OFFICIAL LETTER 1686/TCT-CS DATED 27 APRIL 2017 OF GDT GUIDING TAX POLICY FOR BUSINESS COOPERATION CONTRACT
According to official letter 1686/TCT-CS:
In case, Business Cooperation contract separates revenue and costs included VAT, the company and the cooperated units providing services for clients, the company is chosen to run the cooperation activities, conduct the whole VAT obligations of cooperation activities must prepare invoices handling to clients, using services and declare VAT as regulations.
When received revenue from partners of the contract, the split prepared VAT invoices as regulations ( in invoices wrote revenue and VAT ).
When splitting costs to the partners, the split prepared invoices (in invoices wrote costs and VAT).
In case, in the contract splitting revenue and costs excluding VAT, the company and the cooperated providing services to clients, the company is opted run the cooperation activities, conduct the whole VAT obligations of cooperation activities must prepare invoices handling to clients, using services and declare VAT as regulations.
When splitting revenue, costs in accordance with two sides excluding VAT.
