How to make entries for small-scale output tax deductions
Small-scale taxpayers enjoy output tax reduction and exemption, and need to carry out corresponding accounting treatment in accordance with the regulations. Below we will take a closer look at the accounting entries for small-scale output tax deductions.
1. Principles of accounting treatment.
When small-scale taxpayers sell goods or provide labor services and collect the price, the tax payable shall be calculated according to the sales amount and the prescribed levy rate, and recorded in the account of "tax payable - VAT payable". At the same time, according to the VAT Law and its implementation rules, small-scale taxpayers who meet the prescribed conditions can enjoy the preferential tax policy of VAT exemption. Therefore, when calculating the tax payable, the tax-exempt part should be deducted from the sales amount and credited to the corresponding account.
Second, the specific accounting entry practice.
1.When selling goods or providing services and receiving a price
Debit: bank deposits, accounts receivable, etc.
Credit: main business income.
Tax Payable – VAT payable.
2.Calculate the VAT-exempt part:
Borrow: main business income (tax-exempt part).
Credit: Tax Payable - VAT Payable (Tax Deduction) Payable
3.Carry-forward VAT exemption:
Debit: Tax Payable - VAT Payable (Tax Deduction Amount).
Credit: Non-operating income - * subsidy.
It should be noted that in the specific operation, the above accounting entries should be adjusted and improved according to the actual situation. At the same time, when carrying out accounting treatment, it should strictly abide by the provisions of the Accounting Standards for Business Enterprises and relevant tax laws and regulations to ensure the truthfulness, accuracy and completeness of accounting information.