According to the "State Administration of Taxation on the recognition of enterprise income tax revenue notice" (State Taxation Letter [2008] No. 875) provides that, a. In addition to the Enterprise Income Tax Law and the implementation of the regulations otherwise provided for the recognition of the enterprise sales revenue must follow the principle of the accrual system and the principle of substance over form. (E) enterprises to promote the sale of goods in the price of goods given on the price deduction is a commercial discount, the sale of goods involved in commercial discounts, should be deducted in accordance with the amount of commercial discounts to determine the amount of revenue from the sale of goods. Creditors to encourage the debtor to pay within a specified period of time to the debtor to provide debt deduction is a cash discount, the sale of goods involving cash discounts, should be deducted before the amount of cash discounts to determine the amount of revenue from the sale of goods, cash discounts in the actual occurrence of the financial expenses as a deduction.

So, according to the above documents, cash discounts in the actual occurrence of the financial expenses deducted, do not need to issue invoices.

Cash discounts should be issued red invoices

Cash discounts are in order to early recovery of accounts to the other side of the preferential, in the occurrence of should be recorded in the financial expenses, and cash discounts generally can not be discounts on VAT, so in the occurrence of red invoices do not need to be issued.

Cash discounts can be deducted before enterprise income tax

Cash discounts can be deducted before enterprise income tax.

According to the "State Administration of Taxation on the recognition of enterprise income tax revenue notice of a number of issues" (State Taxation Letter [2008] No. 875) relevant provisions: creditors in order to encourage the debtor to pay the debtor in the specified period of time to provide the debtor with the debt deduction is a cash discount, the sale of goods involved in cash discounts should be based on the amount of the amount of sales of goods before the deduction of cash discounts, the cash discounts are not deducted before the sale of goods, the cash discounts can be deducted before enterprise income tax. Discounts in the actual occurrence of financial expenses as a deduction.

That is to say, the tax law does not care when you collect money, in what way to collect money, anyway, your goods are worth so much money, you have to pay so much tax at this price. However, if you do incur a loss, it will be recorded in the "financial expenses", and then deducted for you when you pay income tax.

How do I invoice for cash discounts? On the whole, in fact, we all know that for the actual cost of promotional discounts, you can not open the relevant invoices for processing, the specific accounting treatment in the above have been introduced, if you have any other interest in this content, then you may wish to come to this site to find a teacher to learn, there are many accounting masters can guide you.