Answer: The sales income of small-scale taxpayers needs to be separated from the price and tax. The accounting entries are:

Debit: bank deposit

Loan: income from main business

Taxes payable-VAT payable-output tax

Generally speaking, most of the prices mentioned are tax-free, and the income of VAT taxpayers (whether small-scale or general taxpayers) is originally separated from the price and tax (the tax rate is different, the small-scale is 3%). The difference lies in the input, and the small-scale warehousing is calculated according to the price and tax.

What is the separation of price and tax?

Price-tax separation means that the price of goods or services and the tax payable for circulation are separately indicated in the invoice in the process of commodity circulation. The purpose of price-tax separation is to separate the hidden tax from the price of goods or services, so as to make it clear to the manufacturers and consumers who buy goods or services.

In a broad sense, the separation of price and tax generally refers to all circulation links, including both wholesale and retail links. In a narrow sense, the separation of price and tax only refers to retail links. The separation of price and tax is implemented, and consumers can deduct part of the tax from the tax bureau (office) according to the relevant regulations with the invoices for shopping (buying goods or services). The tax bureau verifies the business volume of manufacturers selling goods or providing services according to the shopping invoices provided by consumers, and inspects and supervises the tax payment of manufacturers to reduce the tax loss. And through tax deduction to overcome the retrogression of turnover tax.

The separation of price and tax comes from tax burden transfer. Tax burden transfer is an economic phenomenon in which commodity producers and operators transfer the tax paid to others in various ways. Under the market economy, tax burden transfer is the active behavior of commodity producers and operators. In order to obtain more profits, commodity producers and operators transfer part or all of the tax paid to others by raising or lowering the price of commodities.

How to distinguish the income on small-scale vouchers is separated from price and tax? Have you learned? In fact, the income of both small-scale taxpayers and ordinary taxpayers should be separated from the price and tax. The only difference is that small-scale taxpayers cannot deduct the input tax, and when they receive the cost invoice, they include the price and tax in the cost, and do not separate the tax.