Chapter III The accounting process of payable accounts
3.3. Account of Tax and other payables to the state accounts
This account is used to record relation between enterprises and State about taxes, fees, charges and other payables, payment and outstanding payables to State budget in the fiscal year.
The enterprise shall actively calculate and determine taxes, fees, charges and other payables to State in compliance with law, and promptly reflect taxes payable, paid taxes, deductible taxes or tax refund, etc in accounting book.
The nature of indirect taxes including VAT (including using credit-invoice method or subtraction method), special excise tax, export duty, environmental protection tax and other indirect taxes is receipts on behalf of a third party. Therefore, these indirect taxes are eliminated from revenues stated in the financial statement or other statements.
Page | 32
In particular case, Account 333 may have the debit balance. Debit balance (if any) of Account 333 reflects tax payments and other payments greater than taxes and payables to State, or may reflect the paid taxes eligible for exemption, deduction or refund, but the refund has not been made.
3.3.1. Original documents
In reality, for each sub-accounts of 333, we will have difference supporting documents to record transactions. To regards with accounting system of PGS Branch Đồng Nai, the account of output VAT payable will be recorded in accounting book base on the value presented on VAT output invoices or sometimes when company import goods or material from oversea, accountant will base on customs declaration and some others to follow the imported payable tax ( but this VAT on imported goods just be record by PV Gas south accountant ). Beside that, after received the payroll file which was made by payroll accountant, payable accountant will record the value of PIT payable and other labour’s payable on 338 account before conduct the task of making payment the net salary for each employee. Last but not least, for more information that I had awared during the intern period, every quarter of the year, the payable accountant of PV Gas south will be in charge of making CIT files that list down deductible, non-deductible expenses before offset deductible expense with revenue to estimate CIT payable in quarter. So that, for recording 3334 account, they will take the value presented on CIT declarartion which was submitted for the Tax state.
3.3.2. Account used
As listed above that PGS follow the circular 200, thus according to company’s accounting policy, we could use account of 333 within comprises 9 sub-accounts ( in this part, I would like to re-define a litte bit about each account’s function in PGS ) :
Page | 33
Account 3331 – VAT payable: This sub-account is used to record output VAT, VAT payable of import goods, deductible VAT, paid VAT and outstanding VAT payable to government budget.
Especially, this also comprises 2 sub-accounts :
+ Account 33311 – output VAT: To record the amount of output VAT, output deductible VAT, VAT on sales return or sales rebates, VAT payable, paid VAT and outstanding VAT payable of products, goods or services rendered during a period.
+ Account 33312 – VAT on imported goods: To record the amounts of payable, paid amounts and outstanding amounts payable of VAT on imported goods to government budget.
Account 3332 – Special excise tax: To reflect the amounts of payable, paid amounts and outstanding amounts payable of special excise tax to government budget.
Account 3333 – Export-import duty: To reflect the amounts payable, paid amounts and outstanding amounts payable of export-import duty to government budget
Account 3334 – Enterprise income tax: To record amounts payable, paid amounts and outstanding amounts payable of enterprise income tax to government budget.
Account 3335 – Personal income tax: To reflect amounts payable, paid amounts and outstanding amounts payable of personal income tax to government budget.
Account 3336 – Natural resource tax: To record the amounts payable, paid amounts and outstanding amounts payable of natural resource tax government budget.
Account 33381: Environmental protection tax: Recording amounts payable, paid amounts and outstanding amounts payable of environmental protection tax.
Page | 34
Account 3339 – Licensing tax : Record the tax payable for operating permit every year.
(Thông tư 200/2014/TT-BTC 2014)
But in accordance with circular 200, PGS branch Đồng Nai just have transactions relating to 3331, 3335, 3339 accounts. The others also arise but it just be record by PGS in consolidate statement.
3.3.3. Transactions
Transaction 1 : On the day of 31/12/2017,PGS branch Đồng Nai has a VAT out put invoice ( 0002628 ) that record the transaction of export CNG for Gas Engine, Mỹ Xuân station with the tons of 10,438.199 mmBTU ( equivalent 266,157 Sm3 ). The total value of this invoice is 1,409,635,978 VNĐ included VAT. Base on this invoice, accountant will record as :
Dr 13101 : 1,409,635,978 Cr 511912 : 1,281,487,253 Cr 33311 : 128,148,725 ( Appendix 4 )
Transaction 2 : On the day of 31/12/2017, Base on the december payroll file of PGS Đồng Nai branch, payable accountant will take the amount value of PIT payable to record the estimate PIT as :
Dr 334 : 106,685,296 Cr 3335 : 106,685,296
Page | 35
4.4. The total of PIT that was presented on Payroll file
Transaction 3 : Every year, branch Đồng Nai have a tax payable of licensing at value of 1,000,000 and this is paid in the end of January 2017. For this transaction, payable accountant will record as :
Dr 6418 : 1,000,000 Cr 3339 : 1,000,000 Dr 3339 : 1,000,000 Dr 635 : 11,000
Cr 1121: 1,011,000
Page | 36
4.5. The detail of booking entry record lisencing tax