For tax purposes, it is treated as a sale from a tax perspective.
Example analysis:
A company (a general taxpayer of value-added tax) used a batch of self-produced cement (cost 80,000 yuan, taxable price 100,000 yuan) for self-construction project.
This batch of self-produced cement is used for self-construction projects and is an internal transfer of self-owned products. It does not fall into the deemed sales situation stipulated in the Enterprise Income Tax Law. Revenue does not need to be recognized. The reduction of inventory goods is recognized at cost.
According to Article 4, Paragraph 4 of the Implementation Rules of the Interim Value-Added Tax Regulations, the use of self-produced or entrusted processing of goods for non-VAT taxable projects (under construction) is deemed to be the sale of goods. , therefore it is necessary to confirm the output tax amount of 17,000 (10×17) yuan based on the taxable price. The accounting entries are (unit: 10,000 yuan):
Debit: Construction in progress 9.7
Credit: Inventory goods 8
Taxes payable - payable Pay value-added tax (output tax) 1.7.
Extended information:
Article 10 of the "Interim Regulations on Value-Added Tax" stipulates that purchases used for non-VAT taxable items, VAT-exempt items, collective welfare or personal consumption The input tax on purchased goods or taxable services shall not be deducted from the output tax.
The following eight behaviors are deemed to be sales:
① Delivering goods to others for sale on consignment;
② Selling goods for sale on consignment;
③ Setting up Taxpayers with two or more institutions that implement unified accounting transfer goods from one institution to other institutions for sale, except where the relevant institutions are located in the same county (city);
④ Will self-produced , the goods commissioned for processing are used for non-taxable projects;
⑤Provide self-produced, commissioned processing or purchased goods as investments to other units or self-employed individuals;
⑥ Use self-produced, entrusted processing or purchased goods for distribution to shareholders or investors;
⑦ Use self-produced, entrusted processing of goods for collective welfare or personal consumption; ·
⑧ Give away self-produced, entrusted processing or purchased goods to others free of charge.