Accounting entries of VAT exemption and reduction in January
The accounting entries of VAT relief in January are as follows:
1. During the epidemic, small-scale taxpayers were exempted from VAT in January and carried forward:
Debit: bank deposit
Credit: main business income
Taxes payable - VAT payable (tax deduction)
Debit: taxes payable - VAT payable (tax deduction)
Credit: Other income (or non operating income)
2. During the epidemic period, when general taxpayers reduced or remitted VAT in January and carried forward:
Debit: bank deposit
Credit: main business income
Tax payable - VAT payable (output tax)
Debit: taxes payable - VAT payable (tax deduction)
Credit: Other income (or non operating income)
During the epidemic period, when taxpayers reduced or exempted VAT in January, they can deal with it through the "taxes payable" and "other income" items. The title of "taxes payable" is used to calculate various taxes payable by enterprises according to the tax law and other provisions; The "other income" account is used to account for government subsidies related to daily activities under the total amount method and other items related to daily activities that should be directly recorded in this account.