Trade-in recycling volume of used home appliances surges, making invoicing difficult and compliance hard? Kailing Technology's reverse invoicing issues them with one click and leaves a five-flow integrated ledger trail

Consumers hand over old refrigerators and TVs used for over a decade to recycling points and exchange them for brand-new ones, plus a subsidy—this scene is happening at more and more doorsteps. The "2026 Action Plan for Large-Scale Equipment Renewal and Consumer Goods Trade-In" issued by the National Development and Reform Commission and other departments (NDRC Environmental Resources [2025] No. 1745) continues to expand the home appliance trade-in program, covering six categories: refrigerators, washing machines, TVs, air conditioners, computers, and water heaters. The policy dividend connects consumers' enthusiasm for upgrading on one end, and on the other pushes large quantities of scrapped appliances like a tide into the warehouses of waste home appliance recycling enterprises.

▍Trade-in accelerates, so why has the volume of recycled waste home appliances surged

The core of trade-in programs is to give consumers a reason to upgrade: only by handing in the old can they enjoy subsidies. Old machines do not disappear into thin air; they all flow to qualified recycling and dismantling enterprises. For recycling enterprises, this means arrivals, weighing counts, and receipt batches multiply in a short period - originally dozens of units a day, but hundreds or thousands a day in peak season. A surge in receipts is good news, but the next hurdle is one many enterprises did not expect to be so difficult: behind every used home appliance received is an invoice to be issued and a voucher to be retained.

Why can't invoicing be avoided? Because the vast majority of those selling old home appliances to recycling enterprises are ordinary consumers, that is, natural persons. They are neither enterprises nor qualified to issue invoices, and cannot issue VAT invoices to recycling enterprises. The larger the number of collection transactions, the larger this gap becomes: the input VAT invoices purchased by recycling enterprises do not match, costs cannot be truthfully recorded, profits are inflated and tax is paid unnecessarily on that portion, and it is difficult for accounts to match reality.

▍After scaling up, the real challenge is invoicing every machine and keeping a trace for every invoice

The Announcement of the State Taxation Administration No. 5 of 2024, effective from 2024, provides the answer—reverse invoicing. So-called reverse invoicing means resource recycling enterprises issue invoices in reverse to individuals selling scrap products, thereby lawfully obtaining VAT input vouchers. In other words, invoices that individuals cannot issue are instead issued by qualified recycling enterprises according to the rules. As long as an enterprise has any one of the following—a hazardous waste operating permit, end-of-life motor vehicle recycling and dismantling qualification, or renewable resource recycling operator filing—it can activate the reverse invoicing channel.

With qualification secured, the pressure has not disappeared. Instead, it is further amplified in trade-in volume expansion scenarios, concentrated in two points. The first is volume: the number of receipt transactions surges. If you still rely on manually logging into the tax bureau one by one and entering and issuing one by one, invoicing speed simply cannot keep up with receipt speed, and invoices pile up more and more. The second is inspection: Document No. 1745 explicitly requires strict crackdowns on subsidy fraud and subsidymisappropriation in the trade-in field, especially targeting tricks such as raising prices first and subsidizing later, and fabricating transactions to inflate volume. This requires that every invoice issued by a recycling enterprise corresponds to a real transaction and that traces are left throughout the process from contract, receipt, invoicing, to payment, so it can withstand post-event verification.

▍Kailing Technology reverse invoicing: handling scale-up and compliance at the same time

Facing the invoicing peak brought by trade-ins, Kailing Technology's reverse invoicing system has a very direct approach: make invoicing go from a bottleneck back to being effortless, while turning compliance traceability from a manual burden into something automatically completed by the system. It takes on the four links that recycling enterprises find most troublesome, all at once.

One-click issuance and reversal without login, letting invoicing catch up with receiving speed

The system directly connects to the Electronic Tax Bureau interface, eliminating the need for repeated logins and account switching. After the receipt information is pulled up, reverse invoices can be issued in batches with one click; when voiding is needed due to incorrect issuance or returns, one-click red-letter reversal is also supported. Work that previously required manual entry one by one can now be run in batches, matching invoicing efficiency with receipt volume, so invoices no longer pile up.

