Disposal of fixed assets is not subject to VAT, but eligible business tax, urban construction tax and education surcharge should be paid.
Second, the accounting treatment:
Disposal of fixed assets transferred to the cleanup:
Borrow: Fixed Assets Cleanup (net book value)
Borrow: Accumulated Depreciation (depreciation has been provided for in the book)
Loan: Fixed Assets (book value)
(If there is a provision for impairment in the book, it should be written off)
Disposal of Expense:
Borrow: Fixed Assets Liquidation
Loan: Bank Deposits, etc.
Revenue from Disposal:
Borrow: Bank Deposits, etc.
Loan: Fixed Assets Liquidation
Taxes and fees payable:
Borrow: Fixed Assets Liquidation
Loan: Taxes payable -----Sales Tax Payable
Credit: Taxes payable ----- Urban construction tax payable
Credit: Other payables ----- Education surcharge payable
Net proceeds from disposal (Disposal proceeds - Net book value - Disposal costs - Taxes and fees payable):
Borrow: Fixed asset liquidation
Credit: Non-operating income
Or net loss from disposal:
Borrow: Non-operating Expenses
Credit: Fixed Asset Liquidation