JD: E-invoice with blockchain

B2B Purchase

• Offline payments
• Need multiple VAT special invoices
– Firms have different branches and may process invoices
at different location
• VAT (valued-added tax)
– Taxpayer’s tax registration number, money value
excluding VAT, applicable tax rate, and VAT payable
– For tax deduction
 Challenges

• Paper invoice
– Human error in entering data
– Long processing time
• Challenge
– Counterfeit VAT invoices
– Repeated use of invoices for reimbursements
– Government taxation source management
– High cost of issuing, mailing, and managing
 Blockchain-Powered E-invoice

• JD/CPIC/Ele-Cloud
• Only one person was required to receive the invoice
• Others are done automatically
– Journal entries, budget release and reductions, and the
generation of bills
• Eliminate the traditional process of requiring the
matching of three documents (order, invoice, and
receipt)
 Assignment Questions

• What are the benefits of issuing electronic VAT

special invoices?
• Why would JD specifically choose blockchain
technology over other options for the issuing of
electronic VAT special invoices?
• What potential challenges might the electronic
VAT special invoice and JD Chain Platform face in
the future?