The accounting treatment of the value-added tax that has been audited can be handled with reference to the relevant provisions of the Notice of State Taxation Administration of The People's Republic of China on How General VAT Taxpayers Determine Tax Evasion Amount and Tax Evasion Penalty (Guo Shui Fa [1998] No.66) and the Notice of State Taxation Administration of The People's Republic of China on Printing and Distributing the Measures for Daily Inspection of Value-added Tax (Guo Shui Fa [1998).

The Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Printing and Distributing (Measures for Daily Inspection of Value-added Tax) (Guo Shui Fa [1998] No.44) stipulates that the adjustment method of value-added tax audit: for the account adjustment after value-added tax inspection, a special account for "tax payable and value-added tax inspection adjustment" should be set up. After the inspection, the book input tax should be reduced or the output tax and input tax should be increased, and the relevant subjects should be debited and credited with "tax payable-VAT inspection and adjustment"; After inspection, the book input tax should be increased or the output tax and input tax should be reduced, and the relevant subjects of "tax payable-VAT inspection adjustment" should be debited; After all account adjustment items are posted, the account balance shall be settled.

Last year's value-added tax and accounting entries to be paid for audit:

Supplementary terms:

Debit: previous year's profit and loss adjustment

Credit: Taxes payable-VAT check adjustment

When paying:

Debit: Tax payable-VAT check adjustment

Loans: bank deposits