JD: E-invoice with Blockchain

Case Solution

Nina Yan, Jing Chen, Hubert Pun, Yongqin Lei
Ivey Publishing ()

Jingdong (JD), the leading innovation-driven e-commerce company and retail infrastructure provider in China, had rapidly expanded its corporate sourcing market. However, it faced significant issues related to poor customer experience, high cost of VAT risk control, and ineffective invoice management. In early 2018, JD (the invoice provider) worked with China Pacific Insurance (Group) Company Ltd. (the invoice recipient) to bring China’s first special electronic VAT invoice to market, reconciling accounts and payments. In developing the Special Electronic VAT Invoice, the president of JD’s corporate division considered how to meet the needs of businesses and tax authorities in a safe, confidential, convenient, user-friendly and cost-effective manner. What potential challenges does JD face in promoting its special electronic VAT invoices?

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