(1) Tax sales discount refers to: if a taxpayer sells goods at a discount, and the sales amount and the discount amount are separately indicated on the same invoice, VAT can be levied according to the discounted sales amount; If the discount amount is invoiced separately, it shall not be deducted from the sales amount regardless of the financial treatment. Therefore, in tax practice, we should pay special attention to the point that "the sales amount and discount amount must be indicated separately on the same invoice". The reason why it is necessary to indicate the sales amount and discount amount on the same invoice is to ensure the consistency of VAT taxation and tax deduction.

If the sales amount allows the issuance of sales invoices and the discount amount allows the issuance of red-ink refund invoices, it may cause the problem that the seller calculates the output tax according to the sales amount after deducting the discount amount, while the buyer deducts the sales amount without deducting the discount amount. This practice of causing confusion in the calculation and collection of value-added tax is not allowed by the tax law.

(2) Sales discount means that after the invoice is issued, if there is a sales discount, the original invoice will be withdrawn and marked as' invalid', and a new sales invoice will be issued.

(3) As can be seen from the above, the tax regulations are discounts that occur and must be indicated on the invoice; Tax preference means that the original invoice must be returned (if the original invoice cannot be returned, the certificate issued by the local tax bureau of the buyer should be obtained and a red-ink invoice should be issued), and then a new invoice should be issued.

In addition, commercial discounts are limited to discounts on commodity prices. If the seller discounts the goods produced, processed or purchased as goods in kind, he cannot deduct the amount in kind from the sales of the goods, and shall calculate and pay the value-added tax in accordance with Article 4 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax.

Second, the difference between discount sales, sales discounts and sales discounts from the accounting point of view:

(1) Discounted sales, also known as commercial discounts, are sales after discounts, which is what we usually call "discounts". The accountant confirms the sales revenue according to the discount amount. Deduct directly from the unit price.

(2) Sales discount is a kind of discount after sales, which is what we usually call "cash discount". This is a kind of financial management, which is the relief of accounts receivable given to customers by enterprises in order to recover the payment in advance, and should be included in the financial expenses when it actually happens.

Accounting entries:

When collecting money:

Debit: bank deposit

financial expenses

Credit: accounts receivable

(3) The sales discount is due to the product quality problem of the enterprise, and the preferential price given to the buyer should offset the sales revenue. But be careful not to offset the cost of sales, because goods are not returned, which is different from sales returns.

Accounting entries:

In case of discount:

Debit: main business income

Taxes payable-VAT payable-output tax

Credit: accounts receivable

Extended data:

Commercial discount, cash discount and sales discount are common sales methods at present, but the concepts of accounting and tax treatment for them are vague in enterprises. According to the current accounting standards for enterprises, the enterprise income tax law and the provisional regulations on value-added tax, the above businesses are compared and explained.

Comparison of business processing of commercial discount

Commercial discount refers to the price deduction given by an enterprise from the marked price of goods in order to promote the sales of goods, so it does not affect the measurement of the income from selling goods. The definition of business discount in tax law is consistent with accounting standards. According to the interpretation of "Regulations on the Implementation of the Income Tax Law of People's Republic of China (PRC) and its Application Guide", if the sale of goods involves commercial discounts, the amount of sales revenue shall be determined according to the amount after commercial discounts. It can be seen that the tax treatment of commercial discounts is the same as the accounting treatment.

In practice, there are two ways of business discount. One is discount sales, that is, invoice is issued according to the discount amount, income is confirmed and output tax is calculated; The second is the sales discount, that is, the sales before the discount and the discount amount are on the same invoice. These two practices are in line with the current regulations on turnover tax, income tax treatment and accounting treatment.

Comparison of business processing of cash discount

Cash discount refers to the debt deduction provided to the debtor by the creditor to encourage the debtor to pay within the prescribed time limit when the income from selling goods is determined. There are two ways to deal with cash discounts: one is to measure income according to the net amount after deducting cash discounts from the total contract price; The second is to measure the income in full according to the total contract price. China's accounting standards for business enterprises adopt the second method. In this way, when the cash discount actually occurs, it is directly included in the current profit and loss.

According to the interpretation of the Implementation Regulations of People's Republic of China (PRC) Income Tax Law, if the sale of goods involves cash discount, the amount of income from the sale of goods shall be determined according to the amount before deducting the cash discount. Cash discount is included in the current profit and loss when it actually occurs.

