1. Packaging refers to all kinds of goods that taxpayers package by themselves. Taxpayers charge extra packaging deposit when selling goods to urge buyers to return the packaging for recycling as soon as possible.

2. According to the relevant provisions of the current value-added tax and consumption tax, the deposit income of packaging materials is accounted for separately. If the time is not overdue within one year, it will not be incorporated into the business tax, but the overdue deposit will not be refunded; Value-added tax and consumption tax shall be levied according to regulations.

Handling method of packaging deposit:

1. The packaging deposit charged for selling goods is accounted for separately. If the time is within 1 year and it has not expired, it will not be incorporated into the sales tax;

2. The deposit will not be refunded for packages that have not been recovered due to overdue (1 year) and should be incorporated into the sales tax. Pay attention to two points when taxing: First, the overdue package deposit is tax-included income, which needs to be converted into tax-free price and then incorporated into sales; Second, the tax rate is the applicable tax rate for packaged goods;

3. Alcoholic products: beer and yellow wine: processed according to whether they are expired or not; Other alcoholic products other than beer and rice wine: the deposit collected, whether overdue or not, will be incorporated into the sales tax.

To sum up, the package deposit refers to the mortgage money charged by the enterprise according to a certain standard of package value when lending the package. If the borrower is unable to return the materials due to damage or other reasons, the lender may use the deposit to make up for the losses. According to the current product tax and value-added tax regulations, the packaging deposit collected by enterprises is not taxed, but the packaging deposit overdue by enterprises should be converted into product sales income and taxed according to regulations.

Legal basis:

Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on Taxation of Packaging Margin for Alcohol Products

In order to ensure the national fiscal revenue and plug the tax loopholes, it is decided through research that the packaging deposit collected by liquor production enterprises for selling liquor products, regardless of whether the deposit is returned or not and how it is accounted for in accounting, should be incorporated into the sales of liquor products, and consumption tax should be levied according to the applicable tax rate of liquor products.