There are two accounting accounts involved in recording the accrual and payment of vehicle and vessel tax in accounting entries, namely taxes and additional and payable taxes. Here's an example of a specific entry:
1.When accruing vehicle and vessel tax:
Scenario 1: Company A accrues vehicle and vessel tax based on the number of vehicles and vessels and the tax rate for the previous year, and the amount of the accrual is US$10,000.
Debit: Taxes and surcharge $10,000.
Credit: Tax Payable - Vehicle and Vessel Tax Payable USD 10,000.
Scenario 2: Company B buys a new commercial vessel and accrues vehicle and vessel tax in the amount of €5,000 in the first month after the purchase.
Borrow: tax and surcharge of 5,000 euros.
Credit: Tax payable – Vehicle and vessel tax payable EUR 5,000.
2.When the tax is actually paid:
Scenario 1: Company A pays vehicle and vessel tax in the amount of US$8,000 as required by the tax department.
Borrow: Tax Payable - Vehicle and Vessel Tax Payable USD 8,000.
Credit: Bank deposit $8,000.
Scenario 2: Company B pays the vehicle and vessel tax on a quarterly basis in accordance with the regulations of the tax authority, and the amount paid in the current quarter is 2,500 euros.
Borrow: Tax Payable - Vehicle and Vessel Tax Payable EUR 2,500.
Credit: Bank deposit 2,500 euros.
It is important to note that accounting entries may vary depending on specific accounting standards and tax law regulations. It is advisable to do this according to the laws and regulations of your country or region, and to seek advice from a professional accountant or tax advisor. Vehicle and vessel tax