Retail commercial business is a business that sells goods or services to individual consumers or final consumers, and serves as an intermediate link in the overall distribution system between producers and consumers or between wholesale businesses and consumers. Below I will unravel the business of retail commercial enterprise, I hope to help you.
Retail commercial enterprise business approachLarge commercial retail enterprises as the most competitive part of China's market, its promotional tools are more and more dazzling. And as a business decision maker, before choosing a specific promotional program needs to consider all aspects of the factors, but the tax aspect is often ignored. In this paper, we try to analyze the VAT tax under eight common commercial retailers' promotional methods to provide business decision makers with the order of choosing promotional methods under the perspective of tax avoidance: direct discount sales are better than cash back, and cash back is better than coupons or gifts in kind.
With China's economic development and the overall national strength of the enhancement of our people's spending power in the continuous improvement of the shopping malls in major cities have opened more and more, more and more big. From the initial small and medium-sized department stores to the present can let a person a few days are not finished shopping Pin Pin Mao, commercial promotional war is more and more intense, the pattern is endless. At present, large commercial retail enterprises in major cities across the country, including commercial groups, shopping centers, retail malls, supermarket chains, home appliance retailers, and a variety of specialty stores promotional methods mainly include discount sales, shopping coupons, out-of-priced gifts, prize sales, price reduction sales, points rebate, member discounts, limited-time shopping and other eight forms. These different types of promotional tools are also known as business promotion or sales promotion in management, i.e. a way for operators to use various short-term incentives to encourage purchases in order to promote the sale of products or services. However, when deciding to launch a promotional method to stimulate and attract consumers to make purchases, commercial retailers usually only consider the financial factors such as the costs, expenses and profits of the promotional program, and often overlook the tax considerations. This article attempts to analyze the weight of various promotional methods in terms of VAT taxation from the perspective of a general VAT payer.
First of all, before choosing a specific promotional method, it is necessary to understand the provisions of the tax law related to promotions. At present, China's tax regulations involving promotional sales are mainly found in the State Tax Fa [1993] No. 154 issued by the State Administration of Taxation on December 28, 1993, "Provisions on Several Specific Issues of Value-added Tax". Taxation Basis under the heading of "Taxation basis". If a taxpayer sells goods by way of discount, if the sales amount and the discount amount are separately stated on the same invoice, the VAT can be levied on the sales amount after the discount; if the discount amount is invoiced separately, the discount amount shall not be subtracted from the sales amount regardless of how it is handled in the financial aspect. Another relevant tax law provision is Article 4 of the Provisional Regulations for the Implementation of the Provisional Regulations on Value-added Tax of the People's Republic of China issued by the Ministry of Finance and the General Administration of Taxation, No. 38 of the Cai Fa Zi [1993], dated December 25, 1993, in which the unit or self-employed person? Giving away self-produced, commissioned-processed or purchased goods to others without compensation is regarded as selling goods? which shall be subject to VAT. According to these two specific tax rules we can look at these eight promotional methods respectively in the VAT tax treatment of the amount of taxable difference:
I. Discount sales. This is one of the most common promotional tools in the commercial retail industry, that is, the operator in the original price of goods based on the implementation of certain discounts after the sale, such as apparel merchandise most commonly used ? 70% off the entire site? The most commonly used discounts for apparel products are? New models 20% off? and other promotional methods. In the accounting of VAT, discount sales are very good to deal with, only need to discount amount and sales in a shopping ticket, you can calculate VAT according to the discounted price. In other words, the tax law recognizes the concessionary behavior of the enterprise, although the enterprise lost part of the sales because of the discount sales, but the corresponding VAT tax is also reduced accordingly.
Two, shopping coupons. This is currently a large commercial retail enterprises widely used in a disguised form of discount, that is, consumers to buy a certain amount of goods, you can get the corresponding coupon, with the coupon can be in the shopping mall equivalent to cash consumption. From Beijing's Zhuang Sheng Sogo as early as 1998 was the first to launch? Full of 100 yuan back 20 yuan coupon? The way to today's? Buy 200 300?, the amount of the rebate has been rising. According to the relevant interpretation of the tax law, the coupon is equivalent to a free gift of the goods to the customer outside the normal sales of the mall, as the customer can usually only use it to exchange for goods of equivalent value. When calculating VAT, the coupon should be treated as a sale. If the customer buys 200 yuan of goods, the shopping mall coupon 100 yuan, equivalent to a gratuitous gift of 100 yuan worth of goods, assuming that the mall's gross profit margin of any goods are 50%, then: the sale of 200 yuan of goods should be subject to value-added tax = 200 / (1 + 17%)?17% - 100 / (1 + 17%)?17% = 14.53 (yuan) 100 yuan of coupons are deemed to be a sale, and should be subject to VAT = 100 / (1 + 17%)?17% - 50 / (1 + 17%)?17% = 7.27 (yuan) Total VAT payable = 14.53 + 7.27 = 21.8 (yuan)
Three, out-of-the-money gifts. That is, the purchase of a certain number of goods, you can get the corresponding merchandise gift, mainly for household appliances, cosmetics and other high-priced goods promotion. In the tax law, out-of-the-money gifts of goods should also be treated as sales, according to the market price of the items given to the tax. This kind of promotion is essentially the same as shopping coupons to achieve the same tax results.
