A specialized bulletin providing updates on accounting, value-added tax (VAT), personal income tax, corporate income tax, contractor tax, and more, aimed at accounting professionals.

STT
No.		 Legal document

 

 Content Date of issuance
Invoice
1 Official Dispatch 3892/CTBDI-TTHT of the Tax Department of Binh Dinh Province on the storage of electronic invoices –          In cases where a unit uses electronic invoices (e-invoices), the responsibility for storing and safeguarding e-invoices lies with the unit itself, not with the Tax Authority’s e-invoice system. Therefore, the ability to access invoices through the unit’s account in the e-invoice system does not exempt the unit from the responsibility to store e-invoices. The unit must download, store, and ensure the integrity of all electronic invoices in XML format within its own information system (computer).

 

–          The unit is responsible for storing invoices as regulated and for providing invoices when the tax authority conducts audits or inspections to determine the unit’s tax obligations. If the unit fails to store and provide invoices upon request by the tax authority for inspection purposes related to tax obligation determination, the unit will be penalized under point a, clause 2, Article 14 of Decree 125/2020/ND-CP.

 October 17, 2024
2 Official Dispatch 1319/CTTQU-TTHT of the Tax Department of Tuyen Quang Province on adjustment and replacement invoices –          In cases where a company issues an electronic invoice and sends it to the buyer, then later discovers an error as specified in point b, clause 2, Article 19 of Decree 123/2020/ND-CP, and chooses to issue an adjusted or replacement electronic invoice for the erroneous invoice, it may choose to use Form No. 04/SS-HDDT in Appendix IA issued with Decree 123/2020/ND-CP. This form can be used to notify adjustments for each erroneous invoice individually or to notify adjustments for multiple erroneous electronic invoices, and the notification using Form No. 04/SS-HDDT must be sent to the tax authority at any time, but no later than the last day of the VAT declaration period in which the adjusted electronic invoice arises. October 18, 2024
3 Official Dispatch 27609/CTBDU-TTHT of the Tax Department of Binh Duong Province on commercial discount invoices and submission of Form 04/SS-HDDT to the tax authority –          In cases where a company applies a commercial discount for customers as prescribed by law, the discount amount must be clearly shown on the invoice. If the commercial discount is based on the quantity or sales volume of goods or services, the discount amount for the goods already sold is adjusted on the invoice of the final purchase or the following period. If the discount amount is calculated at the end of the discount program (period), an adjustment invoice can be issued along with a list of invoice numbers requiring adjustment, along with the amount and adjusted tax amount. The adjustment invoice should not show negative amounts, as it does not pertain to erroneous invoices.

–          In cases where the company processes erroneous invoices in accordance with clause 1, point a, clause 2, Article 19 of Decree 123/2020/ND-CP, Form No. 04/SS-HDDT in Appendix IA issued with this Decree must be sent to the tax authority. However, if the error is handled as per point b, clause 2, Article 19 of Decree 123/2020/ND-CP, there is no need to send a notice of error using Form No. 04/SS-HDDT to the tax authority.

 October 21, 2024
4 Official Dispatch 7452/CT-TTHT of the Tax Department of Lao Cai Province on invoicing and tax declaration for projects with downward adjustments after final settlement In cases where a company has issued invoices for each completed and handed-over project item but, upon approval of the final settlement, there is a downward adjustment in project value, the company shall issue an adjustment invoice based on the following principles:

  • For invoices issued in accordance with Decree No. 51/2010/ND-CP dated May 14, 2010, of the Government, the seller and buyer must create a written agreement specifying the error, the seller must notify the tax authority using Form No. 04/SS-HDDT issued with Decree No. 123/2020/ND-CP, and issue a new replacement invoice following the guidance in clause 6, Article 12 of Circular No. 78/2021/TT-BTC.
  • For invoices issued under Decree No. 123/2020/ND-CP dated October 19, 2020, the company shall issue an adjustment invoice to reduce the project value as per the guidance in point b, clause 2, Article 19 of Decree No. 123/2020/ND-CP dated October 19, 2020.
  • Regarding the declaration of reduced revenue adjustments, the company shall follow the guidance in point b, clause 3, Article 47 of the Tax Administration Law No. 38/2019/QH14.
 October 23, 2024
5 Official Dispatch 27612/CTBDU-TTHT of the Tax Department of Binh Duong Province on currency recorded on invoices In cases where a company issues a VAT invoice for local export to a foreign company as per foreign exchange regulations, the unit price, amount, total VAT amount according to each tax rate, total VAT amount, and total payment amount should be recorded in foreign currency, with the currency’s name specified. The seller must also indicate the exchange rate between the foreign currency and the Vietnamese dong on the invoice according to the Tax Administration Law and related guiding documents. October 21, 2024
6 Official Dispatch 3996/CTBDI-TTHT of the Tax Department of Binh Dinh Province on invoicing and tax declaration 1. On invoicing: If the company receives a Mid-Autumn Festival gift box from a partner who issues an invoice for it, the usage of this gift box within the company is considered as goods given to employees. Therefore, the company must issue a VAT invoice and declare tax, with the VAT invoice showing unit prices and VAT.

