10.12.08

Making sales on the eve of a holiday is a good way to attract new customers and retain old ones. However, this can actually pose tax risks to both buyer and seller if the sale takes place between businesses.

To avoid tax risks, the seller should reduce the price before the sale (rather than as a rebate) and offer discounts of no more than 20 percent. Additionally, the parties to the transaction should not be affiliated. If the discount is more than 20 percent or the seller and the buyer are affiliates, it is important to justify the discount so that the tax inspection will not demand VAT for the "average market price" of the good or service (Paragraph 3, Article 40 of the Tax Code). 

Tax risks are rare for the buyer. The customer can only be found guilty if affiliated with the seller. Then the tax officials try to find out whether the transaction actually took place or whether it was only on paper.

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Source: «Главбух»