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Retro bonus (rebate) in trade marketing. What is a retro bonus and how to calculate it correctly

Bonus- in marketing, additional remuneration, encouragement, allowance, premium. Bonus concept comes from the Latin word bonus - kind, good. deserve. The main purpose of the bonus- encouragement and motivation for constant relationships: purchases, appeals, use of the service.

What is a retro bonus?

There are 3 main options for paying out retro bonuses:

  • cash payment - refund of part of the purchase price;
  • delivery of goods free of charge;
  • option.

The most common and simplest in terms of trade management and accounting is the supply of bonus goods. However, please note that the supply of goods for free leads to VAT liability for the manufacturer and gross income for the recipient.

Bonuses are legally formalized as a reward based on the results of the provision of services, for example, marketing services for collecting information, services for distributing marketing information, services for conducting promotional events, trade marketing, merchandising, i.e. on the fact of providing reports on the promotion and display of goods. From the point of view of the need to simplify tax accounting, I propose not to link the provision of retro bonuses with contracts for the sale of products.

This is also true for a retro bonus paid to a retail operator, with which the manufacturer does not directly have an agreement on the supply of products (delivery is carried out through an intermediary - distributor).

To avoid tax audits, difficulties in relationships, it is necessary:

  • competently draw up a contract for the receipt of merchandising services;
  • develop and approve a plan for conducting marketing campaign, within which there will be payments of retro bonuses;
  • provide for the presence of marketing reports of the contractor, behind which the amount of work performed is clearly visible, and not just "pro forma".
  • in the formulation of the obligation to pay a bonus, it is better to use the concept of “payment for services rendered” than “payment of bonuses”.

Bonus - as a percentage of the sales volume

If the retro bonus is paid as a percentage of the volume of sales of goods, then such conditions for its accrual must be taken into account in the consignment agreement concluded between the manufacturer and the distributor (such agreements do not like the accountant very much). It must be mentioned in the contract that the price of the goods to the distributor includes a retro bonus, which is payable if he reaches a certain volume of purchases. These retro bonuses are accumulated in the sales volume system for each distributor. It is necessary to provide in the contract the format of notification-approval by the parties of the moment the bonus accrual begins. Such a notice is signed by both parties as a fact of agreeing on the amount of the bonus and the terms of payment.

Option as a bonus

As a retro bonus, the supplier can provide the buyer with an option - a bonus right, but not the client's obligation, to make a purchase of goods over a certain period of time at a special bonus price.

Retro bonus price reduction

And if you still need to adjust the price of the previously shipped goods downward by the value of the retro bonus? It looks like such a bonus as a discount to the price of goods, provided after the tax period, for the selected volume of goods or assortment. How to get this discount?

A negative invoice is used to issue a retro discount. Now it has become even easier with this, the negative invoice has been legalized since October 01, 2011. Now, when the cost of goods received earlier changes, the seller will have to issue an adjustment invoice (Federal Law No. 245-FZ of July 19, 2011 supplemented clause 3 of article 168 of the Tax Code of the Russian Federation). I note that in order to change the price in this way, a contract, agreement, other primary document confirming the consent (fact of notification) of the buyer to change the cost of shipped goods (work performed, services rendered) will be required.

Something as a result

Summing up, we can say that in general, a retro bonus, or better use the correct term "rebate", is effective tool strengthening the market presence for all market participants, but at the same time, the provision of a rebate can cause difficulties and additional work for the accounting department, the accounting of which requires increased attention and prudence from the accountant.

Amounts of bonuses received by the buyer for achieving the volume of purchases must be included in the full amount in non-operating income

25.06.2013
GUARANTEE

Under the supply agreement, the organization purchases non-food products. According to the contract, the supplier provides a retro bonus for a certain volume of purchases by offsetting it as an advance payment by the buyer (on account of future deliveries of goods) or towards repayment of the buyer's receivables for already delivered goods. The supplier notifies the buyer of the amount of the retro bonus by sending him a credit note.

Is it legal that the organization (buyer) does not include the amount of retro bonuses in the VAT tax base, taking them into account as part of non-operating income for income tax? What is the position of the authorities on this issue?

According to paragraph 1 of Art. 421 of the Civil Code of the Russian Federation citizens and legal entities free to enter into a contract. At the same time, the terms of the contract are determined at the discretion of the parties, except when the content of the relevant condition is prescribed by law or other legal acts (clause 4, article 421 of the Civil Code of the Russian Federation).

According to paragraph 1 of Art. 422 of the Civil Code of the Russian Federation, the contract must comply with the rules binding on the parties, established by law and other legal acts (imperative norms) in force at the time of its conclusion. Thus, organizations engaged in trading activities must take into account the provisions federal law dated December 28, 2009 No. 381-FZ “On the basics of state regulation trading activities in Russian Federation».

Note that neither civil nor tax legislation defines the concept of "bonus". In practice, the system of bonuses and premiums implies additional encouragement by the supplier of the buyer, not directly related to a decrease in the price of the delivered goods.

Thus, in accordance with the norms of the Civil Code of the Russian Federation, the seller and the buyer have the right to provide in the contract of sale (delivery) any conditions, including those under which the buyer is granted (paid) a bonus. A bonus provided for current or future deliveries, taking into account the conditions and volumes of purchases in the past, is considered a retro bonus.

By providing a discount to the buyer without changing the value of the goods in the form of a bonus, the seller has the right to pay the amount of the bonus in cash or reduce the buyer's debt for the previously delivered goods (or consider the provided bonus as an advance payment on account of new deliveries of the goods), i.e. make an offset in accordance with Art. 410 of the Civil Code of the Russian Federation.

