Accounting for account 333 – taxes and amounts payable to the state

What is account 333? How to account for account 333 – Taxes and amounts payable to the state: Account 133 – Deduction of VAT, special consumption tax, personal income tax… See detailed instructions in this article!

I. Principles of account 333 – Taxes and amounts payable to the state

1. What is account 333 – Taxes and amounts payable to the state?

Account 333 is an account that reflects taxes, fees, charges, and amounts payable to the state budget. During the business process, enterprises proactively calculate and declare to tax authorities in accordance with regulations.

2. Principle of account 333 – Taxes and amounts payable to the state

• Indirect taxes such as VAT, special consumption tax, environmental protection tax, export tax, etc. are taxes collected on behalf of buyers. These taxes are not included in the enterprise’s revenue;
• Enterprises can choose 1 of 2 methods to record this indirect tax: 
  • Separate and record indirect taxes at the time of revenue recognition. With this method, revenue on the books will not include indirect taxes payable;
  • Record the indirect tax payable to the state budget by reducing revenue in the accounting books. For this method, the reduction in revenue will be carried out each period, the revenue in the books will be different from the revenue in the financial statements.
• The indicators “Sales revenue – Service provision” – Account 511 and “Revenue deductions” – Account 521 on the business performance report do not include indirect taxes payable to the state;
• For taxes that are reduced or refunded at the purchase or sale stage, the following principles apply: 
  • Refundable tax paid at the purchasing stage: appears in temporary import-re-export transactions, special consumption tax, import tax, environmental protection tax. In this case, record a reduction in cost of goods sold or a reduction in the value of purchased goods. For refundable input VAT, record a reduction in the deductible VAT;
  • Import tax paid for processed goods is refunded after re-export: applied to import tax paid for imported goods not owned by the enterprise. When re-export is refunded, the accountant records a reduction in other receivables;
  • Tax payable when a business sells goods or services but is later reduced or refunded. In this case, the accountant records it in other income – account 711.

II. Contents of account 333 – Taxes and amounts payable to the state

• Debit account 333 reflects the following contents: 
  • Value added tax deductible in the accounting period;
  • Taxes, fees, charges and other amounts paid to the state budget;
  • The tax amount is deducted from the tax payable during the period;
  • VAT amount of returned goods, sales discount.
• The credit side of account 333 reflects the following contents: 
  • Output VAT, import VAT payable to the state budget;
  • Taxes, fees, charges and other amounts payable to the state budget.
• Credit balance of account 333: Reflects the amount of taxes, fees, and charges remaining to be paid to the state budget;
• Debit balance of account 333: Reflects excess tax paid or reflects tax considered for exemption, reduction or refund but not yet refunded.

➤ Account 333: Taxes and payments to the state includes the following sub-accounts:

• Account 3331: Value added tax payable to the state budget;
• This account reflects the enterprise’s output VAT, VAT payable on imported goods, VAT deducted during the period, and VAT paid and not yet paid to the state budget. Account 3331 has 2 sub-accounts: Account 33311 and Account 33312: 
  • Account 33311: Output VAT. This account reflects the deductible output and input VAT, VAT payable – paid – remaining payable when selling goods and services during the period;
  • Account 33312: Value added tax on imported goods. This account reflects the amount of VAT on imported goods payable – paid – remaining to be paid.
• Account 3332 – Special consumption tax (SCT);
• Account 3333 – Import-export tax (import-export tax);
• Account 3334 – Corporate income tax (CIT);
• Account 3335 – Personal income tax (PIT);
• Account 3336 – Resource tax;
• Account 3337 – Real estate tax, land rent;
• Account 3338 – Environmental protection tax and other taxes;
• Account 3339 – Fees, charges and other payables.

III. How to account for account 333 – Taxes and amounts payable to the state

➤ Account 33311: Output VAT

• Enterprises accounting by the deduction method: Accounting reflects revenue at the selling price excluding VAT, VAT payable in the period is separated at the time of invoice issuance;

Debit account 111 – 112: Total payment value of goods and services;

Account 511 – 515 – 711: Price does not include VAT;

Credit account 33311: VAT payable to the state budget.

• Enterprises accounting by direct method: during the accounting period, they can choose 2 accounting methods as follows: 
  • Method 1: Separate the VAT payable at the time of invoice issuance;
  • Method 2: Periodically determine the amount of VAT payable and reduce revenue Debit account 511 – 515 – 711 / Credit account 33311: VAT payable during the period.
• When a business pays tax to the state budget, debit account 3331 / credit account 111 – 112.

➤ Account 33312: VAT on imported goods

• When importing materials, goods, tools, equipment, and fixed assets, accountants reflect the import VAT amount as follows:

Debit account 152 – 153 – 156 – 211;

Credit account 33312: VAT on imported goods;

Credit account 111 – 112 – 331: Total payment price does not include import VAT.

