Circular No. 119/2014/TT-BTC Amending and Supplementing Certain Provisions of Circulars No. 156/2013/TT-BTC dated November 6, 2013, No. 111/2013/TT-BTC dated August 15, 2013, No. 219/2013/TT-BTC dated December 31, 2013, No. 08/2013/TT-BTC dated January 10, 2013, No. 85/2011/TT-BTC dated June 17, 2011, No. 39/2014/TT-BTC dated March 31, 2014, and No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance to streamline tax administrative procedures

CIRCULAR

Amending and supplementing certain provisions of Circular No. 156/2013/TT-BTC dated November 6, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011,­­ Circular No. 39/2014/TT-BTC dated March 31, 2014 and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance to reform and simplify administrative procedures related to tax

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Pursuant to the Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006 and the Law Amending and Supplementing Some Provisions of the Law on Tax Administration No. 21/2012/QH13 dated November 20, 2012;

Pursuant to the Law on Value Added Tax No. 13/2008/QH12 dated June 3, 2008 and the Law amending and supplementing certain provisions of the Law on Value Added Tax No. 31/2013/QH13 dated June 19, 2013;

Pursuant to the Government Decree No. 84/2009/NĐ-CP dated October 15, 2009 on trading in gasoline and diesel fuel;

Pursuant to Decree No. 209/2013/NĐ-CP dated December 18, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Value Added Tax;

Pursuant to Decree No. 51/2010/NĐ-CP dated May 14, 2010 on invoices for goods and services and Decree No. 04/2014/NĐ-CP dated January 17, 2014 amending and supplementing Decree No. 51/2010/NĐ-CP dated May 14, 2010;

Pursuant to Decree No. 218/2013/NĐ-CP dated December 26, 2013 of the Government detailing and guiding the implementation of the Law on Corporate Income Tax;

Pursuant to Decree No. 215/2013/NĐ-CP dated December 23, 2013, promulgated by the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

At the proposal of the Director General of the State Revenue Administration,

To implement reforms and simplify administrative procedures related to tax, the Minister of Finance hereby issues guidelines to amend and supplement certain contents as follows:

1. Issued together with this Circular are the following forms:

a) The Value Added Tax Declaration Form for taxpayers declaring Value Added Tax under the deduction method (Form No. 01/GTGT) shall replace the Value Added Tax Declaration Form for taxpayers declaring Value Added Tax under the deduction method (Form No. 01/GTGT) issued together with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.

b) The Invoice and Supporting Documents Schedule for Goods and Services Sold (Form No. 01-1/GTGT) shall replace the Invoice and Supporting Documents Schedule for Goods and Services Sold (Form No. 01-1/GTGT) issued together with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.

c) The Invoice and Supporting Documents Schedule for Goods and Services Purchased (Form No. 01-2/GTGT) shall replace the Invoice and Supporting Documents Schedule for Goods and Services Purchased (Form No. 01-2/GTGT) issued together with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.

d) The Value Added Tax Declaration Form for taxpayers engaged in buying, selling, and processing gold, silver, precious stones (Form No. 03/GTGT) shall replace the Value Added Tax Declaration Form for taxpayers engaged in buying, selling, and processing gold, silver, precious stones (Form No. 03/GTGT) issued together with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.

đ) The Invoice and Supporting Documents Schedule for Goods and Services Sold (Form No. 04-1/GTGT) shall replace the Invoice and Supporting Documents Schedule for Goods and Services Sold (Form No. 04-1/GTGT) issued together with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.

e) The Land and Property Stamp Duty Payment Notification Form (Form No. 01-1/LPTB) shall replace the Land and Property Stamp Duty Payment Notification Form (Form No. 01-1/LPTB) issued together with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.

g) The Personal Income Tax Declaration Form for individuals with income from transferring real estate; income from inheritance and gifts of real estate (Form No. 11/KK-TNCN) shall replace the Personal Income Tax Declaration Form for individuals with income from transferring real estate; income from inheritance and gifts of real estate (Form No. 11/KK-TNCN) issued together with Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance.

2. Amend Point b Clause 3 Article 11 of Circular No. 156/2013/TT-BTC as follows:

"b) Declaration documents for monthly or quarterly Value Added Tax declarations using the deduction method:

- Value Added Tax Declaration Form according to Form No. 01/GTGT issued under this Circular;

- Invoice and Supporting Documents Schedule for Goods and Services Sold according to Form No. 01-1/GTGT issued under this Circular;

- Invoice and Supporting Documents Schedule for Goods and Services Purchased according to Form No. 01-2/GTGT issued under this Circular;

- Schedule of Value Added Tax already paid on construction, installation, retail sales, and out-of-province real estate transfer revenues according to Form No. 01-5/GTGT issued under this Circular.

- Allocation Table of Value Added Tax for the location of the main office and for other production bases not accounting separately according to Form No. 01-6/GTGT issued under this Circular."

3. Amend and supplement Points a, d, đ, and e Clause 8 Article 11 of Circular No. 156/2013/TT-BTC as follows:

a) Amend Point a Clause 8 Article 11 as follows:

"a) Declaration of Value Added Tax for agency activities

- Taxpayers who are agents selling goods or services or agents purchasing goods at fixed prices and earning commissions do not need to declare Value Added Tax on goods or services sold through agency; goods purchased through agency but must declare Value Added Tax on commission income earned.

