Usually, the behavior of similar companies can be classified as physical discount. However, the discount stipulated in the Provisional Regulations on Value-added Tax mainly refers to the price discount, while the physical discount is regarded as a free gift according to the regulations, and the turnover tax should be treated as sales. Moreover, such donations are not public welfare disaster relief donations, and related expenses are not allowed to be deducted before tax in terms of income tax. Therefore, according to the operation mode of the unit, there is no problem with the tax authorities' statement. The discount that can be deducted according to the tax law is the price discount. If the company can convert the policy of giving away in kind into price discount, that is, when the policy is announced and when the actual sales are invoiced, the so-called gift products can be converted into price discount, and the quantity, amount and discount are stated on the same invoice, there will generally be no objection.

In addition, the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Issuing Red-ink Special VAT Invoice for Taxpayers' Discounting Behavior (Guo [2006]1279) stipulates: "After a taxpayer sells goods and issues a special VAT invoice to the buyer, the seller can only give the buyer corresponding discounts or concessions such as price concessions or compensation because the buyer has purchased a certain amount of goods within a certain period of time or because the market price has dropped. Therefore, in case of similar situation, your company can also handle it according to the spirit of this letter.