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Accounting treatment of value-added tax relief for small-scale taxpayers
In order to encourage the development of small enterprises, the state has issued a series of preferential policies for reducing and exempting value-added tax for small enterprises. Chinese enterprises can apply for tax reduction or exemption if they meet the relevant policy conditions. As financial personnel, how do we deal with tax relief?

Accounting entries for tax relief

The first is accounting entries, which are processed according to the normal process after the business happens:

Debit: accounts receivable/cash/bank deposits, etc.

Loan: income from main business

Taxes payable-VAT payable-VAT unpaid

In line with the tax reduction and exemption policy, value-added tax is transferred to non-operating income.

Borrow: Taxes payable-VAT payable-VAT unpaid.

Loan: non-operating income

The month-end balance of each detailed account of VAT payable shall be transferred in at the end of the month.

Taxes payable-unpaid VAT

Subject; The credit balance indicates that the value-added tax has not been paid this month, and the debit balance indicates that the value-added tax has been overpaid or the value-added tax has been left over at the end of the month.

Value-added tax exemption application information

Taxpayers who meet the conditions for VAT relief need to apply to the tax authorities before they can enjoy VAT relief. Taxpayers applying for tax reduction or exemption shall provide the following information:

1. application report for tax reduction or exemption, including the basis, scope, years, amount and basic information of the enterprise, etc.

2. Fill in the Application Form for Policy Tax Reduction and Exemption and other related tax reduction and exemption applications.

3. The taxpayer's financial and accounting statements.

Copy of business license and tax registration certificate.

5. Other materials required by the tax authorities according to different tax reduction or exemption items.

Well, this is the relevant accounting treatment of VAT reduction and exemption. If you want to learn more accounting knowledge, please continue to pay attention to the deep space network.