On July 14, 2026, Hunan Wanrong Resource Recycling Group’s “integration of three flows” reverse invoicing solution reached a key implementation milestone—successfully supporting Zhuzhou Resources Investment Group Co., Ltd., a joint venture between Wanrong Resource Environment Group and Zhuzhou Resources Investment Group, to issue Hunan Province’s first reverse invoice for the purchase of renewable resources at the Zhuzhou Renewable Resources Green Sorting Center in Tianyuan District, Zhuzhou, through the connection between the online platform and the Electronic Taxation Bureau. This marks the official transition of Hunan Province’s reverse invoicing policy for renewable resources from institutional design to industry practice, and also marks the first successful implementation of the “integration of three flows” reverse invoicing model on a state-owned renewable resources operating platform.

The “absence of source invoices” has been a longstanding compliance challenge for the renewable resources recycling industry. When recycling enterprises purchase waste materials from individuals, they have long found it difficult to obtain VAT input deduction documentation and lack a compliant basis for pre-tax deductions for corporate income tax. This has not only increased operating costs but also created potential tax compliance risks, severely restricting the industry’s standardized development and upgrading. In April 2024, the State Taxation Administration issued the Announcement on Matters Concerning “Reverse Invoicing” by Resource Recycling Enterprises to Individuals Selling Used Products (Announcement No. 5 of 2024), officially allowing eligible resource recycling enterprises to issue invoices to individuals selling used products from April 29. This policy opened up a compliant channel at the institutional level; however, issues such as the difficulty of verifying transaction authenticity and the high cost of full-process compliance still make it difficult for most renewable resources recycling and utilization enterprises to independently implement the policy.

Announcement No. 12 of 2026 issued by the State Taxation Administration specifies that, from July 1, 2026, for individuals selling used products who sell such products to resource recycling enterprises through “reverse invoicing with the integration of three flows,” the portion of annual sales revenue not exceeding RMB 600,000 will be subject to a reduced rate of 0.25% for the advance payment of individual income tax on business operations. By embedding tax rules into an online payment platform, the “integration of three flows” model integrates the payment, invoice, logistics, and fund flows, achieving “invoicing upon payment, tax payment upon invoicing, and treasury deposit upon tax payment.” The introduction of the new policy has accelerated the standardized upgrading of the renewable resources industry.

Leveraging its industry experience and digital capabilities, Hunan Wanrong Resource Recycling Group has developed a compliant reverse invoicing solution. Built around the integrated framework of “transactions, services, and supervision,” the solution incorporates three core capabilities: transaction matching, SaaS management, and cloud-platform evidence preservation. It covers the entire process from transaction signing, quality inspection and receipt, settlement and reconciliation, and direct-connected invoicing to online payment, creating a trusted, full-process evidence preservation system integrating the “contract, materials, funds, invoices, and information flows.” It has currently connected two major payment channels, UnionPay and Alipay, providing fundamental assurance for transaction authenticity and compliance. This truly ensures that reverse invoicing services have “documentation for transactions, traceability throughout the process, a basis for compliance, and effective tools for supervision.”

In the future, Wanrong Resource Recycling Group will continue to iterate and optimize its reverse invoicing products, promote mature digital compliance solutions across the industry, help more recycling enterprises benefit from the policy, advance the standardized upgrading of the renewable resources industry, and continue contributing to the high-quality development of the circular economy.