General taxpayer accounting process

(1) in the purchase segment: (determination of input tax) \x0d\\\x0d\ The basis for deduction (VAT invoices, transportation invoices, agricultural products purchase vouchers or ordinary invoices, invoices obtained by the production enterprises from the acquisition of waste materials from scrap recycling stations.) \x0d\\\x0d\ (2) In sales: \x0d\\\\x0d\\ Not required basis: VAT special invoices, ordinary invoices, uninvoiced income. (All subject to tax.) (When calculating, be careful to distinguish whether the price is tax-inclusive or not.) \x0d\\\x0d\\ The time of recognition of sales tax: the time of occurrence of tax obligation (Tax Law 1); in principle, it is basically the same as the time of recognition of sales revenue. \x0d\\\x0d\\ Classification and Accounting Treatment of Deemed Sales of Goods by General Taxpayers\x0d\\x0d\ In accordance with the Implementing Rules of the Provisional Regulations on Value-added Tax (VAT), for enterprises entrusted with the sale of goods on behalf of others, delivering goods to others for sale on behalf of others, using self-produced, commissioned-processed or purchased goods for foreign investment, gratuitous gifts to others, distribution to shareholders or investors, using self-produced or commissioned-processed goods for non The use of self-produced or commissioned processed goods for non-taxable projects, collective welfare, personal consumption and the exchange of goods are regarded as the sale of goods and are subject to value-added tax (VAT). However, the accounting treatment is not the same when paying VAT. The author's classification is as follows:\x0d\\\x0d\ The first category is the sales behavior which is sales in both form and reality, including commissioned sales and commissioned sales. Whether commissioned or entrusted sales behavior, are to sales realization for the purpose of the transfer of ownership of goods and its associated right to continue to manage, the inflow of related economic benefits as a sign, recognition and measurement of revenue. The act of proxy sale is further divided into two kinds: \x0d\\\x0d\ One is deemed to be a buyout. The commissioning party delivers the goods to the entrusted party at the agreed price, and the entrusted party determines its actual selling price by itself; after the goods are sold, the commissioning party collects the price according to the agreed price, and the entrusted party obtains the difference between the actual selling price and the agreed price. Both sides compared to the sale of value-added tax accounting treatment, respectively, according to the agreement price excluding tax and the actual selling price excluding tax to measure revenue, determine the output tax; the entrusted party at the same time will be charged by the entrusted party of value-added tax, as input tax to be deducted. The accounting treatment is as follows:\x0d\\\\x0d\ The commissioning party: \x0d\\\x0d\ Borrow: Accounts receivable (or bank deposits) \x0d\\\x0d\ Credits: Revenue from main business \x0d\\\\x0d\ Taxes payable - VAT payable (output tax) \x0d\\\x0d\ Trustee: \\ \x0d\\\x0d\ Loan: Payment for goods sold on behalf of others \x0d\\x0d\ Taxes payable - VAT payable (input tax) \x0d\\x0d\ Credit: Accounts payable \x0d\\x0d\ Other accounting treatments of both parties are omitted (the same below). \x0d\\\x0d\\ Secondly, a handling fee is charged. The commissioning party specifies the selling price of the goods to be sold on behalf of the commissioning party, the commissioned party sells the goods according to its pricing and charges a handling fee as a percentage of the selling price. Both sides of the same sales tax calculated on the basis of the sales price excluding tax, the commissioning party will be the price of goods sold as income, the commissioned party as accounts payable; the commissioned party at the same time will be paid for the VAT input tax credit, offset accounts payable. The accounting treatment is as follows: \x0d\\\\x0d\ The commissioning party: \x0d\\\x0d\ Borrow: Accounts receivable \x0d\\\x0d\ Credits: Revenue from main business \x0d\\\x0d\ Taxes and charges payable - VAT payable (output tax) \x0d\\\x0d\ The commissioning party: \x0d\\\x0d\ Borrow: Deposits in banks \x0d\\\x0d\ Credits: Accounts payable \x0d\\\x0d\ Borrow: Bank balances \x0d\\x0d\ credits: accounts payable x0d\\\x0d\\ Taxes payable - VAT payable (output tax) \x0d\\\x0d\ At the same time: \x0d\\\x0d\ Borrow: Taxes payable - VAT payable (input tax) \x0d\\\x0d\ Credits: Accounts Payable \x0d\\\x0d\ The second category is the behavior that does not have the essence of sales, including the behavior used for foreign investment, gratuitous gift to others, non-taxable