OFFICIAL LETTER 81740/CT-TTHT DATED 13/12/2018 OF HA NOI TAXATION DEPARTMENT GUIDING ON TAX POLICY FOR EPES THAT RECEIVE PROCCESSING GOODS
Official letter 81740/CT-TTHT dated 13/12/2018 of Ha Noi Taxation Department guiding on tax policy for EPEs that receive processing goods:
- In case the Company is an export processing enterprise signing a processing contract for a domestic enterprise, the Company must be licensed to conduct processing with a domestic enterprise. This activity is subject to VAT, the Company must separately account and register tax with the tax authority to declare and pay VAT separately.
- Regarding the method of calculating VAT for processing activities for inland enterprises, it is determined according to the VAT declaration dossier prescribed in Article 1 of Circular 93/2017 / TT-BTC of September 10, 2017 of the Ministry of Finance
- For invoices used when collecting processing fees from customers:
+ In case the Company registers to apply VAT according to the deduction method for the above processing activities: When collecting processing fees, the Company uses VAT invoices, tax calculation prices and tax rates for processed goods according to stipulated in Circular No. 219/2013 / TT-BTC
+ In case the Company registers to apply VAT by the direct method for the above processing activities: When collecting processing fees, the Company uses sales invoices "For organizations and individuals in the non-tariff area"
