(1) Value-added tax

1. There is no substantial change in the content. From the 28 edition of the Provisional Regulations on Value-added Tax and its detailed rules for implementation, there is no essential change in its provisions on eight cases of deemed sales, but the original item (7) has been changed into item (5), and the original items (5) and (6) have been changed into items (6) and (7). Take the self-produced or commissioned goods as one category, and the self-produced or commissioned goods as another category. This classification form is more scientific than before, which is beneficial for taxpayers to master and use it according to the corresponding categories.

2. Changes in tax-related treatment. Article 16 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax (28 edition) stipulates that if a taxpayer has the obvious low price mentioned in Article 7 of the Regulations without justifiable reasons or has the same behavior of selling goods listed in Article 4 of these Detailed Rules without sales, the sales amount shall be determined in the following order: ① According to the average sales price of similar goods in the recent period of the taxpayer. ② According to the average selling price of similar goods of other taxpayers in the recent period. ③ According to the composition of taxable value. The formula of taxable value is: composition taxable value = cost × (1+cost profit rate). For goods subject to consumption tax, consumption tax shall be added to the taxable value. The cost in the formula refers to the actual production cost for selling self-produced goods and the actual purchase cost for selling purchased goods. The cost profit rate in the formula is determined by State Taxation Administration of The People's Republic of China.

For the above provisions, the 28 version of the Detailed Rules has made two modifications to the original Detailed Rules: First, the item (1) has been changed from the original "current month" to "the latest period", which actually means that the enterprise regards the sales as the sales price of similar goods of the enterprise as the standard; Second, the word "other" is added to the original item 2, which allows taxpayers to determine the deemed sales price according to the sales prices of other taxpayers in the market.

(II) Consumption tax

1. The content has not changed. The descriptions of the new and old Detailed Rules for the Implementation of the Provisional Regulations on Consumption Tax are consistent, both of which are stipulated in Article 6: The term "used for other purposes" in the first paragraph of Article 4 of the Regulations means that taxpayers use taxable consumer goods for their own use to produce non-taxable consumer goods, projects under construction, management departments, non-production institutions, provision of labor services, gifts, sponsorship, fund-raising, advertisements, samples, employee welfare, incentives and so on. In addition to the general provisions, the following special provisions still apply:

Gold and silver jewelry is treated as retail business according to the original provisions: ① Processing gold and silver jewelry for units and individuals other than business units. Processing includes material processing, renovation and restructuring, trade-in and other businesses, excluding repair and cleaning business. ② Business units use gold and silver jewelry for gifts, sponsorship, fund-raising, advertisements, samples, employee welfare, rewards, etc. (3) Units that engage in gold and silver jewelry wholesale business without the approval of the head office of the People's Bank of China sell gold and silver jewelry to business units.

if the package is not priced and sold with the product, but the unit collects the deposit, this deposit should not be included in the sales of taxable consumer goods for taxation. However, the deposits that are not returned due to overdue packages and have been collected for more than one year shall be incorporated into the sales of taxable consumer goods, and the consumption tax shall be levied according to the applicable tax rate of taxable consumer goods.

if the taxpayer refuses to refund the deposit of the packaging materials that are sold together with taxable consumer goods at a fixed price within the prescribed time limit, it shall be incorporated into the sales of taxable consumer goods and the consumption tax shall be levied according to the applicable tax rate of taxable consumer goods.

the packaging deposit collected by the alcoholic product production enterprises with ad valorem or compound levy method for selling alcoholic products, regardless of whether the deposit is returned or not and how it is accounted for in accounting, must be incorporated into the sales of alcoholic products, and the consumption tax shall be levied according to the applicable tax rate of alcoholic products.

2. Changes in tax-related treatment. Articles 7-9 of the Provisional Regulations on Consumption Tax in 28 respectively increase the compound tax and the corresponding formula of composition taxable value: composition taxable value = (cost+profit+self-production and self-use quantity × fixed tax rate) ÷ (1-proportional tax rate) and so on. These regulations were implemented one after another in May 21. At present, there are three kinds of products subject to compound tax: cigarettes, grain liquor and potato liquor, and gold and silver jewelry is still treated as sales according to the original regulations. Production, wholesale and retail units for gifts, sponsorship, fund-raising, advertising, samples, employee benefits, incentives and other aspects of gold and silver jewelry, should be based on the sales price of similar gold and silver jewelry sold by taxpayers to determine the tax basis for the collection of consumption tax; If there is no sales price of similar gold and silver jewelry, the tax shall be calculated according to the composition of taxable value. The formula for the composition of taxable value is: composition of taxable value = original purchase price × (1+profit rate)/(1-consumption tax rate of gold and silver jewelry). When the taxpayer is a production enterprise, the "original purchase price" in the formula is the production cost. The "profit rate" in the formula is always set at 6%.

