Uni 29-07-2014 - Guidance on VAT assessable price for construction activity

According to official letter No. 2750/TCT-KK:

1. In case, a contractor having the head office in HCM city signs the construction contracts in Ha Tinh province, in which, the investor negotiates to pay the entire construction value to the contractor, the contractor will prepare VAT invoices, declare and pay VAT out of its head office. VAT assessable price is the whole accepted construction value without VAT T.
2. In case, if a contractor directly conduct one part of the contract, the remaining assigns the sub-contractor and states that the contractor pays the assigned construction value to the sub-contractor:

+ The constructor: declare, withhold, pay VAT as above regulations.

+ The sub-contractor: if the sub-contractor has the head office other than Ha Tinh province, it will prepare VAT invoices and declare, pay VAT out of its head office. If the sub-contractor has the head office in Ha Tinh province, it will declare, pay VAT in Ha Tinh province.