because the tax payable is a liability account, the borrower registers the reduced amount and the lender registers the increased amount. Therefore, the tax payable changes with the calculation and payment, sometimes in the lender and sometimes in the borrower, rather than increasing all the time.
Further reading:
Taxes payable refer to all kinds of taxes payable by an enterprise according to the operating income and profits achieved in a certain period of time and the provisions of the current tax law.
Taxes payable include value-added tax, consumption tax, business tax, enterprise income tax, resource tax, land value-added tax, urban maintenance and construction tax, property tax, land use tax, travel tax, education surcharge, mineral resources compensation fee and other taxes paid by enterprises according to law, as well as personal income tax collected and remitted by enterprises before being turned over to the state.
The accounting provisions for taxes payable are as follows:
① This account calculates various taxes payable by enterprises according to the provisions of the tax law, including value-added tax, consumption tax, business tax, income tax, resource tax, land value-added tax, urban maintenance and construction tax, property tax, land use tax, personal income tax, travel tax, education surcharge, mineral resources compensation fee, etc.
② Debit management fees such as mineral resources compensation fee, property tax, vehicle and vessel tax, land use tax, stamp duty, etc. calculated and determined according to regulations, and credit them to the subject of "Taxes payable".
debit: management fees
credit: taxes payable -
③ This course should be accounted for in detail according to the taxes payable.
VAT payable should also be accounted in detail by setting up columns such as Input Tax, Output Tax, Export Tax Refund, Input Tax Transfer-out and Paid Tax.