Account 158 – Goods in bonded warehouse
- Rules for accounting
a) This account is used to record current value and increase or decrease in goods delivered to bonded warehouse. Bonded warehouses are only applied to foreign-invested companies to serve the production of imported goods, subject to special customs supervision, in which the raw materials imported to serve the production shall be stored in the bonded warehouses and released from assessment and payment of import duties and other taxes.
b) Imported raw materials stored in bonded warehouse include raw materials provided for production and products of that enterprise.
c) The enterprise must keep records of quantity and value of every raw material and good whenever they are received or dispatched.
- Structure and contents of account 158 – Goods in bonded warehouses
Debit: Costs of raw materials, finished goods or goods delivered to bonded warehouse during a period.
Credit: Costs of raw materials, finished goods or goods dispatched from bonded warehouse during a period.
Debit balance: Costs of ending raw materials, finished goods or goods inventory balances in the bonded warehouse.
- Accounting methods for several major transactions:
a) When importing raw materials for production of exported products, or processing of exported goods, if they are stored in a bonded warehouse, they shall be released from payment of import duty and VAT on imported goods and the following accounts shall be recorded:
Dr 158 – Goods in bonded warehouses
Cr 331 – Trade payables.
b) When dispatching raw materials in bonded warehouse for production or processing of exported goods, the following accounts shall be recorded:
Dr 621 – Direct material costs
Cr 158 – Goods in bonded warehouses.
c) When delivering finished goods, exported goods or outward processing goods into bonded warehouse (if any), the following accounts shall be recorded:
Dr 158 – Goods in bonded warehouses
Cr 156, 155, etc.
d) When exporting goods in bonded warehouses (if any):
- The costs of exported goods in bonded warehouse shall be recorded as follows:
Dr 632 – Costs of goods sold
Cr 158 – Goods in bonded warehouses.
- The revenues from sale of exported goods in bonded warehouse shall be recorded as follows:
Dr 111, 112, 131, etc.
Cr 511 – Revenues.
dd) If export rate is lower than deferred tax rate of the enterprise subject to import duty and VAT on imported goods (if any) pertaining to difference between amounts of to-be-exported products and amounts of actually-exported products, the enterprise must pay import duty and VAT on imported goods (if any):
- When determining import duty payables (if any), the following accounts shall be recorded:
Dr 632 – Costs of goods sold
Cr 333 – Taxes and amounts payable to the State (3333).
- When determining VAT on imported goods payables (if any), the following accounts shall be recorded:
Dr 133 – Deductible VAT (1331)
Cr 333 – Taxes and amounts payable to the State (33312).
- When paying import duty and VAT on imported goods payables (if any), the following accounts shall be recorded:
Dr 333 – Taxes and amounts payable to the State (3333, 33312).
Cr 111, 112, etc.
e) In case the enterprise is permitted to sell goods in bonded warehouses on Vietnam market by the competent agency, the enterprise must pay import duty and other taxes as prescribed.
- When the enterprise is permitted to use goods in bonded warehouses, it is required to follow procedures for dispatch of goods from bonded warehouse, receipt of goods or products to the enterprise's warehouse and pay taxes on those goods, and then the following accounts shall be recorded:
Dr 155, 156
Cr 158 – Goods in bonded warehouses.
- When determining import duty payables (if any), the following accounts shall be recorded:
Dr 155, 156
Cr 333 – Taxes and amounts payable to the State (3333).
- When determining VAT on imported goods payables (if any), the following accounts shall be recorded:
Dr 155, 156 (if they are not deductible)
Dr 133 – Deductible VAT (1331)
Cr 333 – Taxes and amounts payable to the State (33312).
- When paying import duty and VAT on imported goods, the following accounts shall be recorded:
Dr 333 – Taxes and amounts payable to the State (33312, 3333).
Cr 111, 112, etc.
g) When selling goods in bonded warehouses on domestic market:
- The costs of goods in bonded warehouse sold shall be recorded as follows:
Dr 632 – Costs of goods sold
Cr 158 – Goods in bonded warehouses.
Concurrently, the import duty and VAT on imported goods pertaining to those products, goods or raw materials must be recorded.
- The revenues from sale of exported goods in bonded warehouse on domestic market shall be recorded as follows:
Dr 111, 112, 131, etc.
Cr 511 – Revenues from sale of goods and services
Cr 333 – Taxes and amounts payable to the State (33311).
h) In case the raw materials or goods delivered to bonded warehouse are damaged or degraded and failed to meet export requirements, they must be re-imported or destroyed:
- In case of re-import, the following accounts shall be recorded:
Dr 155, 156, etc.
Cr 158 – Goods in bonded warehouses.
- Concurrently, paying the import duty and VAT on imported goods payables pertaining to those products, goods or raw materials, the taxes payable shall be recorded in entry (e); when paying taxes, the following accounts shall be recorded:
Dr 333 – Taxes and amounts payable to the State (33312, 3333).
Cr 111, 112, etc.
- In case of re-export (returns to sellers), the following accounts shall be recorded:
Dr 331 – Trade payables
Cr 158 – Goods in bonded warehouses
- In case of destruction of goods or raw materials in bonded warehouses, the following accounts shall be recorded:
Dr 632 - Costs of goods sold (destroyed goods or raw materials)
Cr 158 – Goods in bonded warehouses
Source: Circular 200
Comment
Leave a comment
Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.