(a) the impact on value-added tax:

The taxable amount of enterprise value-added tax is the output tax calculated according to the sales of goods or services and the prescribed tax rate, and then the value-added tax paid when purchasing goods or services is deducted, that is, the input tax, that is, the taxable amount. The confirmation of sales is directly linked to the confirmation of income. The biggest difference between the old and new income standards is that "control right transfer" replaces "risk reward right" as the judgment standard of income recognition time. When an enterprise confirms its income, it should first look at whether the performance of its obligations is based on a certain period or a certain time. If the obligation is fulfilled within a certain period of time, the provisions on the time of income recognition in the new income standard are quite different from those in the old income standard, so it has a great impact on the value-added tax. The change of income recognition method under the new tax law directly causes the change of enterprise income in accounting, and also causes the change of enterprise value-added tax.

(B) the impact of the new income standards on the occurrence time of VAT liabilities:

The main relevant provisions on the time when the obligation to pay value-added tax occurs are: Article 19 of the Provisional Regulations on Value-added Tax in People's Republic of China (PRC), Article 38 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax in the People's Republic of China, Article 45 of the Notice on Comprehensively Promoting the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2016] No.36) and People's Republic of China (PRC). There are special provisions on the occurrence and birth date of enterprise VAT tax obligation, such as collection date, sales collection date, invoice date, agreed collection date, advance payment date, ownership transfer date, delivery date, etc., which are quite different from the income recognition time required by the new income standards. Regardless of whether the income is recognized in accounting, except for special circumstances (real estate pre-sale houses, discounted bills of financial enterprises, prepaid cards, etc.). ), if the enterprise issues the invoice first, it will be confirmed as the time when the VAT tax obligation occurs on the day of issuing the invoice. Therefore, there is a certain difference between the time when accounting recognizes income and the time when VAT tax obligation occurs.

(C) the impact of special sales business treatment on enterprise value-added tax under the new income standards:

1. Sales rebate:

In the old income standard, cash discount and commercial discount in sales rebate were stipulated respectively. The new income standard requires enterprises to share contract discounts according to the proportion of fulfilling their obligations. Enterprises need to estimate the variable consideration at the beginning of the contract, and subsequent changes in the variable consideration should adjust the current income. For the sales rebate, the seller can issue a red-ink invoice. The difference of income recognition methods is mainly reflected in the influence on the value-added tax amount.

2. Sales return:

In the old income standard, it was stipulated that the income from selling goods in the current period should be offset when the return business occurred. According to the new income standard, when a customer gains control over related products, the enterprise shall recognize income according to the amount of consideration that the customer has the right to recover when transferring goods or providing services to the customer, and the returned sales amount shall be recognized as liabilities according to the estimated amount. At the same time, according to the cost of selling products, the balance of the expected cost of returned products after deducting the expected cost of recycled products is recognized as assets. Therefore, under the new income criterion, it is more complicated for enterprises to confirm the contractual liabilities and the main body of contractual assets than before. For sales return, the enterprise recognizes it as VAT output tax when selling goods. When the actual income occurs, the enterprise issues a red-ink invoice to offset the current VAT output tax. It can be seen that the differences in revenue recognition methods are mainly reflected in the impact on the current VAT amount.