Export tax is one of the mandatory taxes on goods that want to reach international markets. To help you understand better export tax accounting What is it like? How to do accounting to ensure accuracy, don't forget to follow my next article https://hbsvietnam.com/ Please.
Principles for implementing export tax
Table of contents of the article
When consuming exported goods, an export tax will arise. Depending on the product, export tax rates are different. However, accountants need to ensure the following principles to ensure accurate export tax recording.
Figure 1: Principles for implementing export tax
- The account is used for people who are obliged to pay export tax according to the provisions of law. For entrusted export, the tax payment account is only used for the entrusting party, not for the entrusted party.
- Export tax is an indirect tax, so it is not part of the business's revenue structure. When exporting goods, the accounting department must separate the export tax payable from sales revenue. In case the export tax amount payable cannot be immediately separated at the time of revenue recognition. This recording period will include taxes but periodically must record a decrease in revenue for the amount of export tax payable.
- Export tax must be paid but if it is refunded or reduced, the accountant needs to record it in other income
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How to account for export tax, how to calculate tax and calculate export tax exchange rate
Detailed export tax accounting will ensure the necessary requirements of the goods before trade.
Figure 2: How to account for export tax according to a specific formula
Formula for calculating export tax
There are 3 export tax calculation methods applied to each different type of goods, specifically:
- Percent tax calculation method: Based on the type of goods to apply the corresponding tax rate, specifically according to the formula:
Export tax = Quantity of goods x Value per unit of exported goods x Tax rate according to the rate of % of each item at the time of tax calculation
- Absolute tax calculation method: this method determines the tax amount payable on 1 unit of exported goods at the time of tax calculation, the formula is specified as follows:
Export tax = Quantity of goods x Absolute tax rate payable on 1 unit of goods
- The mixed tax calculation method applies both the percentage tax calculation method and the absolute tax calculation method. The formula is as follows:
Export tax = Tax amount payable according to the % rate tax calculation method + Tax amount payable according to the absolute tax calculation method.
Exchange rate for calculating export tax
The tax calculation exchange rate is the buying exchange rate at the end of the day in the form of transfer by the Head Office of Joint Stock Commercial Bank for Foreign Trade of Vietnam on Thursday of the preceding week. If that day is a holiday, the previous day will be taken
Figure 3: Export tax calculation exchange rate is based on the buying exchange rate at the end of the day
How to account for export tax
When there is an official customs declaration of exported goods, the enterprise determines the revenue and export tax amount payable for accounting purposes:
- Debit Account 131 – Total value of goods that the buyer must pay
- Credit Account 511 – Revenue from exporting goods
- Credit Account 3333 – Export tax payable
- When paying export tax to the State Budget (State Budget), enterprises do accounting, including:
- Debit Account 3333 – Export tax payable;
- Account 1111, 1121 – Cash, Bank deposits.
See more: Sample export entrustment contract 2022
So above are the details about the principles and methods export tax accounting. Hope this sharing of https://hbsvietnam.com/ will be helpful to readers.
