Identify seller and platform roles in coupons and subsidies before reconciliation

Identify who bears the cost and who receives the money

Take one completed order and compare the merchant terms in force for the campaign, the order-level promotion details and the corresponding settlement statement. Identify the seller, the party that ultimately funds the benefit, and the recipient of any campaign payment. The coupon issuer and the platform collecting cash are not necessarily the funder.

For example, Weixin Pay’s mini-program payment documentation distinguishes funding by Weixin, the merchant or another party according to the coupon batch configuration. Where several parties share a campaign cost, use the agreement and funding schedule to establish the split. The payment record is useful evidence, but the campaign agreement and merchant settlement records are still needed to establish what the shop receives. Where a reimbursement is capped, conditional or pending review, keep it open rather than marking it as cash received.

Reconcile one customer payment under three funding arrangements

Assume a mainland China shop lists an item at RMB 100. The seller first reduces the price by RMB 10, and the buyer uses a further RMB 15 promotion, paying RMB 75 in all three cases. The rows below are alternative agreements, not three payments on one order. Assume a completed domestic sale, no shipping charge or refund, and all conditions for the specified third-party reimbursement met. Amounts use the same tax-inclusive transaction basis solely for comparing settlements.

If the platform deducts a separate RMB 3 service fee in the second case, that order contributes RMB 87 to the net settlement batch. Start with the buyer’s RMB 75, add the RMB 15 due to the seller and deduct the independent fee. Do not subtract the seller discount again when it is already reflected in the buyer payment, or add RMB 15 again to a settlement figure of RMB 90 that already includes it. If reimbursement is due in a later batch, show the entitlement separately from the cash in the current payout.

Keep platform reporting, bank receipts and VAT separate

For internet platforms within its scope, State Taxation Administration Announcement 2025 No. 15 defines the sales income figure reported by the platform. The gross figure includes relevant consideration and VAT; actual relevant subsidies and platform commissions or service fees are not subtracted from it. Refunds are reported separately when deriving net income under this reporting rule. The RMB 87 payout after fees is therefore not a substitute for the platform’s gross figure. Nor should a seller-funded discount be turned into a fictitious subsidy received from the platform.

A merchant’s own VAT return is a separate determination. Article 17 of China’s VAT Law, effective January 1, 2026, ties the sales amount to consideration for the taxable transaction and excludes the relevant VAT amount. Establish whether a payment relates to goods sold, a separate marketing service or another arrangement, which taxpayer receives it, and the period concerned. Then review the applicable tax method, invoicing and discount rules. None of the tax-inclusive settlement figures in the table is itself a calculated VAT base or tax liability.

The originals were checked on November 5, 2026. The discussion concerns domestic transactions of mainland China businesses. An overseas platform or obligations in another jurisdiction require separate review of the entity, period and rules. A campaign described as a “subsidy” is not necessarily a government grant.

Follow both sides when an order is refunded

Trace the cash actually returned to the customer, whether the coupon was restored or expired, whether the funder reclaimed its contribution, and whether platform fees changed. The customer’s cash refund is not necessarily the full settlement reversal for the seller. Link a later recovery to the original order and the adjustment batch. If the campaign refund terms or adjustment details are missing, identify the unresolved counterparty and difference. See reconciling refunds across periods for the accounting, invoice and filing follow-up.

A month-end handover can be concise: “The buyer paid RMB 75. The platform owes RMB 15 under the campaign terms and deducted an RMB 3 service fee in this batch. Please identify the reimbursement batch, show any amount not yet received separately, and review the invoicing and filing basis.” That gives the reviewer the funder, the entitlement, the settlement and an open item to resolve.

CaiGeek is an AI financial assistant for mainland China SMEs. A redacted sample order and the relevant campaign terms can frame the reconciliation question; finance personnel review the actual evidence and professional conclusions. Explore the tax and compliance examples, or contact CaiGeek about a multi-shop promotion.