- For other types of agency, taxpayers must declare Value Added Tax on goods or services sold through agency; goods purchased through agency and agency fees earned."

b) Amend Points d, đ, e Clause 8 Article 11 as follows:

"d) Taxpayers engaged in financial leasing services do not need to submit Value Added Tax Declaration Forms for financial leasing services. Taxpayers must submit declaration documents for taxes on assets leased to other entities for financing purchases.
đ) Declaration of tax for taxpayers with entrusted import and export activities: Taxpayers receiving entrusted import and export of goods do not need to declare Value Added Tax on entrusted imported and exported goods (in cases where the entrustment contract does not include the obligation to pay Value Added Tax on behalf of the entrustee) but must declare Value Added Tax on agency fees earned.
e) The preparation of Invoice and Supporting Documents Schedules for Goods and Services Purchased and Sold attached to the Tax Declaration submitted to the tax authority in certain situations shall be carried out as follows:

- For goods and services sold directly to end consumers such as electricity, water, gasoline, diesel, postal and telecommunications services, hotel services, food and beverage services, passenger transportation services, buying and selling gold, silver, precious stones, goods and services that are not subject to VAT, and other consumer goods and services, the turnover from retail sales may be declared collectively without the need to declare each individual invoice.

- For goods and services purchased individually, the summary list shall be prepared according to groups of items and services with the same tax rate, without the need to declare in detail for each individual invoice.

- For banking businesses having subordinate units in the same locality, these subordinate units must prepare a Summary List of Goods and Services Purchased and Sold for retention at the main office. When compiling the Summary List of Goods and Services Purchased and Sold, the main office will only aggregate based on the total figures from the Summary Lists of the subordinate units.

- Abolish the content of Clause 12, Article 11 of Circular No. 156/2013/TT-BTC.

4. Amend and supplement Article 16 of Circular No. 156/2013/TT-BTC as follows:

a) Amend and supplement Point b.2.1, Clause 2, Article 16 as follows:

"b.2) Declaration documents for final settlement

b.2.1) Individuals earning income from salaries and wages; insurance agency income; lottery agency income; multi-level marketing sales income shall declare and settle taxes directly with the tax authority using the following form:

- Final Settlement Tax Declaration Form No. 09/KK-TNCN issued together with this Circular.

- Annex Form No. 09-1/PL-TNCN issued together with this Circular.

- Annex Form No. 09-3/PL-TNCN issued together with this Circular if there is a registration for dependent deduction.

- Annex Form No. 09-4/PL-TNCN issued together with this Circular.

- A copy of the documents proving the amount of tax withheld and temporarily paid during the year, and the tax paid abroad (if any). The individual commits to the accuracy of the information on the copies provided. In cases where the organization paying the income does not provide withholding tax certificates due to the organization ceasing operations, the tax authority will base its decision on the tax department's database to process the final settlement tax declaration of the individual without requiring withholding tax certificates.

In cases where foreign laws stipulate that foreign tax authorities do not issue certificates of tax payment, taxpayers may submit copies of Withholding Tax Certificates (clearly stating the tax return filed) issued by the payer or copies of bank documents for taxes paid abroad, confirmed by the taxpayer.

- Copies of invoices and documents proving contributions to charitable funds, humanitarian funds, educational funds (if any).

- In cases where individuals receive income from international organizations, embassies, consulates, and income from abroad, they must provide proof or confirmation of the amount paid by the foreign payer along with the Income Confirmation Letter for the Year Form No. 20/TXN-TNCN issued together with this Circular."

b) Amend the first plus sign, the second bullet point, Point c.2.1, Clause 2, Article 16 as follows:

"- Individuals earning income from salaries and wages from two or more sources who are required to self-declare taxes shall submit their tax declaration forms as follows:

+ If an individual has claimed personal deductions at the organization or individual paying income, they should submit the tax declaration form to the tax authority directly managing that organization or individual. In cases where an individual changes jobs and claims personal deductions at the last organization or individual paying income, they should submit the tax declaration form to the tax authority managing the last organization or individual paying income. In cases where an individual changes jobs and does not claim personal deductions at the last organization or individual paying income, they should submit the tax declaration form to the Tax District Office where they reside (permanent or temporary residence address)."

c) Amend and supplement Point b.1, Clause 6, Article 16 as follows:

"b) Declaration documents for tax and tax exemption
b.1) For inheritance and gifts of real estate, the tax declaration procedures shall be carried out according to the guidance in Subpoint b.1, Clause 3 of this Article. Specifically, the Sales Contract of Real Estate shall be replaced by a copy of the legal document proving the right to inherit or receive gifts, and the individual commits to the responsibility stated on the copy. In cases where a group of individuals inherit or receive gifts of real estate and apply for joint ownership, the representative individual declares the tax, and other individuals sign to confirm on the declaration form without each individual being required to declare separately. The tax authority bases the declaration form to determine the tax liability for each individual inheriting or receiving gifts."

d) Amend and supplement Point c, Clause 6, Article 16 as follows:

"c) Place of submission of tax declaration forms

- Individuals receiving inheritance or gifts of real estate (including houses and future construction projects) shall submit tax declaration forms according to the guidance in Point c, Clause 3 of this Article.

- Individuals receiving income from inheritance or gifts of securities or equity stakes shall submit tax declaration forms to the tax authority managing the issuing company or the company with equity stakes. In cases where an individual simultaneously receives inheritance or gifts of multiple types of securities or equity stakes, they shall submit tax declaration forms to the Tax District Office where they reside (permanent or temporary residence address).

- Individuals receiving income from inheritance or gifts of other assets shall submit tax declaration forms to the tax authority where they submitted the declaration for stamp duty."

5. Supplement Point b, Clause 1, Article 19 of Circular No. 156/2013/TT-BTC as follows:

"b) Declaration documents for stamp duty on real estate

- Stamp Duty Declaration Form No. 01/LPTB issued together with this Circular;

- Documents proving the lawful origin of the real estate;

- Legal documents regarding the transfer of property between the transferring party and the receiving party;

- Documents proving that the asset (or the owner of the asset) falls under the category exempt from stamp duty or entitled to stamp duty exemption (if applicable)."

