How to make accounting entries for paying vehicle and vessel taxes
Vehicle and vessel tax is a kind of tax levied on the owner or manager of vehicles and vessels with vehicles and vessels as the characteristic object. Vehicles and vessels registered in China's vehicle and vessel management departments according to law should pay vehicle and vessel tax in accordance with national requirements. What should accountants do when they encounter vehicle and vessel tax?
Accounting entry for vehicle and vessel tax payment
During accrual:
Debit: taxes and surcharges
Credit: tax payable vehicle and vessel tax
At the time of payment:
Debit: tax payable vehicle and vessel tax
Credit: bank deposit
What is the role of collecting vehicle and vessel taxes?
1. Raise financial funds for local governments
Levying vehicle and vessel tax can centralize some funds scattered in the hands of vehicle and vessel owners, increase local financial resources, and increase local government revenue.
2. It is conducive to vehicle and vessel management and reasonable allocation
With the economic development, the number of vehicles and vessels owned by society has increased sharply. The more vehicles and vessels are purchased and used after tax, the more vehicle and vessel taxes should be paid, which urges taxpayers to strengthen the management and accounting of their own vehicles and vessels, improve resource allocation, and use vehicles and vessels reasonably.
What is the tax payable?
Tax payable refers to the business income and profit realized by an enterprise within a certain period of time. It includes value-added tax, consumption tax, enterprise income tax, resource tax, land value-added tax, urban maintenance and construction tax, property tax, land use tax, vehicle and ship tax, education surcharges and other taxes paid by enterprises according to law, as well as individual income tax collected and paid by enterprises on behalf of the state before it is handed over. The debit of tax payable represents the amount paid and deductible, and the credit represents the amount withdrawn and the increase in VAT payable.
What are taxes and surcharges?
Taxes and surcharges are profit and loss accounts, which are carried forward to the profit of the current year at the end of the month. The debit represents the accounting increase, and the credit represents the decrease. Taxes and surcharges refer to the relevant taxes that enterprises should bear in their business activities, including consumption tax, urban maintenance and construction tax, resource tax, education surcharges, property tax, vehicle and ship tax, urban land use tax, stamp tax, etc.
