Kunpeng Project
Can the free chewing gum tickets provided by supermarkets be tax deductible? Interpretation of tax regulations
With regard to the question of whether the purchase invoices of chewing gum provided by a supermarket company to customers free of charge can be deducted from taxes, according to Article 4 of the Detailed Rules for the Implementation of the Provisional Regulations on Value-Added Tax, if a supermarket company provides chewing gum to other units or private individuals free of charge, it shall be deemed to be a sale. In this case, the input VAT paid by the supermarket company when purchasing imported gum can be deducted from the output tax.
Specifically, department stores are subject to a certain amount of VAT when purchasing chewing gum. When a department store distributes these chewing gums to customers free of charge, the department store is obliged to include the sales of these chewing gums in the VAT tax base in accordance with the rules of intent to sell, and can also deduct the input tax paid on previous purchases.
For example, let's say a supermarket pays $100 in VAT on a purchase of chewing gum and then gives it away to customers for free. When paying taxes, supermarkets must include the $100 in their sales and can deduct the $100 input tax paid on the previous purchase. As a result, supermarkets will be reduced by $100 when calculating VAT.
It should be noted that the above situation only applies to the case of giving chewing gum to customers free of charge, so the relevant regulations can be applied for tax deduction. If the supermarket** chewing gum is not given away for free, VAT can be calculated according to the normal sales process.