As for the case where the inherited or gifted property is immovable property, the declaration form for stamp duty does not need to include the stamp duty declaration form according to Model 01/LPTB mentioned above. The tax authority shall base on the Individual Income Tax Declaration Form according to Model 11/KK-TNCN to calculate the amount of stamp duty payable by the owner of the property and issue a notice according to Model 01-1/LPTB issued together with this Circular.

6. Amend and supplement Clause 2, 3, and 4 of Article 11 of Circular No. 156/2013/TT-BTC as follows:

"The amount of tax subject to exemption or reduction due to temporary cessation or suspension of business operations by households paying fixed-rate taxes shall be determined as follows:

In the case where a household paying fixed-rate taxes suspends operations continuously for a full 01 (one) month (from the 01st day to the last day of that month) or more, they will be granted a reduction of 1/3 of the tax payable for the quarter; similarly, if they suspend operations continuously for a full 02 (two) months or more, they will be granted a reduction of 2/3 of the tax payable for the quarter; if they suspend operations for the entire quarter, they will be granted a full reduction of the tax payable for the quarter. In the case where a household paying fixed-rate taxes temporarily ceases or suspends business operations but does not suspend for a full month, they will not be granted a reduction of the fixed-rate tax payable for the month.

In the event that during the period of suspension of business operations, a household paying fixed-rate taxes continues to conduct business, they must pay tax according to the notification from the tax authority.

7. Amend and supplement Article 22 of Circular No. 156/2013/TT-BTC as follows:

a) Supplement Clause 1 of Article 22 as follows:

"1. Principles of tax declaration.

Households and individuals who have rental properties that are subject to the obligation to declare and pay VAT, personal income tax, and business registration fee according to the notification of the tax authority.

Notwithstanding the above, for households and individuals who have rental properties and whose total rental income received in a year is up to one hundred million VND or whose average monthly rental income in a year is up to 8.4 million VND, they are exempted from the obligation to declare and pay VAT and personal income tax, and the tax authority will not issue individual invoices for such cases.

b) Amend Point b, Clause 5 of Article 22 of Circular No. 156/2013/TT-BTC as follows:

"5. Time limit for tax payment...
b) For the method of declaring tax based on each contract arising, the time limit for tax payment is the deadline for submitting the tax declaration form.

8. Amend and supplement Clause 6, 7, 8, and 9 of Article 28 of Circular No. 156/2013/TT-BTC as follows:

"The State Treasury has the responsibility to closely cooperate with the tax authority at the same level in deducting VAT from construction projects funded by state budget funds within their jurisdiction, and simultaneously record the state budget revenue from the deducted VAT according to the principle:

Construction projects arising in a provincial-level administrative unit shall have the deducted VAT recorded as part of the revenue of the provincial-level administrative unit.

For inter-provincial projects, the project owner must detail the project revenue by province and submit it to the State Treasury for VAT deduction and recording of state budget revenue for each province.

For inter-district projects, if the project revenue can be detailed by district, the deducted VAT will be recorded by the State Treasury as part of the revenue of the corresponding districts based on the generated revenue. For inter-district projects where the project revenue cannot be accurately detailed by district, the project owner must determine the revenue ratio of the project in each area and submit it to the State Treasury for VAT deduction; if the project owner cannot determine the revenue ratio of the project in each area, the decision shall be made by the Director of the Tax Department.

9. Repeal the content of Clause 2 of Article 29 of Circular No. 156/2013/TT-BTC.

Article 2. Amend and supplement Clauses 1, 2, 3, and 4 of Article 1 of Circular No. 111/2013/TT-BTC dated August 15, 2013, issued by the Ministry of Finance guiding the implementation of the Law on Personal Income Tax, the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax, and Decree No. 65/2013/NĐ-CP of the Government detailing certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax as follows:

"Article 1. Taxpayer

The taxpayer is an individual residing in Vietnam and a non-resident individual as defined in Article 2 of the Law on Personal Income Tax and Article 2 of Decree No. 65/2013/NĐ-CP dated June 27, 2013, of the Government detailing certain provisions of the Law on Personal Income Tax and the Law Amending and Supplementing Certain Provisions of the Law on Personal Income Tax (hereinafter referred to as Decree No. 65/2013/NĐ-CP), who have taxable income as prescribed in Article 3 of the Law on Personal Income Tax and Article 3 of Decree No. 65/2013/NĐ-CP.

The scope for determining the taxpayer's taxable income is as follows:

For resident individuals, taxable income includes income generated both within and outside the territory of Vietnam, regardless of where the income is paid;

For individuals who are citizens of countries or territories that have signed Double Taxation Avoidance Agreements with Vietnam and are resident individuals in Vietnam, their personal income tax liability shall be calculated from the month they first enter Vietnam until the month their labor contract ends and they leave Vietnam (calculated fully by month) without having to go through consular confirmation procedures to avoid double taxation under the Double Taxation Avoidance Agreement between the two countries.

For non-resident individuals, taxable income includes income generated in Vietnam, regardless of where the income is paid or received.

1. Supplement Point g Clause 7 of Article 5 of Circular No. 219/2013/TT-BTC as follows:

"g) Business entities are not required to pay VAT at the import stage when importing goods that were previously exported but were returned by the foreign party. When such returned goods are sold domestically, the business entity must declare and pay VAT according to regulations."

2. Amend and supplement Clause 4 of Article 7 of Circular No. 219/2013/TT-BTC as follows:

"4. Price for calculating VAT on products, goods, and services consumed internally. Goods circulated internally, such as goods exported for internal warehouse transfers, raw materials, semi-finished products, or goods and services provided by the business entity for its own business operations, are not subject to VAT calculation and payment.

