According to the regulations on accounting treatment of tax refund and acceptance of domestic equipment purchased by foreign invested enterprises, [2002] fifth, "according to the Circular of the State Administration of Taxation on Issuing the trial procedures for the tax refund administration of domestic equipment purchased by foreign invested enterprises" (No. 171 of the national tax [1999]) and the "Notice of the State Administration of Taxation on the donation tax treatment of foreign invested enterprises and foreign enterprises" (national tax return [1999] 195), the present state of the State Administration of taxation is issued by the State Administration of taxation.

Foreign invested enterprises receive the value-added tax refunded by the tax authorities because of the purchase of domestic equipment.

(1) if the purchased domestic equipment has not yet been delivered, the cost of the equipment should be reduced, and the account of "bank deposit" should be debited, and the subject of "in construction" should be credited.

(two) if the purchased domestic equipment has been delivered, it should adjust the original book price and the depreciated depreciation accordingly, debit "bank deposit" subject, credit the "fixed assets" subject, and at the same time, reduce the excess depreciation, borrow the "accumulated depreciation" subject, and credit the "manufacturing cost" and "management expenses" and other subjects.

If the purchased domestic equipment has been delivered, the value-added tax of the tax authorities across the year should be adjusted accordingly. The original account value and the depreciation of the equipment should be adjusted accordingly, and the account of the "bank deposit" should be debited, and the "fixed assets" subject should be credited. At the same time, the depreciated depreciation should be reduced, and the "accumulated depreciation" subject should be credited to the "prior year profit and loss adjustment" subject.

If the value-added tax received before the issuance of this provision fails to be dealt with in accordance with these Provisions, it shall be retroactively adjusted according to the accounting treatment method of the present Provisions.