Account 68 in accounting serves to collect information about mandatory payments to the budget, deducted both from the enterprise and employees. The amount and procedure for paying tax amounts are reflected in the Tax Code of the Russian Federation, according to which calculations must be made. The accountant records all obligations to the state, which are then transferred to him at a certain period and at the same time written off from the account.

What is taken into account in account 68?

According to the Standard Chart of Accounts, the 68th is called “Calculations for taxes and fees.” It quite obviously follows from this that it is created to account for settlements with the state budget. All commercial organizations in one way or another encounter the concept of taxes. What it is? Taxes are a fixed amount that must be paid by an individual or legal entity to finance the state. A full description of each payment is contained in the Tax Code of the Russian Federation.

If everything is more or less clear with taxes, then what is meant by the concept of “collection”? This is a contribution for which an obligation arises when an individual or business needs to obtain legal services from the government or other authorities. The fee may also be established for commercial companies as a mandatory condition for conducting business activities in a certain territory.

Tax obligations of organizations

Payments for taxes and fees can be sent to the federal, regional or local budget. It depends on the type of obligation. Federal taxes include VAT, excise taxes, and income taxes. Local and regional taxes consist mainly of amounts assessed for the use of land and property.

When considering the tax obligations of an enterprise, it would be correct to systematize payments in the context of this economic entity. Let's group the main types of taxes and fees, data on which are entered into account 68 in accounting, according to the method of their payment:

• from the amount of sales proceeds - excise taxes, VAT, customs costs;
• write-off to the cost of products (works, services) - taxes on land, water resources, mining, on 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 (employees of the enterprise).

Depending on the tax regime under which the enterprise operates, payment rates and their total number change. For example, organizations using the simplified tax system may be exempt from paying VAT, property and profit tax, and personal income tax.

Account characteristics

Account 68 in accounting is active-passive. At the end of the period, both a debit and a credit balance can be formed. In this case, the amounts in credit indicate the size of the enterprise’s obligations to the state, and in debit - vice versa. It turns out that any accrual occurs on credit, and write-off occurs on debit. Most often, of course, the organization has a credit ending balance on account 68.

Debit turnover indicates either the payment of taxes and fees, or the amount of VAT to be reimbursed when purchasing goods from suppliers. Credit turnover arises when obligations are formed and VAT is payable according to the invoice.

Analytical accounting

As can be seen from the characteristics of the enterprise’s obligations to the state, the number of taxes is enough to turn account 68 into confusion. To systematize the data, sub-accounts are created for a group of tax payments and fees: this way you can always view the necessary information.

Let's consider an 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 – tax on vehicles;
• 68/06 – property tax;
• 68/07 – other fees and taxes;
• 68/08 – single tax (under the simplified tax system).

The established list of codes for subaccounts of synthetic account 68 is reflected in the accounting policy of the enterprise. The data is grouped into turnover sheets. The sum of the final results for analytical accounts should converge with the data of synthetic accounting of account 68.

Postings for personal income tax

Personal income tax is one of the main taxes withheld from individuals, the rate of which for the average working citizen is 13%. It is necessary to calculate the amount due to the state from the employee’s income only after deducting benefits, if any, should be applied. To collect information about personal income tax amounts from enterprise employees, accounting account 68.01 is used.

The entry describing the calculation of tax is drawn up as follows: Dt 70 Kt 68.01 for the amount of personal income tax. When transferring a payment to the budget, account 68.01 is debited: Dt 68.01 Kt 51.

Reflection of VAT amounts

68.02 an accounting account is created to account for VAT on the basis of issued and accepted invoices. Let's consider a situation: for example, an enterprise purchased materials from a supplier for a certain amount. The seller sent an invoice. What entries does the buyer make in account 68 in accounting? Postings are carried out in two stages:

1. Dt 19 Kt 60 – “incoming” VAT is recorded.
2. Dt 68.02 Kt 19 – the amount is written off to offset VAT calculations.

If a company sells products, it becomes necessary to issue an invoice within a certain period. The operation is recorded in accounting account 68.2 with the entry: Dt 90.3 Kt 68.02.

It turns out that in the course of economic activity, the enterprise accumulates VAT for deduction in the debit of subaccount 68.02, and in the credit for payment. In total, the organization actually pays the difference between the VAT amounts issued and accepted. It should be noted that all transactions for this tax are carried out only with an invoice.

Postings for 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 shows the most common entries for the accrual and payment of amounts to the budget:

Account 68 forms one of the main articles of the enterprise's obligations. Timely tax payments and the reliability of the information reflected are the key to successful and legal activities of the company.