In cases where a business entity produces fixed assets (self-made fixed assets) for internal use to support production and business activities subject to VAT, upon completion, acceptance, and handover, the business entity does not need to issue invoices. Input VAT forming part of self-made fixed assets can be declared and deducted according to regulations.

In cases where machinery, equipment, materials, or goods are transferred in the form of loans, rentals, or returns, if there is a contract and relevant transaction documents, the business entity does not need to issue invoices or calculate and pay VAT.

Example 24: Unit A is an electric fan manufacturing enterprise that uses 50 fan products installed in production workshops to serve its business activities. Therefore, Unit A does not need to declare and pay VAT on the transfer of these 50 electric fans.

Example 25: Textile production base B has a yarn workshop and a sewing workshop. Base B transfers finished yarn from the yarn workshop to the sewing workshop for continued production processes. Base B does not need to calculate and pay VAT on the yarn transferred to the sewing workshop.

Example 26: Joint Stock Company P builds a mid-shift rest house for workers within the production and business area. Joint Stock Company P does not have subordinate units or teams engaged in this construction activity. Upon completion, acceptance, and handover of the mid-shift rest house, Joint Stock Company P does not need to issue invoices. Input VAT forming part of the mid-shift rest house can be declared and deducted according to regulations.

Example 27: Company Y is a bottled water manufacturing enterprise. The market price of one bottle of bottled water before VAT is 4,000 VND. When Company Y transfers 300 bottles of water for company meetings, it does not need to declare and pay VAT on these 300 bottles of water.

Example 28: Company Y is a bottled water manufacturing enterprise. The market price of one bottle of bottled water before VAT is 4,000 VND. When Company Y transfers 300 bottles of water for purposes other than production and business activities, it must declare and pay VAT on these 300 bottles of water used for non-production and business purposes with a taxable price of 4,000 VND x 300 = 1,200,000 VND.

Specifically, for business entities using internally consumed goods and services, including transportation, aviation, railways, postal and telecommunications services, which are not subject to VAT output, the business entity must clearly define the objects and levels of control over internally used goods and services according to the authority's regulations.

3. Amend and supplement Clause 3 and Clause 4 of Article 12 of Circular No. 219/2013/TT-BTC as follows:

"3. Business entities voluntarily registering to apply the tax deduction method include:
a) Enterprises and cooperatives currently operating with annual revenue from selling goods and providing services subject to VAT below one billion VND, who have fully implemented accounting systems, books, invoices, and supporting documents in accordance with laws on accounting, invoices, and supporting documents.
b) A newly established enterprise from an investment project of an operating business that pays value-added tax under the deduction method shall apply for voluntary registration to use the deduction method if it implements an investment project approved by the competent authority. A newly established enterprise or cooperative that has an investment project not subject to approval by the competent authority as prescribed by laws on investment but whose investment plan is approved by the authorized person of the enterprise shall also be eligible to apply for voluntary registration to use the deduction method.
c) A newly established enterprise or cooperative that carries out investments, purchases, receives contributions in fixed assets, machinery, equipment, tools, or has a business location lease contract.
d) Foreign organizations and individuals conducting business in Vietnam under contractor contracts or sub-contractor contracts.
đ) Other economic organizations capable of accounting for input VAT and output VAT, excluding enterprises and cooperatives.

Enterprises and cooperatives as specified in point a of this clause must submit a Notification regarding the application of the method for calculating VAT to the direct tax management agency no later than December 20 of the year immediately preceding the year in which the taxpayer implements the new tax calculation method.

Business establishments as specified in points b and c of this clause must submit a Notification regarding the application of the method for calculating VAT to the direct tax management agency. When submitting the Notification regarding the application of the method for calculating VAT to the direct tax agency, the business establishment does not need to submit supporting documents such as the investment project approved by the competent authority, the investment plan approved by the authorized person of the enterprise, investment invoices, purchase invoices, contribution receipt documents, business location lease contracts. The business establishment retains these documents and provides them upon request by the tax authority. In cases where a newly established business establishment from January 1, 2014 does not meet the conditions for voluntary registration to apply the deduction method as guided in point b and c of Clause 3, Article 12 of Circular No. 219/2013/TT-BTC dated December 31, 2013 issued by the Ministry of Finance, if it meets the conditions specified in points b and c of this clause, it may apply according to the guidance in point b and c of Clause 3, Article 12 of this Circular.

Business establishments as specified in point d of this clause must submit a Notification regarding the application of the method for calculating VAT to the direct tax management agency.

Business establishments as specified in point đ of this clause must submit a Notification regarding the application of the method for calculating VAT to the direct tax management agency no later than December 20 of the year immediately preceding the year in which the taxpayer implements the new tax calculation method.

Within five working days from the date of receiving the Notification regarding the application of the deduction method, the tax authority must issue a written notification to the enterprise, cooperative, or business establishment informing whether the Notification regarding the application of the deduction method is accepted or rejected.

