Due to the new pneumonia epidemic, many catering enterprises canceled their order books years ago. Some ingredients purchased years ago have deteriorated, so how to do accounting treatment? How to do tax treatment? Come and learn about it with the Deep Space Network!

how to deal with the deterioration of food ingredients during the epidemic in catering enterprises?

Case description:

Company A is a large catering enterprise, and it is a general taxpayer of value-added tax. Due to the epidemic situation, a large number of ordering orders were cancelled years ago. A large number of ingredients purchased years ago are moldy and deteriorated. How to deal with the moldy and deteriorated ingredients?

1. Before scrapping approval, conduct accounting treatment.

Borrowing: gains and losses of pending property

Lending: raw materials

2. Report to relevant personnel for examination and approval, and then carry it forward to corresponding subjects according to the examination and approval.

borrowing: non-operating expenses

lending: property gains and losses to be handled

tax treatment of food spoilage in catering enterprises during the epidemic period

value-added tax

It can be obtained according to relevant policies and regulations. Due to the epidemic situation, food spoilage losses in catering enterprises belong to force majeure and are not abnormal losses, so the input tax of value-added tax is allowed to be deducted without being transferred out for treatment.

Reference document:

Notice of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Comprehensively Pushing Forward the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2116] No.36)

Corporate income tax

During the epidemic period, the food ingredients of catering enterprises suffered deterioration losses, which were normal losses in the process of enterprise production, so corporate income tax was allowed to be deducted before tax.

Reference documents:

Enterprise Income Tax Law of the People's Republic of China (Presidential Decree No.63, 2117)

Regulations for the Implementation of the Enterprise Income Tax Law of the People's Republic of China (the State Council Decree No.512)

Announcement of State Taxation Administration of The People's Republic of China on Issuing

Administrative Measures for Pre-tax Deduction of Enterprise Asset Loss

.

Announcement of State Taxation Administration of The People's Republic of China on Relevant Matters Concerning the Retention of Asset Loss Data of Enterprise Income Tax (State Taxation Administration of The People's Republic of China Announcement No.15, 2118)

Summary: Due to the epidemic situation, the input tax of value-added tax of catering enterprises is allowed to be deducted, and the asset loss is allowed to be deducted before enterprise income tax.

accounting treatment of inventory loss

reasonable loss within the quota during storage:

borrowing: management expenses

lending: damage caused by natural disasters:

borrowing: non-operating expenses

lending: loss caused by poor management of inventory goods (or raw materials, etc.)

.