Usually, when providing the buyer with discounts, premiums, bonuses based on the results of purchases, the supplier sends the buyer a relevant notice (credit note). A credit note is a settlement document that contains a notice sent by one of the parties in the settlement relationship to the other about crediting the account of the last certain amount due to the occurrence of some circumstance that created the right of the other party to claim this amount (see, for example, decision of the Tenth Arbitration Court of Appeal dated August 1, 2008 No. 10AP-2108/2008). As a rule, a credit note contains data on a specific delivery and the amount of the discount provided.

income tax

In accordance with paragraph 1 of Art. 248 of the Tax Code of the Russian Federation, income for the purposes of Chapter 25 of the Tax Code of the Russian Federation includes income from the sale of goods (works, services) and property rights and non-operating income.

Thus, non-operating income of the taxpayer is recognized as income in the form of property (works, services) received free of charge or property rights, except for the cases specified in Art. 251 of the Tax Code of the Russian Federation (clause 8 of article 250 of the Tax Code of the Russian Federation).

According to paragraph 2 of Art. 248 of the Tax Code of the Russian Federation, for the purposes of taxation, property (works, services) or property rights are considered received free of charge, if the receipt of this property (works, services) or property rights is not associated with the recipient's obligation to transfer property (property rights) to the transferor (perform for the transferor person of work, provide services to the transferring person).

The Ministry of Finance of Russia in a letter dated September 15, 2005 No. 03-03-04 / 1/190 and the Federal Tax Service of Russia for Moscow in a letter dated March 21, 2007 No. 19-11 / 25335 indicated that if, due to the fulfillment of certain conditions of the contract, the seller will pay (provide) a premium (discount) to the buyer, for the buyer such a discount will be property received free of charge, subject to inclusion in the tax base for corporate income tax.

In later letters, representatives of the Ministry of Finance of Russia explained that, by their nature, premiums (discounts) received by the buyer as a result of fulfilling certain conditions of the contract, in particular the volume of purchases, not related to a change in the price of a unit of goods, are taken into account for tax purposes as part of non-operating income, list which according to Art. 250 of the Tax Code of the Russian Federation is open (letters of the Ministry of Finance of Russia of December 28, 2012 No. 03-01-18 / 10-200, of December 19, 2012 No. 03-03-06 / 1/668, of 03-03-06/1/316).

Thus, the amount of bonuses received by the buyer for achieving the volume of purchases, in tax accounting, in any case, must be included in the composition of non-operating income in full.

The object of VAT is the sale of goods (works, services) on the territory of the Russian Federation (clause 1, clause 1, article 146 of the Tax Code of the Russian Federation).

In turn, on the basis of paragraph 1 of Art. 39 of the Tax Code of the Russian Federation, the sale of goods, works, services is recognized, respectively, the transfer on a reimbursable basis (including the exchange of goods, works, services) of ownership of goods, the results of work performed by one person for another person, the provision of services for a fee by one person to another person, and in the cases provided for by the Tax Code of the Russian Federation, the transfer of ownership of goods, the results of work performed by one person for another person, the provision of services by one person to another person - free of charge.

When determining the tax base, revenue from the sale of goods (works, services), transfer of property rights is determined on the basis of all income of the taxpayer associated with settlements for payment for these goods (works, services), property rights received by him in cash and (or) in kind (Clause 2, Article 153 of the Tax Code of the Russian Federation).

According to paragraph 4 of Art. 166 of the Tax Code of the Russian Federation, the total amount of VAT payable to the budget is calculated at the end of each tax period, taking into account changes that increase or decrease the tax base in the corresponding tax period.

Since there is no sale of goods (works, services) when a bonus is provided to the buyer, the buyer does not need to charge VAT.

It should be noted that for a number of years the position of the financial department and the tax service on the issue of applying VAT in relation to premiums (remunerations) paid by the seller of goods to the buyer for achieving the volume of purchases of goods specified by the contract was expressed in the following approach.

According to representatives of the Ministry of Finance of Russia and the Federal Tax Service of Russia, two cases of encouraging the buyer should be distinguished:

When premiums (bonuses and discounts) are not related to the payment for the services rendered by the latter, and the payment of which does not lead to a change in the price of the goods;

When the terms of the supply contract provide for the provision by the seller of goods of discounts (premiums, bonuses) to the buyer by changing the price of previously delivered goods.

In the first case, for the purpose of calculating VAT, the seller determines the tax base for the goods sold without taking into account such premiums and remunerations (bonuses). The indicated amounts should also not be recognized as payments related to settlements for the delivered goods, therefore there are no grounds for making changes to the invoices issued during the shipment of goods. Accordingly, the amounts of premiums and remuneration (bonuses) received by the buyer of goods are not subject to VAT (letter of the Ministry of Finance of Russia dated December 13, 2010 No. 03-07-07 / 78, the Federal Tax Service of Russia dated April 1, 2010 No. 3-0-06 /63, Federal Tax Service of Russia for Moscow dated April 6, 2010 No. 16-15/035737).

If the terms of the supply agreement provide for the provision by the seller of goods of discounts (bonuses and premiums) to the buyer by changing the price of previously delivered goods, the seller must reduce the VAT tax base by the amount of the discount provided and, accordingly, make changes to the previously issued invoices, which serves as the basis to adjust the books of purchases and sales by all parties to the agreement (letters of the Ministry of Finance of Russia of November 13, 2010 No. 3 03-07-11 / 436, of April 29, 2010 No. 03-07-11 / 158, of 03-07-15 / 112, Federal Tax Service of Russia for Moscow dated April 6, 2010 No. 16-15 / 035737).

