The Chinese Golden Tax System (GTS) is a broad tax IT system owned by the government.
A key function is the control of the creation of VAT invoices, 'fapiaos', to help reduce the incidence of tax fraud. It was created by the China Tax Bureau to register invoices prior to issuance, and for purchasers to verify VAT charged to them. It was originally developed in the 1990's, and is now on Phase III.
Tax registered businesses must request unique invoices from the GTS software. Usually this is done on a two-weekly basis. Invoices may not be sent to customers or posted in businesses' ledgers prior to approval by the GTS. Once checked, the invoices will be issued with unique invoice numbers issued by GTS. The invoice is consequently in the GTS system and registered for the Chinese Tax Bureau / the Chinese State.
Draft invoices, prepared by certified VAT software, are submitted via locked GTS terminals made available to businesses by the government. The government can use this terminal connection to track and verify VAT calculations and subsequent reporting. Validated invoices must still be printed.
The Golden Tax system prints the invoice on a preformatted form and generates a flat file that businesses can reload into their accounting software.