Since July 1 2004, all kinds of return income (calculated according to a certain proportion, amount and quantity) collected by commercial enterprises from suppliers should be deducted from the current VAT input tax in accordance with the relevant provisions on flat sales rebate behavior. The calculation formula of input tax to be deducted is adjusted as follows:

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

Commercial enterprises shall not issue special invoices for value-added tax on all kinds of returned income collected from suppliers. 2. Flat sales rebate: that is, the production enterprise sells the goods to commercial enterprises at the distribution price equal to or higher than that of commercial enterprises, and then the commercial enterprises sell them at the purchase cost or even lower, and the production enterprises make up for the loss of the purchase price difference of commercial enterprises by returning profits.

It is called "flat sales" mainly because the sales price of a commodity is usually set to its purchase price, even lower than the purchase price, and it is called "rebate" because the seller has to return a certain amount of profits linked to the sales of the commodity from the supplier as operating income.

According to the notice 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]136):

1. The income collected by commercial enterprises from suppliers is not necessarily related to the sales volume and sales volume of commodities. Commercial enterprises provide certain services to suppliers, such as entrance fees, advertising promotion fees, shelf fees, exhibition fees and management fees. , does not belong to flat sales rebate, and does not 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 linked to sales volume and sales volume (such as 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, and no business tax shall be levied. ?

All kinds of income collected by commercial enterprises from suppliers are not allowed to issue special invoices for value-added tax. ?

The calculation formula of input tax to be deducted is 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.

For example, enterprise A buys a batch of goods from its supplier B at the price of 100 yuan/set, and agrees with B that A sells the goods at the price of 100 yuan/set, and each set sold can collect profits from B and return it to 10 yuan.