It should be noted that at present, in case of a change in the cost of shipped goods (work performed, services rendered), property rights transferred, including in the event of a change in price (tariff) and (or) specification of the quantity (volume) of shipped goods (work performed, rendered services), transferred property rights, the seller issues an adjustment invoice to the buyer in the manner provided for in paragraph 3 of Art. 168 of the Tax Code of the Russian Federation.

A similar opinion was expressed by arbitration courts (see, for example, the decisions of the Federal Antimonopoly Service of the Moscow District dated September 10, 2010 No. KA-A40 / 10235-10-2, the Federal Antimonopoly Service of the East Siberian District dated September 2, 2010 No. A33-20390 / 2009, FAS Northwestern District of 06/04/2010 No. F07-5440/2010 in case No. A26-8794/2009).

However, the Presidium of the Supreme Arbitration Court of the Russian Federation, in its resolution of December 22, 2009 N 11175/09, outlined a different approach to the procedure for taxing premiums and discounts. The supervisory authority came to the conclusion that regardless of how the parties to the distribution agreement defined the incentive system: by providing a discount that determines the amount of a possible reduction in the base price of the goods specified in the contract, or by providing a bonus - an additional remuneration, a bonus provided by the seller to the buyer for fulfilling the conditions transactions, as well as regardless of the procedure for granting discounts and bonuses (transfer to a settlement account, set off as an advance payment or reduction of debt), when determining the taxable base, the amount of revenue is subject to determination taking into account discounts, and, if necessary, adjustment for the tax period in which sale of goods (works, services) is reflected.

Later, the Presidium of the Supreme Arbitration Court, in Resolution No. 11637/11 of February 7, 2012, set out its position on this issue even more clearly, indicating that, since premiums are directly related to the supply of goods, it should be recognized that they are also a form of trade discounts applied to the cost of goods that affect the tax base for VAT. As a result of payment by suppliers of premiums based on the results of the shipment of goods, the cost of goods decreases, which entails an adjustment by suppliers of the VAT tax base, from which it follows that the amount of VAT tax deductions previously declared by the buyer is also subject to a proportional decrease in the relevant tax periods.

Thus, the SAC judges clearly formulated the rule: if, according to the terms of the supply contract, the seller of goods provides for the provision of discounts (bonuses and premiums) by the seller to the buyer without changing the price of previously delivered goods, then the supplier has an obligation to adjust the tax base downward, and the buyer, accordingly, restore the previously declared deduction.

At the same time, it should be noted that, within the framework of its powers, the Presidium of the Supreme Arbitration Court of the Russian Federation considers cases of verification of judicial acts of arbitration courts of the Russian Federation that have entered into force, and also considers certain issues judicial practice and informs the arbitration courts in the Russian Federation about the results of consideration of these issues (Article 16 of the Federal Constitutional Law of April 28, 1995 No. 1-FKZ “On Arbitration Courts in the Russian Federation”). In contrast to the clarifications on issues of judicial practice given by the Plenum of the Supreme Arbitration Court of the Russian Federation in the form of resolutions, resolutions and information letters Presidium of the Supreme Arbitration Court of the Russian Federation are not obligatory for application by arbitration courts. This circumstance must be taken into account when assessing the prospects for resolving the relevant dispute in arbitration courts.

At the same time, today there is arbitration practice in which judges adhere to the position of the Presidium of the Supreme Arbitration Court of the Russian Federation contained in the decision of December 22, 2009 No. 11175/09 (the decision of the Ninth Arbitration Court of Appeal of March 12, 2013 No. 09AP-4785/13) .

The position of the Presidium of the Supreme Arbitration Court, set out in resolutions No. 11637/11 dated February 7, 2012 and No. 11175/09 dated December 22, 2009, was reflected in the clarifications of the financial department (see, for example, letters of the Russian Ministry of Finance dated May 31, 2012 No. No. 03-07-11/163, No. 03-07-14/52 dated May 17, 2012, No. 03-07-14/31 dated May 5, 2010, No. 03-07- dated April 9, 2010 11/106), while the official position of the Russian Ministry of Finance on the issue of taxation of premiums (bonuses) without changing the initial price of the goods in these letters remained the same.

In our opinion, based on the fact that the provision of a bonus by the supplier to the buyer does not change the cost of goods shipped earlier, the purchasing organization does not need to adjust the previously declared deductions. At the same time, the amount of the bonus paid (accrued) by the supplier, the buyer, is not included in the VAT tax base.

At the same time, taking into account the different approach to the issue under consideration by the regulatory authorities and the supervisory authority, we believe that the adoption of a specific decision on this issue remains with your organization.

Moreover, we believe that the buyer's tax consequences for VAT depend on the decision made by the seller.

If the seller decides not to reduce the price of the delivered goods by the amount of the remuneration (bonuses and premiums) provided, then such remuneration is included in the buyer's income and does not give rise to any VAT tax consequences.

If the seller decides to reduce the VAT tax base by the amount of the discount provided and, accordingly, makes changes to previously issued invoices, the buyer will need to correct the purchase book and restore the previously declared deduction.

Trade is subject to the laws of the market, and the market is a dynamic, lively and constantly changing factor. Therefore, to conduct business in the trade sector, additional leverage is needed to increase the efficiency and stability of market processes.

One of such tools for the interaction of manufacturers, suppliers and sellers is the system of retro bonuses, which is widespread in the West and is gradually taking root in our country.

Consider the features of the domestic application of a retrospective discount, the subtleties of its tax and accounting, as well as the rules for registration, we will introduce the latest legislative innovations in this area.

The meaning of retro bonuses

Any broad trading activity is based on the mutually beneficial cooperation of three key participants:

  • manufacturer;
  • distributor;
  • retailer.

Each participant in this chain is maximally interested in "presence" in the market, that is, exercising influence, establishing favorable conditions. Therefore, a tool that provides benefits equally to all participants will be effective and in demand, increase productivity and business efficiency.

