2026 New Trade-In Policy Takes Effect, Kailing Technology's Reverse Invoicing Solution: Multi-Category Adaptation + Process Traceability, Compliance Without Pressure

At the beginning of 2026, the policy effects of the National Development and Reform Commission and the Ministry of Finance's Notice on Strengthening and Expanding the Implementation of the Policy of Large-Scale Equipment Renewal and Consumer Goods Trade-In in 2025 (Fagai Huanzi [2025] No. 13) continue to be released. Trade-in categories have expanded from traditional home appliances and automobiles to digital products, electric bicycles, facility agriculture equipment and many other fields. As a key supporting link of the "two new" policy, resource recycling faces the dual challenges of surging business volume and upgraded compliance requirements. Among them, "accelerating the implementation of 'reverse invoicing' by resource recycling enterprises to natural person sellers of scrapped products" is explicitly listed as a core measure to regulate the industry's tax order and promote the development of the circular economy—under this policy orientation, resource recycling enterprises not only need to address the invoicing adaptation difficulties of multi-category recycling, but also need to meet the tax authorities' regulatory requirements for full-process traceability of "contract, logistics, weighing and payment." With its experience deeply cultivated in the field of business-finance-tax digitalization, Kailing Technology's reverse invoicing solution has precisely become the key lever to solve industry pain points.

（1.）Core pain points of resource recycling enterprises under the new policy: multi-dimensional challenges highlight compliance pressure

As the trade-in policy expands, the business scenarios and regulatory requirements of the resource recycling industry have changed significantly, and the compliance pressure enterprises face is concentrated in three major dimensions:

First, the tax item adaptation challenge brought by multi-category recycling

The new policy includes automobiles (China IV and below fuel vehicles), home appliances (4 new categories including microwaves and water purifiers), digital products (mobile phones, tablets), and electric bicycles in the trade-in scope. Different categories of waste materials correspond to different tax codes, tax rates, and invoicing types. Under the traditional manual invoicing model, tax category misselection and tax rate misuse are prone to occur, which at best leads to input VAT deduction failure and at worst exposes companies to tax audit risks.

Second, the process efficiency bottleneck after a surge in business volume

Data shows that in the first four months of 2025, domestic end-of-life vehicle recycling volume surged 65% year-on-year, and waste electrical and electronic product recycling volume grew 70%. Facing massive and scattered individual sellers, if enterprises still rely on the traditional process of "manual registration - offline invoice issuance - manual archiving," not only is invoicing efficiency low, but it is also difficult to meet the policy requirement of "invoice upon business occurrence," thereby affecting the timeliness of input VAT deduction.

Third, the regulatory pressure of full-process traceability escalates

The new policy explicitly requires resource recycling enterprises to retain "materials that can prove the authenticity of the business," including purchase contracts, transport vouchers, cargo weighbridge tickets, and transfer payment records, and to establish detailed purchase ledgers. Under the traditional manual management model, documents are easily lost and ledgers incomplete. Once facing a penetrating tax inspection, enterprises may be deemed non-compliant due to a "broken evidence chain" and face tax recovery and fines. In addition, requirements such as withholding individual income tax for individual sellers (0.5% of sales) and registering as a business entity when cumulative sales exceed 5 million yuan over 12 months also increase the burden of agency management on enterprises.

（II）Kailing Technology Reverse Invoicing Solution: Three Core Capabilities Adapting to New Policies, Solving Compliance Pain Points

In response to industry needs under the new policy, Kailing Technology relies on an integrated design of "business-finance-tax-evidence preservation" to launch a full-process reverse invoicing solution, creating a compliant and pressure-free operating system for enterprises from three dimensions: multi-category adaptation, full-chain traceability, and dual-end tax-related management.

1. Intelligent adaptation for multiple categories: precise matching of tax items, eliminating wrong or mistaken invoicing

To cover all categories of recycling scenarios under the new policy, Kailing Technology's solution has a built-in standardized commodity-tax code mapping library, achieving full automation of "category identification-tax item matching-tax rate selection":

- Full-category coverage:Includes 200+ categories involved in new policies, such as scrapped vehicles, home appliances, digital products, electric bicycles, scrap steel, and construction waste, with no need for manual querying;

- Dynamic policy adaptation:The system synchronizes tax policies in real time, automatically determines the invoice type, and supports VAT reduction and exemption rules, avoiding invoicing errors caused by misunderstandings of policies;

- New category support:Enterprises can quickly add custom SKUs in the backend and link them to tax codes according to the recycling categories expanded under new policies, adapting to business expansion needs.

