消费税会计处理办法

Accounting Treatments of Consumption Tax

< Provisional Regulations of the people's Repu
blic of China on Consumption Tax>has been promulga
ted by the State Council. The provisions concernin
g the accounting treatments are stipulated as foll
ows:

1. Enterprises which are subject to Consumption Ta
x should add an itemized "Consumption Tax payable"
account under the account titled "Taxes payable" f
or accounting and recording pruposes.

2. Enterprises selling consumer goods produced tha
t are subject to Consumption Tax shall debit the a
mount of Consumption Tax payable in the account ti
tled "Product sales tax and surtax" and credit the
account titled "Taxes payable -Consumption Tax pa
yable ". When Consumption Tax is actually paid , d
ebit the account titled "Taxes payable-Consumption
Tax payable " and credit the account titled "Cash
in bank", For return of goods sold or refund of t
ax, accounting entries to the contrary shall be ma
de.

Taxable consumer goods exported by enterprises. if
not enjoying tax exemption nor refund of tax acco
rding to the regulations, shall be treated as dome
stic sales and the accounting records shall be mad
e in accordance with the provisions of the preceed
ing paragraph.

3. For Consumption Tax that shall be paid in accor
dance with the provisions by enterprises which pro
vide self-producing taxable consumer goods as inve
stment, shall debit the account titled "Long-term
investment" and credit the account titled "Taxes p
ayable-Consumption Tax payable".

Enterprises which exchange self-producing taxable
consumer goods for means of production , means of
consumption, settlement of debts, or as handling f
ee for purchases, etc. shall be regarded as sales
for accounting purposes, Consumption Tax that shal
l be paid in accordance witht the provisions shall
be accounted for in accordance with Item 2 of the
se provisions.

For Consumption Tax that shall be paid in accordan
ce with the provisions by enterprises using self-p
roducing taxable consumer goods on construction-in
-process, non-productive institutions and other fi
elds, it shall debit the accounts titled "Fixed as
sets", 'Construction-in-process", "Non-operating e
xpenditures", "Product sales expenses" ect. and cr
edit the account titled "Taxes payable-Consumption
Tax payable".

For Consumption Tax that shall be paid in accordan
ce with the provisions on packging materials that
are sold together with products but priced separat
ely, it shall debit the account titled "Other busi
ness expenditures" and credit the account titled "
Taxes payable-Consumption Tax payable". For Consum
ption Tax that shall be paid in accordance with th
e provisions on the deposits on packaging material
s that are not returned at due time, it shall debi
t the accounts titled "Other business expenditures
", "Other payables", etc. and credit the account t
itled "Tax payable-Consumption Tax payable:.

When Consumption Tax is actually paid by the enter
prises, debit the account titled "Taxes payable-Co
nsumption Tax payable " and credit the account tit
led "Cash in bank".

4. For taxable consumer goods under contract proce
ssing that are liable to Consumption Tax, the tax
amount shall be withheld and paid by the consignee
at the time when the consignor received the proce
ssed goods. The consignee shall debit the accounts
titled "Accounts receivable ", "Cash in bank", et
c. and credit the account titled "Taxes payable-Co
nsumption Tax payable", based on the amount of tax
to be withheld, When the taxable consumer goods u
nder consigned processing are received and for dir
ect sale , the consignor shall record the Consumpt
ion Tax withheld and paid by the consignee as the
cost of the taxable consumer goods, debit the acco
unts titled "Materals for consigned processing", "
Production Cost", "Self-made semi-finished product
s", etc. and credit the accounts titled "Accounts
payable", "Cash in bank", etc. When taxable consum
er goods under contract processing are received an
d used for consumption of taxable consumer goods,
debit the account titled "Taxes payables-Consumpti
on Tax payable" and credit the accounts titled "Ac
count payable", "Cash in bank", etc. based on the
Consumption Tax that shall be withhekd and paid by
the consignee and accordance with the provisions.

5. The Consumption Tax paid for imported taxable c
onsumer goods shall be included in the cost of the
said consumer goods by debiting the accounts titl
ed "Fixed assets","Goods purchased", "Materials pu
rchased", etc. and credit the account titled "Cash
in bank ", etc.

6. Taxable consumer goods for export that are exem
pt from Consumption Tax shall be accounted for in
accordance with the different circumstances:

a. Production enterprises which directly export ta
xable consumer good or export taxable consumer goo
ds through foreign trade enterprises and which dir
ectly injoy tax exemption in accordance with the p
rovisions, do not need to calculate the Consumptio
n Tax to be paid.

b. In the case of exporting taxable cosumer goods
through foreign trade enterprises that , if in acc
ordance with the provisions, must go through the p
rocedure of paying tax first and refund it later,
the following measures shall be followed for accou
nting treatments:

(i) Production enterprises which entrust foreign t
rade enterprises to export their taxable consumer
goods shall debit the account titled "Account Rece
ivable" and credit the account titled "Taxes payab
le -Consumption Tax payment" based on the amount o
f Consumption Tax payable at the time of computing
the Consumption Tax. When the Consumption Tax is
actually paid, debit the account titled "Taxes pay
able -Consumption Tax payable " and credit the acc
ount titled "Cash in bank". When the tax refunded
if received from the foreign trade enterprises for
the taxable consumer goods exported, debit the ac
count titled "Cash in bank " and credit the accoun
t titled "Accounts Receivable". For the amount of
refunded tax that shall be repaid as a result of r
ejection by the customs or return of goods, accoun
ting entries to the contrary shall be made.

When foreign trade enterprises engaged as export a
gents of taxable consumer goods receive Consumptio
n Tax refunded by tax authorities to production en
terprises after the taxable consumer goods have be
en exported, debit the account titled "Cash in ban
k "and credit the account titled "Accounts receiva
ble". When this tax is refunded to the production
enterprises, debit the account titled "Account pay
able " and credit the account titled "Cash in bank
". For the amount of refunded Consumtion Tax that
shall be repaid as a result of the rejection by th
e customs or return of goods, debit the account ti
tled "Account receivable-Consumption Tax payable b
y production enterprises", credit the account titl
ed "Cash in bank " . When the tax has been refunde
d by the production enterprises, accounting entrie
s to the contrary shall be made.

(ii) For production enterprises that sell taxable
consumer goods to foreign trade enterprises and th
e foreign trade enterprises export on their own, t
he Consumption Tax payable shall be dealt with in
accordance with item 2 of these provisions.

Foreign trade enterprises exporting taxable consum
er goods on their own shall , at the time of apply
ing for refund of Consumption Tax after the taxabl
e cnsumer goods have been declared to the customs
and exported, debit the account titled "Receivable
of tax refunded on exports" and credit the accoun
t titled "Cost of goods sold". When the tax refund
ed on export of taxable consumer goods is actually
received, debit the account titled "Cash in bank"
and credit the account titled "Receivable of tax r
efunded on exports", For the amount of refunded Co
nsumption Tax that shall be repaid as a result of
rejection by the customs or return of goods, accou
nting entries to the contrary shall be made .