How to make accounting entries for consumption tax?
1. Consumption tax calculated and paid for general sales of taxable consumer goods:
Borrow: taxes and surcharges
Loan: taxes payable-consumption tax payable
2, enterprises will produce taxable consumer goods for non-productive institutions (projects under construction):
Borrow: Construction in progress.
Loans: Goods in stock
Taxes payable-VAT payable (output tax)
Taxes payable-consumption tax payable
Scope of consumption tax collection
The scope of consumption tax collection includes: cigarettes, alcohol, firecrackers, refined oil, fireworks, cosmetics, precious jewels and jade, golf balls and equipment, high-end watches, yachts, solid wood floors, wooden disposable chopsticks, automobiles, motorcycles, batteries, paints and other tax items.
Consumption tax calculation formula
Consumption tax is the general name of all kinds of taxes with the turnover of consumer goods as the object of taxation. It is a tax levied by the government on consumer goods, which can be levied on wholesalers or retailers. This is an indirect tax.
Ad valorem levy (proportional tax rate): tax payable = sales (the price of similar consumer goods constitutes taxable value) × consumption tax proportional tax rate.
Specific tax (fixed tax rate): tax payable = sales quantity (allocated quantity, delivered quantity and imported quantity) × unit tax.
Compound levy (both proportional tax rate and fixed tax rate are acceptable): tax payable = sales quantity (transfer quantity, delivery quantity and import quantity) × fixed tax rate+sales (the price of similar consumer goods constitutes taxable value) × consumption tax proportional rate.