First of all, sales including tax means that the total sales amount already includes the tax payable, such as value-added tax. When marking the sales amount including tax, both buyers and sellers should clearly know the specific amount and calculation method of tax, so as to accurately calculate the costs and benefits.
Secondly, sales excluding tax means that the total sales amount does not include any tax, which is a pure transaction amount. For sales excluding tax, the buyer needs to calculate and pay the corresponding tax when paying the money.
When marking whether the sales amount includes tax, enterprises or individuals should follow the relevant laws, regulations and accounting standards. At the same time, in order to avoid tax problems caused by misunderstanding or negligence, it is suggested to clearly indicate whether the sales amount includes tax in the transaction contract, and attach detailed calculation methods and basis.
In addition, for transnational transactions or areas involving different tax policies, special attention should be paid to local tax laws and tax treatment methods. In this case, it is recommended to consult a professional tax consultant or lawyer to ensure the compliance and accuracy of the transaction.
To sum up, it is an indispensable part of commercial transactions to indicate whether the sales amount includes tax or not, which is very important for both buyers and sellers and tax treatment. When conducting transactions, we should follow the relevant laws, regulations and accounting standards, clearly indicate whether the sales amount includes tax, and attach detailed calculation methods and basis.
Legal basis:
Value-added Tax Law of the People's Republic of China
Article 6 stipulates that:
Sales and VAT should be accounted for separately. The price and extra-price expenses charged by taxpayers in taxable sales activities are sales, and the value-added tax charged according to the sales amount and the tax rate stipulated in this Law is output tax. Output tax calculation formula: output tax = sales × tax rate.
Accounting Law of the People's Republic of China
Article 9 stipulates:
All units must conduct accounting according to the actual economic and business matters, fill in accounting vouchers, register accounting books and prepare financial and accounting reports. No unit may conduct accounting with false economic and business matters or materials.