Product Sales
Sales of commercial products are recognized at the time of sales. But depending on the industry and company, point of sales differs. In general, point of sales can be categorized into the following,
1. Contract Signed Date
2. Shipping Date
3. Delivery Date
4. Receipt Inspection Date
5. Date of Usage
In principle, recognition for corporate income tax and consumption tax is at the time of delivery. In case the company chooses to use a point in time other than the delivery date as sales recognition, consult with your tax accountant to see if reason for such decision is something tax auditors will be accepting. You are able to choose a different point in time for sales recognition by each product but logical explanation and consistency is required.