1. When purchasing:
Borrow: Inventory goods tax payable - VAT payable (input tax)
Loan: Bank deposits/cash on hand
2. When using:
Borrow: Employee remuneration payable -Employee Welfare Expenses
Loan: Inventory Goods Taxes Payable - VAT Payable (Input Tax Reversal)
3. At the end of the period, the employee remuneration is accrued:
Borrow: Production Costs/Manufacturing Expenses/Administrative Expenses/Selling Expenses, etc.
Loan: Employee compensation payable
According to Article 40 of the Regulations for the Implementation of the Enterprise Income Tax Law, "collective welfare" mainly includes:
1, enterprises that have not yet implemented the separation of social functions, the equipment, facilities and personnel costs incurred by their internal welfare departments. Including staff canteens, staff bathrooms, hairdressing rooms, medical clinics, nurseries, nursing homes and other collective welfare departments of equipment, facilities and repair and maintenance costs and welfare department staff wages and salaries, social insurance premiums, housing provident fund, labor costs.
2. Subsidies and non-monetary benefits for employees' health care, living, housing, transportation, etc., including medical expenses paid by the enterprise to employees for out-of-town medical treatment on official business, medical expenses for employees of enterprises that do not have medical coordination, medical subsidies for employees' dependent immediate family members, subsidies for heating costs, summer heat-prevention and cooling costs for employees, hardship subsidies for employees, relief expenses, subsidies for employees' canteens, and transportation subsidies for employees. etc.
3, in accordance with other provisions of the other employee welfare costs, including funeral subsidies, pension costs, family expenses, family leave travel expenses. These are the provisions of the scope of the welfare expenses. As for the air conditioning and other fixed assets can deduct input tax, mainly depending on where it is used, office business premises, can be deducted; canteen, health center and other welfare departments can not.