(3) Business tax

1. The content has changed. Article 5 of the Detailed Rules for the Implementation of the Provisional Regulations on Business Tax (28 edition) stipulates that the deemed taxable behavior includes the following three parts: the unit or individual gives the real estate or land use right to other units or individuals free of charge; The self-built behavior of a unit or individual who builds a new building by himself (hereinafter referred to as "self-built") and sells it; Other circumstances stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.

The new regulations cancel the "transfer of limited property rights or permanent use rights of real estate", and the regulations on the free gift of real estate or land use rights are stricter, while the "units and individuals" replace the "others" in the original regulations, thus solving a difficult problem in the implementation of the old policy. The old rules only treat the donation of real estate to others by the unit as "regarded as the sale of real estate", but there are no provisions on the donation of land use rights by the unit and the donation of real estate and land use rights by individuals. That is to say, unless otherwise stipulated by the competent tax authorities in the State Council, these acts are exempt from business tax. The new rules expand the scope of business tax collection.

2. Changes in tax-related treatment. Article 2 of the Detailed Rules for the Implementation of the Provisional Regulations on Business Tax (28 edition) stipulates: If a taxpayer has an obviously low price as mentioned in Article 7 of the Regulations without justifiable reasons, or has no turnover as listed in Article 5 of these Rules, its turnover shall be determined in the following order: ① It shall be verified according to the average price of the taxpayer's similar taxable behavior in the recent period; (2) According to the average price of similar taxable behaviors of other taxpayers in the recent period; ③ Approved according to the following formula: turnover = operating cost or project cost × (1+cost profit rate) ÷ (1-business tax rate). The cost profit rate in the formula shall be determined by the tax bureaus of provinces, autonomous regions and municipalities directly under the Central Government. The new rules change the item (1) of the old rules from "current month" to "latest period", which makes it more feasible in practical operation. The provisions of the enumeration method "similar taxable services, transfer of intangible assets or sales of similar real estate" are changed to "similar taxable acts", which avoids the disputes in the actual operation process caused by incomplete enumeration. Item (2) adds "other taxpayers", so that the market price can be applied, and it can also avoid the problem that the export commodities that are not produced or sold by your own unit are regarded as the increase of the tax base caused by artificially increasing the cost profit rate in the sales process.

ii. changes in the relevant provisions on corporate income tax for deemed sales business

since January 1, 28, the income tax policies of domestic and foreign-funded enterprises have been unified. Article 25 of the new Regulations for the Implementation of the Enterprise Income Tax Law (hereinafter referred to as the Regulations) stipulates that: if an enterprise exchanges non-monetary assets and uses goods, property and services for donation, debt repayment, sponsorship, fund-raising, advertising, samples, employee welfare or profit distribution, it shall be regarded as selling goods, transferring property or providing services, unless otherwise stipulated by the competent financial and tax authorities of the State Council. The Notice of State Taxation Administration of The People's Republic of China on the Treatment of Enterprise's Disposal of Assets Income Tax (Guo Shui Han [28] No.828) clarifies the treatment of enterprise income tax as sales behavior. Compared with the Notice of State Taxation Administration of The People's Republic of China on Issues Concerning Income Tax Treatment of Assets Disposed by Foreign-invested Enterprises (Guo Shui Han [25] No.97), which was originally applicable to foreign-funded enterprises, the provisions on enterprise income tax treatment regarded as sales business have both similarities and differences.

(1) Compared with the original policy of domestic enterprises, the new tax law

1. The new tax law replaces the concept of "self-produced goods and products" with "goods and property", and no longer distinguishes between self-produced, commissioned processing and outsourcing, especially the provision of labor services is also included in the eight acts regarded as sales.

2. Narrowed the scope of application of deemed sales. The use of self-produced goods and services in projects under construction, management departments and non-productive institutions will no longer be treated as sales. Because this part of the tax treatment is regarded as sales, on the one hand, it is necessary to increase the taxable income, on the other hand, it is necessary to increase the tax basis (depreciation will be accrued after the fixed assets are increased). From the total analysis, there is no difference in income tax, but there is a "time difference" in tax payment, so it is cancelled.

(II) Compared with the original policy of foreign-funded enterprises, the new tax law

1. Some provisions in the income tax law of foreign-funded enterprises are retained. ① The situation that sales revenue is not regarded as the same has remained basically unchanged. Document No.828 in Guoshuihan [28] followed the five cases in which document No.97 in Guoshuihan [25] was not regarded as sales revenue, and changed "including but not limited to the following cases" into "other uses that do not change the ownership of assets" as the sixth case; At the same time, according to Article 25 of the Regulations, the "unconfirmed income" of internal disposal assets is clearly defined as "not regarded as sales confirmed income". ② All six situations that do not belong to internal disposal of assets are used. Document No.828 [28] of the State Administration of Taxation has all followed the six situations of document No.97 [25] that "assets do not belong to internal disposal because the ownership of assets has changed", and at the same time, according to Article 25 of the Regulations, these six situations are clearly defined as "income should be determined as sales according to regulations". ③ Consistency with accounting standards. Document No.97 of Guoshuihan [25] adopts the same principle as that of income recognition in accounting standards for foreign-invested enterprises. That is, it is different from the internal or external disposal of assets. Any external disposal of assets (change of ownership) is subject to income tax as sales, and vice versa. ④ It is emphasized that the exchange of non-monetary assets should be regarded as sales.

