Does the quotation for buying hot melt adhesive include or exclude tax? Unified criteria before purchasing price comparison

#Does the quotation for buying hot melt adhesive include or exclude tax? Unified criteria before purchasing price comparison

When purchasing hot melt adhesive, many factories ask for the first time when they receive a quotation: “Is this price inclusive of tax or not?” It may seem simple, butUnable to unify the standards, multiple suppliers are unable to compare pricesThis article clarifies the issue of “price including tax/price excluding tax” to help procurement avoid pitfalls before inquiring, comparing, and placing orders.

1、 What is the difference between the price including tax and the price excluding tax

• price excluding taxPure net payment, excluding value-added tax.
• price including taxThe total amount of payment plus value-added tax, which is the final amount that the buyer needs to pay (“total price and tax”).

The relationship between the two is simple: price including tax ≈ price excluding tax × (1+value-added tax rate). At present, the common value-added tax collection rate for general taxpayers selling goods is based on the latest tax regulations (commonly 13%, specifically implemented according to the current regulations of the State Administration of Taxation),This article does not provide specific tax rates for Sunlife. Please refer to the official quotation and tax regulations for accuracy。

For example (for illustrative purposes only, not Sunlife’s quotation): Similarly labeled as “100 yuan”, one company says it does not include tax and the other says it includes tax, but the actual price difference may exceed 10%. So when comparing pricesWe must first level the tone between the two companies——Either all are compared to the price without tax, or all are compared to the price with tax, otherwise the numbers are not comparable.

2、 Why take the initiative to ask ‘including tax, excluding tax’

1. Cost accounting should matchWhen factories make BOM and cost calculations, they should use “actual paid price including tax” or “price excluding tax”. The financial standards should be consistent, otherwise there may be discrepancies in the end of month reconciliation.
2. Special tickets can be deducted, but regular tickets cannotGeneral taxpayers who receive value-added tax special invoices can have their input tax deducted; Using a regular invoice is not acceptable. The amount of tax included in the inclusive price, whether it can be ‘recovered’ depends on what type of invoice you have issued.
3. Low-price trapSome quotations are written very low, but they indicate the price excluding tax. When you add tax, shipping, and minimum order quantity limit, it will actually be more expensive than the quotation including tax.

3、 How do suppliers like Sunlife usually report

Sunlife (Guangzhou Sunlife Trading Co., Ltd.); Hot melt adhesive products are manufactured by Foshan Jucai New Materials Base, focusing on the daily quotation habits of books, graphics, and packaging hot melt adhesive. For example:

• The quotation usually defaults to quotingprice including tax, and indicate whether it includes a 13% value-added tax special invoice;
• Bulk orders (such as book and magazine adhesive, packaging adhesive) are usually quoted by ton or by box, and will be clearly statedPackaging specifications and minimum order quantity(See “How many kilograms of hot melt adhesive per bag? Packaging specifications, order quantity, and common procurement questions”);
• We can provide both tax inclusive and non tax inclusive options,The written quotation shall prevailOral quotations are not used as the basis for settlement.

Tip: The pricing structure of Sunlife’s different product lines (book glue, graphic store glue, packaging glue, pearl cotton glue) varies, and seasonal models such as summer glue/winter glue may also have price differences,Please request the official quotation for the current period from Sunlife Sales for the specific unit price。

4、 4 actions taken by the purchaser when comparing prices

1. First determine the caliberWhen inquiring, simply state ‘Please quote the price including tax (including 13% special invoice)’ to avoid back and forth disputes.
2. unified unitsAll in “yuan/kg” or “yuan/ton”, and confirm whether it includes shipping and wooden pallets/cardboard boxes.
3. Check the minimum order quantityThe price of small batch samples is often different from that of bulk goods. Don’t compare the price of samples to that of bulk goods.
4. To obtain invoice information templateBefore confirming the cooperation, prepare the company’s invoicing information (name, tax number, address, phone number, bank and account number) for the convenience of suppliers to issue special invoices (please refer to “How to Invoice for Hot Melt Adhesive Purchase” for the invoicing process).

5、 Hidden costs beyond tax inclusive price

In addition to taxes, purchasing hot melt adhesive also involves two easily overlooked accounts:

• Delivery cycleTax inclusive is cheap, but the delivery time is long, and the downtime loss caused by broken glue on the production line may far exceed the price difference.
• Glue testing and reworkThe cost of page dropping, glue peeling, wire drawing, rework, and scrap caused by incorrect glue is much higher than the glue price itself. For selection, you can refer to “How to choose hot melt adhesive for book and magazine packaging according to machine speed”, align the parameters such as opening time and machine temperature first, and then negotiate the price.

Summary

Whether to include tax or not is not a trivial matter, but a prerequisite for price comparison. The purchaser will clarify the caliber, unit, minimum order quantity, and invoicing type at once during the inquiry stage, and the subsequent accounting and settlement will be much smoother.Sunlife’s official quotation is based on a written quotation, and specific prices and tax rates are not provided in this article. Please refer to the current regulations of the State Administration of Taxation for relevant tax rules.