When old equipment is sold, do I need to calculate VAT?
When old equipment is sold, VAT needs to be calculated. The tax rate for the sale of old equipment is based on general taxpayers and small-scale taxpayers respectively. Explanation:
1. General taxpayers sell used fixed assets that are not allowed to be deducted and the input tax is not deducted according to Article 10 of the "Interim Regulations of the People's Republic of China on Value-Added Tax" and the input tax has not been deducted. According to the simplified method, the value-added tax is levied at a reduced rate of 3% and a reduced rate of 2%.
2. Small-scale taxpayers who sell their used fixed assets are levied a reduced rate of 2% value-added tax.
According to the State Administration of Taxation--Announcement on matters related to the deduction of value-added tax on waste material invoices:
1. Starting from January 1, 2009, the value-added tax for waste material recycling business General taxpayers who sell waste and used materials are not allowed to issue special value-added tax invoices with the words "waste and used materials" printed on them (hereinafter referred to as special invoices for waste and used materials).
Taxpayers obtain special value-added tax invoices issued after January 1, 2009. Special invoices for waste and used materials will no longer be used as value-added tax deduction vouchers.
2. Special invoices for waste and used materials obtained by taxpayers issued before December 31, 2008 should be processed within 90 days from the date of issuance. Certification, and calculate the current value-added tax input tax and claim for deduction in the month when the certification is passed.
How to make accounting entries for the sale of used equipment sold by the company?
The accounting process for used equipment sold by the company As follows:
1. The old equipment sold by the company is first converted into fixed assets and the accounting entries for liquidation are as follows:
Debit: Fixed assets liquidation
Accumulated depreciation
p>Debit: fixed assets
2. The accounting entries for the cleaning costs of fixed assets (disassembly fees, or maintenance fees paid) are as follows:
Debit: fixed assets Cleanup
Credit: bank deposit (or cash on hand)
During the inventory of fixed assets, if any fixed assets with surplus or loss are found, a surplus or surplus fixed asset inventory should be filled in Loss report form. When checking the losses and losses of fixed assets, the reasons should be identified in a timely manner and submitted for batch processing in accordance with the prescribed procedures.