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How to write accounting entries when small-scale taxpayers buy and sell?
Small-scale taxpayers usually refer to value-added tax taxpayers whose annual sales are lower than the prescribed standards, their accounting is not perfect, and they can't submit relevant tax information as required. For small-scale taxpayers, how to make accounting entries for buying and selling goods?

Accounting entries for the purchase and sale of small-scale taxpayers

When buying goods,

Borrow: raw materials/inventory goods, etc.

Loans: accounts payable/notes payable/bank deposits, etc.

When selling goods,

Borrow: bank deposits, etc.

Loan: income from main business

Taxes payable-VAT payable

When paying VAT,

Borrow: Taxes payable-VAT payable

Loans: bank deposits

Small-scale taxpayers use the simplified method to calculate the value-added tax, that is, the value-added tax indicated on the special invoices for value-added tax after purchasing goods, taxable services or taxable activities is not deducted and directly included in the relevant costs or assets.

What is a small-scale taxpayer?

Small-scale taxpayers refer to value-added tax taxpayers whose annual sales are lower than the prescribed standards, their accounting is not perfect, and they can't submit relevant tax information as required.

The so-called imperfect accounting means that the taxable amount of output tax, input tax and value-added tax cannot be calculated correctly.

What is VAT?

Value-added tax is a turnover tax levied on the basis of the value-added generated in the process of commodity circulation. From the tax principle, value-added tax is a turnover tax levied on the added value of many links such as commodity production, circulation and labor services or the added value of commodities.

What is the income from the main business?

Main business income refers to the income generated by the regular and main business of an enterprise.

According to the different activities of enterprises in various industries, for example, the main business income of industrial enterprises refers to "product sales income"; The main business income of a construction enterprise refers to "project settlement income"; The main business income of a transportation enterprise refers to "transportation income"; The main business income of wholesale and retail trading enterprises refers to "commodity sales income" and so on.