The characteristic of consignment is that the principal is only an agent. After the consignor sends out the goods, the ownership has not been transferred to the consignor, so the main risks and rewards in the ownership of the goods are still on the consignor.

Consignment of goods has the following three characteristics:

(1) The ownership of the consignment goods belongs to the entrusting party;

(2) The Consignee sells according to the conditions (such as price) stipulated by the Entrusting Party;

(3) The income from commodity sales belongs to the entrusting party, and the entrusted party only charges the handling fee.

In the fair-price purchase and sale business, the production enterprise (seller or supplier) sells the goods to commercial enterprises, and the risks and rewards related to the goods have been transferred. The goods are the goods of commercial enterprises, and there is no principal-agent relationship between the two parties. It's just that suppliers negotiate with commercial enterprises to sell their goods at the purchase price (parity) in order to control the final selling price of their goods and make their goods more competitive. After the sale, he will press.

For details, please refer to China Finance and Taxation Network:

Correctly understand the tax difference between commission and fixed tax refund/ntax/apps/case/index.php/article/displayarticle/articleid/8478.