It is beneficial for manufacturers that their products are in demand with distributors, suppliers want sellers to buy goods at competitive prices, and sellers, in turn, strive for profitable sales. If the latter succeeded, then each participant remains in the benefit.

Therefore, a system of retrospective discounts on goods was invented, or in everyday life retro bonuses or rebates.

The seller was able to sell a sufficient amount of goods or get a certain amount for it, which means that he has the right to return part of the funds, receive additional product, providing a free service, providing a discount.

The bonus premium is given from the top down - by manufacturers to suppliers or distributors to retailers. Thus, distributors may be in the position of both receiving and providing retro bonuses.

REFERENCE! The word "bonus" is translated from Latin as "good", "deserve", in the field of marketing this term means an incentive bonus, allowance, reward in excess of the expected. A retrospective discount on a product in Russia is more often called a “retro bonus”, and in Western practice the English word “rebate” is more common, meaning a discount or concession.

Retro Bonus Features

Any bonus basically has an encouraging and stimulating character. As for retro bonuses in trading, the main purposes of their use are as follows:

  • an incentive for sellers and distributors to better sell goods;
  • maintaining long-term trade relations based on mutual benefit;
  • motivation to actively fulfill contractual conditions;
  • management of market processes, an additional lever of influence.

For what they can provide a retro bonus

The conditions for providing a rebate should always be negotiated when concluding a contract, since they can vary greatly. The system of retrospective discounts for goods is a flexible system that allows you to find the best implementation option in each specific case. Most often, the conditions under which distributors or sellers can count on bonuses are based on the fulfillment or overfulfillment of such obligations:

  • implementation plan targets achieved- if the agreed volume of goods is sold or the stipulated amount is received for it, this indicates activity in the market; using this method, it is more convenient to regulate sales of specific types of goods or these processes in a certain market segment;
  • impeccable financial discipline– when “without a hitch” all the terms of the transaction are met, up to the terms of payments and deliveries, an additional bonus can be offered for this;
  • good distribution performance- for them, suppliers or manufacturers can reward their counterparties in the event that they promptly and in the right quantities supply goods to retail chains; other criteria for the quality of work of suppliers are possible;
  • new clients– expansion of the distribution network is beneficial not only for the distributors themselves, but also for manufacturers, and additional bonuses can be provided for this.

Types of retro bonus reward

Fairly earned by the supplier or distributor retail chains a retro bonus can be received in various forms, pre-fixed in the text of the concluded agreement or additional financial agreements.

There are several main options for providing retro bonuses:

  1. Monetary equivalent. The counterparty, as it were, receives back a part of the amount received by him for the goods delivered or sold to the final consumer. In this case, additional conditions are stipulated:
    • the time during which the goods are sold and, accordingly, bonuses are paid;
    • the amount or amount upon reaching which remuneration is due;
    • cashback percentage.
  2. Preferential purchase price. The distributor or seller gets the right to purchase goods at a more favorable price for themselves, on special conditions, which are necessarily documented. Such a bonus is usually valid for a limited time.
  3. Additional item supplied free of charge. This is a convenient and easy to use retrospective discount method. An important point that needs to be taken into account is the arising VAT obligations of the distributor and the need to account for the gross income of the recipient.
  4. Preferential or free delivery of goods. This bonus service also provides for additional tax liabilities for both parties.
  5. Option. This is a method of mutual settlement in non-monetary form, for example, in goods or the provision of services in return. In the terms of the contract or agreement, it is necessary to prescribe the terms for fulfilling bonus obligations, their form and, if necessary, a delay.

IMPORTANT! To avoid the risk of tax troubles, the size of any retro bonus should not exceed 10% of the amount or volume of the transaction.

Rebate Documentation

As mentioned above, the retro bonus discount in trading is necessarily regulated normative documents. The main act regulating the "bonus" relationship is an agreement or an additional trade agreement on retro bonuses. Key points to be covered in this document:

  • the provision of retro bonuses is fixed in the very title of the document next to the name of the action (“delivery of goods”);
  • the conditions for granting a rebate are prescribed in the last paragraph, which stipulates contractual actions, under the name "Financial conditions and settlement procedure";
  • the value of the goods agreed upon by the parties and the method of payment (cash or bank transfer);
  • form, terms, size and features of the retro bonus accrual.

NOTE! To reduce possible tax and partnership risks, it is recommended to list in detail the groups of goods that fall under the retrospective discount, or their names, use the correct units of measure for the goods (liter capacity, packaging unit, weight, piece, etc.), and also describe in detail the retro mechanism itself -bonus.

Retro bonuses: tax and accounting

Taxation rebate depends on several factors.

  1. Is VAT charged?. Received bonuses in most cases do not cancel the payment of value added tax from them. If the rebate is immediately increased by 18% tax, the amount will turn out to be too large and unprofitable to return.
  2. Product group- food or non-food (they are subject to VAT in different ways). The price of foodstuffs usually already includes VAT, so with a retro bonus, you need to take into account the full cost.

In accounting retro bonuses can be reflected in different ways:

  • be attributed to the cost of production - the best way to regulate pricing policy, the most transparent accounting tool;
  • being attributed to the result is the most convenient method that allows you to systematize cash transactions, arrange them for any reason, and also, if necessary, adjust the cost.

Innovation in the retro bonus system from Russian legislators

On June 24, 2016, the State Duma adopted, and on June 29 the Federation Council approved amendments to the Trade Law “On Amendments to the Law “On the Fundamentals of State Regulation of Trade Activities in the Russian Federation”. As part of this law, the maximum size of retro bonuses has been halved (from 10% to 5%), there are also changes in the timing of the deferment. The size of administrative fines for violation of obligations has also been revised.

