Are reimbursed expenses tax-deductible

The invoices for expenses cannot be deducted from the input tax of corporate value-added tax, but they can be deducted as inventory costs and other expenses calculated according to regulations. Corporate income tax.

How to make expense reimbursement standardized and efficient

(1) The system must consider details

To make expense reimbursement standardized and efficient, there must first be a clear Rules and regulations. And the system must be detailed enough to allow for various possible scenarios to be agreed upon.

For example, if employees are entitled to business trip subsidies for business trips, the number of days of the subsidy must be calculated. How to calculate it?

If you go on a business trip on August 1st and come back on August 2nd, it counts as one day or two days. If you count the beginning and not the end, you will be given one day of business trip allowance. If you count the beginning and the end, you will be given two days. days of subsidy.

A special situation came up. When an employee took a flight back to the Capital Airport on the evening of August 2, it was 11 o'clock in the evening, and he took a taxi to get home at 0:40 on August 3. Should I count an extra day when calculating business trip allowance? If the system can agree that the return time from the business trip will be based on the time of arrival in the city where the company is located, there will be no dispute.

(2) There should be alternatives for special matters

How can I reimburse myself after I have paid but there is no invoice? Many accountants struggle with this.

For example, a communications company went to a mountainous area to lay out a 5G network, and it took two months for food and accommodation. At the end of the project, I gave the fellow villager 3,000 yuan as a thank you. Without an invoice, how should I reimburse the expenses? At this time, the finance department blindly emphasized that reimbursement by invoice is obviously unreasonable.

In this regard, one company said Design an alternative plan and divide the business trip destinations into four categories ABCD. For D-category areas (remote mountainous areas), a lump sum system will be implemented, and the company will give higher business trip subsidies.

(3) Reserve exceptions for new matters Channels

The so-called new events refer to matters that have no constraints in the system and have never happened before. It is necessary to reserve channels for new matters so as not to be at a loss. When there are precedents for handling new matters, the rules can be summarized and the rules can be summarized. It will be supplemented into the expense reimbursement system.

(4) Training, publicity and implementation first

After the "Expense Reimbursement System" comes out, it cannot be settled by issuing a document. It must be through publicity and training. Convey the spirit of the system to all employees. Large companies usually offer a course "How Employees Reimburse Expenses" during the onboarding training for new employees, telling employees the financial requirements and knowledge about invoices to help employees correctly understand the system. For example, Many employees are not clear about the difference between special VAT invoices and ordinary VAT invoices, and do not understand why the finance department requires special invoices. Through training, employees can understand why special invoices can be tax deductible.

In addition, the Finance Department It is necessary to actively publicize various new policies and new regulations introduced by the government.

(5) Identify key approval nodes

When employees reimburse expenses, they often have to find a circle of leaders to sign for approval. The signature is submitted to the finance department only after the approval is completed, followed by accounting approval and cashier payment. Each company has different requirements for who needs to sign. The smaller the company, the simpler the signature; the larger the company, the longer the signature process.

(6) Agreed time limit for reimbursement and approval

Take Huawei as an example. After the expense is incurred, it should be reimbursed within three months. If it exceeds three months but does not exceed six months, it needs to Reimbursement will be made through the special approval process. No reimbursement will be given after six months.

In order to ensure the timeliness of expense reimbursement approval, Huawei has stipulated a time limit for electronic approval. From the date the electronic flow is transferred to the approver , if there is no approval after a certain period of time, the system will automatically jump to the next link, and by default the approver of this link has agreed. Of course, the responsibility for approval is still borne by the approver who did not sign in time.

( 7) Centralized processing

Expense reimbursements are mostly in small amounts and in large quantities. If a company has hundreds of employees and each employee has expense reimbursements, the finances will be miserable.

Many companies will face such a problem. From Monday to Friday, from morning to afternoon, people come to claim expenses. The finance department is like a teahouse with people coming in and out all the time.

This suggestion , expense reimbursement is concentrated on every Tuesday and Friday afternoon. Employees who frequently reimburse expenses

, it is recommended to process it once a month as much as possible. This implementation will make the expense reimbursement work of the Finance Department much simpler and easier.

(8) IT and artificial intelligence replacement

Expense reimbursement approval It has a large workload, strong rules, few control nodes, and simple execution. These characteristics are very consistent with the requirements of artificial intelligence processing. The front-end approval of expense reimbursement, the middle accounting, and the back-end payment can all be intelligentized.

If a financial exclusive service center is established, expense reimbursement can be automatically processed, and the workload will become insignificant.

For example, through the OA system, it can be processed in Electronic approval is realized in the approval process, turning human travel into computer travel. In the document circulation process, centralized express delivery can be realized. In the payment process, batch transfers can be realized through OA and online banking. In the accounting processing link, accounting entries can be realized Systematic processing replaces manual entry.

The answer to the question about whether reimbursement expenses are tax deductible is introduced here. The reason why reimbursement expense invoices cannot be used to deduct value-added tax is mainly because they are generally Ordinary VAT invoices, and they are not obtained by purchasing goods or services, do not meet the standards for VAT deduction. Finance should not make deductions blindly when processing reimbursement invoices.