Four, prize sales. Refers to the shopping malls according to their own sales status, the performance of goods, consumers, by giving rewards to stimulate, attract the attention of consumers, promote their desire to consume, buy goods, to achieve the purpose of expanding sales and increase efficiency. Prize sales of prizes can be cash, can also be a variety of different values of goods or shopping coupons. If the customer income for cash, it will only reduce the business financial pre-tax profit, but will not reduce the amount of VAT payable; if the prize is goods, the need to calculate the amount of VAT payable according to the purchase price of the prizes and the market price of the prizes; if the prizes for the shopping vouchers, the same as the sale of value-added tax paid.
Fifth, price reduction sales. In order to attract consumers to sell goods directly at a reduced price, that is, we usually deal with the sale of special prices. In this way, as long as the invoice is stated as special sales, you can be taxed on the sales price after the special price. For example, if a consumer buys a commodity with an original price of 200 yuan, and the merchant now offers a price reduction of 80 yuan, and indicates the original price and the actual price after the price reduction on the invoice respectively, the VAT can be calculated according to the actual 80 yuan. From the point of view of tax planning, direct price reduction sales is conducive to reasonable tax avoidance, as long as the enterprise in accordance with the provisions of the tax law will be the actual sales after the price reduction and the original price in the same shopping invoice can be indicated.
Sixth, points rebate. It refers to the shopping malls that consumers can buy designated goods to get the corresponding points, when the points reach a certain standard can get the corresponding cash or in-kind gifts. In the tax treatment, the treatment of this way of handling can be equated to the prize sales of goods or cash in the processing of the points for the physical part of the sales of value-added tax.
Seven, member discount. That is, consumers in accordance with the requirements of the merchant, to become a member of the merchant, in the activities organized by the merchant, the member can give priority to enjoy a more favorable member discount price. Some large supermarkets have initially implemented this promotion. Discounts in this way, usually as long as the provisions of the tax law, can be based on the discounted price to calculate the value-added tax.
Eight, limited-time shopping. In the time period specified by the merchant, in its designated area, the relevant goods are sold below the original price of a promotional method. Generally speaking, the goods involved in time-limited shopping are much lower than the original price of goods, the time is selected in the off-peak hours or night or even early morning. Time-limited shopping is still equivalent to discounted sales in terms of tax law, and VAT can be calculated on the discounted price as long as the discounted amount and sales amount are stated on the invoice. From the above analysis of the tax treatment of specific VAT involved in the eight major forms of promotions of large commercial retail enterprises in China, we can clearly see: under the same conditions, the VAT burden of discount sales is lower than that of cash back; cash back is superior to the sales of coupons or gifts in kind from the point of view of avoidance of tax. This result is due to the fact that the tax law only recognizes the form of discounts in the treatment of sales promotion, but not the gift of goods or cash. Therefore, the commercial retail enterprises in the choice of promotional programs, in addition to considering the alternative options for each interesting, attractive to customers and shopping malls from which the size of the profits can be obtained, but also need to be fully compared with the program may be burdened with the weight of the tax, only in the comprehensive consideration of these factors can make the optimal choice.
Retail business enterprise sales targetRetail commercial commodities sold mainly consumers need personal means of subsistence, including institutions, organizations, military, schools, enterprises and other collective needs of consumer goods. By the characteristics of personal life consumption is determined, it is compared with the wholesale business, there are more outlets, small scale of operation, each transaction volume is small and so on.
Retail business as early as in the capitalist society before the emergence of the beginning of the city, and later gradually expanded to the countryside. Its supply: ① fixed supply location, set up store, known as the sitting business. ② Stroll through the countryside, mobile sale of goods, known as traders. In the city, these two ways co-exist; in the countryside, the main vendors, only to the development of rural towns, there is only after the sitter. In capitalist society, retail commerce has been widely developed, and intensive in the city, the formation of a number of prosperous downtowns and commercial streets dominated by well-developed retail commerce, the emergence of large-scale and highly specialized stores of high quality service, and there are department stores, supermarkets, mail-order companies and other forms. With the development of the social economy and the rise of the new technological revolution, shopping centers and computer and television stores have also appeared. Retail commerce continues to develop in socialist societies. Although there are still individual businesses that exist and are allowed to develop to a certain extent, the main body of retail commerce is commerce of a socialist nature established on the basis of public ownership of the means of production, which is different from pre-capitalist and capitalist retail commerce in that it is aimed primarily at satisfying the needs of the people and safeguarding the interests of consumers.
