Why are collection and advance payments also off the price?

The collection of money and advance payment mentioned here are the payments collected together with the sales price, so they are off-price expenses.

For example, if A sells goods to B, A entrusts the transportation company to transport when the goods are shipped, the transportation company invoices A, A adds the freight to the price and recovers it from B, where the freight is the disbursement fee, A obtains the invoice of the transportation company to deduct the input tax, and the freight recovered from B is calculated as an off-price expense.

Here, the collection and disbursement have the seller invoicing to the purchase of goods (goods ten transport), similar to mixed sales, the seller transfers to the direct invoicing in the name of the entrusting party (buyer), except for transportation.

1. The collection of funds and advances are off-price expenses, which are stipulated in the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-Added Tax.

2. Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-Added Tax

Article 12 The term "off-price expenses" mentioned in the first paragraph of Article 6 of the Regulations includes off-price handling fees, subsidies, fund-raising fees, return of profits, incentive fees, liquidated damages, late fees, deferred payment interest, compensation, collection of funds, advance payments, packaging fees, packaging rentals, reserve fees, quality fees, transportation and handling fees and other off-price charges of various natures. However, the following items are not included:

1) Consumption tax collected and paid on behalf of consumer goods subject to consumption tax entrusted with processing;

2) At the same time, the following conditions are met for the transportation costs:

1.The invoice for the transportation costs of the carrier department is issued to the buyer;

2.The taxpayer forwards the invoice to the purchaser.

3) At the same time, the following conditions are met to collect ** or administrative fees:

1.Approved by the Ministry of Finance, or approved by the Ministry of Finance, administrative fees approved by the provincial people, and their financial and competent departments;

2.When collecting, issue financial bills printed by the financial departments at or above the provincial level;

3.The money received is paid in full to the Treasury.

4) The insurance premium charged to the buyer for insurance at the same time as the sale of goods, as well as the vehicle acquisition tax and vehicle license fee paid by the buyer at the same time.

Collection of payments, such as mortgage fees charged by the Times Bank for the sale of cars by car sales companies, should be included in the sales amount for tax purposes.

Advance payment, such as enterprise A sells goods, advance freight 100 yuan, transportation company to enterprise A issues a transportation invoice, this freight enterprise A plus in the price of the goods from the buyer to recover, at this time freight 100 belongs to the off-price expenses in the advance payment, to calculate the output tax.

The off-the-price costs generally include the freight charge, but do not include the transportation cost that meets the following conditions:

1.The invoice for the transportation costs of the carrier department is issued to the buyer;

2.The taxpayer forwards the invoice to the purchaser.

Basis: Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-Added Tax

Article 12 The term "off-price expenses" mentioned in the first paragraph of Article 6 of the Regulations includes off-price handling fees, subsidies, fund-raising fees, return of profits, incentive fees, liquidated damages, late fees, deferred payment interest, compensation, collection of funds, advance payments, packaging fees, packaging rentals, reserve fees, quality fees, transportation and handling fees and other off-price charges of various natures. However, the following items are not included:

1) Consumption tax collected and paid on behalf of consumer goods subject to consumption tax entrusted with processing;

2) At the same time, the following conditions are met for the transportation costs:

1.The invoice for the transportation costs of the carrier department is issued to the buyer;

2.The taxpayer forwards the invoice to the purchaser.

Include. Sales amount: refers to all the price and off-price expenses charged by the taxpayer to the buyer for the sale of goods or taxable services, but does not include the output tax collected.

Off-price charges refer to off-price charges of various natures, such as handling fees charged to the purchaser outside the price. (Handling fees, shipping costs, etc.).

Excerpt: Types of off-the-money charges.

According to the nature and function of off-the-money expenses, off-the-money expenses can be divided into the following four categories:

1.The off-price expenses that belong to mixed sales mainly include handling fees, transportation fees, loading and unloading fees, reserve fees, packaging fees, packaging rentals, etc. The common feature of this type of off-price expenses is a kind of labor charge, and from the behavioral point of view, it is a direct service to sales, and it is a non-value-added tax service in nature, for example, the transportation fee belongs to the transportation industry in the business tax, the reserve fee belongs to the warehousing industry in the service industry, the packaging rent belongs to the leasing industry, and the handling fee belongs to other service industries.

According to the Detailed Rules for the Implementation of the Provisional Regulations on Value-Added Tax, if a sales act involves both goods and non-taxable services, it is a mixed sale. From the above, it can be seen that this kind of off-price expenses are essentially a kind of non-taxable service behavior in the mixed sales behavior of VAT.

2。Enterprises charge their own off-price fees separated from the price, mainly refers to subsidies, return of profits and incentive fees, etc., this kind of off-price fees have a special role for enterprises, first of all, it has a strong flexibility, both can be overcharged or less to not collect, both as a means of raising prices, can also be used as a lever to reduce prices, everything depends on the relationship between supply and demand when the business is developed and the seller's independent measurement. Secondly, this kind of off-price fee can be used as an effective means for enterprises, especially in today's fierce market competition.

Whether there is a reward fee or not, etc., can often be used as a plausible **** to achieve extraordinary results in business wars. However, from the perspective of nature, there is no difference between the purchase and the in-price sales money charged by the enterprise, and their final ** are the value-added part of the leased property, and the performance in the interests is also to increase the sales revenue of the enterprise.

3.The off-price fees collected and paid on behalf of the company mainly refer to all kinds of ** and collection tops. This kind of off-the-money expenses are more common in regular business, such as:

The power supply bureau collects the sales revenue of power products and collects the construction of the Three Gorges Project at the same time; Resource exploitation collected by coal enterprises**; Some of these off-price fees are collected on behalf of the government at all levels, and some are collected on behalf of the competent authorities, and in terms of their attribution, it cannot increase the sales revenue of the enterprise; By its nature, it is not a value-added component of the company's sales, it is a charge charged by the administrative or royal authorities, and is also included under the heading of "other payables" in the accounting treatment.

4.Compensation for off-price expenses refers to liquidated damages and interest on deferred payments. This part of the off-price expenses mainly refers to the interest charged by the seller to the buyer due to the buyer's delay in paying the purchase price.

Liquidated damages also have the nature of a penalty) is a part of the economic compensation paid by the buyer to the seller, and the nature and attribution of this top fee are analyzed as follows: assuming that the amount of deferred payment is a, the interest on deferred payment is x, and the average commercial interest rate is y during the same period.