2. major changes. ① The scope of applicable subjects is expanded. "Foreign-invested enterprises and foreign enterprises set up institutions and places in China" in document No.97 of Guoshuihan [25] has been expanded to "enterprises" defined in document No.828 of Guoshuihan [28]. ② "Historical cost" becomes "tax basis". The Regulations introduced the concept of tax basis for the first time. Accordingly, the "historical cost" of internal disposal assets with unrecognized income as mentioned in document No.97 of Guoshuihan [25] has been calculated continuously, and it has been changed into the "tax basis" calculation of the assets as stated in document No.828 of Guoshuihan [28]. ③ The tax treatment of other taxes on disposal of assets is no longer mentioned. ④ The confirmation of sales revenue of assets that do not belong to internal disposal is clarified. Guoshuihan [28] No.828 clarifies the confirmation of sales revenue of assets that are not internally disposed of mentioned in Guoshuihan [25] No.97, that is, when an enterprise encounters the circumstances specified in Article 2 of Guoshuihan [28] No.828 (which are not internally disposed of assets), the sales revenue of assets that are self-made by the enterprise shall be determined according to the external sales price of similar assets of the enterprise in the same period; For the assets that belong to outsourcing, the sales revenue can be determined according to the price at the time of purchase. ⑤ Determine the time effectiveness of the policy. Guoshuihan [28] No.828 document will be implemented as of January 1, 28. For assets disposed of before January 1, 28, if tax treatment has not been carried out after January 1, 28, it shall be implemented according to the provisions of this document.

Document No.828 of Guoshuihan [28] not only lists incompletely the situations of foreign-invested enterprises' disposal of internal assets according to the principle of prudence, but also lists the situations that do not belong to the disposal of internal assets from the opposite side. Nevertheless, there are still doubts about the judgment, characterization or standards of some specific issues. For example, the document "transferring assets between the head office and its branches" is regarded as disposing of internal assets without paying taxes, but if the head office and its branches are independent taxpayers, is it not regarded as sales without paying taxes? In addition, using "for marketing or sales" instead of "for marketing or promotion", whether the "sales" in Guoshuihan [28] No.828 document is regarded as sales also leaves a lot of room for imagination.

iii. provisions on the treatment of deemed sales business in current accounting standards

The Accounting Standards for Business Enterprises No.14-Revenue (CAS 14) points out that revenue refers to the total inflow of economic benefits formed by enterprises in their daily activities, which will lead to the increase of owners' equity and has nothing to do with the capital invested by owners. Only when the income from selling goods meets the following conditions can it be recognized: ① The enterprise has transferred the main risks and rewards of commodity ownership to the buyer; (2) The enterprise has neither retained the right to continue management, which is usually associated with ownership, nor effectively controlled the sold goods; ③ The amount of income can be measured reliably; (4) related economic benefits are likely to flow to enterprises; ⑤ Related costs that have occurred or will occur can be measured reliably. Donation in kind cannot meet the above five conditions at the same time, and donation in kind is not the daily business activities of the enterprise, not the normal operation of the enterprise, but the expenditure unrelated to the business activities of the enterprise. Donation itself cannot bring any relevant economic benefits to the enterprise, so the author thinks that it cannot be regarded as sales treatment. If the material object is used in projects under construction, management departments, non-production institutions, collective welfare, etc., because the above five conditions cannot be met at the same time, the income is not recognized. For other acts regarded as sales, accounting should recognize and confirm the income.

some people think that since the value-added tax law regards donation as sales, it should be treated as sales in accordance with the tax law in the absence of clear provisions on accounting treatment, and the treatment as sales increases the sales (business) income, which is beneficial to enterprises, and also increases the base of accrued business entertainment expenses, advertising expenses and business publicity expenses. In my opinion, even if accountants have the right of independent choice and judgment, according to the five conditions of CAS14 and the definition of income, donation as income is at least not rigorous and does not conform to the spirit of accounting standards.

IV. Differences and coordination between tax law and accounting treatment provisions

1. Use self-produced and commissioned goods for accounting treatment of non-VAT taxable items and differences and coordination of tax law. It is not a sales business for an enterprise to use goods produced by itself or commissioned for processing for non-VAT taxable items according to accounting standards and tax laws. However, some of the "input tax" has been deducted from the "output tax" from the raw materials consumed by the goods produced by themselves or entrusted for processing and the processing fees paid. In addition, if these non-VAT taxable items directly consume purchased goods containing VAT, the material cost included in these non-VAT items includes VAT. In order to make the costs of various non-VAT taxable items easy to compare, the non-VAT taxable items are collected from.