How to capitalize goods with VAT
Video: Episode 7 | Everything eCommerce Business Needs to Know About VAT Taxes & Expansion to Europe 2024, July
Often in the process of economic activity of the organization, accountants have to deal with such a business operation as accounting for the receipt of goods. As a rule, value added tax is also included in the cost of production, which must be distinguished in accounting.
Instruction manual
1
Reflect all business operations only on the basis of the obtained supporting and primary documents. The amount of value added tax may be deductible if the supplier has issued the invoice correctly.
2
The tax document must indicate the amount of tax, details of the parties (supplier and buyer), product name, date of composition, cost of one unit and the total amount. A separate line should be registered VAT and tax rate.
3
Upon receipt of the goods on the basis of the waybill in accounting, make the entries: D41 K60 - reflects the purchase of goods from the supplier.
4
After that, highlight the VAT on the purchased goods, reflect the transaction on the basis of the invoice. Make the wiring: D19 K60.
5
Reimburse the amount of value added tax from the budget, for this in the accounting record: D68 K19. Fill in the input VAT amount in the purchase book.
6
All information on the movement of goods reflect on account 41, to which sub-accounts can be opened. For example, to account for the movement of goods in a warehouse (wholesale), use subaccount 1. Reflect containers using subaccount 3, but excluding glass packaging.
7
When purchasing goods, the amount of input value added tax is taken into account when calculating VAT. Indicate all amounts in the purchase book, and in the same place write the number of the invoice received and the date of its preparation.
8
When closing the month, double-check all data and amounts. If an error is detected in the previous tax period, generate an updated VAT return, draw up an accounting statement and submit the data to the tax office. Remember that inspectors after such declarations resort to field or desk inspections, so be careful when calculating the tax.
