Planning with pricing autonomy

For example, A, B and C are three independent accounting enterprises within the group company, and there is a purchase and sale relationship between them: the products produced by A enterprise can be used as raw materials for B enterprise, while 80% of the products manufactured by B enterprise are provided to C enterprise. See the table below for relevant information:

Name of enterprise VAT rate Income tax rate Production quantity Normal market price Transfer price

A17% 33%1000 500 400

B17% 33%1000 600 500

C17% 33%1000 700 700

Note: All the above prices include tax.

Suppose that the input tax of enterprise A is 40,000 yuan, and the annual market interest rate is 24%. If all three enterprises settle the payment at the normal market price, the VAT payable is as follows:

VAT payable by enterprise A =1000× 500×17% ÷ (1+17%)-40000.

＝72650－40000

= 32650 (yuan)

VAT payable by enterprise B =1000× 600×17% ÷ (1+17%)-72650

＝87 180－72650

=14529 (yuan)

VAT payable by enterprise C = 800× 700×17% ÷ (1+17%)-87180× 80%.

＝8 1368－69744

=11624 (yuan)

Total VAT payable by the Group = 32,650+14529+11624.

= 58803 (yuan)

However, when three enterprises adopt transfer price, the payable VAT is as follows:

VAT payable by enterprise A =1000× 400×17% ÷ (1+17%)-40000.

＝58 120－40000

＝ 18 120

VAT payable by enterprise B = (800× 500+200× 600 )×17% ÷ (1+17%)-58120.

＝75556－58 120

=17436 (yuan)

VAT payable by enterprise C = 800× 700×17%/(1+17%)-800× 500×17% ÷ (1+/kloc-)

＝8 1367－58 120

= 23247 (yuan)

Total VAT payable by the Group =18120+17436+23247 = 58803 (yuan)

Planning by using the relevant provisions of fixed assets

The tax law stipulates that the input tax of fixed assets purchased by an enterprise, whether purchased domestically, imported or donated, shall not be deducted from the output tax of goods.

This undoubtedly means an increase in tax burden for taxpayers. In order to reduce the tax burden, if enterprises need fixed assets, they should try not to outsource what they can make. The purchase of materials and spare parts required for self-made fixed assets can be legally deducted from the current output tax, thus reducing a part of value-added tax accordingly. In addition, the scope of fixed assets that cannot be deducted from the input tax stipulated in the VAT regulations is smaller than that stipulated in the general principles of enterprise finance and accounting standards, and it does not include real estate such as houses and buildings.

China implements production-oriented value-added tax, that is, goods or taxable services purchased with non-taxable items shall not be deducted from the output tax. New construction, reconstruction, expansion, repair and decoration of buildings by taxpayers are non-taxable items, no matter how the accounting system is calculated. Therefore, the input tax amount of the repair fee for the above contents shall not be charged. However, in practical work, taxpayers can treat it differently: the input tax on the repair costs of houses and buildings is not charged, but the input tax on the repair costs of machinery and equipment can be deducted from the current output tax. Although this practice is based on the principle of productive value-added tax, it allows different treatment methods in practical work.

Fixed assets other than yachts, motorcycles and automobiles that have been used by units and individual operators are temporarily exempted from value-added tax. The fixed assets mentioned here have specific qualifications:

(1) belongs to the goods listed in the fixed assets catalogue of enterprises;

(2) Goods managed by the enterprise according to its fixed assets and actually used;

(3) Goods whose selling price does not exceed its original value.

If the above conditions are not met at the same time, value-added tax will be levied at the rate of 6% regardless of the accounting system. For the purpose of updating equipment and revitalizing idle assets, enterprises sometimes sell fixed assets that have been used or are in use. Due to the existence of tax factors, a high sales price may not necessarily bring a high cash inflow.

For example, an enterprise plans to sell a fixed asset that has been used for two years. The original book value of the fixed asset is100000 yuan, and the depreciated value is130000 yuan. If the enterprise sells this asset at the price of 1020,000 yuan, because1020,000 yuan exceeds the original value, it needs to pay value-added tax of102 ÷ (1+4%) × 4% = 39,200 yuan. Net income of the enterprise102-3.92 = 980,800 yuan.

If the enterprise reduces the price to 990,000 yuan, although the income from the buyer is 30,000 yuan less, the net income of the enterprise increases by 99-98.08 = 0.92 million yuan due to the disappearance of the tax obligation.

In addition, due to the decrease of the sales price, the enterprise can put forward stricter payment requirements to the buyer, such as asking for advance payment. In this way, the net increase of cash inflow of enterprises will be more than 9200 yuan.

Using discount sales and discount planning

In actual economic life, when an enterprise sells goods or taxable services, it does not necessarily sell them at the original price, but in order to urge buyers to buy more goods, it often gives buyers more favorable prices. According to the tax law, the taxpayer can only use the discount balance as the sales amount if the following three conditions are met:

1. If the sales amount and discount amount are indicated separately on the same invoice, the value-added tax can be calculated according to the discounted balance as the sales amount; If the discount amount is invoiced separately, no matter how it is handled financially, it shall not be deducted from the sales amount.

2. Discounted sales are different from sales discounts. Sales discount refers to a discount that the seller promises to give to the buyer in order to encourage the buyer to repay the payment as soon as possible. Sales discount occurs after sales, and it is a financing financial expense, so it cannot be deducted from sales.

3. Discount sales are limited to the discount of goods price. In-kind discount shall be calculated and levied VAT according to "giving others" in the "deemed sales of goods" in the VAT regulations.