4. Other cases:
a) In cases where a business establishment engages in activities of buying, selling, or processing gold, silver, precious stones, the business establishment must separately account for these activities to pay taxes according to the direct calculation method on value-added as specified in Article 13 of this Circular.
b) For enterprises currently paying VAT under the deduction method that establish branches (including branches established from the enterprise's investment projects), if the branch falls under the category of filing VAT independently as stipulated by tax administration laws, then the tax calculation method of the Branch shall follow the tax calculation method of the operating enterprise. If the branch does not directly sell goods, does not generate revenue, or is located in the same province or city as the main office of the enterprise but does not file independently, it shall file taxes centrally at the main office of the enterprise.
c) For newly established enterprises or cooperatives not falling under the cases guided in Clause 3 of this Article, they shall apply the direct calculation method as specified in Article 13 of this Circular.
d) After the first calendar year since establishment, if the enterprise or cooperative has a turnover of 1 billion VND or more as determined in Clause 2 of this Article and complies fully with accounting, invoices, and receipts as prescribed by laws on accounting, invoices, and receipts, they shall continue to apply the deduction method of taxation; if the enterprise or cooperative does not reach a turnover of 1 billion VND but still complies fully with accounting, invoices, and receipts as prescribed by laws on accounting, invoices, and receipts, they may voluntarily register to continue applying the deduction method of taxation as guided in point a of Clause 3 of this Article. After the first calendar year since establishment, the enterprise or cooperative shall consistently apply the tax calculation method for two consecutive years.

Example 53: Company Limited Trading and Service X was established and began operations in April 2014. The company applied the direct calculation method for VAT periods in 2014. By the end of the November 2014 tax period, Company Limited Trading and Service X determined its turnover as follows:

Take the total turnover figure from the VAT tax return for the tax periods from April to November 2014, divide by eight months, then multiply by twelve months.

If the estimated turnover calculated is 1 billion VND or more, Company Limited Trading and Service X will switch to applying the deduction method of taxation from January 1, 2015, and for the years 2015 and 2016. If the estimated turnover calculated is less than 1 billion VND and Company Limited Trading and Service X complies fully with accounting, invoices, and receipts as prescribed by laws on accounting, invoices, and receipts, then Company Limited Trading and Service X falls under the case of voluntary registration to apply the deduction method as guided in Clause 3 of this Article. If Company Limited Trading and Service X continues to voluntarily register to apply the deduction method, it will continue to apply the deduction method for the years 2015 and 2016."

4. Sửa đổi Clause 1 Article 13 Circular number 219/2013/TT-BTC như sau:

"1. Số thuế GTGT phải nộp theo phương pháp tính trực tiếp trên GTGT bằng giá trị gia tăng nhân với thuế suất thuế giá trị gia tăng áp dụng đối với hoạt động mua, bán, chế tác vàng bạc, đá quý.

Giá trị gia tăng của vàng, bạc, đá quý được xác định bằng giá thanh toán của vàng, bạc, đá quý bán ra trừ (-) giá thanh toán của vàng, bạc, đá quý mua vào tương ứng.

Giá thanh toán của vàng, bạc, đá quý bán ra là giá thực tế bán ghi trên hóa đơn bán vàng, bạc, đá quý, bao gồm cả tiền công chế tác (nếu có), thuế giá trị gia tăng và các khoản phụ thu, phí thu thêm mà bên bán được hưởng.

Giá thanh toán của vàng, bạc, đá quý mua vào được xác định bằng giá trị vàng, bạc, đá quý mua vào hoặc nhập khẩu, đã có thuế GTGT dùng cho mua bán, chế tác vàng, bạc, đá quý bán ra tương ứng.

Trường hợp trong kỳ tính thuế phát sinh giá trị gia tăng âm (-) của vàng, bạc, đá quý thì được tính bù trừ vào giá trị gia tăng dương (+) của vàng, bạc, đá quý. Trường hợp không có phát sinh giá trị gia tăng dương (+) hoặc giá trị gia tăng dương (+) không đủ bù trừ giá trị gia tăng âm (-) thì được kết chuyển để trừ vào giá trị gia tăng của kỳ sau trong năm. Kết thúc năm dương lịch, giá trị gia tăng âm (-) không được kết chuyển tiếp sang năm sau".

5. Bổ sung ví dụ số 58a tại Clause 4 Article 14 Circular number 219/2013/TT-BTC như sau:

"Ví dụ số 58a: Doanh nghiệp A đầu tư xây dựng vùng nguyên liệu và nhà máy để sản xuất khép kín từ khâu nuôi trồng (bao gồm cả thuê gia công nuôi trồng mà doanh nghiệp A đầu tư toàn bộ giống, ao, hồ, hàng rào, hệ thống tưới tiêu, tàu thuyền và nguyên, vật liệu đầu vào khác như thức ăn chăn nuôi, thuốc thú y, dịch vụ thú y…), đến khâu chế biến phi-lê cá tra đông lạnh để xuất khẩu và bán trong nước. Trong quá trình sản xuất doanh nghiệp A đã mua thêm cá tra của các doanh nghiệp khác hoặc của các hộ nông dân. Cá tra mua ngoài trước khi đưa vào nhà máy đều được tập trung nuôi tại ao hồ của doanh nghiệp A cùng cá tra do doanh nghiệp A tự nuôi. Cá tra do doanh nghiệp tự nuôi và cá tra mua ngoài được đưa vào nhà máy chế biến thành sản phẩm cá tra phi-lê (cá fillet) qua công đoạn và theo quy trình: Cá nguyên liệu - làm sạch - cắt đầu, lột da - bỏ nội tạng - cắt phi-lê - ướp muối - đông lạnh - xuất bán. Doanh nghiệp A được thực hiện kê khai khấu trừ thuế GTGT như sau:

- Doanh nghiệp A được khấu trừ toàn bộ thuế GTGT đầu vào của tài sản cố định và của hàng hóa, dịch vụ mua vào không hình thành tài sản cố định tại nhà máy phục vụ khâu sơ chế cá tra phi-lê theo quy trình nêu trên.

- Cá tra phi-lê có nguồn gốc do doanh nghiệp A tự nuôi để xuất khẩu được áp dụng thuế suất 0% và doanh nghiệp được khấu trừ toàn bộ thuế GTGT đầu vào có liên quan đến hoạt động xuất khẩu cá tra phi-lê. Trường hợp doanh nghiệp nuôi cá tra sau đó chế biến thành cá tra phi-lê vừa để xuất khẩu vừa để bán trong nước thì thuế GTGT đầu vào được phân bổ theo tỷ lệ % doanh thu xuất khẩu/Tổng Doanh thu (doanh thu xuất khẩu và doanh thu bán trong nước)."