The consequences of the introduction of the new norm of the law are still unpredictable, the public, suppliers and sellers have adopted it ambiguously.

The essence of bonuses is to motivate, encourage, attract attention in order to form permanent relationships, strong ties, trade and exchange processes. The concept is used mainly by Russians in the process of trade and exchange relations. In the terminology of world trade, the definition "discount" with the English discount is most often used. Essentially, a retro bonus is nothing more than a payment made with the following options in mind:

However, there is such a thing as a "retro bonus". Bonus - in marketing, additional remuneration, encouragement, bonuses. The concept of bonus comes from the Latin word bonus - good.

The main purpose of the bonus is to promote and motivate ongoing relationships: buying, processing. Retro" comes from "retrospective". Being retrospective means looking back at events that have already happened.

In trading, often you want to look back at the whole process to understand what you did right and wrong. A flexible retrospective is a great way to continually improve the way you work. Getting actionable actions from retrospective and doing them helps teams learn and improve. There is an overview of things you can use to benefit from your retrospectives.

What is it and how does it work

The retro bonus is, first of all, relationships. Therefore, the fact of legally correct registration of such relations is important. Bonuses are paid by the party as a result of the provision of certain services. It is more correct, in order to significantly simplify tax bills, not to link such transactions to the main contract, but to formalize them with separate suitable contracts.

There are two ways to pay retro earnings. You can include retro amount wages for the employee's next paycheck. Or you can issue a separate paycheck that only contains the retro paycheck.

Either way, make sure the employee understands what retro wages are worth. It is clear that this is not an additional payment, but the payment of an employee who has previously earned.

You must withhold and remit fees and retro payment taxes. You must also pay a portion of the employer's payroll tax.

The rate you use will depend on how you define retro fees. If you identify retro earnings as a separate payment from regular wages, you will calculate taxes using an additional tax payment method. If you do not define retro earnings as a payment other than regular income, you will withhold tax as you would for regular wages.

Retroactive pay or "retro pay" refers to money owed to an employee for work already done at a lower wage rate. For example, if your employer said they would give you a higher pay rate for a past project, but failed to do so, you may be eligible for retro pay. However, in some jurisdictions only retro payment will apply, as the employer intentionally deprives the employee of the promised wage.

The term "retro bonus" is mainly used in Romania, while, as in the world, the term "discount" is used for such payments. There are 3 main options for premium bonus payments:

  • cash payment - return of the purchase price;
  • delivery of goods free of charge;
  • option.

The most common and simple commercial and accounting management is the provision of bonus products. However, please note that the delivery of goods free of charge is responsible for VAT from the manufacturer and the gross income of the beneficiary. Bonuses are legally documented as a reward for termination of service, for example, marketing services in the field of marketing, distribution of marketing information services, promotional services in commercial marketing, merchandising, namely when the progress of recording and displaying a product is reported. This also applies to a retro bonus paid to retailers, which is not a contract for the supply of products directly from the manufacturer (food is produced through an intermediary - a distributor).

To avoid fiscal control, relationship difficulties, you should:

  • competently develops a contract for trade services;
  • develop and approve a marketing campaign plan in which payments will be retrospective;
  • provide translator marketing reports followed by a progress report and not just a “pro forma” one.

When formulating bonus payments, it is better to use the term "payment for services" rather than "bonus payments".

Sellers and buyers often agree that if a buyer buys in excess of a certain amount or amount of money, they will receive a discount, i.e. a purchase bonus from the buyer. While such an arrangement is extremely attractive from a sales point of view, it raises various questions for accountants: how to write it down? What financial indicators affect bonuses? When to record purchase bonuses?

Bonus items in the form of retro bonuses

The simplest and most commonly used exchange exchange relationships are bonuses such as free delivery of goods. But such relationships in trade are associated with the emergence of certain tax liabilities for value added tax and tax liabilities on the gross income of the recipient.

To avoid checks and the difficulties that arise with them, you need to follow the steps:

  • competently conclude a contract for the provision of retro bonuses;
  • document the operation that will result in the retro bonus relationship;
  • document the amount of work for which the retro bonus is credited;
  • when drawing up payment obligations, it is more correct to work with the concept of “payment for services rendered”, and not “payment of bonuses”.

Retro pay is different from wages less wages or "reverse pay" as the latter refers to unpaid wages that a worker owes because they were never paid in the first place. So retropay usually refers to the difference in wage rates, while payback means that a worker still has to receive a wage they never received. For example, if you were wrongfully terminated and fired on two months' pay, you would be liable for this salary if they had won their illegal termination case.

Retroactive wages are calculated between what was paid by the employee in the past and what they should have been paid. To find a discrepancy, the court will usually look at the employment contracts between both parties and look at both old and new agreements.

State laws vary, but in general, the following violations can qualify an employee for retro payment:

  • Illegal Behavior: For example, if your employer acted illegally by giving retroactive pay raises only to a select group of people (discrimination).
  • Breach of contract: If withholding wage rates is a breach of the employment contract, then the employee can reinstate. An employer cannot "return" an employee for being a whistleblower by refusing to pay back.
  • Overtime Violations: Failure to pay overtime wages, which is the most common of the violations.
  • Most states dispute overtime violation disputes, but laws vary. Be sure to speak with a lawyer if you have a dispute, as you may be eligible for retro payment.

Calculation

If the bonus is no more than a percentage of the volume of products sold, its terms must be described in the consignment agreement, which is concluded between the parties where the trade and exchange relations arose. Registration of such contracts and calculation of bonuses is a process for corporate accounting, since the following information is required in the contract:

  • the price of the goods provided to the recipient's side must take into account the bonus, and such a clause must be described in the contract;
  • must specify the conditions for paying retro bonuses (for example, when the receiving party receives a certain amount of product purchases, it returns part of the money spent in the form of retro bonuses).
  • the time schedule for the calculation and payment of retro bonuses is indicated;
  • an agreement between two parties, where it is considered a fact of agreeing on the conditions and amounts of bonus payments.

