Accounting treatment for general taxpayers

by huiyun_moo on 2009-04-16 09:34:50

### Accounting Treatment for General VAT Taxpayers

#### "Taxes Payable - VAT Payable" Sub-account:

- **Debit:** Input VAT, Paid Tax, Tax Relief, Export Offset Against Domestic Sales Tax Liability, Transfer Out of Unpaid VAT;

- **Credit:** Output VAT, Export VAT Rebate, Input VAT Transfer Out, Transfer Out of Overpaid VAT;

- **Ending Balance:** Reflects the VAT that the company has yet to offset (carryforward loss at the end of the period).

#### "Taxes Payable - Unpaid VAT" Account:

This account reflects the transfer of unpaid or overpaid VAT at the end of the month.

- **Payment of Current Month's VAT:**

- Debit: Taxes Payable - VAT Payable (Paid Tax)

- Credit: Bank Deposit

- **Payment of Previous Periods' Unpaid VAT in the Current Month:**

- Debit: Taxes Payable - Unpaid VAT

- Credit: Bank Deposit