6. Sửa đổi, bổ sung Article 15 Circular number 219/2013/TT-BTC như sau:

a) Sửa đổi khổ thứ nhất Point c Clause 3 Article 15 như sau:

"c) Đối với hàng hóa, dịch vụ mua trả chậm, trả góp có giá trị hàng hóa, dịch vụ mua từ hai mươi triệu đồng trở lên, cơ sở kinh doanh căn cứ vào hợp đồng mua hàng hóa, dịch vụ bằng văn bản, hóa đơn giá trị gia tăng và chứng từ thanh toán qua ngân hàng của hàng hóa, dịch vụ mua trả chậm, trả góp để kê khai, khấu trừ thuế GTGT đầu vào. Trường hợp chưa có chứng từ thanh toán qua ngân hàng do chưa đến thời điểm thanh toán theo hợp đồng hoặc trước ngày 31 tháng 12 hàng năm đối với trường hợp thời điểm thanh toán theo hợp đồng sớm hơn ngày 31 tháng 12, cơ sở kinh doanh vẫn được kê khai, khấu trừ thuế GTGT đầu vào".

b) Sửa đổi, bổ sung Clause đầu Clause 3 Article 15 như sau:

"3. Chứng từ thanh toán qua ngân hàng được hiểu là có chứng từ chứng minh việc chuyển tiền từ tài khoản của bên mua sang tài khoản của bên bán (tài khoản của bên mua và tài khoản của bên bán phải là tài khoản đã đăng ký hoặc thông báo với cơ quan thuế. Bên mua không cần phải đăng ký hoặc thông báo với cơ quan thuế tài khoản tiền vay tại các tổ chức tín dụng dùng để thanh toán cho nhà cung cấp) mở tại các tổ chức cung ứng dịch vụ thanh toán theo các hình thức thanh toán phù hợp với quy định của pháp luật hiện hành như séc, uỷ nhiệm chi hoặc lệnh chi, uỷ nhiệm thu, nhờ thu, thẻ ngân hàng, thẻ tín dụng, sim điện thoại (ví điện tử) và các hình thức thanh toán khác theo quy định (bao gồm cả trường hợp bên mua thanh toán từ tài khoản của bên mua sang tài khoản bên bán mang tên chủ doanh nghiệp tư nhân hoặc bên mua thanh toán từ tài khoản của bên mua mang tên chủ doanh nghiệp tư nhân sang tài khoản bên bán nếu tài khoản này đã được đăng ký giao dịch với cơ quan thuế)."

c) Sửa đổi, bổ sung Point c Clause 4 Article 15 như sau:

"c) Trường hợp hàng hóa, dịch vụ mua vào được thanh toán uỷ quyền qua bên thứ ba thanh toán qua ngân hàng (bao gồm cả trường hợp bên bán yêu cầu bên mua thanh toán tiền qua ngân hàng cho bên thứ ba do bên bán chỉ định) thì việc thanh toán theo uỷ quyền hoặc thanh toán cho bên thứ ba theo chỉ định của bên bán phải được quy định cụ thể trong hợp đồng dưới hình thức văn bản và bên thứ ba là một pháp nhân hoặc thể nhân đang hoạt động theo quy định của pháp luật.

Trường hợp sau khi thực hiện các hình thức thanh toán nêu trên mà phần giá trị còn lại được thanh toán bằng tiền có giá trị từ 20 triệu đồng trở lên thì chỉ được khấu trừ thuế đối với trường hợp có chứng từ thanh toán qua ngân hàng".

7. Sửa đổi Clause 4 Article 16 Circular number 219/2013/TT-BTC như sau:

"Hóa đơn thương mại. Ngày xác định doanh thu xuất khẩu để tính thuế là ngày xác nhận hoàn tất thủ tục hải quan trên tờ khai hải quan".

Article 4. Amend the model of the Payment Slip to the State Budget (models C1-02/NS and C1-03/NS) issued together with Decision No. 759/QĐ-BTC dated April 16, 2013 of the Ministry of Finance regarding the correction of Circular No. 08/2013/TT-BTC dated January 10, 2013 of the Ministry of Finance, and the Tax Payment Schedule (model 01/BKNT) issued together with Circular No. 85/2011/TT-BTC dated June 17, 2011 of the Ministry of Finance as follows:

1. National Technical Regulation on Railway Traffic Signals, number QCVN 21:2025/BXD.

1. The model of the Payment Slip to the State Budget (models C1-02/NS and C1-03/NS) shall replace the model of the Payment Slip to the State Budget issued together with Decision No. 759/QĐ-BTC dated April 16, 2013 of the Ministry of Finance regarding the correction of Circular No. 08/2013/TT-BTC dated January 10, 2013 of the Ministry of Finance guiding the implementation of state accounting applicable to the State Budget Management and Treasury Information System (referred to as TABMIS).

2. The model of the Tax Payment Schedule (01/BKNT) shall replace the model of the Tax Payment Schedule (01/BKNT) issued together with Circular No. 85/2011/TT-BTC dated June 17, 2011 of the Ministry of Finance guiding the procedures for organizing coordination in collecting state budget revenue between the State Treasury, General Department of Taxation, General Department of Customs, and commercial banks.