Therefore, the tax treatment of cash discount is consistent with the accounting treatment. The legal basis for allowing pre-tax deduction of cash discounts should be the discount conditions indicated in the purchase and sale contracts and related receipts. The cash discount obtained by the buyer offsets the financial expenses. As for whether the cash discount obtained by the buyer is transferred out of the input tax, there is controversy in actual operation.

Comparison of business processing of sales discount

Sales discount refers to the sales price discount given by an enterprise because the quality of the goods it sells is unqualified. The sales behavior comes first, and the buyer wants to reduce the price. And in general, sales discounts occur after sales revenue has been confirmed. Therefore, when a sales discount occurs, the sales income of the current commodity should be directly offset. It should be noted that if the sales discount is a matter after the balance sheet date, it shall be handled in accordance with the relevant provisions of the Accounting Standards for Enterprises No.29-Matters after the Balance Sheet Date.

According to the interpretation of the Guide to the Interpretation and Application of the Implementation Regulations of People's Republic of China (PRC) Income Tax Law, the value-added tax and income tax treatment of sales discounts are completely consistent with the accounting treatment, and both offset the current sales income and output tax when they actually occur.

According to Articles 14 to 18 of the Provisions on the Use of Special VAT Invoices (Guo Shui Fa [2006]156), if a general taxpayer obtains a special invoice that does not meet the conditions for invalidation, or some sales are returned or discounted, the buyer shall fill in the Application Form for Issuing Special VAT Invoices with the special financial seal of the general taxpayer. The competent tax authorities shall, after examining the application forms filled out by ordinary taxpayers, issue a notice for issuing special VAT invoices in red ink. The buyer must transfer the value-added tax amount listed in the notice from the current input tax amount, and those not deducted from the value-added tax amount can be included in the current input tax amount. After obtaining the special red-letter invoice issued by the seller (issued with negative output in the anti-counterfeiting tax control system), it will be used as an accounting voucher together with the retained copy.

Article 1 of the Supplementary Notice of State Taxation Administration of The People's Republic of China on Amending the Provisions on the Use of Special VAT Invoices (Guo Shui Fa [2007]18) stipulates that after a general taxpayer issues a special VAT invoice, it is necessary to issue a red-ink special invoice due to reasons such as sales return, sales discount, and incorrect invoicing, and according to different situations, it shall be handled in the following two ways:

1. If it is impossible to authenticate the special invoice deduction and invoice deduction, or if the goods purchased by the buyer are not within the scope of VAT deduction, and the obtained special invoice has not been authenticated, the buyer shall fill in the application form, fill in the specific reasons and the information corresponding to the special invoice in blue on the application form, and issue a notice after examination by the competent tax authorities. The buyer will not transfer the input tax.

2. In case of sales return or sales discount, in addition to the provisions of the Notice, the seller shall also submit a copy of the corresponding accounting voucher for this business to the competent tax authorities for the record after issuing a special red invoice.

According to the provisions of the tax law, the events after the balance sheet date before the year-end settlement of an enterprise, which involve the adjustment of taxable income, should be regarded as the tax adjustment in the accounting reporting year. After the year-end settlement of the enterprise, the adjustment of taxable income involved in matters after the balance sheet date shall be regarded as the tax adjustment of this year. Because the final settlement of income tax generally occurs after the financial report is approved and submitted, and before the expiration of the income tax settlement period (May 3 1), taxpayers can apply for tax declaration again. Therefore, the tax treatment of sales discounts belonging to events after the balance sheet date is the same as the accounting treatment.

In addition, in order to promote sales, some enterprises agreed with customers to sell goods and issue special VAT invoices to the buyers. Because the buyers bought a certain number of goods in a certain period of time or because the market price dropped, the sellers gave the buyers price concessions or compensation and other corresponding discounts and concessions. In this regard, the Notice of State Taxation Administration of The People's Republic of China on Issuing Red-ink Special VAT Invoices with Taxpayers' Discount (Guo [2006]1279) stipulates that the above sellers can only issue red-ink special VAT invoices in accordance with the relevant provisions of the current Regulations on the Administration of the Use of Special VAT Invoices.

In accounting treatment, the seller should offset the sales income and output tax, and the buyer should offset the cost of the sold and stocked goods accordingly and transfer out the input tax.

Announcement of State Taxation Administration of The People's Republic of China on unifying the standards of small-scale taxpayers and other VAT issues