Tax Accounting Treatment For Merchandise Sales With Return Conditions

For the sale of goods with sales return conditions, if an enterprise can reasonably estimate the possibility of return based on past experience and confirm the debt related to the return, the revenue should usually be recognized when the goods are issued.

If an enterprise can not reasonably estimate the possibility of return, it is usually necessary to confirm the revenue when the returned product is sold.

The relevant tax law stipulates that no matter whether the goods sold on the condition of sale return are returned, the total income is recognized when the goods are issued, and the value-added tax and income tax are calculated.

Because accounting and tax laws follow different points in identifying revenue.

The time differences arising therefrom should be dealt with according to the tax law.

Case 1: returns that can be reasonably estimated for the return of goods and the non balance sheet date after the year returns and the non balance sheet date after the year returns. If the quantity of the actual returned goods is in line with the return rate of the enterprise based on experience, the sales return of the confirmed revenue this month, whether it belongs to the products sold in the current year or the previous year, should be adjusted to the sales revenue and sales volume of this month, and the main business income or main business cost shall be debited or credited.

For example, Hongxin company is a general taxpayer of VAT (the VAT rate is 17%), and the corporate income tax rate is 25%.

Hongxin company sold a batch of goods to Huimin company in February 1, 2010, the selling price was 100000 yuan (excluding VAT), and the cost of goods sold was 80000 yuan.

According to the agreement signed by both sides, Huimin company has the right to return the goods. According to past experience, the probability of return is estimated to be 10%.

The goods have been issued and the money has not yet been received.

Special invoices for value-added tax have been issued without consideration of urban construction tax and educational fees.

Before May 1st, Huimin company has the right to return the goods. When the actual sales return, the value-added tax will be reduced.

The accounts of Hongxin company are as follows:

(1) when goods were issued in February 1st

Borrowing: accounts receivable 117000

Loan: main business income 100000

Tax payable - value added tax (output tax) 17000

Borrow: main business cost 80000

Loan: inventory merchandise 80000

(2) according to the "February 28th", it was confirmed that an estimated 10% was

The 3 conditions conforming to the estimated liabilities are as follows:

Borrow: main business income 10000

Credit: main business cost 8000

Estimated liabilities 2000

(3) according to the regulation, the book value of liabilities is estimated to be 2000 yuan, and the tax base is 0, resulting in a deductible temporary difference of 2000 yuan. The deferred income tax assets should be recognized as 500.

Borrower: deferred income tax assets 500

Loan: income tax expense 500

(4) sales returned before May 1st, and the actual amount of return is 10%, the amount has been paid.

According to the "Hongxin company", the red letter special invoice was issued by Fang Huimin company's application form for the issuance of the red letter value-added tax invoice, which was issued in the anti-counterfeiting tax control system.

The special invoices for the scarlet letter should correspond to the notice form.

And the copy of the corresponding account receipts of the business shall be submitted to the competent tax authorities for record after the special invoice of the red letter is opened.

Borrow: stock goods 8000

Estimated liabilities 2000

Loan: bank deposit 11700

Tax payable - value added tax (output tax) 1700

So far, the business has ended and is expected.

The book value of the accounting is 0, the tax base is 0, the deductible temporary difference will disappear, and the assets of the deferred income tax will be turned back.

Borrow: income tax expense 500

Loan: deferred income tax assets 500

(5) if the actual return volume is 8%

Borrow: stock goods 6400

Main business cost 1600

Estimated liabilities 2000

Loan: bank deposit 9360

Main business income 2000

Tax payable - value added tax (output tax) 1360

Deferred deferred tax assets

Borrow: income tax expense 500

Loan: deferred income tax assets 500

(6) if the actual return volume is 12%,

Borrow: stock goods 9600

Main business income 2000

Other payables 2000

Credit: main business cost 1600

Bank deposits 14040

Tax payable - value added tax (output tax) 2040

Deferred deferred tax assets

Borrow: income tax expense 500

Loan: deferred income tax assets 500

Case two: returns that are not reasonable enough to estimate the possibility of return, and the case of non balance sheet date after year returns 2, 1, assuming that Hongxin company can not estimate the return rate based on past experience.

The accounts of Hongxin company are as follows:

(1) when goods were issued in February 1st

Borrowing: accounts receivable 17000

Loan: tax payable - value added tax (output tax) 17000

Borrow: issue goods 80000

Loan: inventory merchandise 80000

According to the tax law, the main business revenue of Hongxin company in February 28th was 100000 yuan, the main business cost was 80000 yuan, and accounting did not confirm the fixed income and cost.

According to the "accounting standards for Enterprises No. eighteenth - income tax", the temporary difference is due to the difference between the book value of assets or liabilities and the basis of tax basis, but there are still some temporary differences which are not related to assets and liabilities under the new guidelines.

If some pactions or events occur, they are not reflected in the assets or liabilities of the balance sheet because they do not conform to the conditions of recognition of assets and liabilities, but the differences between book value and tax base are also temporary differences in accordance with the provisions of the tax law.

The main business income and main business cost of Hongxin company have formed an extraordinary temporary difference of 20000 yuan stipulated in the income tax accounting standards, and the deferred income tax is recognized to be 5000 yuan.

Borrower: deferred income tax assets 5000

Loan: income tax expense 5000

(2) there was no return in May 1st.

Borrow: bank deposit 100000

Loan: main business income 100000

Borrow: main business cost 80000

Loan: issue goods 80000

Deferred deferred tax assets

Borrow: income tax expense 5000

Loan: deferred income tax assets 5000

(3) if the actual return volume is 20%,

Borrow: bank deposit 76600

Loan: main business income 80000

Tax payable - value added tax (output tax) 3400

Borrow: main business cost 64000

Goods in stock 16000

Loan: issue goods 80000

Deferred deferred tax assets

Borrow: income tax expense 5000

Loan: deferred income tax assets 5000

What needs to be explained is that the sales return within the period of the reporting year related to the events after the balance sheet date shall be adjusted as a matter of adjustment after the balance sheet date, and the relevant income and cost of the reporting year shall be adjusted. The adjustment of the profit and loss related subjects should be adjusted through the adjustment of the profit and loss in the previous year, and other assets and liabilities will remain unchanged.