Tax treatment of gift certificates
Vouchers are just the rights given to consumers by price discounts or concessions. Consumers can pay less than the amount indicated on the coupon the next time they buy goods. Consumers can exercise this right or give it up.
Vouchers are not goods or services. When an enterprise issues a certificate to it, it is not regarded as a sales act, nor as a sales amount of value-added tax and enterprise income tax. When an enterprise sells goods to consumers, it shall confirm the value-added tax sales and enterprise income tax income according to the price charged (the voucher amount shall not be deducted). The specific policy basis is as follows:
1. VAT
Article 2 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax stipulates that the goods mentioned in Article 1 of the Regulations refer to tangible movable property, including electricity, heat and gas.
Article 4 stipulates that the following acts of units or individual industrial and commercial households shall be regarded as selling commodities:
Article 14 of the Measures for the Pilot Implementation of Changing Business Tax to Value-added Tax (Cai Shui [2016] No.36) stipulates that the following situations shall be regarded as sales of labor services, intangible assets or real estate:
(a) units or individual industrial and commercial households provide services to other units or individuals free of charge, except for public welfare undertakings or for the public.
(2) A unit or individual transfers intangible assets or immovable property to other units or individuals free of charge, unless it is used for public welfare or for the public.
(3) Other circumstances stipulated by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China.
According to the above provisions, as vouchers do not belong to goods, real estate, intangible assets or services, giving vouchers does not involve value-added tax.
2. Enterprise income tax
Article 25 of the Regulations for the Implementation of the Enterprise Income Tax Law stipulates that enterprises that exchange non-monetary assets, donate, repay debts, sponsor, raise funds, advertise, sample, employee welfare or distribute profits with goods, property and services shall be regarded as selling goods, transferring property or providing services, unless otherwise stipulated by the finance and taxation department of the State Council.
Article 2 of State Taxation Administration of The People's Republic of China's Notice on Handling Income Tax on Assets Disposed by Enterprises (Guo [2008] No.828) stipulates that under the following circumstances, if an enterprise transfers assets to others, and the ownership of the assets changes, it does not belong to the internal disposal of assets, and the income shall be determined as sales in accordance with the regulations.
Item (5) of Article 1 of the Notice of State Taxation Administration of The People's Republic of China on Several Issues Concerning the Confirmation of Enterprise Income Tax Revenue (No.875 [2008] of the People's Republic of China) stipulates that the price deduction given by an enterprise to promote the sale of goods belongs to commercial discount, and if the sale of goods involves commercial discount, the amount of sales revenue shall be determined according to the amount after deducting the commercial discount.
According to the above provisions, the gift of vouchers does not belong to the above-mentioned deemed sales behavior, and it is not regarded as the payment of enterprise income tax on sales.
3. Consumer personal income tax
According to Article 3 of the Announcement of State Taxation Administration of The People's Republic of China of People's Republic of China (PRC) Ministry of Finance on Taxable Items of Personal Income (Announcement No.74 of State Taxation Administration of The People's Republic of China of People's Republic of China (PRC) Ministry of Finance), enterprises randomly give gifts to individuals outside their own units in business promotion, advertising and other activities, and enterprises give gifts to individuals outside their own units in annual meetings, symposiums, celebrations and other activities. Personal income tax is calculated and paid according to the "accidental income" items, except for gifts such as consumer vouchers, vouchers, vouchers and coupons. Price discounts or concessions are given by enterprises.
Therefore, consumers do not need to pay personal income tax on the vouchers obtained by purchasing goods.
In addition, the next time consumers buy goods with vouchers, it is a commercial discount. Enterprises pay value-added tax and enterprise income tax according to the balance after deducting vouchers. When the voucher expires, the enterprise does not need to confirm the income.
Processing of voucher payment input
Borrow: raw materials
Other receivables-vouchers
Loans: bank deposits
Accounting entries at the time of payment:
Debit: accounts payable
Credit: other receivables-vouchers