The State Taxation Administration vigorously promotes reverse invoicing, resource recycling & agricultural product procurement, Kailing Technology's compliant and convenient invoicing solution

In recent years, to standardize tax management in industries such as resource recycling and agricultural product purchasing and solve the difficulty enterprises face in obtaining input VAT invoices, the State Taxation Administration has vigorously promoted the "reverse invoicing" model. This model breaks the traditional invoicing process, with the purchaser (enterprise) issuing invoices to the seller (natural person), injecting new momentum into compliant operations in these two major industries. Relying on in-depth interpretation of policies and technological R&D strength, Kailing Technology has created dedicated reverse invoicing solutions for the resource recycling and agricultural product purchasing industries, achieving the core goals of "guaranteed compliance, more convenient operations, and improved management efficiency."

I. Background of the reverse invoicing policy: national promotion, industry necessity

Reverse invoicing is not an entirely new concept but a tax administration innovation introduced by the State Taxation Administration targeting pain points in specific industries, with a clear policy lineage and defined coverage scenarios, providing solid policy support for industry development.

(1) Core Policy Basis and Time Nodes

1. Resource recycling industry:On April 29, 2024, the State Taxation Administration issued the "Announcement on Matters Concerning Resource Recycling Enterprises' "Reverse Invoicing" to Individuals Selling Scrapped Products" (No. 5 of 2024), clarifying that from that day, qualified resource recycling enterprises may reverse invoice individuals selling scrapped products with the notation "scrapped product purchase", solving the core pain point that enterprises cannot obtain input VAT invoices when purchasing waste materials from individuals.

2. Agricultural product procurement industry:As early as 2018, the Fujian Provincial Tax Service of the State Taxation Administration issued the "Fujian Province VAT General Invoice (Purchase) Usage Regulations" (2018 Announcement No. 8) to regulate the use of agricultural product purchase invoices; in July 2025, the Guixi City Tax Bureau further advanced "payment-triggered reverse invoicing for agricultural product purchasing enterprises," achieving a 100% access rate, accounting for 51% of Yingtan city's total access volume, becoming a benchmark for local policy implementation.

3. Policy promotion pace:Multiple tax bureaus have clearly defined promotion plans, and reverse invoicing has becomeRecycleThe industry's "compliance standard."

(2) Core definition and applicable rules of reverse invoicing

Reverse invoicing is a special process in which the buyer (payer, such as a resource recycling enterprise or agricultural product procurement enterprise) issues an invoice to the seller (payee, such as an individual scrap seller or farmer), different from the traditional "seller invoicing" model. Its core rules are as follows:

- Invoicing system:Through the electronic invoice service platform orProfessional business-finance-tax digitalization platform (such as the Kailing Technology platform)Issue;

- Invoice types and tax rates:Enterprises under general tax calculation may issue special invoices/ordinary invoices, while enterprises under simplified tax calculation may only issue ordinary invoices, with tax rates of 3% or 1% (small-scale taxpayer reduction policy);

- Red-letter invoice handling:When sales returns or incorrect invoicing occur, the enterprise fills out the Information Form for Issuing Red-Letter VAT Special Invoices or the Red-Letter Invoice Information Confirmation Form;

- Division of obligations:Individuals need to prepay individual income tax on business income at 0.5% of sales, with VAT exempt for monthly sales below 100,000 yuan; enterprises need to retain purchase contracts, transport vouchers, weighbridge tickets, payment records, and other materials, and establish purchase ledgers for inspection.

II. Industry Pain Point: Common Challenges in Resource Recycling and Agricultural Product Procurement

Both the resource recycling and agricultural product procurement industries share the characteristics of "scattered transaction counterparties (mostly individuals), high transaction frequency, and a large proportion of cash transactions." Under the traditional model, enterprises face multiple operational and tax risks, with pain points concentrated in the following four aspects:

(1) Difficulty in obtaining input VAT invoices, high tax burden cost

- Resource recycling industry: when natural persons sell scrapped products such as scrap steel and scrap plastic, they have no invoicing qualification, and enterprises cannot obtain compliant input VAT invoices, resulting in VAT that cannot be deducted and no basis for corporate income tax pre-tax deduction, significantly increasing tax burden costs;

- Agricultural product procurement industry: Farmers are widely dispersed, mostly conducting small-amount, high-frequency transactions, with cash payments common. Enterprises find it difficult to collect farmer identity information and issue invoices on their behalf, and some enterprises have to bear full VAT due to "no invoice, no deduction."

(2) Transaction authenticity is difficult to verify, with high tax audit risk

Both industries are high-incidence areas for "false invoicing": under traditional models, order information, fund flows, and invoice information cannot correspond one-to-one, and some enterprises obtain invoices through "inflating purchase volumes and fabricating transactions," facing huge tax audit fines or even criminal liability; in addition,Explicit Provisions on Reverse Invoicing for Resource Recycling EnterprisesIf an individual's sales exceed 5 million yuan for 12 consecutive months, business entity registration is required; if enterprises fail to verify in a timely manner, they will bear additional compliance risks.