In addition, after the taxpayer sells the goods, the buyer does not return them due to the variety and quality, but the seller needs to give the buyer a discount on the price, and the discounted payment can be used as the sales amount.

For example, in order to promote product sales, enterprise A stipulates that anyone who buys more than 1000 pieces of its products will be given a price discount of 20%. The unit price of this product is 10 yuan, and the discounted price is 8 yuan.

VAT payable before discount =1000×10×17% =1700 (Yuan)

VAT payable after discount =1000× 3×17% =1360 (Yuan)

The difference of VAT payable before and after discount is as follows:

1700-1360 = 340 (yuan)

For this business, the taxpayer should indicate the discount amount on the same invoice, so as to save tax on 340 yuan.

Planning by using the current output tax

Output tax refers to the sales of goods or taxable services by taxpayers, and the tax on sales of goods or taxable services is calculated at the applicable tax rate. The output tax is charged to the buyer outside the price, and its calculation formula is as follows:

Output tax = sales × tax rate

The key to saving tax by using output tax is sales volume. As far as sales volume is concerned, there are the following planning strategies:

1. When the sales revenue is realized, special settlement method is adopted to delay the entry time and extend the tax payment;

2. Packages that accompany the sales promotion of goods shall be handled separately, and sales revenue shall not be remitted;

3. Take measures not to remit the sales income after the sales of goods increase the price or the price is out of subsidy income;

4. Try to offset the sales revenue with the rebate in the sales process;

5. Take some legal and reasonable way to spend money and remit less sales revenue;

6. Commodity goods used in special projects or related facilities of the enterprise should be regarded as foreign sales, but sales are reduced by low valuation and discount on defective products;

7. Use the method for the enterprise to continue production and processing to avoid being treated as external sales;

8. barter;

9. Engage in welfare for employees or issue incentive souvenirs, sell them at low prices, or privately divide commercial goods;

10. The VAT refunded by the taxpayer to the buyer due to sales return or discount shall be deducted from the sales return or the output tax in the current period.

Planning by using the current input tax amount

Input tax refers to the value-added tax paid or borne by purchasing goods or taxable services. The input tax allowed to be deducted from the output tax is limited to the value-added tax indicated on the VAT tax deduction certificate and the value-added tax included in the price of tax-free agricultural products. Therefore, the tax saving strategies for input tax include:

1. Purchase goods with VAT invoices at the same price;

2. Taxpayers who purchase goods or taxable services should ask the other party for a special VAT invoice, and obtain the VAT stated on the special VAT invoice from the seller;

3. When taxpayers entrust the processing of goods, they not only collect special VAT invoices from the entrusting party, but also strive to make the VAT indicated on the invoices as large as possible;

4. When taxpayers import goods, they collect VAT payment vouchers from the customs and indicate the VAT amount;

5. The value-added tax included in the purchase price of duty-free agricultural products will be deducted by10% according to the price indicated on the purchase invoice or the purchase certificate approved by the tax authorities, at the deduction rate of10%;

6. In order to get the deduction smoothly, taxpayers should pay special attention to the following situations and prevent them from happening:

(1) Failing to obtain and keep tax deduction certificates for purchased goods, taxable services or goods entrusted for processing as required;

(2) the purchase of duty-free agricultural products has no purchase invoice or purchase certificate approved by the tax authorities;

(3) The tax deduction certificate for purchased goods, taxable services or entrusted processing goods fails to indicate the input tax amount and other related matters as required, or the tax amount and other related matters are not in conformity with the provisions;

7. When purchasing fixed assets, purchase some accessories of fixed assets as raw materials and get input tax deduction;

8. Purchase goods and services purchased from non-taxable and tax-free items with goods and services purchased from taxable items, and obtain VAT invoices;

9. Use part-time means to reduce the proportion of non-deductible parts.

Planning by using the reduction and exemption provisions of value-added tax

1. Items exempted from VAT

(1) Self-produced agricultural products sold by agricultural producers (including all kinds of primary products produced by planting, breeding, forestry, animal husbandry and aquaculture), where agricultural producers include units and individuals engaged in agricultural production;

(2) Contraceptive devices;

(3) Old books refer to old books and old books acquired by the society;

(4) Imported instruments and equipment directly used for scientific research, scientific experiments and teaching;

(5) Imported goods and equipment provided free of charge by foreign governments and international organizations;

(6) Equipment imported for processing, assembling and compensation trade;

(7) Direct import of special articles for the disabled by organizations of the disabled;

(8) Articles used by self-employed individuals and other individuals. Refers to goods other than yachts, motorcycles and cars subject to consumption tax.

2. Provisions on Tax Reduction and Exemption for Concurrent Business Taxpayers can obtain tax exemption and reduction if they engage in concurrent business and separately account for the sales of tax-free and tax-reduced items.

3. Provisions on the Threshold The tax law stipulates that taxpayers whose sales do not reach the threshold of value-added tax of the Ministry of Finance shall be exempted from value-added tax. The range of VAT threshold is as follows:

(1) The threshold for selling goods is the monthly sales of 600 ~ 2,000 yuan.

(2) The threshold for selling taxable services is the monthly sales of 200 ~ 800 yuan.

(3) The tax payment threshold is 50 ~ 80 yuan for each (daily) sales.

The sales mentioned here refer to small-scale taxpayers who are engaged in the production of goods or provide taxable services, and whose annual taxable sales are below/kloc-0.0 million yuan, mainly engaged in the production of goods or providing taxable services, and concurrently engaged in the wholesale and retail of goods.