How to issue a Purchase Confirmation when purchasing raw materials before distinguishing between domestic and export use
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Our company manufactures products by sourcing raw materials from numerous suppliers. At the time of the raw material supply, it is not yet determined whether the materials will be used for domestic sales or export sales.
1. Since a Purchase Confirmation cannot be issued without an export contract, is it better to issue it after the export has taken place?
2. Regarding the Purchase Confirmation: 1) In principle, it should be issued before receiving the goods, but 2) is it correct that a zero-rated tax invoice can still be issued if it is issued by the 10th of the month following the supply date, and 3) while post-issuance is possible within 25 days after the end of the taxable period in which the supply date falls, is it true that a zero-rated tax invoice cannot be issued in that case?
3. Since we receive raw materials from many suppliers, it seems we will need to issue Purchase Confirmations to multiple companies. I understand that the issuable amount cannot exceed the export amount stated in the export contract. In this case, if issuing after the fact, must we backtrack and calculate the required quantities based on the BOM (Bill of Materials) relative to the export volume? If so, do other companies also issue them this way?
4. When applying for a Purchase Confirmation, should we simply issue it up to the export amount limit, or must we provide supporting documentation regarding the required quantities when applying?
Answer 1
- 01. It is correct to issue it after the export contract is signed. 2. Post-issuance refers to issuing it within 25 days after the end of the tax period; in this case, the method for issuing tax invoices is to issue a regular tax invoice at the time of purchase and then issue a revised zero-rated tax invoice when the purchase confirmation is issued post-facto. 3. It varies by case, so it is difficult to know the specific circumstances of other companies. 4. When applying for the issuance of a purchase confirmation, the product name, quantity, and specifications are entered in the list of purchased goods, but no separate supporting documents are submitted as evidence. However, it is judged that the company should manage related data internally.Machine translated
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