Automatic entity verification before invoicing blocks non-compliance from the source

Reverse invoicing cannot be issued to just anyone. Before invoicing, the system automatically verifies the seller's identity, identifying and blocking situations where enterprise legal representatives, directors and supervisors, registered individual businesses, and others may not act as individual sellers, preventing transactions that should be invoiced by enterprises from mistakenly going through the reverse invoicing channel, guarding the red line from the source.

Bank-enterprise direct connection payment, with one-to-one correspondence between fund flow and business flow

The system connects to bank-enterprise direct connection. Payment instructions are initiated by the system based on invoicing and goods receipt records, and funds are paid directly to the seller's account. Payment flows correspond one-to-one with invoicing and goods receipt information. This saves the effort of manually checking transfers one by one and makes fund flows verifiable—when facing audits cracking down on subsidy fraud, who the money belongs to, why it was paid, and to whom it was paid are all clear at a glance.

The five-flows-in-one ledger is automatically archived, and traceability no longer relies on manual work

Kailing reverse invoicing brings the five lines of self-certification flow, contract flow, business flow, tax flow and fund flow into one ledger, automatically generated and archived with each transaction. The enterprise's self-certification qualifications, contracts with sellers, goods receipt and weighing records, issued invoices, and bank-enterprise direct connection payment records all correspond to the same transaction. In high-volume scenarios, thousands of transactions no longer require manual voucher organization—whichever one needs to be checked can be retrieved as a complete chain.

▍In high-volume scenarios, what's the difference between manual invoicing and Kailing reverse invoicing

For a waste home appliance recycling enterprise expanding its scale on the tailwind of trade-ins, growth in collection volume is an opportunity, and whether every transaction can be properly invoiced and fully documented determines whether this opportunity can be firmly grasped. What Kailing Technology's reverse invoicing aims to do is precisely to let enterprises avoid compliance pitfalls while scaling up—invoices issued quickly, traces fully retained, and accounts able to withstand scrutiny.

▍FAQ

Q: With the surge in goods received from trade-ins, can reverse invoicing keep up?

A: Yes, it can handle it. Kailing reverse invoicing connects directly to the electronic tax bureau interface without login; once the receipt information is populated, invoices can be issued in batches with one click, and returns for wrongly issued invoices can be reversed with one click. Invoicing efficiency matches the receipt speed of peak-season volume increases, avoiding invoice backlogs.

Q: Which waste home appliance recycling enterprises can perform reverse invoicing?

A: According to Announcement No. 5 of 2024, resource recycling enterprises that have any one of the following—a hazardous waste operation permit, end-of-life motor vehicle recycling and dismantling qualification, or renewable resource recycling operator filing—may issue reverse invoices to individual sellers. This applies to the scrapping and recycling of six categories of trade-in home appliances (refrigerators, washing machines, televisions, air conditioners, computers, and water heaters).

Q: With policies cracking down on subsidy fraud through first raising prices and then subsidizing, how can the system help enterprises retain compliant vouchers?

A: The system automatically archives according to the five-flow integration, mapping the five lines of self-certification, contract, business, tax, and funds to the same transaction, and automatically generates a ledger for each business transaction. Combined with entity verification before invoicing and bank-enterprise direct connection payments, every invoice corresponds to a real transaction and real fund flow, and can withstand verification.

With trade-in volume about to expand, let Kailing Technology's reverse invoicing help you issue invoices properly and keep the trail: www.kailingteck.com.

As a comprehensive business-finance-tax digitalization solution service provider, Kailing Technology provides business-finance-tax management digital transformation products and operational services for various government agencies, institutions, and large, medium, and small enterprises. The product line includes:

Solutions for businesses including sales contract management system, procurement contract management system, fully digitalized Leqi interface project, output automatic invoicing system, reverse invoicing system, invoice issuance for individuals system, employee expense control and reimbursement system, input VAT invoice management system, supply chain collaborative reconciliation system, image OCR recognition system, automatic financial bookkeeping system, and electronic accounting archives system, comprehensively driving the digitalization process across various fields.

If you have any business-finance-tax digital transformation needs, welcome to contact us. Beijing Kailing Technology will serve you wholeheartedly.

Keywords: Kailing Technology Reverse Invoicing, trade-in, waste home appliance recycling, one-click issuance, five-stream integrated ledger, reverse invoicing qualification, Announcement No. 5 of 2024, bank-enterprise direct connection