Enterprise financiers will come across the following concepts when accounting for VAT tax:
Zero-rating, tax exemption, exemption, reduction, etc.
Often it is easy to confuse these concepts.
Zero-rated VAT
Zero-rated is not the same as exempt, and zero-rated products are currently the most favorable concept in VAT taxation.
Zero-rate not only means that the sales process is tax-free, but also the input tax included in the input process is returned and refunded. This concept basically means that foreign trade enterprises enjoy the VAT refund policy when exporting products and services, and, only general taxpayer enterprises can fully enjoy the benefits of zero-rating.
Zero-rate accounting is a specialized topic involving trading import and export enterprises as well as productive import and export enterprises, which will not be explained in depth due to the limitation of the length of this article.
VAT exemption
VAT exemption refers to a taxable behavior, because of the national policy support, the sale of VAT is not levied, but the input is not allowed to deduct, not refund.
For example, during this epidemic, in order to alleviate the losses caused by the epidemic to taxpayers, the Ministry of Finance, in conjunction with the State Administration of Taxation (SAT), has issued a temporary tax policy "Announcement on Relevant Tax Policies on Supporting the Prevention and Control of the Pneumonia Epidemic of New Coronavirus Infections" (Ministry of Finance State Administration of Taxation Announcement No. 8, 2020), which is "taxpayers provide public * **transportation services, living services, as well as income derived from providing residents with express delivery and collection services of essential living materials, are exempted from value-added tax".
The tax exemption how to invoice, tax declaration, need to pay attention to what problems? I cite a case you will understand.
Gordon is engaged in medical services for general taxpayers, the main business is oral treatment, according to the "Ministry of Finance, State Administration of Taxation on the full implementation of the pilot business tax to value-added tax notice" Cai Shui {2016} 36 Annex 3, Article 1, paragraph (vii) of the provisions of the main business to enjoy the preferential policies of exemption from value-added tax.
And in March 2017, the preferential filing was processed.
In the invoicing process, taking the Golden Tax Disk as an example, when adding the commodity code, "Yes" is selected in the column of "Enjoyment of Preferential Policies", and "Type of Preferential Policies" is selected in the column of "Tax Exemption". "The example is as follows:
The actual invoices are as follows (note that the "tax rate" column is automatically changed to "tax exemption") The "Tax Rate" column is not "0%"):
The tax-exempt business cannot issue VAT special invoices, but only ordinary VAT invoices. Ordinary invoices with tax rate issued by taxpayers are also eligible for tax exemption; if the declaration comparison does not match, the exception will be lifted by the tax authorities.
The accounting treatment is as follows:
Borrow: bank deposits/cash on hand/other monetary funds (Alipay/WeChat/others)
Loan: revenue from main business
Note that tax-exempted behaviors do not require calculation of output tax.
Of course, there is also the argument that you need to separate price and tax first, charge output tax, and then offset it later through tax deductions.
The entries are as follows:
Borrow: Bank Deposit
Credit: Revenue from Main Business
Credit: Taxes Payable - VAT Payable (Output Tax)
At the same time:
Borrow: Taxes Payable - VAT Payable (Deductions and Exemptions) Credits: Non-Operating Income
Accounting in practice is controversial.
Tax declaration, the company's operating income for the month 487889.84 yuan "issued VAT invoices 123,917.10 yuan, unbilled income of 363,972.74 yuan," the specific declaration is as follows:
The first step is to fill in the 19th column of Schedule 1 of the B06, tax exemption can not be deducted, do not have to fill in the Schedule 2 of the B07, if you get the special invoice and certified, you need to fill in the credit of B07 at the same time, you need to fill in the credit of B07. Need to fill out the B07 credit and transfer out columns at the same time.
Ordinary VAT invoices issued in the issuance of other invoices, No invoices issued mainly by individual consumers did not ask for invoices, and here you need to declare, even if it is exempted from the tax needs to be filled out, fill in the unissued invoices column.
The second step, followed by filling out the B44 VAT tax return, double-click under the serial number 2 to add VAT incentives, consistent with the filing of information, and then fill out the VAT-exempt project sales of 487,889.84 yuan, the following chart.
Step 3, finally return to the main table B05, the numbers filled in B06 and B44 will be automatically brought into B05, check the data for accuracy.
After confirming that there is no error, click on report, and the VAT return is completed. If your company is all tax-exempt business, then honestly, the declaration is very simple.
The VAT exemption is a tax benefit given by the state to taxpayers, and there are clear provisions in the tax law regarding the content of the benefit. However, in practice, some taxpayers do not have a comprehensive understanding of the tax incentives to make the wrong tax treatment, which leads to tax-related risks.
