BÀI GIẢNG kế TOÁN QUỐC tế chapter 7 sales tax

Part D
RECORDING TRANSACTIONS
AND EVENTS
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Part D
Chapter 7: Sales tax
Chapter 8: Inventory
Chapter 9: Tangible non-current assets
Chapter 10: Intangible non-current assets
Chapter 11: Accruals and prepayments
Chapter 12: Irrecoverable debts and
allowances.
Chapter 13: Provisions and contingencies
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Chapter 7

SALES TAX


Learning Objectives
1. The nature of a sales tax and how it is
collected
2. Accounting for a sales tax

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The nature of a sales tax and
how it is collected
Administered by tax
authorities

Output sales
tax

Sales tax charged
by the business on
goods/services

Sales tax

Is an indirect tax levied
on the sale of goods
and services

Can have a number
of rates, e.g standard
rate, reduced rate

Greater than input? Pay
difference to tax
authorities
Greater than output?
Refund due to business

Input sales tax
Sales tax on

purchases made by
the business
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Accounting for a sales tax
(a) Credit Sales

(b) Credit Purchase

i. Include sales tax in sales day
book; analyse it separately
ii. Include gross receipts from
receivables in cashbook; no
need to show sales tax
separately
iii. Exclude sales tax element
from income statement
iv. Credit sales tax payable with
output sales tax element of
sales invoices

i. Include sales tax in
purchases day book; analyse
it separately
ii. Include gross payments in
cashbook; no need to show
sales tax separately
iii. Exclude recoverable sales tax
from income statement

iv. Include irrecoverable sales
tax in income statement
v. Debit sales tax payable with
recoverable input sales tax
element of credit purchases
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Accounting for a sales tax
(c) Cash Sales

(d) Cash Purchase

i. Include gross receipts in
cashbook; show sales tax
separately
ii. Exclude sales tax element
from income statement
iii. Credit sales tax payable
with output sales tax
element of cash sales

i. Include gross payments in
cashbook; show sales tax
separately
ii. Exclude recoverable sales
tax from income statement
iii. Include irrecoverable sales
tax in income statement
iv. Debit sales tax payable with

recoverable input sales tax
element of cash purchases
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