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The race for transparency in how countries manage taxes has reached full speed and there’s no turning back.
Asia and the Middle East are at the centre of a technological revolution that is changing how governments, companies, and taxpayers manage compliance. Electronic invoicing — once a pilot experiment — has become a cornerstone of the new digital economic order.
While some countries already mandate it for a large proportion of businesses, others are still exploring pilot programmes and voluntary schemes. South Korea led the way in 2011 by introducing its e-Tax system, which required companies with revenues above KRW 100 million (approximately USD 72,000) to issue electronic invoices for B2B and B2G transactions.
Meanwhile, China began introducing e-invoices in 2012, initially focusing on the e-commerce and transport sectors. By 2020, new taxpayers were required to use the Golden Tax System (Fapiao System) for B2B invoicing. In 2024, the government rolled out a fully digital national e-invoicing system through its official portal.
In 2025, the region is at a turning point: pilot programs are becoming mandatory, and real-time oversight is becoming the new standard.
The result is an ecosystem where efficiency, transparency, and traceability are not competitive advantages anymore; they are essential for doing business.
Let’s have a look at some of the countries that are leading the way. ↓
Regional leaders in E-Invoicing
From China to the UAE, countries are starting to use digital invoicing systems that totally change the way taxes are reported and controlled.
- China: The Most Advanced System due to its high technology
Since December 1, 2024, China has taken the global lead with its fully digital e-Fapiao system, which is mandatory for all B2B, B2G, and B2C transactions.
Under the clearance model, every invoice must be validated by the State Taxation Administration (STA) before issuance, receiving a unique number and a dynamic QR code.
Two invoice types apply:
- Special Value Added Tax (VAT) e-Fapiao for B2B transactions eligible for VAT deductions.
- General VAT e-Fapiao for B2C and non-deductible transactions.
Beyond efficiency, China’s digital infrastructure sets the stage for cross-border e-invoicing integration under its upcoming Golden Tax System IV, reinforcing the country’s leadership in global fiscal digitization.
- Singapore: A smooth transition through gradual adoption.
Singapore’s InvoiceNow platform, which is based on the international Pan-European Public Procurement Online (PEPPOL) standard, provides a practical plan for adopting full e-invoicing.
- From 1 May 2025, businesses that are registered for Goods and Services Tax (GST) can join the system voluntarily.
- From November 2025, all new companies that have registered for GST will have to follow this rule.
- From April 2026, all new voluntary GST registrants must comply.
This progressive and collaborative approach ensures interoperability and minimizes disruption for private-sector operations — a great example of how to manage digital transformation effectively.
- United Arab Emirates: A new regulatory framework (2026 – 2027)
In September 2025, the UAE Ministry of Finance announced two important decisions, for transactions between businesses (B2B) and between the government and businesses (B2G).
The most important events are:
- From 31 July 2026, big companies (ones with a turnover of at least AED 50 million) must use an Accredited Service Provider (ASP).
- From January 2027, full compliance is required for large companies.
- In July 2027, extension to all other taxpayers.
The UAE’s centralized system is based on pre-validation and full digital supervision, creating a solid base for automated financial systems across the country.
- Malaysia and the Philippines: Expanding the digital world
Malaysia is speeding up its plan to use e-invoicing. From 1 July 2025, businesses that make between 5 and 25 million MYR must follow the new rules. SMEs and microenterprises will gradually have to follow the rules too, until 2026.
Meanwhile, the Philippines has set 1 March 2026 as the final deadline for mandatory adoption by some taxpayers.
Both countries agree that digitization of finances is now a must, not just an option.
Asia and the Middle East are now also starting to introduce digital taxes. From China’s high level of technology to the UAE’s modern ways of working together, one message is clear:
Electronic invoicing is now more than just a way to meet legal requirements – it can also help your business grow.
If this topic interests you, continue reading: The power of automation: how e-invoicing is transforming business.
Written by: Catalina Bonnet
