Under the new situation of tax administration, how to correctly understand and apply the "reverse invoicing" policy, how to combine the "reverse invoicing" policy, supporting the existing provisions of the simplified tax calculation to achieve a balance between tax compliance and economic interests has become the focus of the majority of enterprises in the resources recycling industry. On July 10, 2024 Lead Resource Recycling Industry Summit hosted by Shandong Zhuochuang Information Co., Ltd. was held in Changchun, Jilin Province, and Hwuason Law Firm partner Zhang Qian was invited to attend the event and give a lecture titled "Reverse Invoicing" Policy, How to Correctly Understand and Apply to Renewable Resource Enterprises", which explains the tax compliance in the business of recycling and utilization of waste lead storage batteries. and utilization of waste lead storage battery recycling and tax compliance issues in the business.

Zhang Qian firstly answered the difficult questions on the application of "reverse invoicing" policy for waste battery recycling enterprises, analyzed whether the sale of end-of-life products by individual households to recycling enterprises can be subject to "reverse invoicing", what conditions recycling enterprises have to meet in order to be eligible for "reverse invoicing", how the invoices issued in reverse can be used for VAT input deduction and how the sellers' tax is regulated. It analyzed whether "reverse invoicing" can be applied to the sale of end-of-life products by individual households to recycling enterprises, what conditions recycling enterprises have to meet before they can be "reverse invoiced", how to carry out VAT input deduction for invoices issued in the reverse invoice, and how to supervise the tax of sellers, etc., so as to clarify the prerequisites and bases of the application of the "reverse invoicing" policy for the participants.

Further, based on the tax regulation situation of resources recycling industry and the characteristics of waste lead batteries recycling, disposal and utilization in recent years, combined with the simplified tax calculation for recycling enterprises and the latest "reverse invoicing" policy, Zhang Qian shared the issue of perfecting the business model which is of concern to the majority of enterprises, and introduced the differences of tax burden between sellers, recycling enterprises and production enterprises under different business models in detail. Sellers, recycling enterprises and production enterprises of the difference in tax burden, and in-depth analysis of waste lead storage battery utilization of enterprises to adjust the business model needs to consider the key points. At the same time, Zhang Qian combined with the "reverse invoicing" information retention requirements and new trends in the development of renewable resources deposit platform, explaining in detail what information needs to be retained in the recycling and utilization of waste lead storage battery enterprises to support the authenticity of the business, to strengthen tax compliance for the enterprise to provide useful reference and reference.

Finally, Zhang Qian analyzed the tax-related risks faced by the sale, recycling and utilization of waste lead storage batteries, including the risk of natural persons not declaring tax according to the regulations, the risk of recycling enterprises not handling taxes and fees under the "reverse invoicing", the risk of applying the financial rebate policy under the strict investigation of tax rebates, and the problem of false opening in the business, etc., which provided the participants with insights into the tax-related risks of the industry and provided reference. This will provide reference for the participants to understand the tax-related risks in the industry.

In recent years, the tax policy of resources recycling industry has been changing constantly, and the business model of enterprises in the industry has also been adjusting constantly. Waste lead storage batteries are different from general renewable resources and have higher environmental protection requirements in recycling, dismantling and smelting, based on which, how the relevant recycling and utilization enterprises can reasonably adjust their business model in combination with the requirements of environmental protection regulation, and how to take into account the economic benefits while achieving tax compliance has become a prudent issue for enterprises to consider.