Tips for handling input tax accounting entries for uncertified credits
In the process of production and operation of enterprises, they often encounter some problems of taxes that cannot be verified or deducted. This involves not only whether the company is in compliance with tax regulations, but also whether the company's cash flow and accounting reports are correct. So, what about income that has not been deducted?
First, we need to figure out what is the input VAT that has not been verified and deducted. In short, the VAT paid by the company when purchasing goods and services cannot be directly deducted from the input VAT paid by the enterprise because it has not been reviewed by the tax authority.
In this case, the enterprise should keep accounts in the following way:
When the amount of input tax is included in the payment, the enterprise should be credited to the tax payable - VAT payable and debited to the "Bank Deposit" account.
If the company has obtained the relevant invoices and has been reviewed by the tax authorities, then the verified input tax can be transferred from "Tax Payable - VAT Payable (Input Tax)" to Tax Payable - VAT Payable (Input Tax).
In this way, companies can clearly show unverified, deductible income, ensuring consistency in the tax process and ensuring accurate financial reporting. It has certain guiding significance for improving the financial performance of enterprises and reducing the tax risk of enterprises.