According to the circular of State Taxation Administration of The People's Republic of China on the issue of levying turnover tax on some fees charged by commercial enterprises to goods suppliers (Guo Shui Fa [2004] 1 36),1. Part of the income collected by commercial enterprises from suppliers shall be subject to VAT or business tax according to the following principles:

(1) Revenue collected by commercial enterprises from suppliers that is not necessarily related to the sales volume and sales volume of commodities, and revenue from certain services provided by commercial enterprises to suppliers, such as entrance fees, advertising fees, shelf fees, exhibition fees, management fees, etc. , does not belong to the fixed tax refund, nor does it deduct the current VAT input tax. Business tax shall be levied according to the applicable tax items and tax rates.

(2) All kinds of return income charged by commercial enterprises from suppliers, which is linked to the sales volume and sales volume of commodities (if calculated according to a certain proportion, amount and quantity), shall be deducted from the current VAT input tax in accordance with the relevant provisions on flat sales rebate behavior, and no business tax shall be levied.

Two, commercial enterprises to collect all kinds of income from suppliers, shall not issue special invoices for value-added tax.

Three, the input tax calculation formula should be adjusted to:

Input tax amount to be deducted in the current period = returned funds obtained in the current period /( 1+ VAT rate applicable to purchased goods) × VAT rate applicable to purchased goods.

Please carry out tax treatment in accordance with the above provisions.