The main risk is that the accounting is not clear, leading to confusion in the accounting of the tax-exempt business, and secondly, for the tax-exempt business corresponding to the input input tax is not transferred out in time or transferred out inaccurately.
Article 10 of the Provisional Regulations of the People's Republic of China on Value-Added Tax (VAT) and Article 27 of Annex 1 of the Circular on the Comprehensive Launch of the Pilot Program for Changing Business Tax to Value-Added Tax (Cai Shui 〔2016〕 No. 36): Measures for Implementing the Pilot Program for Changing Business Tax to Value-Added Tax (Cai Shui [2016] No. 36) both stipulate that the input tax used for tax exempted items shall not be deducted from the output tax amount.
Article 26 of the Implementing Rules of the Provisional Regulations on Value-added Tax and Article 29 of the Implementation Measures for the Pilot Measures for Changing Business Tax to Value-added Tax both stipulate that input tax which cannot be classified as non-deductible is to be transferred out according to the ratio of VAT-exempted sales to all sales.
Non-deductible input tax = all input tax that cannot be classified in the current month × total sales of tax-exempt items and turnover of non-VAT taxable services in the current month ÷ total sales and turnover in the current month.
VAT exemption
VAT exemption means that a certain taxable behavior, which is subject to VAT, is not subject to VAT because the sales meet the national exemption amount regulations. This type of income is exempt from VAT, which is a policy favor, but when the invoice is issued, the tax rate should be indicated. The most typical is the VAT exemption policy for small and micro-enterprises with monthly sales of no more than 100,000 and quarterly sales of no more than 300,000 dollars.
Gordon is a small-scale taxpayer and pays VAT on a quarterly basis. The company invoiced 51,500 in January, and the revenue excluding tax was 51,500/1.03=50,000, with no other unbilled revenue.
Accounting treatment:
Borrow: Accounts receivable 51500
Credit: Revenue from main business 50000
Taxes payable - VAT payable 1500
Invoiced 20600 in February, revenue excluding tax 20600/1.03= 20000, no other unbilled income.
Accounting treatment:
Borrow: Accounts receivable 20600
Credit: Revenue from main business 20000
Taxes payable - VAT payable 600
March invoicing 10300, excluding tax revenue 10300/1.03= 10000, no other unbilled income.
Accounting treatment:
Borrow: Accounts Receivable 10300
Credit: Revenue from Main Business 10000
Taxes Payable - VAT Payable 300
April declared VAT, January-March cumulative sales of 50,000+20,000 +10000=80,000, declared quarterly is less than 300,000, enjoy VAT exemption policy.
Accounting Treatment
Borrow: Taxes Payable - VAT Payable 2400
Credit: Non-Operating Income 2400
VAT Reduction
VAT Reduction refers to the fact that a certain taxable behavior, which is subject to VAT and less levy, specific or first levy and then return, or directly reduce the levy, the accounting treatment with the VAT exemption is basically the same, of course, the accounting account of the tax payable because of the small-scale taxpayers and general taxpayers are slightly different.
4.1 Direct Levy Reduction
For example, if an enterprise disposes of used fixed assets that have not had input tax credits deducted, the tax law stipulates that they are subject to a simplified levy at the rate of 3%, and they can enjoy the preferential policy of a reduction in the levy by 2%.
The forklift disposed of by Gordon had an original value of 100,000 yuan, accumulated depreciation of 95,000 yuan, and proceeds of 0.2 million from the disposal sale. Issuance of a general VAT invoice
A general VAT invoice with a tax-inclusive price of 2,000 is issued with a tax rate column of 3%.
Policy basis: State Taxation Letter [2009] No. 90, Cai Shui [2014] No. 57, general taxpayers selling their own used fixed assets, where according to the "Ministry of Finance, State Administration of Taxation on the National Implementation of VAT Transformation Reform Circular on a number of issues" (Cai Shui [2008] No. 170) and Cai Shui [2009] No. 9 document and other provisions, applicable according to the simplified method according to the 3% levy rate reduced by 2% VAT levy policy, ordinary invoices shall be issued and special VAT invoices shall not be issued.
Fill in the declaration form
1. Fill in Schedule I, according to the amount and tax amount issued, fill in Schedule I. As it is an ordinary VAT invoice, fill in the 11th column of issuing other invoices.
2, fill in the VAT tax reduction declaration details
Here the name of the tax reduction nature is selected Cai Shui [2014] No. 57, the tax credit is 19.42, 3% levy rate is reduced by 2% levy, enjoy the reduction of the amount of (2000/1.03)*0.01=19.42
3, fill in the main table, will be filled in the same time as 19.42 into the main table line 23.