Is count 68 active or passive?

Account 68 is used to summarize data on payments of an enterprise/individual entrepreneur to the state budget for taxes and mandatory fees. Accrued and payable amounts of taxes are reflected in the credit of the account, and the amounts of transfers to the budget are reflected in the debit.

Based on this, the question arises, is account 68 active or passive? Since it can have both a credit and a debit balance at the end of the reporting period, the account is active-passive. Let us further understand in detail what the turnover on the debit and credit of the account shows and what conclusion can be drawn about the final balance that is formed at the end/beginning of the reporting period.

Business operations in account 68 are reflected in the context of emerging tax obligations. Accounting for compulsory insurance premiums, which are paid to the state budget and controlled by the tax authorities, is made on account 69.

What does the debit of account 68 show?

The debit reflects information on transferring taxes to the budget or reducing tax liabilities in another way, for example, by deducting VAT. So, the debit accumulates the VAT amounts written off from account 19. The debit of account 68 shows (or rather, the final balance) that there is an overpayment of taxes.

Let's look at typical entries for the debit of account 68 in accordance with the chart of accounts approved by Order of the Ministry of Finance dated October 31, 2000 No. 94n:

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• Dt 68 Kt 50 (51, 52, 55) - payment of taxes in cash;
• Dt 68 Kt 19 - acceptance of VAT for deduction;
• Dt 68 Kt 66 (67) - tax debt is repaid through short-term (long-term) loans, for example, a budget payment was made through an overdraft.

What does account credit 68 show?

The credit balance of account 68 shows that the taxpayer has arrears in paying taxes. The credit balance is reflected in the liability side of the balance sheet in line 1520 (clause 20 of PBU 4/99).

According to the credit of account 68, all mandatory taxes and fees paid by this taxpayer are calculated. Thus, in correspondence with account 99 the amounts of income tax are credited, with account 70 - income tax, etc.

Postings on the credit of account 68 look like this:

• Dt 08 Kt 68 - tax assessment on land acquired for construction;
• Dt 15 Kt 68 - expenses for paying taxes when procuring materials are reflected;
• Dt 20 (23, 26, 29, 41, 44) Kt 68 - taxes and fees have been accrued;
• Dt 51 (55) Kt 68 - return of overpayment/reimbursement of taxes to the taxpayer’s account;
• Dt 70 (75) Kt 68 - income tax on employee earnings (dividends of founders) is withheld;
• Dt 90 Kt 68 - accrual of VAT and excise tax on the sale of inventory items;
• Dt 91 (98) Kt 68 - assessment of taxes on types of activities that are not the main ones;
• Dt 99 Kt 68 - calculation of income tax.

Analytics for account 68: subaccounts

To control arrears and overpayments for each tax, analytical accounting is maintained for the account in the context of each tax liability.

• 01 - personal income tax calculations;
• 02 — VAT;
• 03 - excise taxes;
• 2 - income tax;
• 06 - land tax;
• 07 - transport tax;
• 08 - property tax;
• 09 - advertising tax;
• 10 - other budgetary obligatory payments;
• 11 - calculations for UTII;
• 12 - tax under a simplified taxation system;
• 21 - tax on income of individual entrepreneurs;
• 22 — VAT refundable on export transactions;
• 32 - VAT displayed by the tax agent;
• 42 — VAT on import transactions when moving goods from the Customs Union.

The proposed list can be changed, shortened or supplemented depending on the circumstances and wishes of the taxpayer. As a rule, Russian taxpayers open only 2-3 sub-accounts. To avoid confusion and for a convincing argument during a tax audit, the taxpayer should record the subaccount numbers for account 68 in his accounting policy.

For timely accounting of the payment of taxes and mandatory fees, account 68 is used. For each tax paid by the taxpayer, a sub-account is opened to account 68. The debit of account 68 reflects business transactions for paying taxes or reducing them in another way. The credit balance of the account at the end of the reporting period indicates the presence of tax arrears, and the debit balance indicates an overpayment.

Dt 68 Kt 68 - this entry offsets the overpayment of one tax against the payment of another or penalties. What this means and what entries are made when accruing and paying, we will consider in our article using the example of VAT.

How to reflect VAT in accounting?

In accounting, VAT transactions are reflected using two main accounts:

• account 19 “VAT on acquired values”;
• account 68 “Calculations for taxes and fees” - in this case, the corresponding sub-account “Calculations for VAT” is opened for the 68th account.

When purchasing raw materials, goods, works or services, the accountant makes the following entries:

Dt 19 Kt 60 - VAT presented by the supplier is taken into account.

