Uni 10-03-2015 - Introduction to Circular 26/2015/TT-BTC about VAT and tax administration

On 27 Feb 2015, MOF just issued Circular 26/2015/TT-BTC guiding VAT and tax administration. Some contents should be noted as follows:

For VAT

• Guide non-taxable subjects for items such as: fertilizer, feed for livestock, poultry, aquaculture and other animal feed, offshore fishing vessels, machinery and equipment specialized in agricultural production.
• Input VAT amounts of goods, services, fixed assets used for production: fertilizer, machinery and equipment pecialized in agricultural production, off shore boat, feed for livestock, poultry, aquaculture and other animal feed consumed in Vietnam are not allowed to declare, deduct, they must be included in deductible expenses, except for VAT amounts of goods, services, fixed assets presented in VAT invoices, VAT payment notes at import stage arising before 01 Jan 2015 meeting conditions of VAT deduction, refund and refund.
• In case, business establishments  importing goods such as gifts of foreign organizations, individuals do not need noncash payment notes for input VAT deduction.
• Value of construction, installation, selling goods out of the head office to declare VAT from 1 billion VND including VAT.

For tax administration

• Remove input and output VAT lists in the files of  VAT and special consumption tax declaration.
• In case, revenue, expense, taxable income are generated in foreign currency, they must be converted into VND in accordance with the actual exchange rate under instruction of MOF in Circular 200/2014/TT-BTC dated 22 Dec 2014 guiding enterprise accounting regime as follows:

• The actual exchange rate for recognition of revenue is the buying exchange rate of commercial banks where tax payers open their account.
• The actual exchange rate for recognition of expense is the selling exchange rate of commercial banks where tax payers open their account at the transaction.
• Other cases are complied with instruction of Circular 200/2014/TT-BTC dated 22 Dec 2014.

For ratio of late payment:

• From 01 Jan 2015, late payment is 0,05% of late tax payment for each day of late tax payment.
• For the missing tax declaration of the last period before 01 Jan 2015 but after 01 Jan 2015, authority detects to inspect, examine or tax payers self-detect will be applied to 0,05%/day to the missing late tax payment.

For sale invoices of goods, services

• Remove regulation of business establishments must register to use separator and letters without quotes in the invoices.
• Remove regulation of tax authority directly determined number of invoices that is notified to issue for using from 3 to 6 months in invoice issuance notification.
• Instruct the case of non-invoicing for internal consumption goods to continue business production proccess in appendix 4.
• Add instruction of the prepared invoices with wrongness of name, address of buyers but rightness of tax code of buyers, both sides only prepare the adjustment minutes and must not prepare invoices.