Accounts processing, enterprises due to sale, retirement or destruction, foreign investment, non-monetary asset exchange, debt restructuring and other disposal of fixed assets, its accounting treatment generally after the following steps:
First, fixed assets transferred to clean up
Borrow: fixed assets clean up 5000
Borrow: accumulated depreciation 95000
Credit: Fixed Assets 100000
Second, the sale proceeds
Borrow: Bank Deposit 2000
Credit: Fixed Assets Liquidation 1941.75
Credit: Taxes Payable - Simplified Taxation 58.25
Third, the treatment of the net gain or loss on liquidation
Debit: Gain or Loss on Disposal of Assets 3058.25
Credit: Fixed Asset Disposal 3058.25
Fourth, the part of tax exemption
Borrow: Tax Payable - Simplified Tax 19.42
Credit: Other Gains 19.42
Fifth, the payment of tax
Borrow: Tax Payable - Simplified Tax 38.83
Credit: Bank Deposit 38.83< /p>
38.83=2000/1.03*0.02,the actual is the 3% levy rate reduced by 2%.
Policy basis: Gains or losses on the disposal of fixed assets arising from the sale, transfer, etc. should be recognized in the profit and loss account of asset disposal. The profit or loss arising from the scrapping and liquidation of fixed assets due to loss of use or destruction due to natural disasters should be recognized as non-operating or non-operating expenditure.
4.2 Levy first and return later, levy and refund
Gordon is a software technology development company whose products include computer software products, information systems and embedded software products. Embedded software products are software products that are embedded in and sold with computer hardware and equipment, and form an integral part of the computer hardware and equipment.
The Company's two embedded software products have obtained testing certification materials issued by software testing organizations recognized by the provincial software industry authorities and Computer Software Copyright Registration Certificates issued by the copyright administration department.
In February 2019, the company's sales were as follows, the sales of the two embedded software products were 157,158.08 and 18,793.10 respectively, and other sales were 1024.14.
We know that, according to the policy of Cai Shui [2011] No. 100, the amount of embedded software products' value-added tax instantly levied and refunded is calculated by using the current period's embedded software product VAT payable - sales of embedded software products in the current period × 3%.
Here, the sales of embedded software products do not include the sales of computer hardware, machinery and equipment. Only the software part can be instantly refunded.
For Gorton's February sales of embedded software products and computer hardware, machinery and equipment sales are as follows
So, when filling out the February VAT return, we fill in the general tax and immediate refund portion according to the sales, which are shown separately.
First fill out Schedule I, because it is February sales, so here is still 16% of the return format, we fill in the total sales, that is, in Schedule I is one of the items, so that the embedded software part of the sales and tax to fill in that the refund column to go. That is, the following chart in line 6.
After the completion of Schedule 1, the main table will automatically speak of the general project and that is to say that the project sales and sales tax are listed.
Then we look at the input tax, input tax Schedule 2 is not divided into general items and ready to refund, although not divided, but we need to know clearly in the daily accounting of the embedded software products, those are general items of input tax, although Schedule 2 is filled in all together, but the main table we need to fill in the columns, only then we can calculate the separate current VAT payable on embedded software products.
Gordon in February, the current period *** obtained 685.79 input tax, which belongs to the immediate refundable items 35.79, other items 650.
Schedule II to fill in, can only fill in all the input tax together
And in the filling of the main table, we need to manually fill in the two parts of the separate.
Finally, we can calculate the taxable amount of the general items and the ready-to-use tax return respectively.
The actual current tax is the sum of the general items and the immediate refund.
Then we can only use the data from the immediate refund column when calculating the refund amount.
Immediate refund = current embedded software products VAT payable - current embedded software products sales × 3%
So, Gordon can refund 8879.44 in February.
In fact, the core of the immediate refund lies in the fact that taxpayers need to accurately account for the output tax and input tax of the immediate refund project, the amount of tax payable. Normal fill in the declaration form to declare, and then calculate the amount of refundable tax, input items to apply for a refund.
Sales part of the division or relatively easy, we can separate the accounting that is refundable product sales, and the input part, can distinguish between the best of course, if you can not distinguish between, we can take the actual cost or sales revenue to determine the proportion of software products should be apportioned the amount of input tax.
Doing this, daily accounting, we can normal accounting, you can increase the auxiliary items, from the accounting on the project that is separate from the refund.
And then the actual occurrence of tax refunds, according to the policy of tax refunds
Borrow: other receivables - VAT refunds 8879.44
Loan: other income 8879.44
Received VAT refunds
Borrow: bank deposits 8879.44
Loan: other receivables - VAT refunds 8879.44
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