If the retro bonus is paid as a percentage of the sales of goods that are the conditions for its calculation, it must be taken into account in the contractual batch. In the contract, it should be noted that the price of the distributor's goods includes a retro bonus, which is paid on the condition that they reach the volume of purchases. Such retrospectives are accumulated in the sales system by each distributor. It is necessary to provide in the notice of participation the format of the obligations of the parties at the beginning of bonuses. Such notice will be signed by both parties as a bonus match and payment terms.

Since the retro bonus provider may offer the customer the option of being eligible for the bonus but not the obligation, the customer will complete the purchase of the item within a period of time for a special premium price.

Until recently, the maximum part of the retro bonus reward was 10%. But the figure was lowered to 5%.

A retro bonus is a reward for purchasing a volume of a food product with compensation for some services. These services are: promotion, organization and packaging of goods. The calculation does not include VAT and excises.

Example of retro bonus calculation:

The term "reduction" is a correct and effective tool for expanding the market for all market participants, but at the same time, providing discounts can cause difficulties and additional work in accounting, which requires special attention and bookkeeping.

Price reduction practice with retro bonuses

Retro bonus- this is a relationship in the form of a signed contract that indicates the price of the goods, in practice there are cases when the price of the goods has already been sent and delivered to the recipient can be revised. This happens when a deal to provide goods was made during the tax period and the company makes a discount on the price of the goods that is sent after the tax period. However, before using this type of retro bonus, you need to understand the intricacies of registering such a discount in the accounting department.

In accounting, such a retro discount is made on an undeniable account. The mechanism for issuing a discount: to begin with, the seller of goods draws up an adjustment invoice. Only if there are two of the above reasons, the seller has the right to issue a retro discount.

In general, "intrade" is a simple and necessary thing, however, before applying it, you need to get support and knowledge of accounting.

A retention bonus is a reward or reward beyond an employee's normal salary that is offered as an incentive to keep a key employee at work during a critical business cycle, such as a merger or acquisition, or during a critical production period. AT last years conservation bonuses are becoming more popular as corporate poaching has increased.

When an organization goes through a disruptive period of organizational change, it offers financial incentives to senior executives and key employees to persuade them to stay with the company until it becomes stable. The financial incentive is called the retention bonus. During a merger, restructuring, or reorganization, a company will attempt to retain its the best employees to make sure he has enough people working for the company during difficult times. For example, a business that closes a department or project will offer bonuses to its top performers to make sure it has a bad need of employees.

In a rapidly growing economy in which employees offer and sell attractive job benefits to other companies, the likelihood of a business losing its valuable employees to competitors is high. With the corporate landscape changing almost daily and the cash market making it easier for workers to move from job to job, retention bonuses have provided a great way for companies to retain key employees. In addition, employees who have acquired new skills or received training that are vital to the operation of the business may be offered retention bonuses to ensure they do not use their skills elsewhere.

A retention bonus is usually a one-time payment paid to an employee. Companies usually choose to offer a retention bonus instead of a pay raise because they may not have the necessary finances to make a permanent pay raise. Depending on the company, the cost of retaining an employee's bonus may be tied to the length of time the employee has been with the firm. The bonus is paid at the end of the period as a percentage of current salary an employee or a lump sum of money. For example, if the project is fully closed for 12 months, the employee retention bonus will be paid after 15 months to ensure that the employee stays for the rest of the project's life.

All bonuses, including retention bonuses, are considered as additional wages. Supplementary wages are simply defined as compensation paid in addition to an employee's regular wages. Taxes are usually applied to the withholding bonus using either the aggregate or percentage method. Under the interest method, bonuses are separated from the employee's wages and taxed only at the flat rate of 25%.

Retro bonus in cooperation

The basis of cooperation between suppliers of goods and trade is the rule resulting from the aforementioned anti-unfair competition law below: chains and wholesalers are not allowed to charge any other fees from suppliers other than the commercial margin, that is, the difference between the cost of purchased goods and the cost of their sale . The final price of the goods must be determined no later than at the time of payment. If then the retro bonus, depending on the volume of turnover, is applied to a certain supplier or manufacturer, then it is not a discount to the price of a specific product, without a moving stock component, but simply an additional payment for taking the product for sale, i.e. not allowed.

Of course, the aforementioned act does not prohibit the use of the old trading principle that he who buys more pays less. Therefore, discounts on the price depending on the value of the order are allowed to the maximum extent possible. However, a common practice is to oblige providers to pay the bonus without guaranteeing that the expected level of turnover will be reached, i.e. without any risk to the network and without any liability to the provider. The networks tell the supplier: how much we will see, but the bonus - perhaps different from the cost of turnover - will, in any case, belong. This, unfortunately, is a common pathology. But the bonus different from the value of the turnover will, in any case, belong. In some countries, there is a right to freedom of contract between the parties that contain them.

However, provided that their content does not violate the rules of social coexistence, it does not contravene the provisions of the Law. And in this case there is such a contradiction. This means that even if the supplier "voluntarily" signs an agreement obliging him to bear additional tribute to the commercial network, the contract is legally defective in any case. The will of the parties does not legalize the fee, which is legally recognized as an act of unfair competition.

Market bonuses calculated and charged after the date of payment are different from sales margin commissions for accepting goods for sale, and for this reason, only suppliers are entitled to a full refund of them, together with statutory interests, in the event of a delay by the sales network.

