20-12-2013 - Guidance on VAT calculation method in 2014

According to official letter No.17557/BTC-TCT:

·         If sales of goods, provision of services are subject to VAT in 2013 of over 1 billion VND, enterprises will pay VAT by the deduction method in 2014.

·         If sales of goods, provision of services are subject to VAT under 1 billion VND in 2013 and there is Notification Form 06/GTGT ​​(Circular 156/2013/TT-BTC) submitted to the tax authorities on the registration application of deduction method, enterprises will pay VAT by the deduction method in 2014.

·         If sales of goods, provision of services are subject to VAT in 2013, less than 1 billion and there is no voluntary registration to apply to deduction method, enterprises will use direct VAT methods to the added value, equal to % ratio multiplied revenue from 01 January 2014.

·         Revenue level of 2013 above is the total  of "Total revenue of HHDV sold subject to VAT" on VAT declarations from December 2012 until the end of November 2013.

·         For newly established enterprises in 2013, less than 12 months of operation, the estimated revenue of the year is  the total of “total revenue subject to VAT of goods and services sold out” on the VAT declaration of the operating months in 2013 divided by (:) and the number of months of operation (x) for 12 months.

·         Where to turn now to the application of the direct method that does not perform registration of deduction method, the use of sales invoice from 1 January 2014, not allowed to use VAT invoices.

·         Notification submitted to the tax authorities on the registration of deduction method to calculate VAT (Form 06/GTGT ​​issued together with Circular No. 156/2013/TT-BTC) submitted to the tax authorities before 31 December 2013