This document addresses the issue of allocating input VAT for goods and services used jointly between taxable and non-taxable activities. The Ministry of Finance guides enterprises to calculate deductible tax based on the ratio of sales revenue from taxable goods and services compared to total sales revenue.
适用范围
Business entities
要点
- Business entities must separately account for input tax on goods and services used for producing and trading taxable and non-taxable goods and services (Point 1.2.c, Section III, Part B Circular No. 120/2003/TT-BTC).
- In cases where goods and services are jointly used for producing and trading taxable and non-taxable goods and services but the entity cannot separately account for input tax, the deductible input tax must be calculated based on the ratio (%) of sales revenue from taxable goods and services compared to total sales revenue (Point 1.2.c, Section III, Part B Circular No. 120/2003/TT-BTC).
- The VAT Input Tax Allocation Table for Deductible Purchases in the Period (Form No. 02B/GTGT) must clearly note how input tax is calculated when separate accounting cannot be done.
🌐 本文件的社会影响
- Business entities will need to accurately allocate input VAT, reducing errors in declaration and payment of taxes.
- For enterprises using goods and services jointly for both taxable and non-taxable products, this creates additional complex accounting work.
❓ 常见问题
What must business entities do when purchasing goods or services used jointly?
They must separately account for input tax on goods and services used for producing and trading taxable and non-taxable goods and services.
If the entity cannot separately account for it, what should they do?
Deductible input tax must be calculated based on the ratio (%) of sales revenue from taxable goods and services compared to total sales revenue.
全文
MEMORANDUMOF THE MINISTRY OF FINANCE NO. 6864 TC/TCT DATED JUNE 7, 2005
REGARDING THE ALLOCATION OF INPUT VAT ON GOODS AND SERVICES USED FOR BOTH TAXABLE AND NON-TAXABLE OPERATIONS
RESPECTED: Provincial Tax Departments
The Ministry of Finance has received memoranda from several enterprises and provincial tax departments regarding difficulties encountered in allocating input VAT on goods and services used for both taxable and non-taxable operations according to the guidance provided by Circular No. 127/2004/TT-BTC dated December 27, 2004 of the Ministry of Finance for filling out Form 02B/GTGT (VAT Input Tax Allocation Table). Regarding this matter,
The Ministry of Finance offers the following opinion: Point 1.2.c, Section III, Part B of Circular No. 120/2003/TT-BTC dated December 12, 2003 of the Ministry of Finance guiding the implementation of Decree No. 158/2003/NĐ-CP dated December 10, 2003 of the Government detailing and supplementing certain provisions of the Law on Value Added Tax (VAT) stipulates: "Business entities must separately account for input VAT on goods and services used for producing and trading taxable and non-taxable goods and services. In cases where goods and services are jointly used for both taxable and non-taxable operations but the business entity cannot separately account for input VAT, then the deductible input VAT shall be calculated based on the percentage of sales revenue from taxable goods and services compared to total sales revenue." Based on the above provision, replace the phrase "VAT of purchased goods and services in the period: The figures recorded here are those at item code [22] on the VAT Declaration Form" in the notes section of the VAT Input Tax Allocation Table (Form 02B/GTGT) with the following text: "VAT of purchased goods and services in the period: The figures recorded here are the input VAT that must be deducted for jointly used goods and services for both taxable and non-taxable operations which the business entity cannot separately account for."
The Ministry of Finance
hereby informs provincial tax departments to disseminate this guidance to businesses for implementation.
Ministry of Finance hereby notifiesthe Tax Departments of provinces and centrally-run cities for their information and guidance to business entities in implementation.
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