Since 2025, the formal implementation of reverse charging VAT policy has solved the long-standing invoice and tax burden problems in China’s recycling industry.

Qualified recycling enterprises can deduct input VAT normally, combined with government equipment subsidies and landfill fee exemptions, and the net profit margin of formal manufacturers increased by 15%-25%.

With the improvement of profitability, enterprises have more funds to replace old equipment and purchase new semi-automatic baler to upgrade processing efficiency.