Tax authorities expose: frequent false invoicing risks in agricultural product transactions! Kailing Technology's reverse invoicing solution builds a solid compliance defense

Recently, the State Taxation Administration exposed 3 typical cases of false invoicing in the agricultural products sector in Guizhou, Liaoning, and Jilin: a pharmaceutical company in Guizhou issued false invoices of 25.096 million yuan through fake cooperatives and falsely offset input VAT of 2.3283 million yuan, and the State Taxation Administration recovered taxes, late fees, and fines of 4.4535 million yuan; an enterprise in Liaoning fraudulently obtained export tax rebates through false issuance of agricultural product purchase invoices, agricultural product sales invoices, and special VAT invoices, using illegal means such as "reporting low value as high" and false foreign exchange settlement, and the State Taxation Administration recovered fraudulently obtained export tax rebates of 18.5272 million yuan; 3 enterprises in Jilin fraudulently obtained export tax rebates through illegal means such as falsely issuing agricultural product purchase invoices, falsely listing input tax amounts, and exporting goods without reasonable commercial purpose, and the State Taxation Administration recovered 5.7812 million yuan. In addition to facing tax recovery and high fines, those responsible were also held criminally liable.

These cases not only expose the high risk of "false invoicing" in agricultural product transactions but also highlight a common industry dilemma—scattered transaction entities (mostly natural persons), frequent cash transactions, and non-standard manual processes—leaving enterprises both "struggling to obtain compliant input VAT invoices" and prone to "crossing the red line of false invoicing."

Kailing Technology's "Full-Process Management System for Reverse Invoicing in Agricultural Product Procurement" directly addresses this pain point, using policy as the foundation and technology as the shield to build a full-chain compliance solution.

I. Policy Anchoring: The "Hard Support" for Solution Compliance

The core compliance of the Kailing Technology solution stems from deep alignment with national tax policies. Each function has a clear policy basis, avoiding compliance risks caused by "policy disconnection."

1. Benchmark against local invoicing specifications:For example,Following the Fujian Province VAT Ordinary Invoice (Purchase) Usage Regulations (2018 Announcement No. 8), requirements such as "issue invoice item by item according to the seller," "financial settlement vouchers required for single transactions exceeding 20,000 yuan," and "retain transport/acceptance documents" are embedded into the system. For example, when a single purchase exceeds 5,000 yuan or the monthly cumulative amount exceeds 20,000 yuan, the system automatically prompts retention of a photocopy of the natural person's ID card, ensuring invoice issuance complies with local regulatory requirements.

2. Responding to the national "reverse invoicing" requirement:In 2024, the State Taxation Administration clarified "reverse invoicing by resource recycling enterprises to individuals" (Can extend toAgricultural productsPurchasing Sector), the solution also opens up a connection channel with the Electronic Tax Bureau. Enterprises no longer need to log in to the tax bureau to issue invoices manually; the system automatically completes invoice issuance applications and information synchronization, ensuring the invoicing process fully complies with the policy requirements of "clear scope, clear deduction, clear preferences".

3. Follow local promotion standards:With reference to the practical experience of Guixi Taxation Bureau in 2025 of "100% integration of payment-triggered reverse invoicing for agricultural products," the solution optimizes the efficiency of the "payment-invoicing" connection, ensuring that enterprise operations align with the promotion pace of local tax authorities and avoiding "compliance risks caused by systems not adapting to policies."

II. Closed-loop process: "three flows in one" eliminates the core loophole of false invoicing

In the exposed cases, "no real transaction" and "disconnect between funds and invoices" are the main methods of fraudulent invoicing. Kailing Technology builds a full-process traceable transaction closed loop through the "integration of order, funds, and invoice flows," blocking the space for fraudulent invoicing at the root.

