Calculation formula of VAT payable amount
1. If the enterprise is a small-scale taxpayer, the value-added tax payable = sales including tax ÷( 1+ collection rate) × collection rate;
2. If the enterprise belongs to the general taxpayer, the value-added tax payable = output tax-input tax;
Output tax = sales excluding tax × applicable tax rate;
Sales excluding tax = sales including tax ÷( 1+ applicable tax rate);
3. If the enterprise belongs to a small-scale taxpayer enterprise or a general taxpayer enterprise chooses the simple collection method, the payable value-added tax = sales including tax ÷( 1+ simple collection rate) × simple collection rate.
Input tax: refers to the value-added tax paid or borne by taxpayers when they purchase goods, processing, repair and replacement services, services, intangible assets or real estate.
Input tax = price excluding VAT × VAT rate.
Output tax: refers to the amount of value-added tax charged to the buyer according to the sales amount and the prescribed tax rate when the taxpayer has taxable sales behavior.
Output tax = sales × tax rate
Sales include all prices and other fees charged to the buyer. All out-of-price charges that have a causal relationship with sales should be regarded as tax-included sales, that is, out-of-price charges charged to the buyer should be regarded as tax-included income, which should be converted into tax-excluded income at the time of taxation and then incorporated into business tax.
Accounting treatment related to VAT
When selling goods (providing services), accounts receivable, bank deposits and other subjects shall be debited according to the income and payable VAT output tax, and the payable VAT output tax shall be credited according to the provisions of the tax law, and the main business income and other business income shall be credited according to the confirmed operating income. In the case of sales returns, make the opposite accounting entries.
Packages sold together with commodities but priced separately shall be subject to the amount actually received or receivable. Debit "bank deposits", "accounts receivable" and other subjects, credit the value-added tax-output tax payable according to the tax law, and credit other business income according to the confirmed amount of other business income.
When purchasing materials, small enterprises should debit materials procurement or materials in transit, raw materials, inventory goods and other subjects according to the amount that should be included in the procurement cost, debit the input value-added tax payable according to the tax law, and credit accounts payable and bank deposits according to the amount that should be paid or actually paid. If the purchased materials are returned, an opposite accounting entry should be made.