Starting from July 1, 2026, individual sellers of scrapped products that issue invoices via the "three-way integrated reverse invoicing" system (where the payment platform is directly connected to automatically withhold tax and issue invoices) will see the tax prepayment rate for annual sales of no more than RMB 600,000 reduced to 0.25% (the traditional reverse invoicing rate of 0.5% still applies for amounts above RMB 600,000).

On July 2, 2026, the "five-way integrated" reverse invoicing product system of Zihuan Chain Gold was officially connected to Industrial and Commercial Bank of China’s "three-way integrated" reverse invoicing service, successfully issuing the first reverse invoice on the Leke platform after the cooperation between both parties.

On July 10, 2026, Xun Carbon Technology successfully implemented the "three-way integrated reverse invoicing system" and helped Zhejiang Hongye Supply and Sales Renewable Resources Co., Ltd. successfully issue the first three-way integrated reverse invoice, providing renewable resource recycling enterprises across the country with a full-chain solution for compliant operations, tax incentives, cost reduction, and efficiency improvement.

According to the new individual tax administration rules announced in Circular No. 12 of the State Taxation Administration in 2026 (effective July 1), sellers of scrapped products for personal disposal can enjoy the individual income tax incentive policy through standardized transactions using the three-way integrated reverse invoicing system. The specific standards are as follows:

1. Portion of annual tax-exclusive sales revenue no more than RMB 600,000: individual income tax on business income is prepaid at 0.25%;

2. Portion of annual tax-exclusive sales revenue above RMB 600,000: individual income tax on business income is prepaid at 0.5%.

The new policy clearly requires relying on a professional digital reverse invoicing system to achieve real-time matching of capital flow, invoicing flow, and goods flow, and to realize a fully standardized online transaction process. Only then can compliant preferential treatment be claimed. Digitized compliant invoicing has become an urgent need for the renewable resources industry.

In response to longstanding industry pain points such as cumbersome invoicing procedures, fragmented tripartite data, high labor costs, and prominent tax risks, the Xun Carbon Technology R&D team responded rapidly and launched an all-out effort. They immediately initiated the development and technical iteration of a dedicated reverse invoicing module. At present, the company has successfully implemented the "three-way integrated reverse invoicing system" and smoothly issued the first compliant reverse invoice. The system has already been successfully connected to UnionPay and Alipay, the two major mainstream payment platforms, enabling a fully compliant closed loop for the entire process.