1. Full-process online control

- Order authenticity: When creating a purchase order, the enterprise must fill in the agricultural product name, quantity, and unit price, and can only select real-name verified individuals, eliminating "fictitious transaction entities";

- Fund transparency: after the individual scans the code to confirm the order, funds go directly from the UnionPay Merchant Services platform to their bank card, arriving in real time with no withdrawal fee, and the entire fund flow is recorded, avoiding "cash transactions that cannot be traced";

- Invoicing automation: After fund payment is completed, the system automatically connects to the tax bureau to initiate reverse invoicing, and invoice information (amount, seller information) is mandatorily matched with orders and fund flows and cannot be manually modified.

2. Direct confrontation with false invoicing behavior

- Against "false invoicing without real transactions": the system requires a real order and fund payment record before the invoicing process can be triggered; without a transaction, invoicing is impossible;

- Against "fraudulent input tax deduction": invoice amounts strictly correspond to actual procurement amounts, and the deduction ratio is automatically matched by the system, avoiding "excess deduction";

- Addressing the disconnect between funds and invoices: the flow of funds must be consistent with the invoice seller, eliminating the illegal practice of issuing an invoice to A while paying funds to B.

III. Detail control: build a compliance "firewall" from multiple dimensions

In addition to the core processes, the solution sets up multiple detailed controls targeting high-frequency risk points in agricultural product transactions, further closing compliance loopholes.

1. Strict access: eliminate fake entities

- Individual registration: mobile phone number verification and facial recognition real-name authentication are required to ensure "person-certificate consistency" and avoid fraudulent transactions;

- Enterprise onboarding: business license and legal representative ID card must be uploaded, subject to platform review + electronic tax bureau authorization, to eliminate "fake registered enterprises" (such as the fake cooperative in the Guizhou case).

2. Strong risk control: Real-time interception of anomalies

- The system has a built-in risk control model that automatically scans for risks such as "abnormal unit price," "high-frequency large-amount transactions by the same individual within a short period," and "cross-regional purchases" when an order is created, triggering warnings and pausing the process;

- Secondary verification at the payment step ensures the fund flow is consistent with the order seller, avoiding "invoice and actual transaction mismatch caused by fund misappropriation."

3. Full retention: automatic archiving of vouchers

- The system automatically retains order details, fund flows, copies of natural persons' ID cards, and transport documentsetc., no need for manual sorting;

- All vouchers and invoices are stored in association, and can be retrieved with one click during tax audits, solving the pain point of "missing vouchers making it impossible to prove business authenticity".

IV. Value summary: Dual improvement in compliance and efficiency, enjoy policy benefits with peace of mind

In exposed cases, tax authorities emphasized: "The enjoyment of tax and fee preferential policies must be premised on legal compliance." The core value of Kailing Technology's solution is precisely to enable enterprises to be "both compliant and efficient":

- Compliance Level: Through policy benchmarking, closed-loop processes, and detail control, completely avoid the risks of "false invoicing" and "illegal deduction," preventing the tax back-payment, fines, or even criminal liability faced by the case enterprise;

- Efficiency level: Compressing the traditional process of "manual invoicing, cash payment, voucher organization" from "hours" to "minutes," freeing up finance manpower;

- At the policy benefit level: ensure enterprises legally obtain input VAT invoices and smoothly enjoy agricultural product VAT deduction and corporate income tax pre-tax deduction benefits, without giving up policy dividends for fear of "crossing the line."

Against the backdrop of the tax authorities' continuously increasing efforts to crack down on tax-related violations in the agricultural product sector, Kailing Technology's reverse invoicing solution is not only a technical system, but also a "compliance steward" for enterprises. It uses digital means to build a solid compliance defense line, helping agricultural product purchasing enterprises operate with peace of mind within the policy framework and providing solid support for the standardized upgrading of the industry under the background of rural revitalization.

Consult Kailing Technology to obtain a compliant, efficient, detailed customized solution: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:

Solutions for sales contract management system, procurement contract management system, fully digitalized Leqi interface project, automatic output VAT invoicing system, invoice issuance for individuals system, employee expense control and reimbursement system, input VAT invoice management system, supply chain collaborative reconciliation system, imaging OCR recognition system, automatic 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 Kailing Technology will serve you wholeheartedly.