When small-scale enterprises earn income, if the business itself is tax-free, there is no need to accrue the corresponding value-added tax.

Debit: Accounts Receivable -XX Company,

Loan: income from main business.

If the business itself is not tax-free, it is only because the income has not reached the threshold that it is tax-free.

Debit: accounts receivable, etc.

Loan: income from main business, taxes payable-VAT payable.

When it is confirmed that there is no tax,

Borrow: Taxes payable-VAT payable,

Loan: non-operating income tax relief.

Matters needing attention of small-scale taxpayers

Small-scale taxpayers are value-added tax taxpayers whose annual sales are lower than the prescribed standards, and their accounting is not perfect, so they cannot submit relevant tax information as required.

Among them, imperfect accounting means that the taxable amount of output tax, input tax and value-added tax cannot be calculated correctly. Small-scale taxpayers who have sound accounting and can provide accurate tax payment information may apply to the competent tax authorities for general taxpayer qualification and are not regarded as small-scale taxpayers.