items (or tax-exempt items). However, it does not include the purchase of goods for non-taxable items (or tax-exempt items). \x0d\\\x0d\\ for foreign investment, the ownership of the goods, although has been transferred, but the enterprise to obtain the proof of equity, rather than cash or equivalents; the future investment income can be realized, whether the investment can be recovered, the actual dependence on the operating conditions of the invested enterprise. Therefore, the sale cannot be established. \x0d\\\x0d\\ When used to give away to others without compensation, although the ownership of the goods is transferred, the enterprise not only does not acquire an asset or offset a debt, but instead incurs an expense. Therefore, it cannot be treated as a sale either. \x0d\\\x0d\\ Used for non-taxable items (or tax-exempt items) when the ownership of the goods is still in the enterprise, there is no transfer, but only a change in the physical manifestation of the asset, therefore, it can also not be recognized as a sales realization. \x0d\\\x0d\\\ Not having the substance of a sale, it is treated as a sale for the purpose of calculating VAT, mainly for the purpose of preventing tax loss. When such deemed sales occur, the VAT sales tax should be calculated on the basis of the non-taxable selling price and included in the cost of such items together with the cost of goods. The account processing is as follows: \x0d\\\x0d\ Borrow: long-term equity investment, non-operating expenditure, construction in progress, fixed assets, etc. \x0d\\\x0d\ Goods: Inventory subjects \x0d\\\x0d\ Taxes payable - VAT payable (output tax) \x0d\\\x0d\ Purchased goods are used in non-taxable projects (or tax-exempt projects), the VAT paid when the goods are purchased should be transferred out and included in the cost of the consumed items. The accounting treatment is as follows: \x0d\\\\x0d\ Borrow: construction in progress, fixed assets, etc. \x0d\\\x0d\ Goods: raw materials, etc. \x0d\\x0d\ Taxes payable - VAT payable (input tax reversal) \x0d\\\x0d\ The third type of behavior with the substance of the sale, including the use for distribution to shareholders or investors, for collective welfare and personal consumption and other acts. However, it does not include the purchase of goods for collective welfare and personal consumption. \x0d\\\x0d\\ When the goods are used for distribution to shareholders or investors, collective welfare and personal consumption, the ownership of the goods has been vested in another person, the debt has been reduced, and the economic benefits equivalent to the cash assets have been realized, so the goods have the substance of a sale. Enterprises should recognize revenue at the ex-tax selling price and pay VAT sales tax, all of which will be used to settle internal and external debts. The accounting treatment is as follows:\x0d\\\x0d\ Borrow: Accounts Payable, Dividends Payable, Employee Compensation Payable\x0d\\x0d\ Credits: Revenue from Main Business \x0d\\x0d\ Taxes and Charges Payable - VAT Payable (Output Taxes) \x0d\\\x0d\ Purchased Goods for Collective Welfare and Individual Consumption When the purchased goods are used for collective welfare and personal consumption, although they meet the conditions of sale, they settle the internal debts of the enterprise, and the final consumers are the non-production and operation organizations and individuals within the enterprise, and they do not achieve the purpose of production and operation of the enterprise. Therefore, the tax law stipulates that it is a non-deductible item, and the input VAT paid at the time of purchase will be transferred out, together with the cost of inventory, and used to settle the internal debt. The accounting treatment is as follows: \x0d\\\\x0d\ borrow: payable staff remuneration, etc. \x0d\\\x0d\ credit: raw materials, etc. \x0d\\\x0d\ Taxes payable - payable VAT (input tax transfer) \x0d\\\x0d\ The fourth type of purchase and sale at the same time the realization of the behavior of goods for goods. Goods for goods is in the sale of goods at the same time the purchase of goods, the sale is established without doubt, its input tax and output tax were calculated on the basis of the purchase of goods excluding tax on the purchase price and the sale of goods sold excluding tax on the sale price, the exchange of goods for goods and exchange of goods between the difference between the goods for accounts receivable, accounts payable or bank deposits. The accounting treatment is as follows: \x0d\\\x0d\ Borrow: Inventory account \x0d\\\x0d\ Taxes payable - VAT payable (input tax) \x0d\\\x0d\ Credits: Revenue from main business \x0d\\\x0d\ Tax payable- -VAT payable (output tax)