Article 5. Amend and supplement Circular No. 39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance guiding the implementation of Decree No. 51/2010/NĐ-CP dated May 14, 2010 and Decree No. 04/2014/NĐ-CP dated January 17, 2014 of the Government on invoices for goods and services as follows:

1. Amend and supplement Clause 2, Article 3 of Circular No. 39/2014/TT-BTC as follows:

"2. Types of invoices:
a) Value-added tax invoice (models 3.1 in Appendix 3 and 5.1 in Appendix 5 issued together with this Circular) is the type of invoice intended for organizations that declare and calculate value-added tax under the deduction method in the following activities:

- Selling goods and providing services domestically;

- International transportation activities;

- Exporting to non-tariff zones and other cases deemed as export;

b) Sales invoices for the following entities:

- Organizations and individuals declaring and calculating value-added tax under the direct payment method when selling goods and providing services domestically, exporting to non-tariff zones, and other cases deemed as export (models 3.2 in Appendix 3 and 5.2 in Appendix 5 issued together with this Circular).

- Organizations and individuals within non-tariff zones when selling goods and providing services to domestic areas and among themselves within non-tariff zones, clearly stating "For organizations and individuals within non-tariff zones" on the invoice (model 5.3 in Appendix 5 issued together with this Circular).

Example:

- Enterprise A is a business declaring value-added tax under the deduction method that engages in both domestic sales and exports abroad. Enterprise A uses value-added tax invoices for domestic sales and does not need to issue value-added tax invoices for exports abroad.

- Enterprise B is a business declaring value-added tax under the deduction method that engages in both domestic sales and sales to organizations and individuals within non-tariff zones. Enterprise B uses value-added tax invoices for domestic sales and for sales to non-tariff zones.

- Enterprise C is an export processing zone enterprise selling goods domestically and exporting goods outside Vietnam. Enterprise C uses sales invoices for domestic sales, clearly stating "For organizations and individuals within non-tariff zones" on the invoice; when exporting goods outside Vietnam, Enterprise C does not need to issue sales invoices.

- Enterprise D is a business declaring value-added tax under the direct payment method, when selling goods and providing services domestically and to non-tariff zones, Enterprise D uses sales invoices. When exporting goods abroad, Enterprise D does not need to issue sales invoices.

c) Other invoices include: stamps; tickets; cards; receipts for insurance payments...

d) Air freight receipt; international transport fee receipt; service fee receipt, form and content are established according to international practice and relevant laws."

2. Amend and supplement Article 4 of Circular No. 39/2014/TT-BTC as follows:

a) Amend point g, Clause 1, Article 4 of Circular No. 39/2014/TT-BTC as follows:

"g) Name of goods and services; unit of measurement; quantity; unit price of goods and services; total amount recorded in figures and in words. In case a business uses accounting software from a multinational corporation parent company, the unit of measurement index can be used in English according to the multinational corporation's software system."

b) Amend point a, Clause 3, Article 4 of Circular No. 39/2014/TT-BTC as follows:

"a) Businesses selling goods and services may create, issue, and use invoices without necessarily having the buyer's signature and seller's stamp in the following cases: electricity invoices; water invoices; telecommunications service invoices; banking service invoices meeting the conditions for self-printing as guided in this Circular. In the case of service provision, the "unit of measurement" item is not necessarily required on the invoice."

3. Amend and supplement Article 16 of Circular No. 39/2014/TT-BTC as follows:

a) Amend and supplement the guidance at point b, c, Clause 1, Article 16 as follows:

"b) The seller must issue an invoice when selling goods and services, including cases where goods and services are used for promotional, advertising, sample purposes; goods and services given, gifted, exchanged, or used as salary for employees and internal consumption (excluding goods circulating internally for continued production processes).

The content on the invoice must match the economic transaction; it cannot be erased, altered; it must be written in the same color ink, type of ink that does not fade, and red ink must not be used; numbers and handwriting must be continuous, without interruption, and not written or printed over pre-printed text and crossed out blank spaces (if any). In the case of self-printed or custom-printed invoices created by computer if there are blank spaces on the invoice, they do not need to be crossed out.

c) An invoice is issued in multiple copies. The content entered on the invoice must be consistent across all copies of the invoice with the same number."

For telecommunication service fee invoices, electricity bills, water bills, bank fee invoices, passenger transport tickets issued by transport units, various stamps, tickets, cards, and other cases as guided by the Ministry of Finance, when issuing invoices, the first copy can be replaced with a detailed list of actual invoices issued. Each invoice number provided to customers is shown on a separate line of the List, including all registered fields sent together with the Invoice Issuance Notice to the directly managing tax authority.

The List is prepared monthly and printed on paper for storage and preservation or stored electronically (such as USB flash drives, CDs, DVDs, external hard drives, internal hard drives). The preservation and storage of the List shall comply with current regulations on the preservation and storage of accounting documents. If stored on paper, the List must include the full name, signature of the person preparing the List; the full name, signature of the unit head; the unit's seal. If stored electronically, the List must have the electronic signature of the unit and the content of the List must ensure that it can be accessed, exported, and printed on paper when necessary for reference. Units are responsible for the accuracy and completeness of information on the List of invoices issued daily and monthly and must ensure storage to provide to the tax authority and other competent authorities upon request.

b) Repeal Clause 7, Point a, Clause 2, Article 16 of Circular No. 39/2014/TT-BTC.

4. Amend Clause 2 of Article 27 of Circular No. 39/2014/TT-BTC as follows:

"For enterprises using self-printed or commissioned-printed invoices that have violated regulations and are not allowed to use such invoices, enterprises classified as high-risk taxpayers according to the provisions of this Circular shall purchase invoices from the tax authority as guided in Article 11 of this Circular and submit a Monthly Report on Invoice Usage."

