How to make accounting entries for tax-free income during the epidemic
Debit: bank deposits or related accounts
Credit: main business income
Credit: Taxes payable-VAT payable-Output tax
Debit: Taxes payable-VAT payable-Tax exemption
Credit: Non-operating income- Government subsidies
Which industries are tax-free during the epidemic?
The Ministry of Finance and the State Administration of Taxation announced No. 8 of 2020 that from January 1, 2020, some projects during the epidemic prevention and control period Exemption from value-added tax.
Income derived by taxpayers from transporting key supplies for epidemic prevention and control is exempt from value-added tax.
Taxpayers provided with public transportation services, Daily services, as well as income derived from providing express collection and delivery services for necessary daily supplies for residents, are exempt from value-added tax.
1. Public *** transportation services The specific scope of public *** transportation services: Public transportation services include ferry, bus, subway, urban light rail, taxi, long-distance passenger transport, and shuttle bus.
2. Life services refer to the provision of services to meet the daily needs of urban and rural residents. Various service activities, including cultural and sports services, education and medical services, tourism and entertainment services, catering and accommodation services, daily services for residents and other daily services.
3. Provide residents with express collection and delivery services of necessary daily supplies Including collection services, sorting services, and delivery services.
Collection and delivery services refer to accepting the entrustment of the sender and completing the collection, sorting, and delivery services of letters and packages within the promised time limit. Business activities.
Receipt service refers to business activities that collect letters and packages from senders and deliver them to the distribution center in the same city as the service provider.
Sorting service, It refers to the business activity of the service provider classifying and distributing letters and parcels in its distribution center.
Delivery service refers to the service provider’s delivery of letters and parcels from its distribution center to the collection center in the same city. Business activities of the sender.
4. The income received by taxpayers from transporting key epidemic prevention and control supplies mainly depends on whether the transported materials are classified as determined by the National Development and Reform Commission and the Ministry of Industry and Information Technology. The scope of key supplies for epidemic prevention and control. Only income from providing transportation of materials within the specified scope can be exempted from value-added tax.
How to make accounting entries for tax-free income during the epidemic? During the epidemic, the tax bureaus of various places The requirements or regulations for tax exemption policies are different, and companies need to apply in advance and obtain tax exemption qualifications before they can carry out tax exemption processing during the epidemic. If you do not know how to deal with these aspects in financial practice work, you can contact the website teacher for more information Communicate.