Account 68 in accounting is used to collect information on mandatory payments to the budget, deducted both from the company and employees. The amount and procedure for paying tax amounts are reflected in the Tax Code of the Russian Federation, according to which calculations should be made. The accountant fixes all the obligations to the state, which are then transferred to him at a certain period and simultaneously debited from the account.
What is accounted for in account 68?
According to the Standard Chart of Accounts, 68th is called “Calculations on taxes and fees”. It obviously follows from this that it is created to account for settlements with the state budget. All commercial organizations are somehow faced with the concept of taxes. What it is? Taxes - a fixed amount payable without fail by an individual or legal entity to finance the state. A full description of each of the payments is contained in the Tax Code of the Russian Federation.
If with taxes everything is more or less clear, then what is meant by the concept of “collection”? This is a contribution for which an obligation arises when an individual or company needs to receive legal services from the state or other bodies. The fee can also be set for commercial companies as a prerequisite for doing business in a certain territory.
Tax liabilities of organizations
Payments on taxes and fees may be directed to the federal, regional or local budget. It depends on the type of obligation. Federal include VAT, excise taxes, income taxes. Local and regional mainly consist of amounts accrued for the use of land and property.
Considering the tax obligations of the enterprise, it would be correct to systematize payments in the context of this economic entity. We will group the main types of taxes and fees, the data on which are entered into account 68 in accounting, by the way they are paid:
- from the amount of sales revenue - excise taxes, VAT, customs costs;
- write-offs to the cost of production (works, services) - taxes on land, water resources, mining, property and transport of an enterprise, gambling business;
- from net profit - corporate income tax.
In addition, account 68 is also used to pay personal income tax levied on the income of individuals (company employees).
Depending on what tax regime the company operates, the payment rates and their total number change. For example, organizations using the simplified tax system may be exempted from VAT, property tax, and personal income tax.
Account Description
Account 68 in accounting is active-passive. At the end of the period, both debit and credit balances may form. In this case, the amounts in the loan indicate the amount of the company's obligations to the state, and in the debit - vice versa. It turns out that any accrual occurs on a loan, and write-off - on a debit. More often than not, of course, the organization has a credit ending balance of account 68.
Debit turnovers indicate either the payment of taxes and fees, or the amount of VAT recoverable when purchasing goods from suppliers. Credit turnover arises when liabilities are formed and VAT arises for payment according to the invoice.
Analytical accounting
As can be seen from the characteristics of the company's obligations to the state, the amount of taxes is enough to turn the 68 account into a mess. To organize the data, sub-accounts are created for a group of tax payments and fees: this way you can always see the necessary information.
Consider the example of analytical accounts for the main types of tax payments and fees from a legal entity:
- 68/01 - personal income tax;
- 68/02 - VAT;
- 68/03 - excise taxes;
- 68/04 - income tax;
- 68/05 - vehicle tax;
- 68/06 - property tax;
- 68/07 - other fees and taxes;
- 68/08 - single tax (with the simplified tax system).
The established list of ciphers of sub-accounts of synthetic account 68 is reflected in the accounting policy of the enterprise. The data is grouped into revolving lists. The sum of the final results for the analytical accounts should be consistent with the synthetic accounting data of account 68.
Personal income tax postings
Personal income tax is one of the main taxes withheld from individuals, the rate of which for an average working citizen is 13%. It is necessary to calculate the amount due to the state from employee income only after deducting benefits, if any should be applied. To collect information on personal income tax amounts from employees of the enterprise, 68.01 account is used.
The posting describing the tax calculation is made as follows: Dt 70 Ct 68.01 in the amount of personal income tax. When transferring a payment to the budget, account 68.01 is debited: Dt 68.01 Ct 51.
Reflection of VAT
68.02 score Accounting is created to account for VAT on the basis of issued and accepted invoices. Consider the situation: for example, an enterprise purchased materials from a supplier for a certain amount. The seller has sent an invoice. What records does the buyer record in account 68? Postings are carried out in two stages:
- Dt 19 Kt 60 - “input” VAT is fixed.
- Dt 68.02 Ct 19 - the amount has been written off to offset VAT calculations.
In the event that the company sells products, it becomes necessary to issue an invoice at a specific time. The transaction is recorded in 68.2 account accounting posting: Dt 90.3 Ct 68.02.
It turns out that in the course of economic activity, the company accumulates VAT deductible in the debit of subaccount 68.02, and in the loan payable. Total, in fact, the organization pays the difference between the amounts of VAT issued and accepted. It should be noted that all operations on this tax are carried out only if there is an invoice.
Other taxes and fees
Account 68 in accounting is used in every commercial organization, since any economic activity should bring benefits not only to the entrepreneur, but also to the state. The table below shows the most common transactions for accruing and paying amounts to the budget:
| Dt | Ct | Description of the business transaction |
| 91 | 68.06 | Accrued tax for the use of water resources and property of the enterprise |
| 20 | 68.07 | Amount accepted land tax payable |
| 99 | 68.04 | Accrued corporate income tax |
| 70 | 68.01 | Allocated to personal income tax |
| 75 | 68.07 | Accrued tax on dividends paid |
| 90 | 68.03 | Reflected amount excise tax from the sold goods |
| 68 | 51 | The amount of obligations to the state budget has been paid |
| 68 | 66 | Loan tax arrears paid off |
68 account forms one of the main articles of the obligations of the enterprise. Timely tax deductions and the accuracy of the information displayed is the key to a successful and legitimate company.
