VAT F6 Vietnam Tax

VAT exempt goods - declaration? Input ?

1) unprocessed agricultural products

2) medical service

3)training

4) Publishing

5)transfer of land use rights

6) financial service

7) life and health insurance

8) computer software

9)imported machinery for oi; & gas exploration

10) inbound postal delivery service

11) Goods for humanitarian aid

12) Goods in transits

13) fertilizer

14) Feed for livestock

15) poultry

16) seafood

17) Other animak

NO VAT declaration required, input is NOT deductible

financial service

VAT exempt

postal delivery service

only inbound

Training is VAT exempt?

Yes

transfer of land use rights

No

imported goods?

No! except for machinery for oi; & gas exploration

Goods in transits

exempt

computer software

exempt

Not subject to VAT - no VAT declaration required and input VAT could be claimed

1) Goods and services provided outside of VN

2) Compensation, bonus, support, emmision rights and other finance income

3)Selling the asset by nnon-biz org & individual

4)Fixed assets transfered b/w parent company and subsidiaries

5) Capital contributions in form of assets

6)collection from 3rd party in insurance ( in reinsurance)

7) Collections on behalf of other parties, not related to provision of goods/services

8) commision earned by (1) agents selling services (2) agent for international transport, airlines and shipping services which entitled to 0% VAT (2) Insurance agents

9) Commission from selling of goods/services not subject to VAT

0% VAT

Applied to exported goods or services (including exempt products and services); construction and work overseas, and works of export processing enterprises

International transportation, aviation and marine services

5%

Essential products:

1) Medical equipments and instruments

2) Clean water

3) Educational Aids

4) Unprocessed foods

5) Unprocessed rubber

6) Sugar

0% document requirements

1) contracts

2) invoice and receipts - bank statements

3) custom declaration

Exception on 0% service

advertising; hotel; training; entertainment in VN for foreigner; some service in duty-free area such as house renting; transportation; food providing

when is VAT charged

1) goods supply

2) service

3) real estate

4) construction

5) imported goods

1) goods supply: transfer of ownership/right to use ( not payment

2) service: when complete the service/ issue invoice

3) real estate: at payment collection schedule

4)construction: time of takeover test/handover completed work

5)imported goods: custom registration

2 method of VAT calculation

1) VAT Deduction - for business with complete record of accounting, receipts, invoice, required for business with > VND 1 Bil of revenue or for others volunteering to use this method

2) Direct VAT = % VAT * Sale revenue

Direct method used for?

1)Not have enough books/ invoice

2) conduct business in gold, silver, gemstones

3) enterprise with turnover less than 1 Bil/year ( could chose to use other method)

VAT for gold slier and gemstone

= added value of taxable goods/services * 10%

= (Selling price - COSG) * 10%

Taxable price =

selling price exclude VAT and include all other taxes

VAT Direct - deemed rate

1) goods distribution: 1%

2) services, construction: 5%

3) Service, production involving raw material: 3%

4) Others: 2%

Taxable price if there is a discount

= discounted selling price in invoice

Taxable price of goods/services with Special Sales Tax

= selling price + SST ( not include VAT price)

Taxable price for imported goods

= selling price + duties + SST + ...

Taxable price of goods internally consumed?

1) Related to production of VAT supply: not subject to VAT & no invoice; input is deductible

2) Not related: issue invoice, taxable price = equivalent goods/services at the time of uses; input VAT is deductible

Taxable price of a products issued for internal use as fixed asset? Input VAT is deductible?

Not subject to VAT; no invoice, input VAT is deductible

Taxable price for goods used as donation/exchange/gift to customers?

equal to the taxable price of an equivalent goods/services at the time of uses

When give out as gift/donation/exchange, do company have to issue VAT invoice?

Yes! issue invoice as selling to a customer

Input VAT is deductible

Receiver of donation/exchange/gift

No VAT deductible

Goods/services used as promotion/samples/advertising

not required to pay VAT, but must have VAT invoice with VAT left blank; otherwise taxed as usual

goods received as gift/donation

applied VAT

Receipt of funding ( nhan tien ung ho)

not have to pay Vat, must pay CIT

Taxable price of transfer of property

= selling price - land use rights, rental fee and clearance expense

Vat of goods sold by installments? taxable price

= pre tax lump sum price. excluding all interest

VAT of an oversea tour package

VAT does not include air tickets inbound & outbound; and costs spent in overseas

When to file VAT tax returns

Taxpayers must file VAT returns on a monthly basis by the 20th day of the subsequent month, or on a quarterly basis by the 30th day of the subsequent quarter (for companies with prior year annual revenue of VND 50 billion or less).

Condition for an input item to be deductible

1) purchases used for production or trading, of goods/services subject to VAT

2) enough documents

3) if payment > VND 20Mil must have bank transfer

Are Damaged inventories VAT deductible

Yes, including expired/damaged due to poor maintainance

Example: Company A give a campaign, Buy 1 computer, get 1 speaker for free; how should it record VAT

Only computer is subject to VAT; Speaker ís not subject to VAT output but must be declared in the VAT invoice

Is VAT paid for car deductible?

Only up to 1.6 bil for 9 seats and below ( not yet included VAT value in 1.6 bil)

Is VAT paid for expats' house rental deductible

1) if has labor contract, salary is paid by oversea business, and the contract clearly states Việt Nam! business agree to pay for the house rental -> Yes, deductible

2) If has labor contract, receive salary from Việt Nam! business -> No