2. Full-chain digital traceability: building a "four flows in one" ironclad evidence chain to respond to tax audits

In response to the "proof of business authenticity" required by the new policy, Kailing Technology creates a tamper-proof traceability system through system integration and automatic data aggregation:

- Automatic data collection, zero manual intervention:Seamlessly integrate with weighbridge systems, order systems, and bank payment systems to achieve real-time synchronization of "order-weighing-payment-invoicing" data and eliminate manual entry errors;

- Evidence preservation and archiving across all dimensions:Purchase contracts, transportation vouchers, weighbridge tickets, payment records, and individual real-name authentication materials are automatically collected into electronic accounting archives. The ledger records in detail the time, location, seller contact information, and goods details of each transaction, supporting one-click export for "penetrating" inspections by tax authorities;

- Real-time risk alerts:The system has a built-in risk control model that automatically warns of risk points such as "excessive purchases, price anomalies, cash transactions," avoiding fake transactions and fraudulent invoicing risks at the source.

3. Dual-end tax-related intelligent management: Compliance "dual protection" for enterprises and individuals

Under the new policy, resource recycling enterprises must simultaneously bear their own filing obligations and invoice issuance for individuals. Kailing Technology's solution reduces this dual pressure through intelligent tools:

- Enterprise side:One-click filing, optimizing tax burden。The system automatically calculates the VAT and surcharges and natural person individual income tax (0.5% prepayment) for the tax paid on behalf, generates the "Tax Payment on Behalf Report Form" and "Tax Payment on Behalf Detail Report Form" during the next month's filing period, and directly connects to the electronic tax bureau to complete submission; it supports automatic calculation of input tax deduction for special invoices issued through reverse invoicing, helping enterprises reasonably plan their tax burden ratio and avoid overpaying taxes;

- Individual side:Full-cycle reminders to reduce agency risks。Monitor individuals' cumulative 12-month sales in real time, and automatically remind them to register a business entity when approaching the RMB 5 million threshold; during the annual settlement period from January to March of the following year, send reminders via SMS and WeChat to avoid joint liability for enterprises caused by individuals' failure to file;

- Compliant handling of red-letter invoices:When sales returns or incorrect invoicing occur, the system automatically generates the Information Form for Issuing Red-Letter VAT Special Invoices, links the original blue invoice information, ensures the red-letter reversal process is compliant and traceable, and avoids tax disputes.

4. Seamless system integration: Reducing costs and increasing efficiency, adapting to dispersed recycling scenarios

Considering the characteristics of the resource recycling business—"decentralized purchasing and multi-location operations"—the Kailing Technology solution has been fully optimized for integration and flexibility:

- Multi-system linkage:Supports integration with enterprise ERP and financial systems to achieve full-process automation of "individual real-name authentication - on-site weighing - remote invoicing - financial bookkeeping," increasing invoicing efficiency by 80% and reducing labor costs;

- Multi-terminal collaboration:Individuals scan the enterprise's dedicated QR code through the WeChat mini program to complete real-name authentication, bank card submission, and authorization signing without going on site; the enterprise side supports collaboration between PC and mobile, adapting to multiple scenarios such as door-to-door recycling and outlet purchases。

The deepening of the 2026 new trade-in policy pushes the resource recycling industry into a new stage of compliance-driven growth. Reverse invoicing is no longer a mere tax requirement, but has become a core capability for enterprises to connect with the new policy dividends and expand business scale. With precise interpretation of policies and deep understanding of industry pain points, Kailing Technology uses a reverse invoicing solution of "multi-category adaptation + full-process traceability + dual-end compliance" to help enterprises achieve "compliance without pressure, further efficiency improvement and further cost reduction" under the new policy.

Kailing Technology，Provide policy adaptation for resource recycling enterprises、Technical Support、Integrated after-sales support services help the industry achieve high-quality development amid standardization, injecting digital momentum into the circular economy and the implementation of the "dual carbon" goals：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, 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 Kailing Technology will serve you wholeheartedly.

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