Uni 23-07-2014 - Guidance on VAT calculation method for the newly-established enterprises, cooperatives

According to official letter No.2616/TCT-CS:

1. From 01 Jan 2014, an enterprise is paying VAT under deduction method and establish branches (including branches are established from investment project of the enterprise) out of the enterprise’s head office:

• In case, the branches declare VAT at the tax authority in charge, they determine the calculation method of the operating enterprise.
• In case, the branches do not directly sell or arise revenue, they must declare at the enterprise’s head office.

2. For assets, machineries, equipment of the newly-established enterprise purchased, contributed

• The newly-established enterprises, cooperatives have invoices of buying fixed assets, machineries, equipment or invoices of tools, supplies in amount of more 1 billion VND will be accepted to register voluntarily the tax deduction method.
• The newly-established enterprises, cooperatives  contribute the capital with assets: if the contribution files: ( including capital contribution document, joint-venture contracts, asset appraisal document, origin files) prove that the contributed assets have amount of more 1 billion VND and owned by the enterprises, the voluntary registration of tax deduction method will be applied.

According to guidance of GDT, tax authority does not regulate the deadline of receiving Form 06/GTGT of how to apply to tax deduction method for the newly-established enterprises, cooperatives from 01 Jan 2014