Then the incoming tax must be deducted - this is done by posting debit 68 credit 19 accounts.

The sale of goods is accompanied by the accrual of VAT on the credit of account 68 in correspondence with the account for accounting for proceeds from sales or other income:

Dt 90.3 Kt 68 - VAT is charged on the sale of goods or provision of services in the main type of activity;

Dt 91.2 Kt 68 - VAT is charged on sales that are not related to the normal activities of the company (for example, when selling fixed assets).

At the end of each quarter, the VAT payer must pay the budget by the 25th day of the month following the reporting period. If the amount of accrued VAT is greater than the amount of VAT accepted for deduction, then the company must pay the resulting difference to the budget and make an entry according to debit 68 credit 51 accounts.

Example

The Sdoba company purchased raw materials for the production of sweet buns in the amount of 125,000 rubles, including VAT of 13,000 rubles. (since in the production of buns the company purchased raw materials subject to VAT at both 10% and 18%). 4,000 buns were baked from these raw materials and sold for 59 rubles per piece. Sales of sweet buns are subject to VAT at a rate of 18%. Thus, when calculating and reflecting VAT in accounting, the accountant of “Sdoba” will make the following entries:

Dt 19 Kt 60 - in the amount of 13,000 rubles: accounting for VAT from the supplier of raw materials;

Dt 68 Kt 19 - in the amount of 13,000 rubles: accepted for deduction of VAT (thus, reflecting the amount of VAT on debit 68 credit 19 means accepting it as a deduction when calculating tax);

Dt 90.3 Kt 68 - in the amount of 36,000 rubles. (4,000 buns × 59 rubles / 118 × 18 = 36,000 rubles): VAT is charged on the sale of buns;

Dt 68 Kt 51 - in the amount of 23,000 rubles. (the difference between the accrued VAT is 36,000 rubles and the VAT accepted for deduction is 13,000 rubles): “Sdoba” paid VAT to the budget at the end of the quarter (the meaning of the posting debit 68 credit 51— payment of tax to the budget from a current account).

What does debit 68 credit 68 mean?

In VAT accounting, there are situations when the amount of incoming VAT is greater than that accrued upon sale. This happens, for example, when a company purchased more raw materials than it sold products. Or a large OS was purchased. Or the company built a new workshop on its own. Another situation with compensation arises for companies involved in exports.

You can read more about the VAT refund mechanism in the article.

If you receive a VAT refund at the end of the quarter, then the tax authorities can offset the amount of the refund against existing arrears, penalties, and fines not only for VAT, but also for other federal taxes - on the basis of clause 4 of Art. 176 Tax Code of the Russian Federation, wiring Dt 68 Kt 68.

If the taxpayer decides to receive a VAT refund to the current account, then when money is received from the budget, the accountant must make the following entry in the accounting:

Dt 51 Kt 68 - the amount of VAT to be refunded was returned to the current account.

Posting by debit 68 credit 68 means offset of an overpayment (reimbursement) for one tax against the company’s payments for other taxes.

Example

LLC Sdoba in the first quarter of 2016 acquired a production line for the production of confectionery products worth 5 million rubles, including VAT 762,711.86 rubles. In addition, during the quarter, the Sdoba company bought raw materials, paid for utilities and workshop rent - a total of 1 million rubles was deductible for the first quarter of 2016. In the first quarter of 2016, the Sdoba company sold products worth RUB 2,360,000, including RUB 360,000. VAT. The difference between accrued VAT and input VAT was:

360,000 rub. - 1,000,000 rub. = -640,000 rub.

That is, the company “Sdoba” has a tax to reimburse from the budget. And for income tax in the first quarter of 2016, Sdoba LLC received a tax payable in the amount of 500 thousand rubles. The company submitted an application with a request to offset the budget debt in the form of a VAT refund against the payment of income tax for the first quarter of 2016. The tax authority agreed on the offset of taxes among themselves. Then, by posting between the subaccounts of account 68, the accountant can redistribute the overpayment of VAT towards the payment of income tax. The accountant of “Sdoba” will make the following entry:

Dt 68 subaccount “Income Tax” Kt 68 “VAT Calculations” - for 500,000 rubles: VAT is credited for reimbursement for the first quarter of 2016 against the payment of income tax.

The company still has 140 thousand rubles left. overpayment of VAT, which can be offset by posting Dt 68 Kt 68 towards payment of taxes in the second quarter of 2016.

In what other cases can a company make an accounting entry? Dt 68 Kt 68? In case of offset of overpayment between any taxes for which the Tax Code of the Russian Federation allows offset. And also when overpaying one tax is offset against penalties, arrears or fines.