In a dynamic market environment, motivation and encouragement play an important role in the successful development of a business. An effective, and at the same time quite simple tool to stimulate sales growth and increase customer loyalty is a retro bonus, or a retrospective discount, often used in the Western world, and gradually taking root in Russia.

About what a retro discount is, the principles of its calculation and accrual, as well as the features of reporting on this remuneration - in this article.

What is a retro bonus in trading

In simple terms, a retro bonus is a sales promotion reward that is paid by suppliers to buyers when certain conditions are met. In trade, such a premium will be paid, for example, by a manufacturer to a dealer or distributor upon reaching a predetermined volume of purchases or sales.

The difference between a retro bonus and a premium

Despite the fact that the retro bonus is an independent lever of influence on sales promotion and is practiced quite often, the legislation does not consider it as a separate tool. The Tax Code of the Russian Federation identifies such a bonus as a premium that the seller pays to the buyer in monetary terms as an incentive for the fulfillment of certain clauses of the contract, for example, for the purchase of a certain volume of goods.

At the same time, the specified premium can also be in fact a discount and represent a reduction in the contractual cost of products, or a reduction in the amount of delivery arrears.

Conditions for the provision of retro bonuses

The conditions for paying a retrospective discount due to a distributor may be different, but they are always clearly specified in advance, at the stage of agreeing on a supply contract.

  • The most frequent option - the buyer receives a bonus based on the results of the sales plan. This may be the sale of goods for a contractual amount or the purchase of an agreed volume of products. In any case, using this method of bonuses, the supplier can increase sales of certain goods that need additional stimulation of demand.
  • Compliance with the terms of the contract . If there were no violations of the key terms of the contract for the entire period of its validity, the seller can count on encouragement. This includes, among other things, the clear fulfillment of financial obligations under the contract.
  • Work is carried out promptly . Some suppliers use this incentive method for the dealer's prompt work - fast shipment, delivery of the order on time, all this can be a reason for encouragement.

It should also be taken into account that certain restrictions are imposed on the payment of a retro bonus for the category of food products: by the decision of the Government of the Russian Federation of July 2016 No. it is stated that the amount of remuneration cannot exceed 5% of the price of the purchased products, and in the case of the purchase of certain types of socially significant food products, it is completely prohibited.

There are no restrictions on the amount of remuneration for the purchase of a non-food assortment at the federal level yet, so the percentage of the bonus can be any given that such a motivational policy is sufficiently justified for the supplier company.

Classification of retro bonuses

The retrospective bonus has several payment options, information about which of them is applicable to a particular situation is indicated in the text of the contract or the corresponding additional agreement, which is mandatory signed by both parties.

Bonus goods

The simplest and most common type of retro bonuses in trading is the free delivery of products. However, this type of relationship between the seller and the buyer is fraught with the emergence of additional tax liabilities, for VAT for the first and for gross income for the second.

To avoid possible difficulties, it is important:

  • sign a legally competent contract for the provision of a retro discount;
  • have documentary evidence of the transaction of sale and purchase of the agreed volume of products;

In terms of money

The price of the goods under the contract already includes a retro-discount, which is due for payment upon reaching the established purchase volume. In this case, the contract must be spelled out:

  • specific terms in which the purchase must be made in full;
  • the amount of the purchase or the volume of products that must be purchased to receive the incentive;
  • the percentage of monetary compensation from the total cost of the goods under the contract;
  • the period in which the retro bonus will be credited.

The contract is signed by both parties, which means that all the mentioned conditions are agreed upon.

As an option

The option implies the right, but not the obligation of the buyer to purchase goods at a bonus price for a certain time period.

The contract must specify the conditions for obtaining the option: the timing of the special price, as well as the form of remuneration.

How and in what form are retro bonuses accrued?

The moment of accrual

  • At the entrance - the bonus is paid when purchasing goods from the manufacturer.
  • In the warehouse - remuneration is accrued when the already purchased products are stored. It is usually explained by an attempt to insure the distributor against a decrease in the price of goods (it occurs when working with highly technical and quickly losing relevance nomenclature). The latter, in turn, receives a discount on the purchase of a new range of goods.
  • At the exit, the premium is payable upon the sale of the goods to the buyer. So the supplier encourages not so much the purchase to fill the warehouse, but the promotion of the sale by the distributor to the consumer.

Delivery method

Most often, a retro bonus is issued by a credit note, especially when settling with buyers from other countries. In accounting, a credit note is repaid by offsetting the debt. But there are also payments in cash - this method is similar to the usual payment for goods.

How to calculate the retro bonus

The calculation of retrospective remuneration usually occurs according to the following formula:

Retro bonus = Reward amount for the purchase of the agreed volume of goods + compensation for related services.

The following services may be eligible for reimbursement when calculating the retrospective discount:

  • Logistics.
  • Services for the collection and packaging of products.
  • Marketing and promotion services.

The calculation does not take into account the VAT presented to the retailer, as well as the cost of the excise tax, if the products are excisable.

An example of calculating retro bonuses

Bonus calculation system with examples:

  • On agreed terms, the buyer purchases crystal vases from the supplier with a total value of 10 million rubles. The manufacturer's marketing policy approved a retro bonus in the amount of 10 percent of the contract value, thus, the maximum reward amount is 1 million rubles. 200,000 rubles were spent on packaging services, another 300,000 were spent on logistics services. The costs of the services rendered are compensated in full, plus another 500,000 - a bonus for the volume purchased.
  • Enterprise A sells chocolates of manufacturer B. The price of the contract for receiving a retrospective discount is 1,000,000 rubles. The maximum bonus for food products is 5%, i.e. 50,000 rubles under this agreement. A spent 30,000 rubles on promotion services, these costs will be paid by the manufacturer, and 20,000 relies on the buyer as a bonus part for the sale of the agreed volume of products.

