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Risk Analysis of Pharmaceutical Enterprise sales Expense (II)

Released Date: Jan 31,2021 Article Source: Xiong Zhen, Huanze Company
In the first two articles, we have understood the main sources of bills for the sales expenses of pharmaceutical enterprises and the possible tax risks. Then how can we reasonably obtain the bills related to the sales expenses? Let's take a look:

In the first two articles, we have understood the main sources of bills for the sales expenses of pharmaceutical enterprises and the possible tax risks. Then how can we reasonably obtain the bills related to the sales expenses? Let's take a look:

3. Analysis of the legal way to obtain sales expense invoice

(1) obtaining negotiable instruments legally6Individual element

1Invoicing subject is legal

The issuing of VAT invoice is based on the premise that the issuing entity is liable for VAT payment, including the sale of goods, the provision of processing and repair services, the sale of immovable property, the transfer of intangible assets, and the sale of services. If the relevant subject (including units and individuals) has not incurred VAT tax liability, the invoice cannot be issued. To put it simply, if A sells the goods to B, it can only be invoiced by A, not by C.

2The subject of receipt is in compliance

Obviously, the subject of receipt must be the subject of purchasing goods, immovable property, intangible assets, labor or services from the issuing subject, and the subject of not purchasing VAT taxable items cannot become the subject of receipt. To put it simply, if A sells goods to B, it can only bill B, not C.

3Truth of taxable events (evidence chain)

The contents of the invoice reflect the taxable events, so the taxable events must exist. For example, to invoice the sale of goods, the drawer must have actually sold the goods to the consignee; Another example is the invoicing of a service industry. The issuing entity must actually provide the service to the drawee. If the taxable item does not exist, it cannot be invoiced. To prove the existence of taxable items, it is necessary to provide a series of evidence chains, fictitious taxable items are not withstand tax inspection.

4The capital flow is consistent

Except for free donation of goods, services and services, the subject of receipt shall, in general, pay the price to the subject of receipt, and the price shall be consistent with the invoice amount. In addition to cash payment, the price shall be paid into the account of the invoicing subject (if the invoicing subject is a natural person, it may be a personal bank card, and the individual invoicing must be transferred to the bank account). At the time of tax inspection, the relevant parties should be able to provide evidence of the payment. The price received by the issuing body is its own income, and it shall not return the money to the receiving body (or its investors or affiliated parties) in any form.

5Billing project rigorous

The invoiced items must be consistent with the actual taxable events. The goods sold must not be billed as services, nor the services to be billed as services. It is wrong to open consulting fee and promotion fee excessively in practice. In addition, invoicing items are limited by VAT tax items and sub-items. When issuing invoices, tax items and sub-items that can cover taxable matters should be selected.

6Pay taxes in full according to law

In addition to meeting the exemption conditions, the issuing entity shall pay the full amount of tax after issuing the invoice. The tax calculation of VAT is relatively simple and easy to understand, while the tax calculation of enterprise income tax and individual income tax is more complex. If the operation is improper, it is likely to form the consequences of not paying less tax or even tax evasion.

(2) Tax planning schemes

Sales expenses account for too high itself is a political mistake, the cost of the whereabouts of everyone knows, tacit understanding, at present can not have a perfect solution to the problem of sales expenses. However, if the analysis is only from the perspective of tax revenue, effective measures can be taken to prevent tax risks in advance, to ensure that the acquisition of sales expense bills is legal, compliant and reasonable, and the sales expense expenses can be fully deducted before the enterprise income tax, without affecting the principle issues such as issuance on behalf of, false issuance and sale invoice.

The author designs effective tax planning scheme according to the management characteristics of pharmaceutical enterprisesHowever, the specific planning plan needs to be designed according to the conditions, and only after the field investigation and full demonstration can we make a rigorous and meticulous planning decision with fewer loopholes.


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