Transactions to be recorded in account 44 « State and other public authorities » are those with the State, public authorities and official international organizations, considered as public authorities, excluding sales and purchases which are recorded in account 40 « Suppliers – Accounts payable and related accounts » and 41 « Customers – Trade receivables and related accounts » in the same way as transactions with other suppliers and other customers.
At the end of the financial year, when grants awarded to the entity have not yet been received, account 441 « State – Grants and aid receivable » is debited with :
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amount of investment grants receivable by crediting account 13 « Investment grants » ;
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amount of operating grants receivable by crediting account 741 « Operating grants ».
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amount of the loss compensation grants receivable by the subdivision of account 742 entitled « Loss compensation grants ».
Account 441 is credited by debiting a cash account when the above-mentioned grants are received.
Account 442 « Contributions, taxes and duties collected on behalf of the State » is credited with amounts collected by the entity on behalf of the State from amounts due to third parties by debiting their accounts. Account 4421 « Income withholding tax » is credited with amounts to be paid by the entity to the State for the income withholding tax by debiting account 421 « Employees – Salaries payable ». If the entity is required to collect income withholding tax on income received by third parties other than its employees, subdivisions are created in account 4421 « Income withholding tax ». These sub-accounts are then credited with the withholdings on the amounts due to these third parties by debiting their accounts.
Account 444 « State – Income taxes » is credited with the amount of income taxes due to the State by debiting account 695 « Income taxes ». It is debited with the amount of advance payments and the balance of payments to the Treasury by crediting a cash account.
Account 444 is also debited with the amount of the receivable resulting from the carry-back of losses by crediting account 699 « Income – Carry-back of losses ».
Account 445 « State – Taxes on turnover » is credited with the amount of taxes collected on behalf of the State and the amount of taxes to be recovered.
A specific account 4452 « V.A.T. due within the EU » records European Union Value Added Tax.
The V.A.T. collected by the entity constitutes a debt to the Treasury. It is credited to account 4457 « Taxes on turnover collected ».
Deductible V.A.T. on purchases of goods and services is a receivable from the Treasury and is recorded as a debit to account 4456 « Deductible taxes on turnover ». The following subdivisions may be opened to consider the specific recovery methods :
The V.A.T. to be paid to the Treasury for the month or quarter is credited to account 4455 « Taxes payable on turnover » by debiting account 4457 and crediting account 4456.
When it is required to apply the V.A.T. reverse charge, the entity records two separate V.A.T. amounts of the same amount :
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V.A.T. payable in a sub-account of account 4457 ;
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and V.A.T. recoverable in a sub-account of account 4456.
Account 446 « Guaranteed bonds » is credited with the amount of guaranteed bonds for the payment of taxes by debiting :
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accounts 445 « State – Taxes on turnover » and 447 « Other taxes, duties and similar payments » ;
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a subdivision of account 661 entitled « Interest on guaranteed bonds » for the portion of interest relating to the financial year.
Account 447 « Other taxes, duties and similar payments » is credited with the amount of all other taxes due by the entity by debiting the relevant expense accounts.
