I would like to know how the services tax system/policy in Shanghai
works from the *government or operator* perspective.

From the consumer point of view, when one goes to a restaurant, he or
she should receive coupons equivalent value to the bill amount. For
instance, total food and drinks is 550RMB, the consumer should receive
coupons of equivalent 550RMB (5x100RMB + 1x50RMB) from the restaurant.
These are scratch-and-win coupons and is also used by companies as
official receipt for reimbursable purposes. The instant prize can be
up to few thousand RMBs. These coupons are given by the government to
the businesses. The prizes are also provided by the government. This
method is used to keep track of restaurant's (or other services-type
business) revenue, and subsequently in determining business' taxable
income. This system works quite well because it?s consumer-enforced.
i.e. Consumers (who are aware of this policy) will demand for it if
they?re not given the coupons after paying the bills. So if you?re a
foreigner, you most likely won?t be given these coupons, unless you
ask for it.

My questions are:
How exactly does it work from government/operator point of view?
I would like to know issues including but not limited to distribution
and/or collection of the coupons to businesses, fake coupons, prize
winnings, secondary price draws, the mechanisms of figuring out the
taxable income and who is the system provider?

Is there any other tax policies that uses consumer as the enforcement as well?

This is the shanghai finance and taxation website containing scratch
and win coupons (fapiao) information for the public.
http://www.csj.sh.gov.cn/gb/csj/smcsljl/yjfp/index.html

I encourage someone who is bilingual in mandarin and english to answer
the questions, preferably someone who knows system/policy well.
Just a note, I?ve done quite a bit of research using english keywords
on google and yields not much results. I believe most information
available will be in chinese websites. And yes, I?ve used Google
Language Translator. Let me know if you need any clarification.. Cheers!