What are additional retro bonuses and why are they needed

Despite the fact that the retro bonus is documented in the form of a legally binding contract that clearly states the value of the goods, in reality it happens that the price of products already shipped and received by the buyer may be subject to downward revision. So, for example, if the purchase contract was signed in one tax period, and the shipment was made in the next tax period, the supplier has the right to make a post-discount on the price of the goods.

The accounting department posts this retro discount using a negative invoice. The use of such a document is legal and lawful from the point of view of the law since October 2011. This discount is issued not so difficult:

  • The supplier issues a corrective invoice.
  • The seller notifies the buyer of the fact of the price reduction, this is done in connection with the need to document the consent of the recipient with the change in the price of the goods.
  • By performing the above actions, the supplier has the right to issue a retro discount as a special type of retro bonus.

Legal registration

The payment of a retro bonus is a type of special contractual obligation that arises between two parties in the field of trading. To avoid misunderstandings and delays, as well as to minimize the risk of problems with tax authorities, it is important to formalize these relationships correctly.

Retro bonus agreement

A retro discount is an additional measure of remuneration, therefore, in order to simplify the accounting for such transactions, it is more correct not to link these auxiliary payments to the main sales contract, but to draw up a separate contract.

The retro bonus agreement is a key document in which the obligations of the parties are agreed and the amount of the benefit received is fixed.

Important points when making a contract:

  • The contract must be numbered and dated, its title must contain a description of the purpose of its signing.
  • Mandatory mention of the cost of goods, methods of payment (cash or non-cash).
  • It is necessary to specify the percentage of the retro bonus offered to the buyer, in what period the reward will be paid, etc.

Supplementary agreement

This is a document that essentially repeats the contract itself. An agreement, unlike a contract, can be either written or oral.

Often, the agreement supplements an already signed agreement, which specifies the amount of the bonus incentive and the main details regarding its receipt for a specific period of time, a calendar month, or another short-term billing period.

The additional agreement also specifies the form of payment, the percentage and the period for receiving bonus funds.

Accounting for remuneration in documents

When accounting for a retro bonus, you must clearly follow these steps:

  1. Calculate the amount of remuneration - sometimes information about retro bonuses is finalized at the last moment.
  2. Retro bonuses are calculated separately for each order item, and it should be taken into account that:
  • sometimes a retrospective discount is not calculated for all items in an order;
  • different types of products in the same order may require different incentive calculation approaches.
  1. Mandatory control of the full shipment of goods under the retro bonus agreement is required.
  2. In the event of a return of goods, make sure that the positions that carry the bonus do not become returnable.

Accounting retro bonuses

In accounting, there are two ways to reflect a retrospective discount:

  1. Attributing it to the cost of goods is the advantage of this method in ensuring transparent accounting of purchases and sales and the possible flexible management of the selling price.
  2. Attribute to the financial result - this option is practically much more common:
  • characteristic of the FMCG sector with its large number of operations;
  • financial transactions under the transaction may also take place at the end of the reporting period, which makes it impossible to adjust the cost of production;
  • the absence of a specific regulation for accounting for remuneration forces the enterprise to keep a general record of bonuses. Accounting for financial results can be carried out not for the whole company, but selectively for product lines, for a particular brand or brand, etc.

The supplier may reduce the revenue in the reporting period when the promotional discount is granted to the distributor. Because the total revenues already reflected in accounting for the previous reporting period, then the result of this adjustment will be an overpayment of income tax. It is possible to resolve the issue in accordance with Article 54 of the Tax Code of the Russian Federation, which describes the possibility of accounting for a retrospective discount not as income from the previous reporting period, but as an expense part of the current one. This will allow leveling discrepancies between accounting and tax reporting.

To reflect the retro bonus in accounting, the debit of account 91 “Other income and expenses” and the credit of account 62 “Settlements with buyers and customers” are used.

With the receipt of a bonus reward, the income of the buyer increases, which leads to a revision of the income tax. To do this, the buyer should submit a declaration with clarifications for the previous reporting period. It is also possible to take into account the incentive amount in the income part of the current period in accordance with paragraph 1 of Art. 268 and paragraph 2 of Art. 272 of the Tax Code of the Russian Federation. However, the right to such registration will have to be substantiated and proved in court (ruling of the Federal Arbitration Court of the North-Western District No. A05-3807 / 2012 of 04/02/2013), therefore, in most cases, the first mentioned method is preferable.

Tax accounting for retro bonuses

The taxation of retro discounts depends on several nuances:

  1. Is VAT charged? The resulting discount is often subject to value added tax. If you initially increase the bonus amount by the standard rate of 18%, its size will be significant and unprofitable to return.
  2. For which group of goods is the reward offered - food or non-food (VAT is subject to different ways). The price of food already includes VAT, so the full cost is used when taking into account the retro bonus.

VAT

VAT for a retrospective discount is regulated by clause 2.1 of Art. 154 of the Tax Code of the Russian Federation, according to which the payment of a premium for the purchase of a certain volume of goods does not reduce the cost of shipped goods for the seller to calculate the tax base, unless otherwise provided by the contract.

Corporate income tax

The amount of the transferred remuneration is accounted for by the manufacturer as non-sales expenses (Article 272 of the Tax Code of the Russian Federation).

The buyer takes into account the bonus amount as non-operating income (Article 250 of the Tax Code of the Russian Federation).

A retro bonus is a simple sales promotion tool that is increasingly being used by counterparties in trade relations in our country as well.

But for all the seeming simplicity, it is important to responsibly approach the legal registration of this bonus, as well as its subsequent accounting and tax accounting so as not to incur sanctions for non-compliance with applicable laws.