Recognitions on Mixed Sales Confirmation

Abstract

Taxation treatment concerning mixed sales transaction is always a heatedly discussed and designed topic by tax payers in China, non-taxable labor services is a very complicated transaction issue in value-added tax transaction, which is often disputed by tax payers and tax officers. If mixed sale transaction could not be confirmed properly, corporate tax cost may increase, as well as causes relevant risks because of incorrect division in business. This paper will discuss some issues on differences between mixed sale behavior and mixed non-taxable labor services, the specific confirmation on tax types concerning non-taxable labor services and some problems should be paid great attention on mixed sale transaction, in order to provide some beneficial references to corporate operations and tax-related activities.