(five) to provide the purchased goods as investment to other units or individual operators for accounting.

The distribution of goods produced, processed or purchased by an enterprise to shareholders is regarded as sales, and the accounting entries are as follows:

Borrow: dividend payable (when distributing dividends)

Benefits payable-benefits (when distributing benefits)

Tax payable-VAT payable-Transfer-out output tax

Loan: Inventory goods-such and such goods.

Carry-over cost:

Borrow: main business cost-certain commodity

Loan: Inventory goods-such and such goods.

The Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax stipulates that the following eight acts are regarded as sales:

1. Deliver the goods to others for consignment.

2. Selling goods on a commission basis.

3. For taxpayers who have two or more institutions to implement unified accounting, the goods are sold from one institution to another, except that the relevant institutions are located in the same county.

4. Use the self-produced consigned goods for non-taxable items.

5, the production, commissioned processing or purchase of goods as investment, provided to other units or individual operators.

6. Use the self-produced, commissioned or purchased goods for distribution to shareholders or investors.

7. Use the self-produced entrusted goods for collective welfare or personal consumption.

8. Give the self-produced, commissioned or purchased goods to others free of charge.