Consumption Tax Accounting and Other Statutory Entries
What this domain tests
Consumption-tax questions test the 税抜方式: separating 仮払消費税 and 仮受消費税, then settling them at year-end. Grade 3 also touches statutory withholdings such as 源泉所得税 and 社会保険料 through 預り金.
Core rules
- Under 税抜方式, record sales and purchases at the tax-exclusive amount and put the tax in 仮受消費税 or 仮払消費税.
- Sale: 売掛金 (gross) / 売上 (net) and 仮受消費税.
- Purchase: 仕入 (net) and 仮払消費税 / 買掛金 (gross).
- 仮受消費税 is a liability; 仮払消費税 is an asset. At year-end, offset them: 仮受消費税 / 仮払消費税, with the net payable to 未払消費税 or the net refund to 未収消費税.
- Under 税込方式, record the gross amount in 売上 or 仕入 and do not use 仮払消費税 or 仮受消費税.
- Payroll withholding: 給与 / 預り金 for withheld tax and social insurance; remittance is 預り金 / 当座預金. Employer contributions are 法定福利費.
Worked example
Assume a 10% consumption tax. A sale of ¥1,100,000 including tax: 売掛金 1,100,000 / 売上 1,000,000 and 仮受消費税 100,000. A purchase of ¥550,000 including tax: 仕入 500,000 and 仮払消費税 50,000 / 買掛金 550,000. Year-end settlement: 仮受消費税 100,000 / 仮払消費税 50,000 and 未払消費税 50,000. The net ¥50,000 is the tax owed.
Traps
- Mixing 税込 and 税抜 records in one set of books.
- Treating 仮払消費税 as an expense.
- Recording 未払消費税 before offsetting 仮払 and 仮受.
- Treating withheld income tax as a company expense.
- Forgetting that 仮受消費税 is a liability, not revenue.