Since 2009, value-added tax must be paid on the sale of used fixed assets regardless of whether they are lower than their original value.
Assume that the original value of the fixed asset is 10,000 yuan, the accumulated depreciation is 8,000 yuan, and the total sales price of the old fixed assets is 5,000 yuan.
Accounting and tax treatment are as follows:
1. Sale of equipment transferred to liquidation:
Debit: Fixed assets liquidation
10000
p>Debit: Accumulated depreciation
8,000
Credit: Fixed assets
18,000
2. Receive the price for selling equipment:
Debit: bank deposit
5000
Loan: liquidation of fixed assets
5000
3. According to the first paragraph of Article 2 of Caishui [2009] No. 9, the company should levy value-added tax according to the simplified method according to the 4% tax rate at half: 10000÷
(1+4%)×4%÷2=199.2.
Treatment of value-added tax payable at 4%:
Debit: Liquidation of fixed assets
199.2
Credit: Taxes payable - Value-added tax payable (output tax)
199.2
Handling of halved uncollected VAT:
Debit : Taxes payable - Value-added tax payable
(tax exemption) 99.6
Loan: Subsidy income
99.6
4. Liquidation of fixed assets carried forward
Debit: Non-operating expenses
10199.2
Debit: Fixed assets liquidation
10199.2