WeChat Eyes Blockchain for Faster Corporate Expense Refunds
By feeding the charge information over its blockchain system to the user’s employer, the restaurant and Shenzhen’s local tax jurisdiction, Tencent said waits normally encountered through the typical manual asserts process are removed. Therefore, the organization expects its system will gradually find usage in streamlining and accelerating the cost reimbursement process, while also reducing the incidence of falsified receipts.
Presently, China uses a somewhat intricate system whereby retailers issue different payment accounts for people and companies. When employees have to be reimbursed for dining costs, for example, they need to ask for a receipt for employers listing the specific citizen quantity of the company.
So as to do so, workers will need to have the merchant manually type from the citizen amount on the reception in each case. Additionally, that process is typically followed by added manual jobs, like collecting receipts and submitting a claim until they could be given a refund.
The very first batch of retailers to have incorporated the machine for its trial also incorporate a parking lot in Shenzhen’s Bao’An Stadium, a car repair centre and also a restaurant owned by Tencent.
In China, retailers must buy numerous receipts known as fapiao — by the government to act as advance tax obligations before any revenue. As they issue receipts to clients, retailers must figure out the difference between the prepaid amount and the tax arising from earnings to provide a foundation for another round of tax obligations. But, falsified receipts are typical in China as a way of tax evasion.
Tencent explained that, by placing the issuance process on a traceable blockchain, it might provide tax governments using a paperless taxation platform through which it could track the flow of receipts.