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Tax rate down, enterprises sign contracts do pay attention to these 8 tax-related points!
Release Date:
2019/03/28
VAT will be reduced on April 1 and social security rates will be reduced on May 1. Here comes the question, what should enterprises pay attention to when signing contracts? In the face of the decline in tax rates, enterprises should pay attention to these eight tax-related points when signing contracts. First, set up special provisions for tax policy changes. Although VAT is an extra-price tax, it is also closely related to pricing and is usually an important consideration in negotiations,
VAT will be reduced on April 1 and social security rates will be reduced on May 1. The question is, what should enterprises pay attention to when signing contracts?
Enterprises sign contracts in the face of falling tax rates.
Attention should be paid to these 8 tax-related points
Pay attention to point one, set up tax policy change special provisions.
Although value-added tax is an extra-price tax, it is also closely related to pricing and is usually an important consideration in negotiations. In signing contracts around April 1, it is necessary to clarify the reduction of the value-added tax rate to avoid disputes. Of course, such civil agreements shall not violate the provisions of tax laws and regulations.
Attention points 2. pay attention to the time when the contract takes effect and the tax obligation occurs.
Signing a contract does not mean that the contract is immediately effective, and attention needs to be paid to the time when the tax obligation occurs. For example, the tax [2016] No. 36 stipulates that the day on which the taxpayer has a taxable act and receives the sales payment or obtains the voucher for the sales payment; if the invoice is issued first, it shall be the day on which the invoice is issued.
Note that the 3. transaction price or remuneration should include tax.
From the practice of commercial transactions, the transaction price should include taxes, and the contract specifies that the transaction price includes VAT, which can reduce the possible disputes between the parties to the transaction over VAT, especially during periods of frequent tax reform.
Note that 4. clarify the identity of the counterparty taxpayer.
There are differences between ordinary taxpayers and small-scale taxpayers in the value-added tax calculation method and tax rate (collection rate). The identity of the taxpayer should be clearly defined in the transaction contract. If necessary, a copy of the business license and a copy of the qualification of ordinary taxpayers can be used as the annex to the contract, specifying the invoicing type, issuing date, delivery period, etc.
Note that the point is 5. to obtain a legal and valid deduction certificate.
The failure to obtain special VAT invoices, other compliance deduction vouchers or non-compliance will cause legal and economic losses to the recipient, and consideration may be given to associating the acquisition and issuance of VAT invoices with the obligation to receive and pay, and to agree on liquidated damages and damages for the breach of contract caused by the issuance of invoices.
Pay attention to the tax treatment of changes in the quantity and quality of the subject matter of the 6. contract.
If the subject matter of the contract changes, there may be a risk of mixed sales and side-by-side operations, and taxpayers need to be concerned about whether the changes that occur are beneficial to them and, if necessary, distinguish between the prices of different items in the contract.
Note that the point 7. the characterization of out-of-price costs.
The sales of VAT taxpayers, including not only the price, but also the out-of-price expenses, refers to the fees of various nature charged outside the price. It is suggested that the expenses not related to the price can sign independent contracts to avoid being taxed.
Pay attention to the point 8. pay attention to the three-stream consistency, to prevent the risk of false opening.
The three-stream consistency, the three certificates are unified, the contract matches the accounting treatment of the enterprise, the contract matches the tax treatment of the enterprise, and the contract matches the invoice issuance of the enterprise, making the three certificates of legal vouchers, accounting vouchers and tax vouchers unified.
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