In the wholesale and retail industry, if you use the subject of "price difference between goods entering and selling", it means that your inventory adopts the "sales price accounting method"; No matter whether the "selling price accounting method" or "purchasing price accounting method" is adopted, the operating income should be tax-free, because the value-added tax should be calculated when the income is generated or recognized:

1. Small-scale taxpayer: debit: cash or bank deposit, credit: operating income, and credit: tax payable-VAT.

2. General taxpayer: debit: cash or bank deposit, credit: operating income, credit: tax payable-value-added tax payable-output tax.