accounting treatment of prepaid value-added tax

1. Accounting entries of prepaid tax:

Debit: taxes payable-prepaid value-added tax

Loan: bank deposit

At the end of the month, enterprises should transfer the balance of the "prepaid value-added tax" detailed account to the "unpaid value-added tax" detailed account.

Debit: payable taxes-unpaid value-added tax

Loan: payable taxes-prepaid value-added tax

II. Notice on Printing and Distributing the Regulations on Accounting Treatment of Value-added Tax [2116] No.22:

Accounting treatment of paying value-added tax:

1. Accounting treatment of paying value-added tax payable in the current month. Enterprises pay value-added tax payable in the current month. Debit the subject of "tax payable-value-added tax payable (paid tax)" (small-scale taxpayers should debit the subject of "tax payable-value-added tax payable") and credit the subject of "bank deposit".

2. Credit the account of "bank deposit".

3. Accounting treatment of prepaid value-added tax. When an enterprise prepays value-added tax, it debits the account of "tax payable-prepaid value-added tax" and credits the account of "bank deposit". At the end of the month, the enterprise should transfer the balance of the detailed account of "prepaid value-added tax" to the detailed account of "unpaid value-added tax" and debit the account of "tax payable-unpaid value-added tax". Credit the subject of "Taxes payable-value-added tax paid in advance". After paying the value-added tax in advance, real estate development enterprises should not carry it over from the subject of "Taxes payable-value-added tax paid in advance" to the subject of "Taxes payable-value-added tax not paid".

4. Accounting treatment of reducing or exempting the value-added tax. For the value-added tax directly reduced in the current period, debit "Taxes payable-value-added tax payable (tax exemption). Credit related subjects such as profit and loss.

How to issue tax receipts for construction projects

1. Generally, the VAT invoice for project funds is a special VAT invoice with a tax rate of 9%. If the simple method is selected for tax calculation, only a general VAT invoice with a "collection rate" of 3% can be issued.

2. According to the Implementation Measures for the Pilot Project of Changing Business Tax to VAT: Article 15 VAT Rate:

(1) Except the provisions in items (2), (3) and (4) of this article, the tax rate is 6%.

(2) Providing transportation, postal services, basic telecommunications, construction and real estate leasing services, selling real estate and transferring land use rights, the tax rate is 9%.

(3) Providing tangible movable property leasing services, the tax rate is 9%. The tax rate is zero. The specific scope shall be separately stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.

3. Article 16 The rate of value-added tax collection is 3%, unless otherwise stipulated by the Ministry of Finance and State Taxation Administration of The People's Republic of China.

4. According to the Provisions on Relevant Matters Concerning the Pilot Project of Changing Business Tax to Value-added Tax, engineering construction services are as follows

1. Construction services provided by general taxpayers in the form of clearing contractors, You can choose to apply the simple tax calculation method for tax calculation.

Providing construction services by contractor means that the construction party does not purchase the materials needed for the construction project or only purchases auxiliary materials, and collects the labor cost, management fee or other expenses.

2. General taxpayers can choose to apply the simple tax calculation method for the construction services provided by the project provided by Party A.

The project provided by Party A, Refers to the construction project in which all or part of the equipment, materials and power are purchased by the project contracting party.

3. The general taxpayer can choose to apply the simple tax calculation method to the construction services provided by the old construction project.

4. If the general taxpayer provides construction services across counties (cities) and applies the general tax calculation method, Taxable amount should be calculated based on the total price and extra-price expenses obtained as sales. Taxpayers should pay tax in advance at the place where the construction service takes place according to the pre-payment rate of 2% after deducting the balance of the total price and extra-price expenses paid, and then file tax returns with the competent tax authorities where the institution is located.

How to deal with the accounting treatment of prepaid value-added tax? Some industries need to pay the enterprise's value-added tax in advance when conducting accounting. You can refer to our introduction in the above article for the method of value-added tax accounting. For example, when the construction industry operates across provinces and cities, you can also declare and pay value-added tax. For the specific accounting treatment of declaration and payment, you can refer to our introduction above.