One situation is that you paid for something with a credit card at the time, and then returned it, the payment will be refunded to your credit card in the same way, if it is in the same period as the transaction at that time. The amount on the bill can be offset directly.

The other thing is that if you have purchased duty-free goods overseas and applied for a tax refund, the overseas merchant will give you a tax refund after returning to your country, usually to your credit card.

Credit Card

A credit card, also called a credit card, is a credit certificate issued by a commercial bank or credit card company to consumers with qualified credit. It takes the form of a card with the issuing bank's name, validity period, number, cardholder's name and other contents printed on the front, and a magnetic stripe and signature strip on the back. Consumers holding credit cards can shop or consume at specially designated commercial service departments, and then the bank will settle the accounts with merchants and cardholders. Cardholders can overdraft within the prescribed limit.

Credit cards stipulated in the relevant laws of our country ("Interpretations of the Standing Committee of the National People's Congress on Relevant Credit Card Regulations") refer to credit cards issued by commercial banks or other financial institutions with the functions of consumption payment, credit loans, transfer settlement , cash deposit and withdrawal and other full or partial functions of the electronic payment card. On December 1, 2017, the "English Translation and Writing Standards in the Public Service Field" was officially implemented, stipulating that the standard English name of credit cards is Credit Card.

Credit card consumption is a non-cash transaction payment method. There is no need to pay cash when consumption, and repayment will be made on the billing date.

Credit cards are divided into credit cards and quasi-credit cards. Credit cards refer to credit cards in which the cardholder has a certain credit limit and can consume within the credit limit and then repay; quasi-credit card It refers to a quasi-credit card in which the cardholder deposits a certain amount of reserve fund as required. When the reserve account balance is insufficient to pay, the cardholder can overdraw within the prescribed credit limit. The so-called credit card generally refers to a credit card only.

Tax refund accounting processing

1. Value-added tax

According to the provisions of the "Enterprise Accounting System", enterprises receive "immediate refund after collection, refund after collection" If the value-added tax is directly exempted or exempted (statutory exemption) stipulated in the relevant national tax laws and regulations, it should be debited: "bank deposit" and credited: "subsidy income". Debit: "Tax payable - Value-added tax payable (tax exemption)", credit: accounting treatment of "subsidy income".

It must be noted that direct exemption and immediate refund of value-added tax should be included in the total profit of the enterprise for the current year (the tax year) to calculate and pay corporate income tax; The value-added tax returned later shall be incorporated into the total corporate profits of the year in which the enterprise actually receives the refund or tax refund to pay corporate income tax.

2. Consumption tax, business tax, resource tax, land value-added tax, and urban maintenance and construction tax

According to the provisions of the "Enterprise Accounting System", the enterprise actually receives "immediate refund upon collection, When consumption tax, business tax, resource tax, land value-added tax, and urban maintenance and construction tax are taxed first and then refunded, if it belongs to the tax reduction or exemption for the current year, debit: "Bank Deposit" and credit: "Business Tax" "Funds and surcharges"; if it is tax reduction or exemption in previous years, debit: "Bank deposit" and credit: "Adjustment of profit and loss in previous years".

If the relevant national tax laws and regulations stipulate direct deductions and exemptions (statutory deductions and exemptions), no accounting treatment will be performed.

It can be seen from the above analysis that whether the reduced consumption tax, business tax, resource tax, land value-added tax, and urban maintenance and construction tax are included in "business tax and surcharges" or are not accounted for, they will ultimately be treated as The tax exemption is reflected as the profit in the year when the tax refund is received or no accounting treatment is made (that is, the current year's profit). However, it must be noted that if it is included in the "profit and loss adjustment of previous years", it does not increase the current year's profit. profit.