In the flat sales rebate activity, the shopping mall collects the above-mentioned return funds from suppliers, which is actually not sales revenue, but compensation for the loss of purchase and sale price difference, and can also be understood as a concession to the purchase cost price. The shopping mall will not issue an invoice for the return money collected by the shopping mall from the supplier, but the supplier will issue a special red invoice.

1, financial and tax treatment of shopping malls

Debit: bank deposit

Loan: main business cost

Taxes payable-VAT payable (transfer-out input tax)

2. Financial and tax treatment of suppliers

Debit: main business income

Taxes payable-VAT payable (output tax)

Loans: bank deposits

The supplier does not specifically reflect the sales amount of red-ink invoices in the current VAT return, but declares it as a deduction of sales income.

Extended data

Actual treatment of physical rebate in flat sales rebate

1. When the supplier returns the rebate in kind, it should also confirm that the previous income and output tax are reduced due to price discount, and the current income and output tax are increased due to the gift of goods as sales. The financial treatment of suppliers is as follows:

Debit: main business income

Taxes payable-VAT payable (output tax)

Loans: Goods in stock

Taxes payable-VAT payable (output tax)

2. When the shopping mall obtains the supplier's special red-ink invoice, it will deduct the current VAT input tax by issuing the special red-ink VAT invoice notice and the red-ink invoice, and at the same time obtain the blue-ink VAT invoice deduction of the physical rebate, and conduct accounting treatment according to the normal purchased goods.

Debit: Inventory Goods-Flat Discount

Taxes payable-VAT payable (input tax)

Loan: main business cost

Taxes payable-VAT payable (transfer-out input tax)

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