Announcement No. 12 of 2026 issued by the State Taxation Administration specifies that, starting July 1, 2026, when individual sellers of end-of-life products sell such products to resource recycling enterprises through “reverse invoicing with the integration of the three flows,” the portion of annual sales revenue not exceeding RMB 600,000 will be subject to a reduced provisional payment of individual income tax on business operations at a rate of 0.25%.

The Sichuan Association of Renewable Resources Industries has actively responded to the spirit of the announcement. With the active promotion and witnessing of the association, Sichuan Tianfu Renewable Resources Group Co., Ltd., the chairing company of the Sichuan Association of Renewable Resources Industries, and Ant Technology Group (Alipay) held a strategic cooperation signing ceremony in Chengdu.

Relying on the “Tianfu Renewable Resources Cloud” platform in Sichuan developed by Tianfu Renewable Resources Group, the parties will jointly create a digital solution for “reverse invoicing with the integration of the three flows” in the resource recycling industry, supporting the high-quality development of the resource recycling and utilization industry across Sichuan Province.

The resource recycling industry has long faced the structural challenge of “missing source invoices.” The difficulties of missing invoices when purchasing from individual collectors, complicated reconciliation, difficult traceability, and high compliance costs are common pain points across the industry.

Announcement No. 12 of 2026 issued by the State Taxation Administration specifies that, starting July 1, 2026, when individual sellers of end-of-life products sell such products to resource recycling enterprises through “reverse invoicing with the integration of the three flows,” the portion of annual sales revenue not exceeding RMB 600,000 will be subject to a reduced provisional payment of individual income tax on business operations at a rate of 0.25%. The “integration of the three flows” model embeds tax rules into online payment platforms to integrate the payment flow, invoice flow, goods flow, and fund flow, enabling “invoicing upon payment, tax payment upon invoicing, and immediate tax deposit upon payment.” The introduction of the new policy has pressed the “accelerator” for the standardized upgrading of the resource recycling industry.

Alipay is also one of the first payment platforms to obtain the State Taxation Administration’s “Lèqǐ Liányòng” qualification for reverse invoicing, enabling “reverse invoicing with the integration of the three flows.”

Tianfu Renewable Resources Group is a provincial-level leading enterprise in the renewable resources sector directly assigned by the Provincial Party Committee and Provincial Government and implemented under the guidance of the Sichuan Provincial Supply and Marketing Cooperative. The group focuses on undertaking the province’s “two major” and “two new” tasks and on playing the role of a major force in resource recycling and utilization. Ant Technology Group (Alipay), relying on its nationwide digital payment infrastructure, trusted data preservation, and integrated online tax handling capabilities, has developed a one-stop solution tailored to recycling scenarios.

On February 12, 2026, the Notice on Issuing the Policy Measures of Sichuan Province for Implementing Large-Scale Equipment Upgrades and the Trade-In of Consumer Goods in 2026 was officially released. It proposed improving the supply chain service functions of the “Tianfu Renewable Resources Cloud” platform, establishing standardized data collection and monitoring mechanisms, and guiding eligible renewable resource recycling business entities to connect to the platform in an orderly manner.

On February 24, 026, the General Office of the People’s Government of Sichuan Province issued the Implementation Opinions of the General Office of the People’s Government of Sichuan Province on Further Promoting Innovation and Breakthroughs in the Service Industry, proposing support for the development of the “Tianfu Green Exchange” renewable resource recycling system and incentives of up to RMB 5 million for eligible renewable resource trading venues.

This cooperation will connect the fund flow, invoice flow, logistics flow, and information flow to achieve the “integration of four flows”: users at the recycling end can simply scan a code to automatically complete the entire process of payment, tax calculation, reverse invoicing, and voucher preservation; at the enterprise end, automatic reconciliation and one-click collection of input vouchers will significantly reduce financial labor costs and eliminate the risks of fraudulent invoicing and non-compliant operations involving invoices and other documents at the source.

As an active promoter of this cooperation, the Sichuan Association of Renewable Resources Industries will continue to serve as a bridge and link, implement the national strategy for resource recycling, promote the effective implementation of the “reverse invoicing with the integration of the three flows” policy in Sichuan, and contribute to the high-quality development of the resource recycling and utilization industry across the province.