Sales are handled according to normal business, and rebates are included in selling expenses.
Please refer to below for details.
1. The concept of sales rebate
Sales rebate is the manufacturer in order to encourage and promote the buyer (business) of the enterprise's product sales, according to the sales situation and give the buyer (business) a certain profit return. There are many ways of sales rebate, such as direct return of funds by the supplier to the business, investment to the business, gift in kind, issue welfare goods to the business, and provide travel. Rebate is a tax \"concept\" rather than an accounting concept, accounting standards have no clear provisions on it, according to its nature should be listed as an operating expense.
2. Tax treatment
Although the sales rebate is called \"rebate\" in the surface form, it is still a price concession in essence, just because the concession needs to be based on the supplier's annual (or a period of time) sales to the end of the year (or settlement period) to decide whether to exist and how much.
In daily practice, there are two main situations to deal with the sale of profits: first, the seller according to the size of the buyer's purchase volume from their own sales profit to the buyer, the seller often with the buyer's legal bill (or the seller issued by the red letter sales invoice) for sales expenses or write-off sales revenue processing, this situation can not be offset sales income and sales tax. If the red letter sales invoice issued by the seller can not be deducted from the calculation of income tax sales income. So, this treatment is very bad for the seller; The second is to deal with the sales discount. After the seller requests the buyer to the local tax authority of the buyer to issue the \"Purchase withdrawal or request for discount Certificate\
3. Correct issuance of sales rebate invoice
According to the provisions of relevant tax policies, there are two types of rebate income invoices obtained by production enterprises from sales enterprises. One is the various return income linked to the sales volume of goods and sales, and VAT ordinary invoices should be issued to offset the current VAT input tax; One is the income of certain services provided by the sales enterprise to the manufacturer, such as entrance fee, advertising promotion fee, listing fee, display fee, management fee, etc., which is not necessarily related to the sales volume and sales volume. The service industry invoice shall be issued and the business tax shall be paid.