Uni 27-01-2022 - On capital contribution to establish a business and VAT deduction, cost calculation for payments prior the business establishment

Official letter 158/CTBNI-TTHT regarding investment capital contribution and VAT deduction, calculation of expenses for household payments before business establishment is as follows:

In case, Hanoi SJ Co., Ltd. signs purchase and sale contracts with suppliers and pays some prepayments to suppliers before establishing Seo Jung Tech Co., Ltd (suppliers have not issued invoices for Hanoi SJ Company Limited). After Seo Jung Tech Company is granted a business registration certificate, Hanoi SJ Company and Seo Jung Tech Company and suppliers sign a three-party agreement to transfer rights and obligations to the Company. Seo Jung Tech continues to perform signed contracts. After completing and delivering the goods and services under the contract, the suppliers issue invoices to Seo Jung Tech Company. In order to be able to deduct VAT and calculate deductible expenses, Seo Jung Tech Company must have a non-cash payment voucher for the total VAT invoice amount of over 20 million including previous payments.