Oficial letter No.3558/TCT-DNL dated 28 october 2013 of gdt in guidance of fct for the advances to fct
According to official letter No.3585/TCT-DNL:
Enterprises sign a contract with foreign contractors to construct a plant, the contract states that the 10% advance of the contract must be paid (net value) to foreign contractors right after signing the contract. Taxpayers pay VAT under direct method to VAT, pay CIT in accordance with the ratio to revenue. In this case, the enterprises are responsible for declaring, paying on behalf of foreign contractors when this advance is paid as regulations in Circular No.28/2011/TT-BTC dated 28 February 2011 of MOF