(3) Cumbersome financial operations, prominent efficiency bottlenecks

- Enterprises need to manually record each individual transaction information (name, ID number, bank card number, purchase category/quantity), make single payments and issue invoices one by one, resulting in heavy workload and error-proneness for finance personnel;

- In agricultural product procurement, farmers mostly need on-site payment confirmation, and enterprises need to carry cash or transfer funds one by one, which is time-consuming and labor-intensive. Resource recycling requires connecting to weighbridge systems and logistics information, and manual data integration is prone to deviations.

(4) Opaque processes and high internal fraud risk

Lack of effective supervision in procurement and quality inspection: problems such as 'weighbridge data tampering' in resource recycling and 'price collusion' in agricultural product procurement occur frequently; some employees collude with suppliers to inflate costs and misappropriate enterprise assets, while offline processes are difficult to trace, forming a management black hole.

III. Kailing Technology Solutions: Industry-specific customization, full-process digitalization

In response to the differentiated needs of the resource recycling and agricultural product procurement industries, Kailing Technology, with "policy compliance as the core and technology empowerment as the means," builds coverage of "business- Finance- Tax- A reverse invoicing solution covering the full lifecycle of "archives," achieving "traceable genuine transactions, convenient invoicing with zero errors, and full prevention and control of compliance risks."

(1) Resource recycling industry: full-chain business-finance-tax integrated solution

Kailing Technology builds a digital closed loop "from acquisition to archiving" for resource recycling enterprises, with core modules including the following six parts:

1. Full lifecycle business-finance-tax blueprint

The solution connects with official systems such as China Golden Tax Phase IV, the Electronic Tax Bureau, and the Leqi interface, while integrating enterprise internal business systems (weighbridge, SAP), financial systems, and treasury systems to realize "individual-Recycling enterprises-Tripartite collaboration with processing enterprises, ensuring the "five flows in one" of contract flow, logistics flow, order flow, capital flow, and invoice flow.

2. Standardized reverse invoicing process

- Step1: Individual login and registration: the individual scans the enterprise's dedicated QR code via WeChat, completes real-name authentication (ID card photo, face recognition), binds a bank card, and signs the "Reverse Invoicing and Tax Payment Authorization Confirmation" online; the enterprise retains the authorization proof for inspection;

- Step2: Project maintenance and tax item matching: the system presets 11 categories of scrapped product tax items. When an enterprise creates a purchase order, the product SKU automatically matches the tax classification code, avoiding the risk of "wrong tax item issuance";

- Step3: Order acquisition and quota verification: the system connects to the weighbridge system, automatically obtains gross weight, tare weight, net weight, vehicle body photos, weighing time, and other data, and generates a purchase order; at the same time, it verifies the individual's invoicing quota in real time, and if a "blocking rule" is triggered, immediately reminds the enterprise;

- Step4: Automatic invoicing and input management: after verification passes, the system automatically issues an electronic invoice marked "Scrapped Product Purchase" based on the order information (special/general invoice selected as needed) and syncs it to the "input VAT invoice pool"; the enterprise can batch verify, select for authentication, and automatically calculate taxes, avoiding manual entry errors;

- Step 5: Tax agency and archiving: Within the filing period of the following month, the system automatically generates the Tax Agency Report Form; the enterprise pays the agency VAT and surcharges and individual income tax online. At the same time, materials such as purchase contracts, weighbridge tickets, and payment records are automatically archived to the electronic accounting archives system, supporting access by tax authorities at any time.

3. System integration capabilities

The solution can seamlessly connect with a company's existing systems:

- Integrate with the weighbridge system: obtain weighing data in real time, automatically generate orders, and eliminate "data tampering";

- Integrate with SAP and ERP systems: push order and payable amount data to enable automatic financial bookkeeping;

- Connect to the fund system: support batch payments, with funds reaching individuals' bank cards in real time, no withdrawal fees, and no transaction limits.

(2) Agricultural product procurement industry: a lightweight "invoicing upon payment" solution

In response to the characteristics of agricultural product procurement of small amounts, high frequency, and on-site transactions, Kailing Technology has launched a model of completing payment and invoicing simultaneously, greatly simplifying the operation process:

1. Two-sided operations: enterprises create conveniently, farmers receive payments quickly

- Enterprise side (merchant onboarding): the enterprise submits materials such as the business license and legal representative's ID card, and after platform review, can log in to the backend to create acquisition orders;

- Individual side (farmer registration): Farmers complete mobile phone number login, real-name authentication (no complex operations required), and bind a commonly used bank card through the "Agricultural Products Trading Platform" mini program, and can then receive enterprise order notifications.