Example

The Sdoba company discovered in April 2016 an overpayment of personal income tax transferred for employees in the amount of 11,235 rubles. And for income tax, an arrears of 7,000 rubles were revealed. The company submitted an application to the Federal Tax Service with a request to offset the arrears against the overpayment. The tax office allowed the offset. The accountant made an entry in the accounting Dt 68 Kt 68 in the following way :

Dt 68 subaccount “Calculations for income tax” Kt 68 subaccount “Calculations for personal income tax” - in the amount of 7,000 rubles: overpayment for personal income tax is offset against arrears for income tax.

The company asked to offset the balance of the overpayment against the fine for incomplete payment of the tax amount; the tax authorities agreed on the offset. Then the wiring Dt 68 Kt 68 should be detailed with the following subaccount:

Dt 68 subaccount “Calculations for income tax” Kt 68 “Calculations for personal income tax” - in the amount of 4,235 rubles: overpayment of personal income tax is offset against the fine for incomplete payment of tax.

Results

Wiring Dt 68 Kt 68 is done in accounting in case of offset of the overpaid amount of tax against the debt to the budget for another tax. You can also offset the overpayment of taxes to the budget to pay off accrued budget fines and penalties by posting Dt 68 Kt 68 according to the corresponding subaccounts.

Account 68 “Calculations for taxes and duties” is used by legal entities to display all information about mutual settlements with regulatory authorities for taxes and duties, both from the organization and from the employees of the enterprise.

Account 68 in accounting is intended to collect information about mutual settlements on accrued tax payments required for payment to budgets, the organization's debts to regulatory authorities and identified amounts of overpayments.

Count 68 is active-passive. The loan displays the amounts accrued for payment to regulatory authorities in accordance with the declarations provided in correspondence with the corresponding accounting accounts (for example, employee compensation, profits and losses, etc.). On debit, data on actual transfers of the organization is collected. In addition, VAT amounts presented by suppliers and accepted for deduction (from Kt19) and credited advances from buyers (from Kt76AV) are transferred to Debit account 68.

Attention! Balances on account 68 must coincide with the settlement certificate for mutual settlements ordered from the Federal Tax Service.

Calculations for each tax are analyzed separately, therefore, separate sub-accounts 68 accounts are opened in accounting:

68.01 - mutual settlements with the budget as a tax agent are taken into account when transferring personal income tax from employee salaries;

68.03 - excise taxes;

68.04 - data on advance payments and annual tax calculation on the profit received by the company is displayed here. The payment is distributed between the federal and regional budgets.

Something to keep in mind! Organizations operating in accordance with PBU 18/02 must open an additional sub-account to reflect information on the calculation of advance payments.

68.07 - display of information about transport tax;

68.08 - property taxes;

68.10 - other types of taxes and fees

68.11 - UTII

68.12 - simplified tax system (for business entities who have chosen this form of taxation);

68.13 - information on trading fees

68.22 - this sub-account records information on possible VAT refunds on exports if it is necessary to obtain additional permission from regulatory authorities (the sub-account is active)

68.32 - data on VAT transfers if the company acts as a tax agent (passive subaccount)

Analytical analysis

Reconciliation of mutual settlements with the budget is carried out separately for each specific type of payment, therefore analytics account 68 is used to separate information by types of taxes (budget levels are additionally taken into account when calculating payments based on profit), types of payments made (accrual/transfer, penalties/fines, etc.). d.)

Regulatory regulation

The use of account 68 to display information on mutual settlements with budgets of various levels in terms of taxes and fees paid is carried out in accordance with the current Chart of Accounts, approved by Order of the Ministry of Finance dated October 31, 2000 No. 94, and other legislative acts.

Account 68 - common accounting entries

1. Accrual

   Dt70 Kt68.01 - withholding personal income tax from employee wages

   Dt99 Kt68.04 - tax deductions from the profit of the organization

   Dt90.03 Kt68.02 - accrual of VAT payable to the budget on sales

2. Payment to regulatory authorities

   Dt68 Kt50,51,55 - in cash or by bank transfer

3. Including accrued amounts in enterprise costs

   Dt20.23 Kt68 - costs of main or auxiliary production

   Dt26 Kt68 - inclusion in general business expenses

   Dt91.02 Kt68 - reflection of amounts as part of other expenses (for example, settlements on enterprise property)

4. Acceptance for deduction of VAT amounts presented by suppliers, Excise taxes
5. Offset of advance payments from buyers against accrued VAT

   In all cases, the amounts of turnover on the credit of account 68 are reflected in correspondence with the debited accounts. At the end of the month, by debit, the totals for the month and the balance at the beginning of the next month are read for certain debtors (creditors) and for the statement as a whole.

