Uni 18-08-2014 - Guidance on new notes of Circular No. 103/2014/TT-BTC

MOF has just issued Circular No. 103/2014/TT-BTC in guidance of FCT for foreign organizations, individuals trading in Viet Nam or having income in Viet Nam. This Circular takes effects from 01 Oct 2014 and replaces Circular No. 60/2012/TT-BTC.

• More entities are imposed FCT as follows:

• Foreign organizations, individuals authorize or hire Vietnamese some organizations to conduct one part of services, other services relating to sale in Viet Nam. Foreign organizations, individuals are still final owners for goods or responsible for costs, quality of goods, services or fix price.
• Foreign organizations, individuals negotiate, sign with  foreign organizations, individuals through Vietnamese organizations, individuals.

• Clearly state that the FCT non-liable entities are foreign organizations, individuals who provide goods for Vietnamese organizations, individuals without accompanying services conducted in Viet Nam such as: goods delivery at foreign border gate, goods delivery at Vietnamese border gate including warranty belonging to responsibility and obligations of suppliers).
• Simultaneously, VAT amounts under the fixed ratio method is determined by assessable revenue and ratio (%) to calculate tax amounts to revenue (instead of basing on added value and tax rate in the former time).