The advance payment is paid to the enterprise account, and the refund does not require tax deduction. First, it should be clear that the VAT refund received by enterprises belongs to financial funds. Financial funds include many, and the funds obtained from the government are all financial funds. VAT refund is also a financial fund, but it does not include export delisting.

Second, financial funds should be included in the total income, except for the state input and the part that needs to be returned. All financial funds that meet certain conditions (in a nutshell, those that meet the conditions include: there are special documents that specify special purposes and formulate ways to use them, which are accounted for by enterprises alone or stipulated by the State Council and the finance and taxation departments) can be deducted from taxable income, that is to say, those that meet the conditions are not taxed. Then, those who do not meet the above conditions cannot be deducted and have to pay taxes.

Thirdly, the VAT refund includes the following aspects: export tax refund, that is, tax refund before levy, tax refund before levy, etc.

For direct relief of urban land use tax, accounting treatment should not be carried out:

However, because tax reduction and exemption must be based on tax laws, administrative regulations and other provisions, enterprises must submit a written application and be approved according to law before implementing tax reduction and exemption. Taxpayers should still pay taxes according to law before or without approval.

Therefore, in financial treatment, when taxpayers pay the above taxes, they debit the management fee and credit the bank deposit; Accordingly, when receiving the reply of tax reduction and exemption and tax refund from the tax authorities, the management fee is deducted, that is, the bank deposit is debited and the management fee is credited. Because the urban land use tax does not belong to turnover tax, at the same time, the "first levy and retreat" of the urban land use tax here belongs to the tax category that the tax authorities first levy and retreat.

It does not belong to the financial funds such as various taxes from the government and its relevant departments as defined in the Notice of the Ministry of Finance of People's Republic of China (PRC), State Taxation Administration of The People's Republic of China, on Corporate Income Tax Policies for Fiscal Funds, Administrative Fees and Government Funds (Cai Shui [2008] 15 1).

Therefore, the above-mentioned urban land use tax refund received by enterprises does not belong to the taxable income of enterprise income tax, and it is not recorded in the "non-operating income-government subsidy income" subject in financial processing, but directly offsets management expenses.