   Turnovers on the credit of accounts for the month in the context of corresponding accounts are transferred to the journal order No. 8.

   Synthetic accounting for account 68 “Calculations for taxes and fees” is carried out in the current balance sheet, where balances and turnovers from the turnover sheet for analytical accounts are recorded. The results of the turnover sheet for analytical accounts are compared with the results of the corresponding synthetic account - they must be equal.

   Account 68.04.2

   After recording the turnover and balance for all subaccounts included in the turnover balance sheet, the final balance for account 68 is transferred to the General Ledger.

   When drawing up a balance sheet, the debit balance of account 68 is reflected in its assets, and the credit balance is reflected in its liabilities.

   Credit turnover on account 68 shows the accrual of the enterprise's debt to the budget for taxes, and debit turnover indicates the payment of taxes to the budget.

   The credit balance at the end of the reporting period in account 68 “Calculations for taxes and fees” is maintained by type of tax. Thus, subaccount 68-2 was opened for account 68 at Invento LLC - “Personal Income Tax Payments”. At the enterprise, for each subaccount of account 68, accumulative statements are maintained, which indicate the balance at the beginning of the reporting period by debit or credit, account turnover with an indication of the corresponding accounts, sum up the debit and credit and display the balance.

   In accordance with the Instructions for using the Chart of Accounts, the calculation of wages to employees of the organization is reflected in the accounting entries Debit of account 20 - Credit of account 70. Sub-accounts have been opened for account 68 by type of taxes

   The withheld amount of personal income tax is reflected in the debit of account 70 in correspondence with the credit of account 68 “Calculations for taxes and fees” on the last day of each month. Transfer of tax to the budget (posting to the debit of account 68, subaccount 2 “Personal Income Tax Calculations”, and credit of account 51) is made on the day the money is issued to the staff.

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   Account 68.04.1 - Accounts with the budget

   Account 68.04.1 "Settlements with the budget"

   General information about the account:

   Synonyms for account are: score 68.4.1, score 68-04-1, score 68/04/1, score 68 04 1, score 68@04@1

   Account type: Active-passive

   see also other accounts chart of accounts: entire chart of accounts

   see also PBU: all PBU

   Account characteristics/description:

   Subaccount 68.04.1 “Settlements with the budget” is intended to summarize information on settlements with the budget for income (profit) tax of organizations. This account does not reflect the details of the calculation of the amount of income tax made in accordance with PBU 18/02 “Accounting for income tax calculations”.

   Organizations that do not apply the provisions of PBU 18/02 reflect the accrual of income tax amounts payable to the budget (or reduction of amounts due for payment to the budget) on this subaccount in correspondence with account 99.01 “Profits and losses”.

   Organizations applying the provisions of PBU 18/02 reflect the accrual of current income tax amounts payable to the budget (or reduction of amounts due for payment to the budget) in this subaccount in correspondence with subaccount 68.04.2 “Calculation of income tax”.

   Analytical accounting is carried out for budgets into which the tax is to be credited (sub-account “Budget Levels”). Subconto can take the following values:

   - "Federal budget",

   — “Regional budget”,

   - "Local budget".

   Description of the parent account: Description of account 68.04 "Income tax"

   Business operations:

   "Entering opening balances: income tax"

   Debit 000 "Sub account"Credit 68.04.1 "Calculations with the budget"

   What document is used in:
   - Entering initial balances in the "Enterprise" menu, type of operation: " Calculations for taxes and fees (accounts 68, 69)"

   "Transfer of funds from the organization's current account to pay off debts to the budget for income tax"

   Debit 68.04.1 "Calculations with the budget"Credit 51 "Current accounts"

   What document is used in 1s:Accounting 2.0/1s:Accounting 3.0:
   - Debiting from current account in the "Bank" menu, type of operation: " Transfer of tax"

   "Calculation of income tax for organizations applying PBU 18/02"

   Debit 68.04.2 "Calculation of income tax"Credit 68.04.1 "Calculations with the budget"

   What document is used in 1s:Accounting 2.0/1s:Accounting 3.0:
   - Regular operation Calculation of income tax"

   "Calculation of income tax for organizations that do not apply PBU 18/02"

   Debit 99.01.1 "Profits and losses from activities with the main tax system"Credit 68.04.1 "Calculations with the budget"

   What document is used in 1s:Accounting 2.0/1s:Accounting 3.0:
   - Regular operation in the menu "Operations - Closing the month" type of operation: " Calculation of income tax"