the value-added tax that an enterprise should pay in the process of purchasing goods is the input tax. How to make accounting entries when input tax deduction occurs?

processing of input tax deduction entries

special invoices for value-added tax are obtained. After deduction, the accounting entries are as follows:

Debit: management expenses, raw materials, etc.

Taxes payable-VAT payable-input tax (the input tax can be deducted after the invoice is certified), and

Loan: bank deposits, accounts payable, etc.

Taxes payable refers to the accounting enterprise of this account calculated according to the provisions of the tax law.

input tax calculation formula

input tax calculation formula: input tax = purchase price * VAT rate. Usually, the purchase price at the time of purchase is the price including VAT. When calculating the input tax, it must be converted into the price excluding tax: price excluding VAT = price including tax /(1+ VAT rate).

what is the transfer-out of input tax?

the transfer-out of input tax refers to the transfer-out of those input taxes that cannot be deducted according to the provisions of the tax law, but have been deducted at the time of purchase.

The situation that the input tax needs to be transferred out:

1. Goods purchased, processing and repairing services, services, intangible assets and real estate used for simple tax calculation items, tax exemption items, collective welfare or personal consumption.

2. Items corresponding to abnormal losses:

(1) purchased goods with abnormal losses, and related processing, repair and repair services and transportation services.

(2) purchased goods (excluding fixed assets), processing and repair services and transportation services consumed by products in process and finished products with abnormal losses.

(3) Abnormal loss of real estate, and purchased goods, design services and construction services consumed by the real estate.

(4) The purchased goods, design services and construction services consumed by the real estate construction in progress with abnormal losses.

3. purchased loan services, catering services, daily services for residents and entertainment services.

4. The taxpayer accepts the loan service and pays the lender the investment and financing consulting fees, handling fees, consulting fees and other fees directly related to the loan.

the transfer-out of input tax refers to the transfer-out of those input taxes that cannot be deducted according to the provisions of the tax law, but have been deducted at the time of purchase.