China's LeQi Platform Expands Digital Fiscalization and Automates Retail E-Invoicing

China's LeQi platform connects business systems directly with the national tax infrastructure, enabling automated electronic invoicing. Since November 1, 2026, covered fuel retailers must use LeQi for transaction-based invoicing, strengthening tax monitoring and POS integration.

China is expanding the role of its LeQi platform in electronic invoicing and digital tax administration. Developed by the State Taxation Administration (STA), LeQi connects enterprise systems directly with the national tax infrastructure, allowing businesses to automate official electronic invoice issuance.

The platform has become particularly important following the introduction of mandatory transaction-based invoicing for fuel retailers on November 1, 2026.

This development connects retail transactions, payment information, and official electronic invoices more closely, marking an important step in China's transition toward automated tax monitoring.

What is the LeQi platform?

LeQi (乐企平台) is a digital platform developed by China's State Taxation Administration to facilitate direct communication between enterprise information systems and tax administration services.

The platform operates according to standardized technical rules and enables businesses to integrate tax-related functions into their existing software.

According to official STA guidance, LeQi provides several functions, including access to applications, service subscriptions, testing and verification, application of tax rules, and authorization management.

One of its most important capabilities is supporting the issuance of fully digitalized electronic invoices, commonly known as e-fapiao.

Unlike ordinary POS receipts, e-fapiao are official tax documents regulated by Chinese invoicing legislation.

LeQi allows businesses to connect commercial transaction information with electronic invoicing procedures, reducing manual data entry and improving the accuracy of invoice information.

How does LeQi work?

The platform enables businesses to exchange relevant information with the tax administration through integrated enterprise systems.

In a transaction-based invoicing scenario, the process generally includes:

• A customer completes a purchase through a POS system or another sales channel.
• The business system records the transaction and relevant payment information.
• The required invoicing data is transferred through the applicable LeQi integration.
• A fully digitalized electronic invoice is generated based on the transaction information.
• The customer receives or accesses the official electronic invoice through an available digital channel.

The integration can reduce the need for employees to manually enter invoice information after each sale.

It also helps businesses align sales records, payment information and official tax documentation.

Two models for connecting businesses to LeQi

The State Taxation Administration provides two main integration models: LeQi Self-Use and LeQi Shared-Use.

LeQi Self-Use (乐企自用) allows eligible businesses to connect their information systems directly to the platform and provide electronic invoicing and other supported tax services for themselves and qualifying affiliated entities.

This model can be particularly relevant for large retail groups operating multiple business locations.

LeQi Shared-Use (乐企联用) allows businesses to access relevant services through an eligible shared-use platform.

For example, a fuel retailer without the technical capabilities required for direct integration can connect its POS or retail management system to a shared-use platform capable of issuing electronic invoices.

Both models require compliance with the technical standards established by the tax authority.

Mandatory LeQi integration for fuel retailers

A major development came with STA Announcement No. 11 of 2026, issued on June 8, 2026.

The regulation introduced nationwide transaction-based electronic invoicing for covered refined-oil retailers, with mandatory implementation by November 1, 2026.

Under these requirements, fuel stations must issue digital electronic invoices based on actual fuel sales through LeQi.

The rules cover multiple payment scenarios, including third-party payment applications, internet platforms, fuel cards, cash payments, and corporate bank transfers.

Businesses connecting directly to LeQi must adapt their systems to support automatic population of relevant payment, order, and invoicing information.

For fuel retailers, these requirements may involve integrating fuel dispenser systems, retail management applications, POS software, and payment services.

The objective is to create a direct connection between completed fuel transactions and official invoice issuance.

What does LeQi mean for POS systems?

LeQi introduces important technical considerations for retailers and POS software providers.

Businesses operating within the mandatory transaction-based invoicing framework need systems capable of capturing accurate transaction information and transferring the required data through their chosen integration model.

For fuel retailers, this may include product identification, fuel quantities, unit prices, total amounts, and payment information.

Official guidance also describes integration with fuel dispenser data sources and retail management systems.

China does not generally require every POS application to undergo dedicated fiscal certification. However, businesses subject to specific LeQi integration requirements must comply with the relevant technical standards.

Consequently, electronic invoicing functionality and system interoperability are becoming increasingly important for fiscal compliance.

China has already explored transaction-based electronic invoicing in several consumer-facing sectors, including restaurants, supermarkets, parking services, and other everyday commercial activities.

These developments demonstrate the potential for closer integration between payment platforms, retail software, and electronic invoicing infrastructure.

However, the nationwide mandatory requirements introduced in November 2026 specifically concern covered fuel retailers.

There is currently no equivalent universal obligation requiring all Chinese retailers to issue an electronic invoice automatically after every POS transaction.

Nevertheless, LeQi provides an infrastructure that could support further sector-specific digitalization.

For international retailers and fiscal solution providers, this makes developments concerning LeQi access, technical integration, and future regulatory requirements particularly relevant.

How will China's LeQi platform impact retailers and POS providers?

LeQi enables closer integration between retail transaction systems and official electronic invoicing, while covered fuel retailers must already support mandatory transaction-based invoicing. Businesses should assess their POS integration capabilities, select the appropriate LeQi connection model where required, and monitor potential expansion to other retail sectors. Here is the official source

Ljubica Blagojević Junior Legal Research Specialist Linkedin profile