[Taxation] Declaration of Sales Returns and Sales Allowances

Value Added Tax (VAT) returned by an entity to a purchaser due to sales return or sales allowance shall be deducted from output tax of the period during which sales returns or allowance incurred, otherwise the VAT could be deducted at the next period of declaration. In case an entity fails to deduct the VAT at the period during which sales returns or allowance incurred or at the next period, the entity could submit the application for correction and declare the VAT deduction after verification on the fact of sales returns or allowances by tax authority.