Consumption tax is an indirect tax, which is generally paid in production or import. When the consumption tax should be withheld, it is included in the tax and additional account. How to make relevant accounting entries?

Accounting entries of consumption tax payable

Entries to extract consumption tax:

Borrow: taxes and surcharges

Loan: taxes payable-consumption tax payable

When paying consumption tax:

Borrow: taxes payable-consumption tax payable

Loan: bank deposit/cash on hand.

What is the consumption tax?

Definition: Consumption tax is a tax levied on certain specific consumer goods and consumption behaviors.

Taxpayer: consumption tax payer refers to the units and individuals that produce, process and import consumer goods stipulated in the Provisional Regulations on Consumption Tax in People's Republic of China (PRC), and other units and individuals that sell consumer goods stipulated in the Provisional Regulations on Consumption Tax as determined by the State Council;

For example: gold and silver jewelry, platinum jewelry, diamonds and diamond jewelry, ultra-luxury car retail enterprises, cigarette wholesale enterprises.

The current scope of consumption tax collection mainly includes: cigarettes, alcohol, firecrackers, fireworks, cosmetics, refined oil, precious jewels and jade, golf balls and equipment, high-end watches, yachts, wooden disposable chopsticks, solid wood floors, motorcycles, automobiles, batteries, paints and other tax items, and some tax items are subdivided into several subheads.