The characteristics of retail commerce are mainly manifested in the following three aspects:
1. Frequent number of transactions and small batch size of transactions
2. High dependence on store location and store design
3. Dispersal of business premises and operation restricted by business districts
Development of Retail Commercial EnterprisesEarly Growth Characteristics
1, Basically, it is the development of market behavior Firstly, the government treats the commercial retail and catering service industry as a competitive industry, and its development resources, development direction, development scale, and development form are completely configured, selected and regulated by the market. Secondly, the government decision-making bodies and commercial authorities, the modern commercial market, industrial resources in the economic development of the status and role of the commercial market economy in the economic development of independence, dominance, decisiveness of the modern commercial retail management system, the development of the industry type of industry and changes in the form of business organization, business mode of change in the understanding of the changes need to be improved. 2, early start, slow growth, small scale From the situation in the last 3 or 4 years, the traditional state cooperation in the development of large-scale commercial enterprises slowed down, the number of reduced, shrinking business, efficiency slump, organization, scale, modernization is getting lower and lower. The gap with the development of large commercial and trade enterprises in Shanghai is getting wider and wider, and the contrast with the rapid development of the commercial and retail industries run by foreign investors and other sectors of society in the Pearl River Delta is getting stronger and stronger. Taking chain operation as an example, commercial chain operation in the Pearl River Delta had provided valuable experience for other provinces and cities in China. The first national symposium on commercial chain operation was held in Guangzhou in early March 1994 to examine on the spot the practice of commercial chain operation in the Pearl River Delta. At that time, the Pearl River Delta region had already seen the emergence of supermarkets with nearly 20 outlets. However, to date, most of the commercial chain enterprises still remain in the scale of 10-20 outlets, the largest chain system has not been able to exceed 80 outlets.
Modern retail
3, the traditional state-run business, private enterprises and foreign-funded enterprises, the three tripods in the modern commercial retail industry, the traditional state-operated business, although it occupies a place, but by the influence of traditional business ideas, in the management of the mind, enterprise system, operating mechanism, industrial structure, business form, development resources, technological progress, management structure and other fundamental issues of the establishment of a new system, basically not in accordance with the model of modern distribution industry, but also in accordance with the new system. Basically not in accordance with the model of modern circulation industry well transformed, in addition to large department stores, in the chain of supermarkets, warehousing stores, convenience stores, specialty stores, specialty stores and other modern retail business form, do not play a leading and decisive role. Instead, there are quite a number of commercial retail businesses run by other sectors, industries and enterprises of other economic compositions in society, including industry, agriculture, transportation, construction and real estate sectors. In particular, the Pearl River Delta's favorable investment environment, attracting a lot of foreign investment in the commercial retail industry, they take advantage of the government's commercial policy, mainly and the state commercial non-commercial institutions and enterprises outside the cooperation, to achieve greater autonomy and initiative in business management. 4, focusing on short-term returns, the technical composition is not high market mechanism-led modern commercial retail industry, due to the development of diversified sources of resources, coupled with the government's commercial policy, so that the primary consideration of investors is the risk of return on investment. Such as chain supermarkets, in order to reduce investment and speed up returns, local commercial enterprises appear to be very cautious in the application of advanced technological facilities and equipment, refrigeration equipment, electronic computer management of the POS system, such as less investment, for some less profitable, risky commodities, such as vegetables, fruits, meat and other commodities, but also a lack of business sense of responsibility and motivation. Although the enterprise's profit and loss threshold is relatively low, but the lack of long-term investment, technology organic composition is not high; lack of main commodities, commodity structure is unreasonable. Therefore, and large capital, high investment, high-tech foreign business in the market competition, time, obviously at a disadvantage. 5、Industry associations play an active role in promoting the development of modern commercial retailing industry Modern commercial retailing industry is a new industry made up of various economic components, industries and sectoral resources. In order to communicate with the government, commercial administrative departments and commercial retailing enterprises, coordinate the relationship between departments, industries and enterprises, and promote various new knowledge and technologies of modern commercial retailing industry, commercial retailing industry associations are established to gradually realize the development of commercial retailing from administrative management. It has set up a commercial retail industry association to gradually realize the transition from administrative management to industry management. The Guangdong Chain Store Management Association, the first of its kind in the country, has played an active and important role in promoting the development of Guangdong's modern commercial retail industry.