Uni 28-08-2014 - Guidance on reform, simplification of tax administration procedures under Circular No.119/2014/TT-BTC

To perform reform, simplification of tax administration procedures, MOF guides revision, additions for some following contents:

• According to Circular No. 119/2014/TT-BTC, some forms using to declare tax and payment order to State budget will be revised. The VAT declarations will be shorten some contents such as goods, services no need summarizing in Form No.01/GTGT, declaration for late payment, payment method by the third party.

For VAT calculation:

• Goods used for internal circulation to continue the business & production process do not have to calculate, pay tax.
• Machineries, equipment, materials, goods for loan or return do not have to prepare invoice and calculate, pay VAT.

For VAT payment registration by the deduction method:

• Remove conditions that newly-established enterprises must invest, buy fixed assets, machineries, equipment with cost more 1 billion VND registering to apply to the deduction method. Instead, they only invest, buy, get contribution capital by fixed assets, machineries … or have contract hiring their business place.
• When notifying application of VAT calculation method, enterprises do not have to submit files to prove such as invoice of investment, purchase , files contributing capital, contract hiring their business place.
• At the end of a first calendar year from establishment, if their revenue less than 1 billion VND and comply with accounting regime, they can register to apply the deduction method.

For invoices:

• When exporting goods abroad, enterprises do not have to prepare VAT invoices or sale invoices. They can use commercial invoices for deduction, refund of the exported goods, services.

This Circular is effective from 01 Sep 2014, enterprises can opt procedures, forms under current regulations or regulations of revision, additions to perform until 31 Oct 2014.