The Golden Tax is an integrated nationwide value-added tax, integrated value-added tax (VAT) monitoring system that all businesses operating in Mainla

How Oracle ERP Cloud addresses China’s Golden Tax?

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2024-12-27 06:00:03

The Golden Tax is an integrated nationwide value-added tax, integrated value-added tax (VAT) monitoring system that all businesses operating in Mainland China are required to use to issue all VAT invoices, VAT Calculations, and statutory tax reporting. If your organization is a VAT-registered entity, you will have to generate your physical invoices through the Golden Tax System in the format mandated by the Tax Bureau authorities. So not using the Golden Tax System is mandatory.

According to Tracy Zhou, CEO Acloudear, in an interview with United VARs: “to put it simply, the GTS is made up of two terminals. One belongs to the tax authority and the other is located at the company. When a transaction occurs, the company issues an invoice to the buyer and, through the GTS, a copy of it is sent to the tax administration. The authorized officers make sure that the output and the input VAT invoices match. If the invoices match, they are correctly validated and then given a unique number. This system was designed to have anti-counterfeiting and controlling functions.”

Even though some companies still use a manual VAT invoicing method, which requires a lot of paperwork, there’s some third-party solutions and systems that can transfer the VAT invoices information from the ERP software to the Golden Tax System but for companies using Oracle ERP’s (On-Premise or ERP Cloud), there’s a solution called Oracle Golden Tax Adaptor.

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