The first method: Xiao Zhang believes that according to the relevant regulations on export tax rebates, the income should be recognized based on the FOB price (free on board price of export goods). For freight and insurance, It is listed in the current account.
Second method: Xiao Wang believes that the tax law’s recognition of export income at FOB price is for the need for tax refunds, while for other taxes, such as corporate income tax, There is no requirement that enterprises must recognize revenue based on the FOB price. Revenue can be recognized based on the CIF price. Freight and insurance do not need to be listed separately.
Analysis: How to confirm the income from exporting at CIF price?
According to "Exports of Manufacturing Enterprises" According to the "Operation Procedures for the Administration of Tax Exemption, Credit and Refund" for Goods, the amount of "exemption, credit and refund" of tax on exported goods by a manufacturing enterprise shall be calculated based on the FOB price of exported goods and the tax refund rate for exported goods. The FOB price of exported goods shall be based on the FOB price on the export invoice (if an agent is entrusted to export, the export invoice may be issued by the entrusting party or the entrusted party). If the transaction is concluded under other price conditions, the FOB price shall be deducted. The accounting system stipulates that the deduction of freight, insurance premiums, commissions, etc. from export sales revenue is allowed. Xiao Zhang adopts the first method to confirm income at the FOB price. Corporate accounting, value-added tax declaration, and tax refund declaration are all determined based on the FOB price. This can maintain the consistency of the three and facilitate the verification of data, especially the verification of tax refund data by tax authorities.
According to the provisions of the "Implementation Rules of the Interim Regulations on Value-Added Tax", extra-price expenses include handling fees, subsidies, compensation, transportation and handling fees charged to the buyer outside the price, and Other extra-price charges of various natures. Therefore, the freight charges included in the CIF price are extra-price expenses and should be included in the income. Moreover, the export tax rebate itself is a tax refund for value-added tax and consumption tax. The concept of extra-price expenses also applies to export income. So the second method adopted by Xiao Wang also makes sense.
For these two methods of export revenue recognition, profits have not changed for the enterprise. The biggest difference between the two is that the revenue base is different. The second method has an increase in revenue base. As the number increases, the base for enterprises to accrue entertainment expenses, advertising expenses and publicity expenses also increases. at presentTax laws and accounting standards do not have uniform regulations on which method should be used to recognize export income.
Suggestion: The author believes that the above problems can be dealt with in two steps:
First , it is clear that export tax rebates are targeted at the scope of value-added tax and consumption tax. Extra-price expenses are also applicable to the recognition of export income. Transportation fees also need to be included in income. However, in order to be consistent and verified with the export tax rebate declaration, usually follow the first method first. Recognizing export revenue means temporarily recognizing revenue based on the FOB price, and shipping premiums are temporarily recorded in the current account.
Second, at the end of the year, companies should be allowed to use the transportation premium paid as a provision for calculating entertainment expenses and advertising expenses when calculating corporate income tax. Cardinality.
