When the Chinese State Administration of Taxation (SAT) announced changes to value added tax (VAT) that would be effective from July 2017, a Cartus client with international assignees in China was faced with an additional layer of complexity relating to their relocation expenses. From this date, as Cartus was consolidating the paperwork pertaining to their China expenses, assignees needed to ensure that every time they incurred an expense, the Fapiao (Chinese tax invoice) included important information about Cartus’ corporate entity in Shanghai, as well as Cartus’ unified social credit code. This was to ensure that their expenses could be processed and paid into their Chinese bank account; and their employer could manage the tax implications compliantly. The regulations were very strict—if the paperwork was not completed correctly—it could not be processed—no exceptions!
As any mobility manager will know, assignees are busy people. They juggle multiple work demands while trying to balance their busy home life, settling into a new home, becoming familiar with a new location, and supporting their family as they manage all the changes involved in an international transfer. From the get go it was clear that having all this information to hand at a restaurant, an airport, a hotel and serviced apartment, a school, and at the local grocery store was going to be a challenge. Luckily, Cartus relocation manager in Shanghai, Candy had a simple yet ingenious idea to solve the problem. A QR Code!
Working with her multi-national client, Candy explored a new function whereby this information could be saved to an assignee’s personal WeChat profile via a QR Code and constantly available every time an assignee incurred an expense (without the need to carry around a note or printed card).