Processing refers to the business that foreign businessmen provide all raw materials, auxiliary materials, spare parts, components, accessories and packaging materials, and provide equipment when necessary. The contractor's processing unit will process and assemble finished products according to the requirements of foreign investors, and the finished products will be sold to foreign investors. The contractor will receive remuneration for labor services, and the price of fixed equipment provided by foreign investors will be reimbursed by the contractor. Next, I have prepared the financial and tax treatment of processing with supplied materials for your reference!

The accounting of the trustee is generally:

1. When receiving the entrusted processing materials, register the memo book (or not record the actual amount) according to the contract price and debit it? Commissioned processing materials? A company? (Indicate the quantity of materials), and make corresponding remarks when receiving the goods.

2. For the production cost generated in the process of processing:

Borrow: production cost

Loan: raw materials? Supplementary material

Wages payable

production cost

3. When the processing is completed and sent to the entrusting party as stipulated in the contract:

(1) Confirm sales revenue

Debit: Accounts receivable (bank deposits)

Loan: main business income (processing fee income)

Tax payable? VAT payable (output tax)

Tax payable? Consumption tax payable

(If the processed products are taxable products of consumption tax, the trustee shall fulfill the obligation of collecting and paying consumption tax. In taxable value, generally refer to the price of similar products or the composition of taxable value? Consumption tax rate)

(2) Carry forward the cost of sales at the same time:

Debit: main business cost

Credit: production cost

(3) Write off and credit the entrusted processing materials in the memo book? Commissioned processing materials? A company? (indicate the quantity of materials).

4. When the consignee pays the consumption tax:

Borrow: Should I pay taxes? Consumption tax payable

Loans: bank deposits

Further reading: Is it double taxation to re-invoice motor vehicle consumers?

question

The Reply of State Taxation Administration of The People's Republic of China on the Handling of Consumers' Lost Motor Vehicle Sales Invoices (Guo [2006] No.227) stipulates that consumers can take the form of reissue when they lose motor vehicle sales invoices. The specific procedure is that the consumer who loses the motor vehicle sales invoice obtains a unified sales invoice stub from the motor vehicle sales unit (stamped with the sales unit invoice special seal or financial special seal), which is stamped by the local competent tax authority where the motor vehicle seller is located and registered for the record, and the motor vehicle sales unit reissues the motor vehicle sales invoice with the same contents as the original sales invoice stub. Consumers shall go through the relevant formalities with the newly-developed motor vehicle sales invoice. Excuse me, if our unit re-issues invoices to consumers according to this regulation, is it necessary to double-calculate the sales revenue?

explain

The Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Issues Related to the Use of the New Uniform Invoice for Motor Vehicle Sales (Guo [2006] No.479) stipulates that if the purchaser loses the motor vehicle invoice before handling the vehicle registration and paying the vehicle purchase tax, he shall first apply for a replacement of the motor vehicle invoice according to the procedures stipulated in the Reply of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on the Handling of Consumers' Lost Motor Vehicle Sales Invoice (Guo [2006] No.227).

Your company can reissue the motor vehicle sales invoice with the same contents as the original sales invoice stub according to Guoshuihan [2006] No.227, and then issue a red-ink invoice according to the missing invoice stub information.

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