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Many people in shopping, transactions and other aspects will use WeChat, Alipay transfer form. Online payment has been very popular. Some enterprises try to make it convenient to transfer the contract price directly to the actual person in charge through WeChat instead of transferring to the public account. This kind of behavior is quite risky. Today, I would like to chat with you about the tax risks that what may be caused by the enterprises' behaviors such as payment for goods, collection of money and payment of wages through WeChat.

First, the risk of value-added tax
1. Risks that cannot be deducted as input:
Payment through WeChat transfer may result in opaque book of payment and unclear fund flow of business transaction. Due to the complete list of face information of VAT invoice, through WeChat transaction, the other party cannot accurately fill in the bank account information on the invoice and cannot issue VAT invoice, which leads to the failure of input deduction and the increase of VAT payable.
2. Risks of not timely reporting income:
When the VAT sales funds collected through WeChat transfer are easily confused with personal consumption records, leading to the failure to declare VAT on some WeChat receipts and the risk of tax evasion.

Second, the enterprise income tax aspect risk
1. Payment through WeChat transfer or payment of wages to employees may result in the inability to obtain legal vouchers to list the costs, so that the relevant payments cannot be deducted before tax in the declaration of enterprise income tax.
Policy basis: the announcement of the state administration of taxation on the issuance of the administrative measures for the pre-tax deduction vouchers of enterprise income tax (the announcement of the state administration of taxation no. 28, 2018) stipulates in article 5 that an enterprise shall obtain a pre-tax deduction voucher for expenses incurred, which shall be used as the basis for deducting relevant expenses when calculating the taxable income amount of enterprise income tax.
2. The payment received through WeChat transfer is not reflected in the income of the public account, and there may be tax-related risks of concealing income or underreporting income.

Third, the enterprise internal risk
If an enterprise regularly transfers business funds through WeChat instead of dealing with public accounts, it may lead to internal financial chaos and the company's funds cannot be supervised, which is not conducive to the long-term development of the enterprise.