1. If the sales are returned, it will be transferred back to the sales revenue of the current month, without adjusting the profit and loss of the previous year.

2. Handle the return of the current month. If the returned sales may be after the balance sheet date, the previous year must be adjusted.

The Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Further Improving the Single Window Management of VAT Tax Declaration (Guo [2003] No.962) stipulates: "If the buyer cannot return the invoice and the deduction coupon of the special invoice, the seller will issue all negative special invoices as the voucher for deducting the output tax through the anti-counterfeiting tax control system after receiving the certificate of purchase or deduction coupon issued by the local competent tax authorities of the buyer, and the blue words that have been issued will not be invalid. According to this regulation, if your company is a general taxpayer of value-added tax, you should issue a special VAT invoice when selling goods, and get the receipt and refund certificate when returning goods, and you should issue a special reverse invoice as a certificate to deduct the output tax through the anti-counterfeiting tax control system in accordance with the above regulations. If your company is a small-scale taxpayer or a general taxpayer but issues an ordinary invoice when selling goods, you can take back the original invoice and mark it "invalid" when returning the goods or issue a red ordinary invoice to offset the original income.