(Liu Yun) how to deal with the tax risks of commodity trading? Here's a strategy! [zinc oxide Forum]

SMM: at the 2021 Green Zinc Salt and Zinc oxide Industry Summit Forum held by SMM, Liu Yun, former senior director of the Inspection Bureau of the Shanghai Taxation Bureau of the State Administration of Taxation, shared the tax risks and coping strategies of commodities on the spot. He explained the definition, trading characteristics, tax risks and how to deal with commodities.

I. definition of commodities

Commodities refer to the material goods that can be bought and sold in large quantities in the field of circulation, non-retail, commodity attributes and used in industrial and agricultural production and consumption. In the field of financial investment, commodities refer to commodities that are homogeneous, tradable and widely used as industrial basic materials, such as crude oil (oil products), non-ferrous metals, ferrous metals, agricultural products, iron ore, coal and so on.

II. Characteristics of commodity trading

1. Standardization of transaction varieties

2. Large number of transactions

3. Large transaction amount

4. High transaction frequency and fast capital turnover

5. in the trading link, the traded goods are not easily overturned.

6. in the actual intermediary transaction, the warehouse receipt is used as the goods transfer document in the goods transaction.

III. Tax-related risks of commodities

First, let's take a look at the taxes payable on commodities:

Stamp duty

Stamp duty is a tax levied on various contracts, property rights transfer documents, business account books, rights licenses and other taxable documents executed in economic activities. Purchase and sale contract: according to the purchase and sale amount of 3/10000 decals;

two。 Value added tax

A turnover tax levied on the increase in the value of commodities at all stages of the production and operation process. Commodities are traded at a rate of 13%.

3. corporate income tax

When enterprises engaged in commodities make profits, they pay 25% tax enterprise income tax according to "tax profits".

4. Consumption tax

Consumption tax is a general term for taxes that take the turnover of consumer goods as the object of taxation, and most of them are paid in production or import links. Consumption tax shall be levied by three methods: ad valorem rate, ad valorem quota and ad valorem compound calculation.

Let's take a look at the tax risks of commodity trading:

1. The transaction volume is large, accordingly, a large amount of special VAT invoices are required, which can easily lead to tax verification and ticket suspension.

2. The counterparty is uncertain and scattered, and once the counterparty escapes, it will lead to the risk that the input invoice cannot be deducted.

3. if the tax department levies taxes in full accordance with the provisions of stamp duty, the transaction cost will be greatly increased.

4. Compared with the huge trading volume, the tax burden rate of commodity trading is very low, which is easy to cause tax inspection.

5. Commodity trading is alienated as a "means of trade financing", and it is very easy to be judged as "falsely issuing special invoices for value-added tax".

6. Annual tax inspection tasks and commodity trading are all on the list.

7. Individual commodities become tools for criminal gangs to evade taxes and make exorbitant profits.

IV. How to deal with the tax-related risks of commodity trading

1. Ensure the authenticity of the business: ticket, money, property, evidence chain

2. Try to fix counterparties (including upstream and downstream counterparties) on the premise of ensuring the authenticity of the business.

3. After the occurrence of tax-related incidents, actively communicate and provide complete transaction vouchers to the tax department as far as possible, so as to confirm the authenticity of the business and avoid falling into the trap of "falsely issuing special VAT invoices".

4. try to avoid participation in commodities that you are not familiar with.