected by this new tax reform. Those that will have to comply with this new tax reform include construction, real estate, financial services and consumer services.

Baiwang is playing a key role in this transition, adding value to the invoicing process by helping companies to issue, deliver and archive invoices in a single solution and portal. In addition, it is transforming invoices from paper to electronic documents — another material benefit for participants in the program.

In working with Tradeshift, Baiwang will embed additional functionalitis as part of its solution, including helping businesses meet cloud-driven tax compliance and reporting requirements, enabling tax-related financing needs and helping drive corporate liquidity/credit through ecosystem participants and enabling transactional visibility.