• Input VAT payable for imported goods is recorded as: Debit account 133 / Credit account 33312;
• Import VAT cannot be deducted but must be calculated into the value of materials and goods, debit account 152 – 153 – 156 – 211 / credit account 33312;
• Reflecting the amount of VAT payable to the state on imported goods: 
  • Import VAT payable is deductible and recorded as: Debit account 133 / Credit account 33312;
  • Import VAT payable cannot be deducted but must be calculated into the value of goods or fixed assets as follows: Debit account 152 – 153 – 156 – 211 / Credit account 33312.
• For cases of entrusted import – at the consignor: 
  • Upon receiving the import VAT payment notice from the consignee, the consignor records the deductible import VAT amount – accounting records: Debit account 133 / Credit account 33312;
  • After receiving the payment receipt to the state budget, the entrusting party accounts for the reduction of the obligation for import VAT, the accountant records:

Debit account 33312 – VAT payable;

Credit account 111 – 112: If the trustor pays immediately;

Credit account 3388: If VAT has not been paid immediately;

Credit account 138: Record a decrease if advance payment has been made to the consignee.

• The trustee records the amount of tax paid on behalf of the trustor, the accountant records:

Debit account 138: If the amount paid on behalf must be recovered or Debit account 3388: Deduct from the amount received from the entrusting party;

There are accounts 111 – 112.

➤ Account 133: Deductible VAT

• During the period of determining the deductible VAT amount and the payable output VAT amount, the accountant records: Debit account 3331 / Credit account 133: Deductible VAT amount; 
• In case at the time of transaction it is not yet determined whether the input VAT amount is deductible or not, the accountant records the input VAT amount in account 133. After determining the non-deductible VAT amount, the accountant records it in the related expense account.

Debit account 632 or account 641 – 642: Input VAT amount not deductible;

There is account 133.

• Enterprises are entitled to a reduction in VAT payable, accounting records:

Debit account 33311 or Debit account 111 – 112;

Have account 711.

• Enterprises are refunded VAT, accounting records:

Debit account 111 – 112;

There is account 133.

➤ Account 3332: Special consumption tax (SCT)

• Enterprises separate the special consumption tax payable immediately at the time of occurrence:

Debit account 111 – 112 – 131: Total payment for goods and services;

Credit account 511: Revenue from sales of goods and provision of services;

Credit account 3332: Special consumption tax.

• Enterprises periodically determine the amount of special consumption tax payable and record revenue reduction: 

Debit account 511 / Credit account 3332: Special consumption tax;

• Enterprises importing goods subject to special consumption tax, accountants base on purchase documents to determine the amount of special consumption tax payable in the period, accounting:

Debit account 152 – 156 – 211;

There is account 3332.

• In case of temporarily imported and re-exported goods not under the management of the unit, when paying special consumption tax, the accountant records: Debit account 138 / Credit account 3332
• When a business pays special consumption tax to the state budget, it records: 

Debit account 3332 / Credit account 111 – 112;

• For goods subject to special consumption tax when imported, which will be refunded when re-exporting the goods, the accountant records:

Debit account 3332;

Credit account 632: If selling goods or Credit account 152 – 153 – 156: If returning goods to the State budget.

• For special consumption tax paid at the import stage, refunded after re-export of fixed assets, record:

Debit account 3332 – Special consumption tax;

Credit account 211 – If fixed assets are returned or Credit account 811 – If fixed assets are sold.

• For special consumption tax paid on imported goods that are not owned by the enterprise, when re-exported, it will be refunded. Accountants record: Debit account 3332 / Credit account 138; 
• When the enterprise is refunded the special consumption tax paid at the stage of selling goods, fixed assets, and providing services, the accountant records: Debit account 3331 / Credit account 711;
• Enterprises exporting goods and services subject to special consumption tax for internal use, gifts or promotions, accounting records:

Debit account 641 – 642;

There are accounts 154 – 155 – 156;

There is account 3332.

• For cases of entrusted import – applied at the entrusted party: 
  • The assignor accounts for the amount of special consumption tax payable upon receiving the tax liability notice. The accountant records:
    Debit account 152 – 156 – 211 / Credit account 3332;
  • After receiving the payment receipt to the state budget, the assignor accounts for the reduction of the special consumption tax obligation, the accountant records:

Debit account 3332: VAT payable;

Credit account 111 – 112: If the trustor pays immediately;

Credit account 3388: If the consignor has not yet paid VAT immediately;

Credit account 138: Record a decrease if advance payment has been made to the consignee.

o   The consignee records the amount of tax paid on behalf of the consignor, the accountant records:

Debit account 138: If the amount paid on behalf must be recovered or Debit account 3388: Deduct from the amount received from the entrusting party;

There are accounts 111 – 112.

➤ Account 3333: Import-export tax (import-export tax)

• Enterprises separate the export tax payable immediately at the time of occurrence:

Debit account 111 – 112 – 131: Total value of payment for goods and services;

Credit account 511: Revenue from sales of goods and provision of services excluding export tax;

Credit account 3333: Export tax.

• Enterprises periodically determine the amount of export tax payable and record a reduction in revenue:

Debit account 511;

Credit account 3333: Export tax;

• Export tax refunded or reduced is recorded as:

Debit account 111 – 112 – 3333 / Credit account 711

• Import of goods, materials, tools and fixed assets during the period:

Debit account 152 – 156 – 211: Price includes import tax;

Credit account 3333: Import tax;

There are accounts 111 – 112 – 331.

