How to determine when the tax liability for advance receivables occurs

On the day on which the sales payment is received or a receipt for the sale payment is obtained.

According to the Provisional Regulations of the People's Republic of China on Value-Added Tax.

1) The day on which a taxable sale occurs is the day on which the sales payment is received or the receipt of the sales payment is obtained; If the invoice is issued first, it shall be the day on which the invoice is issued.

2) For imported goods, it is the day of customs declaration.

The VAT withholding obligation is incurred on the day when the taxpayer's VAT liability is incurred.

1. Value-added tax: The sale of goods in the form of advance receipt is the day on which the goods are issued, but the production and sales of large machinery and equipment, ships, aircraft and other goods with a production period of more than 12 months shall be the day of receipt of advance payment or the date of receipt agreed in the written contract.

2. Consumption tax: if the settlement method of advance receipt is adopted, it shall be the day on which the taxable consumer goods are issued;

When the VAT liability occurred.

1. The day on which the sales of goods or taxable services is sold or the receipt of the sales payment or the receipt of the sales payment is obtained; If the invoice is issued first, it shall be the day on which the invoice is issued. At the same time, for "the day on which the sales payment is received or the voucher for the sales payment is obtained", according to the different sales settlement methods, the specific provisions are as follows:

1. Selling goods by direct payment, regardless of whether the goods are issued or not, is the day on which the sales money is received or the voucher for the sales payment is obtained;

2. Sell goods by means of collection and acceptance and entrusted bank collection, which is the day when the goods are issued and the collection procedures are completed;

3. The sale of goods by way of credit sales and installment payment shall be the day of the payment date agreed in the written contract, and the day of the delivery of the goods if there is no written contract or the written contract does not stipulate the date of payment;

4. The sale of goods by way of advance receipt shall be the day on which the goods are issued, but the production and sale of large machinery and equipment, ships, aircraft and other goods with a production period of more than 12 months shall be the day of receipt of advance payment or the date of receipt agreed in the written contract;

5. Entrusting other taxpayers to sell goods on behalf of the consignment shall be the day on which the consignment list of the consignment unit is received or all or part of the payment is received. If the consignment list and payment are not received, it shall be the day on which the consignment goods have been issued for 180 days;

6. In the case of sales of taxable services, the day on which the sales money is received or the voucher for the sales payment is obtained at the same time for the provision of labor services;

7. The day on which the taxpayer deems to sell goods shall be the day on which the goods are transferred.

2) For imported goods, it is the day of customs declaration.

When the GST liability incurred.

1. Where taxpayers sell taxable consumer goods, they shall be settled according to different sales methods:

1. If the settlement method of credit sales and installment payment is adopted, it shall be the day of the collection date agreed in the written contract, and if the written contract does not stipulate the payment date or there is no written contract, it shall be the day on which the taxable consumer goods are issued;

2. If the settlement method of advance receipt is adopted, it shall be the day on which the taxable consumer goods are issued;

3. If the method of collection and acceptance and entrustment of the bank is adopted, it shall be the day on which the taxable consumer goods are issued and the collection procedures are completed;

4. If other settlement methods are adopted, it shall be the day on which the sales money is received or the proof of the sales payment is obtained.

2. If the taxpayer produces taxable consumer goods for his own use, it shall be the day on which he or she is transferred for use.

3. If the taxpayer entrusts the processing of taxable consumer goods, it shall be the day on which the taxpayer picks up the goods.

4. If a taxpayer imports taxable consumer goods, it shall be the day of customs declaration.

The occurrence time of VAT liability on advance accounts receivable can be divided into 3 types:

1.For the production and sale of goods with a production period of less than 12 months, the tax liability shall be incurred on the day when the goods are dispatched;

2.For the production and sale of goods with a production period of more than 12 months, the tax liability shall be incurred on the day of receipt of the advance payment or the date of receipt agreed in the written contract;

3.For the taxpayer to provide tangible movable property leasing services, the tax liability arises on the day of receipt of the advance payment.

It is very simple to determine the time when the tax liability of advance receivables occurs, which has been reflected on the mobile phone, there is a time node, and this time node is the time when your tax liability occurs.

The time of occurrence of the tax liability of Advance Receipt is the day of receipt of the advance payment or the date of receipt agreed in the written contract.

Renting a house, as long as the rent is collected in advance, it needs to pay VAT. If the taxpayer provides leasing services in the form of advance payment, the tax liability shall be incurred on the day of receipt of the advance payment.

If the rental equipment is paid in advance, as long as the equipment rent is collected in advance, VAT needs to be paid.

If the construction period of production and sales of large-scale machinery and equipment exceeds 12 months, if the method of advance payment is adopted, as long as the equipment payment is received in advance, VAT needs to be paid.

For enterprises providing construction services, as long as the project payment is received in advance, they need to pay VAT in advance.

For real estate development enterprises, as long as the housing payment is received in advance, they need to pay VAT in advance.

The meaning of advance payment is: the payment of the other party has been received in advance, but the unit has not yet delivered the goods. Therefore, the higher the advance receivables, the stronger the company's competitiveness, and the company's products are currently in short supply.

When investors analyze the financial statements of listed companies, they can analyze them based on the accounts receivable in advance, and then analyze the inventory turnover in combination with the company's sales.

Legal basis

Article 38 (4) of the Detailed Rules for the Implementation of the Provisional Regulations on Value-Added Tax stipulates that the tax liability for the sale of goods by way of advance receipt shall be incurred on the day on which the goods are issued, but for the production and sale of large machinery and equipment, ships, aircraft and other goods with a production period of more than 12 months, the tax liability shall be incurred on the day of receipt of the advance payment or the date of receipt agreed in the written contract.

2. Item (2) of Article 45 of the Implementation Measures for the Pilot Project of Replacing Business Tax with Value-Added Tax (Cai Shui 2016 No. 36) is amended to read: "If a taxpayer provides leasing services in the form of advance payment, its tax liability shall be incurred on the day of receipt of the advance payment".

3. Taxpayers who obtain advance receipts for the provision of construction services shall, upon receipt of the advance receipts, pay VAT in advance at the rate specified in paragraph 3 of this Article on the balance of the advance receipts after deducting the subcontract payments paid.

For projects that should be prepaid in the place where the construction services occur in accordance with the current regulations, the taxpayer shall prepay the VAT at the place where the construction services occur when the taxpayer receives the advance payment. For projects that are not required to prepay VAT at the place where the construction services take place in accordance with the current regulations, the taxpayer shall prepay VAT at the place where the institution is located when receiving the advance payment.

The pre-levy rate for projects subject to the general tax calculation method is 2%, and the pre-levy rate for projects subject to the simplified tax calculation method is 3%.

Article 10 of the announcement of the State Administration of Taxation on the issuance of the Interim Measures for the Administration of VAT Collection on the Sales of Self-developed Real Estate Projects by Real Estate Development Enterprises (Announcement No. 18 [2016] of the State Administration of Taxation) stipulates that general taxpayers who sell self-developed real estate projects by way of advance payment shall prepay VAT at the rate of 3% upon receipt of advance payment.

The occurrence time of VAT liability on advance accounts receivable can be divided into 3 types:

1.For the production and sale of goods with a production period of more than 12 months, the tax liability shall be incurred on the day when the goods are issued;

2.For the production and sale of goods with a production period of more than 12 months, the tax liability shall be incurred on the day of receipt of the advance payment or the date of receipt agreed in the written contract;

3.For the taxpayer to provide tangible Gaosen movable property leasing services, the tax liability is incurred on the day of receipt of the advance payment.