JD: E-invoice with Blockchain
Jingdong (JD), the leading innovation-driven e-commerce company and retail infrastructure service provider in China, had rapidly expanded its enterprise procurement market. In the process, however, it faced major issues related to poor customer experience, the high cost of risk control for the value-added tax (VAT), and inefficient invoice management. In early 2018, JD (the supplier of invoices) collaborated with the China Pacific Insurance (Group) Company Ltd. (the receiver of invoices) to launch China's first electronic VAT special invoice, using blockchain technology to resolve traditional issues associated with paper invoices in the reconciliation of accounts and payments. In the process of developing the electronic VAT special invoice, the president of JD's enterprise business department, considered how to meet the demands of companies and taxation agencies in a safe, confidential, convenient, easy-to-use, and low-cost manner. What potential challenges might JD face in promoting of its electronic VAT special invoices?