1. Amend and supplement Point b, Clause 3, Article 5 of Circular No. 78/2014/TT-BTC as follows:

"b) For goods and services used for exchange (excluding goods and services used to continue the production and business process of the enterprise) shall be determined based on the selling price of similar products, goods, or services on the market at the time of exchange.

Example: Enterprise A has the function of producing automobile spare parts and assembling automobiles. Enterprise A uses tires produced by itself for display or introduction of products or uses tires to continue assembling complete automobiles. In this case, the tires produced by the enterprise do not need to be converted into revenue for calculating corporate income tax.

Example: Enterprise B is a computer manufacturing enterprise. During the year, Enterprise B provides some computers manufactured by itself to employees for work purposes within the enterprise. These products do not need to be converted into revenue for calculating corporate income tax.

2. Amend and supplement Clause 1 of Article 6 of Circular No. 78/2014/TT-BTC as follows:

"1. Except for the non-deductible expenses listed in Clause 2 of this Article, enterprises may deduct all expenses if they meet the following conditions:
a) The expense actually incurred relates to the enterprise's production and business activities;
b) The expense is supported by valid invoices and receipts in accordance with the law.
c) If the invoice for purchasing goods or services each time exceeds 20 million VND (inclusive of VAT), payment must be made through non-cash payment vouchers.

Non-cash payment vouchers shall be implemented in accordance with the provisions of legal documents on value-added tax.

In the case of purchasing goods or services each time exceeding 20 million VND recorded on the invoice but not yet paid and without non-cash payment vouchers at the time of recording expenses, the enterprise may include these expenses in deductible costs when determining taxable income. If the enterprise does not have non-cash payment vouchers when making payments, the enterprise must declare and adjust to reduce costs for the value of goods or services without non-cash payment vouchers in the tax period when cash payments occur (including cases where the tax authority and other competent authorities have already issued inspection or audit decisions for the tax period involving these expenses).

For invoices for goods or services purchased and paid in cash before the effective date of this Circular, there is no need to adjust according to the provisions of this point.

Example 7: In August 2014, Enterprise A purchased goods with an invoice amounting to 30 million VND but had not yet paid. In the 2014 tax period, Enterprise A included the cost of purchasing these goods in deductible expenses when determining taxable income. In 2015, Enterprise A paid the amount for these goods in cash, so Enterprise A must declare and adjust to reduce costs for the value of goods or services in the tax period when cash payments occurred (the 2015 tax period).

In the case where an enterprise purchases goods or services related to its production and business activities and has an invoice printed directly from a cash register in accordance with the law on invoices, if the invoice value is 20 million VND or more, the enterprise bases its calculation of deductible costs when determining taxable income on the invoice and the non-cash payment voucher of the enterprise.

In the case where an enterprise purchases goods or services related to its production and business activities and has an invoice printed directly from a cash register in accordance with the law on invoices, if the invoice value is less than 20 million VND and paid in cash, the enterprise bases its calculation of deductible costs when determining taxable income on the invoice and the cash payment voucher of the enterprise."

3. Amend and supplement Point d Clause 1 Article 19 Circular No. 78/2014/TT-BTC as follows:

"d) Income of enterprises from implementing new investment projects in production activities (excluding projects producing goods subject to special consumption tax and mineral extraction projects) meeting one of the following criteria:

- The project has a minimum capital investment of 6 (six) trillion VND, with disbursement completed within no more than 3 years from the date of issuance of the Investment Certificate and achieving a minimum total revenue of 10 (ten) trillion VND/year at the latest three years from the year of revenue generation (by the fourth year from the year of revenue generation, the enterprise must achieve a minimum annual total revenue of 10 (ten) trillion VND).

- The project has a minimum capital investment of 6 (six) trillion VND, with disbursement completed within no more than 3 years from the date of issuance of the Investment Certificate and employing over 3,000 workers at the latest three years from the year of revenue generation (by the fourth year from the year of revenue generation, the enterprise must meet the condition of having an average of over 3,000 workers employed annually).

The number of workers specified herein refers to the number of workers who have signed full-time labor contracts, excluding part-time workers and short-term contracts under one year.

The average number of workers employed annually is determined in accordance with the guidance provided in Circular No. 40/2009/TT-BLDTBXH dated December 3, 2009 issued by the Ministry of Labor, Invalids and Social Affairs.

In cases where investment projects do not meet the criteria stipulated herein (excluding delays due to objective reasons in land clearance, administrative procedures of state agencies, or natural disasters, enemy attacks, fires, and being approved by the agency issuing the Investment Certificate), enterprises shall not be entitled to corporate income tax incentives, and enterprises must declare and pay the amount of corporate income tax that they have declared and enjoyed incentives for previous years (if any) and pay late payment interest on taxes according to regulations, but enterprises will not be penalized for incorrect declarations under tax management laws.

Article 7. Effective Date

1. This Circular takes effect from the year September 1, 2014.

For cases where enterprises need time to prepare for procedures and forms according to the Circulars prescribed in Clause 2 of this Article, enterprises may proactively choose procedures and forms according to current regulations and amended and supplemented regulations to continue implementation until October 31, 2014 without the need to notify or register with the tax authority. The General Department of Taxation is responsible for directing and guiding the specific implementation of this provision.

2. Repeal the guidelines and forms in Circulars No. 156/2013/TT-BTC dated November 6, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No. 39/2014/TT-BTC dated March 31, 2014, and Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry of Finance which have been amended, supplemented, replaced, or abolished in this Circular.

3. Other tax administrative procedures not covered by this Circular shall continue to be implemented in accordance with current laws and regulations. During the implementation process, if there are difficulties or obstacles, units and business establishments are requested to promptly report to the Ministry of Finance for research and resolution.

During the implementation process, if there are difficulties or obstacles, units and business establishments are requested to promptly report to the Ministry of Finance for research and resolution./.