Bulk agricultural product purchasing enterprises face thousands of smallholders with no invoices to collect? Kailing Technology's reverse invoicing platform enables invoicing upon receipt and automatic archiving of the five flows

I. Thousands of smallholders, no invoices to collect: the century-old challenge of bulk agricultural product procurement

Grain, vegetables, fruits, live livestock, aquatic products, logs — the upstream of bulk agricultural product procurement consists of thousands of scattered, mobile farmers mainly trading in cash. This brings the long-standing "first invoice" challenge for procurement enterprises:

• Difficulty obtaining invoices: Agricultural producers are mostly self-employed, widely distributed and transact frequently, making it difficult for buyers to obtain standardized purchase invoices;

• Unable to deduct, high tax burden: Without compliant input VAT invoices, VAT/income tax cannot be deducted, and the enterprise pays extra taxes out of thin air;

• Cumbersome financial operations: transactions with individuals require single manual payments, with varying counterparties and amounts, making finance staff prone to errors;

• Risk of false invoicing audits: Orders, funds, and invoice information cannot be matched one-to-one, making this a high-risk area for false invoicing.

II. Policy Basis: Deduction Rules for Agricultural Product Purchases

Self-produced agricultural products sold by agricultural producers are exempt from VAT. Purchasing enterprises may calculate the deduction based on the purchase price using agricultural product procurement invoices, with a basic deduction rate of 9%. If purchased agricultural products are used to produce or entrust processing of goods at a 13% tax rate, an additional 1% deduction may be taken in the period of use, for an actual deduction rate of 10%.

Key prerequisite: it must be self-produced agricultural products sold by individual agricultural producers, with self-production proof retained (such as land contracting contracts and purchase records), and the invoice must state the product name, quantity, unit price, and purchase price. The Kailing Technology platform has a built-in policy library that automatically verifies the prerequisites and automatically adapts to cross-regional purchase tax policies.

III. Invoice upon goods receipt: embedding "invoicing" into the purchasing action

The Kailing Technology Reverse Invoicing (Agricultural Product Purchasing) Platform covers all scenarios of agriculture, forestry, animal husbandry, and fishery, embedding the invoicing action directly into the goods receipt process to achieve "same-day payment, same-day invoice, same-day deduction":

• Electronic contracting + real-name: sign agreements online with farmers, with face-scan real-name authentication, ID card and bank card verification, and simultaneous collection of self-production and self-sales certificates;

• Delivery and Receiving: Create delivery notes based on contracts (license plate required), directly connect to the weighbridge system for data at receiving, retain photos of the front and rear of the vehicle and the goods; heavy-duty vehicles above 12 tons directly connect to BeiDou GPS to collect logistics trajectories;

• Entity and quota verification: Link to the individual income tax APP to verify in real time an individual's RMB 5 million quota over 12 consecutive months, and automatically exclude non-compliant entities such as directors, supervisors, senior executives, and sole proprietors;

• One-click invoicing: Automatically call the electronic tax bureau interface to issue fully digitalized e-invoices without login, with a built-in "agricultural product purchase" tag, supporting both positive and negative (red-offset) invoices; agricultural products are tax-exempt, with no withholding and remittance required;

• Input certification and deduction: The enterprise's full input VAT invoice pool is collected uniformly, 9% input is selected for output deduction, and the deduction selection statistics table is automatically synchronized with the tax filing form of the State Taxation Administration, and automatically filed after verification within the filing period.

IV. Five-flow automatic archiving: closed-loop self-verification of business authenticity

The platform automatically collects and forcibly aligns the five data flows of a single acquisition to form a traceable digital archive:

V. Common Questions (FAQ)

Q1: How much can an agricultural product purchase invoice be deducted for?

Deduct at the 9% basic deduction rate on the purchase price; if used for producing or commissioned processing of goods at the 13% tax rate, an additional 1% deduction may be added, for an actual deduction rate of 10%. The premise is that the acquisition target is an individual agricultural producer, the products sold are self-produced agricultural products, and proof of self-production is retained.

Q2: Does reverse invoicing for agricultural product procurement require withholding and remittance?

Agricultural products (self-produced by agricultural producers) are VAT-exempt, reverse invoicing requires no withholding or remittance, which differs from resource recycling of scrapped products, which requires 1% prepayment and 0.5% individual income tax withholding.

Q3: How does the platform handle tens of thousands of individual sellers?

Through electronic contracting, face-scanning real-name verification, mobile delivery and receipt, BeiDou logistics collection, individual income tax APP quota verification, and one-click invoicing, it standardizes and digitizes scattered, high-frequency retail transactions. Invoices are issued upon receipt, the five flows are automatically archived, and finance does not need to process each transaction manually.

Bulk agricultural product purchasing enterprises generally face the dilemma of "thousands of smallholders, cash transactions, no invoices to collect, and no input deduction." Kailing Technology's reverse invoicing (agricultural product purchasing) platform digitizes the entire purchasing process for agriculture, forestry, animal husbandry, and fishery, enabling invoicing upon receipt, automatic tax calculation, and automatic archiving of the five flows, solving the difficulty of farmers' "first invoice" and helping enterprises compliantly obtain 9%–10% input deduction, with full-chain traceability：www.kailingteck.com 。

Kailing TechnologyAs a comprehensive business-finance-tax digitalization solution service provider, we provide 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:

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

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

Keywords：agricultural product procurement invoice, reverse invoicing, invoice issuance for individuals, agricultural product input VAT deduction, five-flow integration, invoicing upon receipt, agriculture-forestry-animal husbandry-fishery digitalization