OFFICIAL LETTER NO. 4403/BTC-CST DATED 06 APR 2015 OF MOF IN GUIDANCE OF VAT TREATMENT FOR THE DAMAGED ASSETS, GOODS
According to official letter No. 4403/BTC-CST:
Input VAT of the damaged assets, goods from 01 Mar 2012 is treated as follows:
a) In case, input VAT of the damaged assets, goods is not indemnified, the business establishment is entirely deducted this input VAT;
In case, insurance contract is regulated excluding VAT of the damaged assets, goods, the business establishment receives compensate, prepare receipts under regulations and are deducted input VAT of the damaged assets, goods. Insurance business establishment prepares payment vouchers;
b) In case, insurance contract regulates that the compensate including VAT of the damaged assets, goods, business establishment receives compensate, issues VAT invoices (in the invoice: the value of compensate, VAT), declare, calculate out VAT corresponding to VAT of the damaged and deducted input VAT of the damaged;
c) In case, insurance company authorizes the insurance participants to repair assets; repair costs with materials, spare parts for replacement with VAT invoices writing the name who participates insurance, insurance company performs to pay for the participant with the insurance fee as stated in the insurance contract, it can declares VAT; in case, the insurance amount is more 20 million VND must paid by bank transfer under clause 12 article 14 Circular 06/2012/TT-BTC and point a clause 12 article 14 Circular 219/2013/TT-BTC.
