The accounting entry for input certification credit can be like this:
1. Receive the input:
Borrow: Taxes Payable - VAT Payable (Input Tax)
2. Issue the VAT invoice:
Loan: Taxes Payable - VAT Payable (Output Tax)
Outputs-Inputs = This month should be paid taxes (output and input in the "payable taxes - payable VAT" account, the balance may be positive or negative. At the end of the month, the balance should be transferred to "Taxes Payable - Unpaid VAT", and at the end of the month, the balance of the account "Taxes Payable - Unpaid VAT" should be zero.)
3, if, at the end of the month, the balance of the "Taxes Payable - VAT Payable" account is positive (the balance is in the credit side), then:
Borrow: Taxes Payable - VAT Payable (transferred out of the unpaid value-added tax)
Credit: Taxes Payable - Unpaid Value-added Tax
4, if, at the end of the month, the balance of the "Taxes Payable - VAT Payable" account is negative to do the opposite entries if If the balance of "Taxes Payable - Unpaid VAT" at the end of the month in the debit side indicates that the balance to be set aside next month; if the balance of "Taxes Payable - Unpaid VAT" at the end of the month in the credit side indicates that the balance is the amount of tax to be paid this month.
5. After paying the tax:
Borrow: Taxes Payable - Unpaid VAT - Paid VAT
Credit: Bank Deposits
Input tax credit is accompanied by the purchase and payment of the project, so it can only be recorded when the purchase and payment of the project is realized (obtaining the settlement vouchers, i.e., invoices).