VAT as sales withholding needs to be included in the tax payable-VAT payable (output tax) accounting.
Accounting entries:
Debit: bank deposit
Credit: financial expenses-credit interest
Taxes payable-VAT payable
Interest income refers to the income that an enterprise provides funds to others for use, but does not constitute equity investment, or that others occupy enterprise funds, including deposit interest, loan interest, bond interest, arrears interest and other income. Interest income is recognized according to the date when the debtor pays interest as stipulated in the contract.
VAT is regarded as sales. How to make accounting entries?
(1) Deliver the goods to others for consignment:
The client's handling of -A is regarded as a buyout, and the income is generally recognized when the goods are issued.
Under the method of collecting commission, the income is recognized when the entrusted order is received.
2 consignment goods:
Handling fee of the trustee-income is recognized according to the handling fee charged.
(3) Taxpayers with more than two institutions and unified accounting transfer goods from one institution to other institutions for sale, unless the relevant institutions are located in the same county (city):
Unrecognized income
(5) Use the goods commissioned for production, processing or procurement for investment;
Borrow: long-term equity investment.
Loan: main business income/other business income.
Taxes payable-VAT payable (output tax).
(6) Distribution of self-produced, commissioned and purchased commodities to shareholders or investors;
Borrow: dividend payable.
Loan: income from main business.
Taxes payable-VAT payable (output tax).
Materials once produced and commissioned for processing are used for collective welfare or personal consumption:
Debit: payable to employees.
Loan: income from main business.
Taxes payable-VAT payable (output tax).
"Interpretation of Accounting Standards for Business Enterprises" shall be submitted to the Employee Compensation Office. "If an enterprise provides its own products to employees as non-monetary benefits, the confirmation of relevant income, the carry-over of sales expenses and the handling of relevant taxes and fees are the same as normal commodity sales."
Value-added tax payable is calculated as sales.
Debit: non-operating expenses.
Credit: Inventory goods (cost).
Taxes payable-VAT payable (output tax) (fair value * VAT rate).
How to make accounting entries when an enterprise borrows money for free and accrues value-added tax as interest on income? Through the above information, I believe everyone knows how to make relevant accounting entries. Note that free loans between enterprises will be regarded as sales and processing, and all enterprises need to pay VAT according to law. Here, Bian Xiao also introduces the accounting entries that value-added tax is regarded as sales, for reference only!