2. On tax declaration: In cases where the company receives a VAT invoice with an issuance date different from the signing date:

  • The seller shall declare output VAT at the time of invoice issuance.
  • The buyer shall declare input VAT at the time of invoice receipt.
 October 25, 2024
Tax policy on promotional discounts
7 Official Dispatch 1708/CTDTH-TTHT of the Tax Department of Dong Thap Province on tax policy for promotional discounts In cases where the company provides cash or non-cash promotional incentives to customers according to a promotional program duly reported to the Department of Industry and Trade, the following tax declaration and payment procedures apply:

  1. For enterprises and cooperatives: The company is not required to declare and pay tax on behalf of these entities. Enterprises and cooperatives receiving promotional rewards through the company’s program must account for the received amount as other income, subject to corporate income tax (CIT) according to regulations.
  2. For households and individuals without tax registration: The company is not required to declare and pay tax on behalf of these entities. When the company provides promotional rewards to them, it must withhold and declare personal income tax (PIT) as specified in Article 25 of Circular 111/2013/TT-BTC.
  3. For business households and individuals (with tax registration), paying taxes by the presumptive method: The company is responsible for declaring and paying taxes on behalf of these individuals. The revenue for VAT and PIT calculation, serving as a basis for tax declaration and payment, includes the total taxable revenue of all promotional amounts rewarded to the business household or individual.
 October 11, 2024
8 Official Dispatch 27610/CTBDU-TTHT of the Tax Department of Binh Duong Province on tax policy In cases where the company applies commercial discounts or promotions to customers as permitted by law, it must issue an invoice showing the commercial discount or promotion when goods are dispatched. For products, goods, or services used for promotion as per the promotional regulations, the taxable price is set at zero (0). If goods or services are used for promotional purposes but not in compliance with commercial law regulations, they must be declared and taxed as goods or services used for internal consumption, gifts, or giveaways to customers. October 21, 2024
Liquidation, depreciation of fixed assets
9 Official Dispatch No. 27258/CTBDU-TTHT of the Tax Department of Binh Duong Province regarding Fixed Asset Liquidation by Export Processing Enterprises The company, as an export processing enterprise, is liquidating fixed assets through domestic sales. At the time of sale, liquidation into the domestic market is not subject to export and import management policies, except for goods requiring specific conditions, standards, or specialized inspection not fulfilled at the time of import. If the goods are managed by a license, prior written approval from the licensing authority is required, in accordance with Article 26 of Decree No. 35/2022/ND-CP.

The company should follow liquidation procedures as prescribed in Clause 55, Article 1 of Circular No. 39/2018/TT-BTC. When liquidating fixed assets (forklift trucks) for the domestic market, the company applies a 10% VAT rate, uses electronic invoices, and clearly states on the invoice “For organizations and individuals in the non-tariff zone.”

The company should refer to Annexes I, II, and III attached to Decree No. 72/2024/ND-CP to determine the applicable VAT rate in compliance with regulations.

For tax declarations, the company is to use the VAT declaration form No. 04/GTGT issued under Circular No. 80/2021/TT-BTC dated September 29, 2021, from the Minister of Finance, to declare VAT on each occurrence.