2. Core process of "invoicing upon payment"

- Step1: Enterprise creates an order: the enterprise selects a historical transaction farmer (or adds a new farmer) in the backend, enters the purchase category, quantity, and unit price, and the system automatically calculates the amount and generates a payment QR code;

- Step2: Farmer confirms receipt: the farmer scans the QR code via WeChat, checks the order information (category, amount), and after confirmation clicks "Receive Payment"; funds arrive in real time;

- Step3: Automatic invoice issuance: after funds arrive, the system immediately initiates a reverse invoicing application to the tax authority, generates an electronic invoice marked "Agricultural Product Purchase," and synchronously pushes it to the enterprise input VAT invoice pool and the farmer mini-program;

- Step4: Automatic red-letter invoice processing: if a return or refund occurs, the enterprise initiates a "cancel order" application in the system, funds are returned via the original route, and the system automatically issues a red-letter invoice without manual intervention.

3. Batch processing and data management

Supports "batch order creation for multiple farmers": enterprises can import acquisition information for multiple farmers at once, and the system groups invoicing by individual (multiple orders from one farmer are merged into one invoice), greatly improving efficiency; at the same time, all transaction data is synchronized to the backend in real time, generating acquisition ledgers and tax statistics reports that support export and audit.

IV. Core Project Value: Quadruple Improvement in Compliance, Efficiency, Cost, and Risk Control

The Kailing Technology Reverse Invoicing solution not only solves industry pain points, but also creates multi-dimensional management value for enterprises, enabling the transformation "from rule by people to rule by data."

(1) Compliance assurance: build a "firewall" to eliminate tax risks

The solution mandatorily realizes the "four flows in one" (contract, logistics, funds, invoices), with all operations leaving online traces and being traceable; the system automatically verifies individuals' invoicing qualifications (whether blocked, whether sales exceed RMB 5 million) and the accuracy of tax category matching, ensuring that each invoice meets policy requirements; electronic archive filing meets tax authority inspection standards, completely avoiding risks such as "false invoicing" and "deduction without invoices."

(II) Efficiency improvement: from "hour-level" to "minute-level"

- Resource recycling industry: weighbridge data is automatically synchronized, compressing the invoicing process from "1 hour per order manually" to "5 minutes per order by system," increasing bulk processing efficiency by more than 10 times;

- Agricultural product procurement industry: "Scan to pay and invoice immediately" — farmers don't need to wait, enterprises don't need manual order entry, thousands of farmer transactions can be processed per day, and finance staff workload is reduced by 60%.

(3) Cost reduction: free up manpower, reduce hidden expenditures

- Reduce labor costs: finance and procurement personnel no longer need to record transaction by transaction or transfer account by account, and can focus on core business;

- Reduce capital costs: funds arrive in real time, no withdrawal fees, no need to carry cash in agricultural product procurement, avoiding fund security risks;

- Tax burden optimization: compliant input invoices can be deducted normally, and the average VAT burden rate of resource recycling enterprises is reduced by 3- 5 percentage points, agricultural product purchasing enterprises fully enjoy 9%- 10% deduction benefit.

(IV) Risk control upgrade: transparent processes, eliminating internal fraud

- Weighbridge data is uploaded in real time and cannot be tampered with, completely solving the "weighing fraud" problem in resource recycling;

- Agricultural product procurement prices are entered online, the system presets category guidance prices, and automatically issues warnings when deviations occur, avoiding "price collusion";

- All approvals and operation records are auditable, internal employee rights and responsibilities are clear, and fraud risks are institutionally prevented.

V. Typical case: Anonymized scenario, validating solution effectiveness

(1) Resource recycling case: a large renewable resource enterprise

- Background: The enterprise purchases more than 100,000 tons of scrap steel annually, cooperating with more than 2,000 individuals. Under the traditional model, the missing rate of input invoices reached 30%, and a finance team of 10 people still could not meet invoicing needs. It was once summoned by the tax authority due to 'data inconsistency.'

- Implementation results: after adopting the Kailing Technology solution, automatic synchronization of weighbridge data and real-time verification of individual quotas are achieved, the input VAT invoice acquisition rate reaches 100%, finance staff is reduced to 4 people, tax compliance risks are eliminated, and annual tax cost savings exceed RMB 2 million.

(2) Agricultural product procurement case: a leading agricultural product enterprise in a certain region

- Background: The enterprise mainly purchases vegetables and fruits, serving more than 500 farmer households, with more than 300 transactions per day. Under the traditional model, 3 finance personnel were needed for on-site collection and manual invoicing, resulting in long waiting times for farmers and a high complaint rate.

- Implementation results: through the "invoicing upon payment" mini-program, farmers complete payment collection and invoicing confirmation by scanning within 1 minute, the enterprise only needs 1 finance person for back-office management, the complaint rate drops to 0, procurement efficiency increases 3 times, and annual labor cost savings exceed RMB 150,000.

The "reverse invoicing" model promoted by the State Taxation Administration is not only an innovation in tax administration, but also resource recycling and agricultural product procurementetc.An opportunity for industry standardization and digital transformation. Through customized solutions by industry, Kailing Technology both addresses enterprises' urgent needs of difficult input VAT invoices and high compliance risks, and helps them build data-driven core competitiveness.

Welcome to inquire with Kailing Technology to obtain reverse invoicing solutions for more scenarios:https://www.kailingteck.com/h-col-127.html 。

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:

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

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