• For cases of entrusted export enterprises: 
  • At the consignor:

After receiving tax payment documents to the state budget from the consignee, account for reduction of export tax obligations:

Debit account 3333;

Credit account 111 – 112: If the trustor immediately pays the trustee;

Credit account 3388: If payment has not been made to the trustee;

Credit account 138: If advance has been made to the trustee.

        o   At the consignee: Accounting records the amount of tax paid on behalf of the consignee, the accountant records:

Debit account 138: If the amount paid on behalf must be collected or Debit account 3388: Deduct from the amount received / Credit account 111 – 112.

➤ Account 3334: Corporate income tax (CIT)

• Quarterly, temporarily calculate the amount of corporate income tax payable: Debit account 821 / Credit account 3334;
• Pay corporate income tax to the state budget: Debit account 3334 / Credit account 111 – 112;
• At the end of the fiscal year, when the amount of corporate income tax payable has been determined: 
  • If the amount of corporate income tax payable is lower than the provisional amount, the excess tax paid will be recorded as:

Debit account 3334 / Credit account 8211;

        o   If the corporate income tax payable is greater than the provisional tax payment, the tax underpayment is recorded as follows:

Debit account 8211 / Credit account 3334 and must pay additional tax arrears, record Debit account 3334 / Credit account 111 – 112.

➤ Account 3335: Personal income tax (PIT)

• When deducting personal income tax at source on taxable income of employees:

Debit account 334 / Credit account 3335: Personal income tax deduction

• When paying to outside individuals who generate income

         Debit account 331: Total amount payable from providing outsourced services;

Credit account 3335: Personal income tax deducted by individuals;

Credit account 111 – 112: Actual amount received.

• When paying personal income tax to the state budget, account for:

Debit account 3335 / Credit account 111 – 112;

• When paying remuneration, outsourcing services to individuals who generate irregular income:

Debit account 623 – 627 – 641 – 642 – 635 or Debit account 161 or Debit account 353;

There is account 3335;

There are accounts 111 – 112.

➤ Account 3336: Resource tax

• Periodically determine the amount of resource tax payable in expenses, record: Debit account 627 / Credit account 3336; 
• When paying tax, record: Debit account 3336 / Credit account 111-112.

➤ Account 3337: Real estate tax, land rent

• Periodically determine the amount of land rental tax into business management expenses, accounting: Debit account 642 / Credit account 3337;
• When paying tax, record: Debit account 3337 / Credit account 111 – 112.

➤ Account 3338: Environmental protection tax (EPT) and other taxes

• When selling goods and providing services subject to environmental protection tax and VAT, account for:

Debit account 111 – 112: Total payment price;

Account 511: Price does not include environmental protection tax and VAT;

Credit account 3331: VAT;

Credit account 33381: Environmental protection tax.

• In case the enterprise cannot determine the environmental protection tax amount at the time of transaction.

Periodically determine the amount of tax payable and proceed to reduce revenue:

Debit account 511;

Credit account 3331: VAT payable;

Credit account 33381: Environmental protection tax.

• Reflecting the amount of environmental protection tax reduced or refunded after receiving notification from the competent state agency, accounting:

Debit account 33381 / Credit account 711 – Other income

• When importing goods subject to environmental protection tax, accountants base on purchase documents and determine the amount of environmental protection tax payable on imported goods, accounting for:

Debit account 152 – 156 – 211 – 611;

There is account 33381.

• When a business exports products, goods or services subject to environmental protection tax for internal use, gifts, advertising, etc.

Debit account 641 – 642;

There are accounts 152 – 156 – 154 – 155;

There is account 33381.

• When the enterprise is the entrusted import party, while determining the amount of environmental protection tax paid on behalf of the entrusted party, the accountant records: Debit account 138 / Credit account 33381; 
• When paying environmental protection tax to the state budget, accountants record: Debit account 33381 / Credit account 111 – 112;
• Accounting for refund of environmental protection tax paid at the stage of importing goods:

Debit account 33381;

Credit account 632: If selling goods;

Credit account 152 – 153 – 156: If returning goods to supplier;

Credit account 211: If returning fixed assets;

Credit account 811: if selling – liquidating fixed assets.

• Goods not owned by the enterprise, for environmental protection tax paid at the import stage, accounting records: Debit account 33381 / Credit account 138; 
• Environmental protection tax is refunded after receiving notification from the competent authority: Debit account 33381 / Credit account 711.

➤ Account 3339: Fees, charges and amounts payable to the state budget

• During the period of determining the registration fee calculated on the value of the purchased asset, record: Debit account 211 / Credit account 3339; 
• During the period of determining the amount of fees and charges, the accounting is: Debit account 642 / Credit account 3339;
• When paying taxes, fees, registration fees – business license fees to the state budget, record: Debit account 3339 / Credit account 111 – 112.

IV. Frequently asked questions about account 333 – Taxes and amounts payable to the state