 October 14, 2024
10 Official Dispatch No. 4781/TCT-CS from the General Department of Taxation regarding Tax Policy In cases where a construction project has not received a building permit from the competent state authority and is not exempt from requiring a building permit as stipulated in Article 89 of the 2014 Construction Law, and where the asset has not been certified by the competent state authority as property attached to the land, the fixed asset formed on leased land by the company does not meet the conditions for VAT input tax deduction and does not qualify for depreciation to be included as an expense when calculating corporate income tax. October 24, 2024
Personal income tax
11 Official Dispatch No. 1345/CT-QLT2 from the Large Enterprise Tax Department regarding Coordination in Promoting and Disseminating Personal Income Tax Refund Procedures To ensure the rights and benefits of taxpayers (TPT), the Large Enterprise Tax Department requests that income-paying organizations and enterprises:

  • Promote and inform employees about registering and using electronic transaction accounts with the tax authorities to facilitate personal income tax settlement and refund processes. Coordinate with the Large Enterprise Tax Department to support employees by recommending the installation and use of the EtaxMobile application. Individual taxpayers should never share personal information, account details, or passwords with others to prevent fraudulent or unauthorized use of their accounts.
  • For timely resolution of individual taxpayer issues, income-paying organizations should monitor and compile any concerns or issues encountered by employees during tax settlement or personal income tax refund processes, and send these to the tax authorities for prompt guidance. They should also inform employees that any issues arising in tax settlement, exemptions, or refunds should be communicated through the organization’s point of contact for a response from the Large Enterprise Tax Department.
  • If a taxpayer suspects impersonation or receives information that appears fraudulent, they should immediately notify the tax authorities or their organization for prompt verification, guidance, and to take preventive measures against potential harm.
  • Taxpayers should not download or install applications via unofficial links (URLs) or guidance and should be cautious of certain signs of fraudulent applications, such as apps that frequently request permission to view screens, access input data, or control the screen.
  • Applications provided by the General Department of Taxation include the Tax Declaration Support Software (HTKK), available on the tax industry’s website at https://www.gdt.gov.vn; the Electronic Tax Service Portal at https://thuedientu.gdt.gov.vn; and the eTax Mobile app available on Google Play (for Android devices) and Apple Store (for iOS devices).
 October 18, 2024
12 Official Dispatch No. 4761/TCT-DNNCN from the General Department of Taxation regarding Personal Income Tax Policy If family circumstance deductions for dependents (biological children) were not claimed during the 2023 tax year, deductions can still be applied for the dependent starting from the month the obligation to support them arose, when filing the tax settlement and registering the deduction.

If an additional declaration does not alter tax obligations, only a Supplementary Declaration Explanation Form and related documents are required, as stipulated in Point a, Clause 4, Article 7 of Decree No. 126/2020/ND-CP.

 October 23, 2024
13 Official Dispatch No. 4759/TCT-DNNCN from the General Department of Taxation regarding Response to Personal Income Tax Policy via the Ministry of Finance’s Online Portal When taxpayers settle their taxes, they are allowed to claim family circumstance deductions for dependents from the month the obligation to support them began, provided they have registered the family circumstance deduction for the dependent as required. October 23, 2024
Contractor tax
14 Official Dispatch No. 9183/CTQNI-TTHT from the Quang Ninh Provincial Tax Department regarding Value-Added Tax (VAT) and Contractor Tax Policies –          For cases where a foreign contractor declares VAT using the deduction method and corporate income tax (CIT) based on revenue and expenses to determine taxable income or declares VAT using the deduction method and pays CIT at a percentage of revenue, the foreign contractor issues invoices and declares tax for the entire contract value (including portions executed by Vietnamese subcontractors).

–          If a foreign contractor pays VAT and CIT as a percentage of revenue and subcontracts a portion of the work or items outlined in the main contract with the Vietnamese party to a Vietnamese subcontractor, with a list of Vietnamese subcontractors performing specific work or items attached to the contract, the revenue subject to VAT and CIT for the foreign contractor does not include the value of the work completed by the Vietnamese subcontractor. The Vietnamese subcontractor issues VAT invoices to the investor for the work or items as stipulated in the contract signed with the Vietnamese party.

–          Regarding VAT deductions for purchased goods and services: The company may deduct VAT if it meets the requirements outlined in Article 15 of Circular No. 219/2013/TT-BTC (as amended in Clause 10, Article 1 of Circular No. 26/2015/TT-BTC and further amended in Article 1 of Circular No. 173/2016/TT-BTC).

–          For the VAT rate applicable to consulting services: The company should refer to the guidance in Article 11 of Circular No. 219/2013/TT-BTC.

 October 8, 2024
Value-added tax (VAT)
15 Official Dispatch No. 4776/TCT-CS from the General Department of Taxation regarding Value-Added Tax (VAT) If a company collects payment before providing a service, the time for issuing the invoice is when the payment is collected, and VAT is determined at the time the invoice is issued. October 24, 2024

 

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