This circular guides the declaration and payment of value-added tax on inventory of agents and infrastructure leasing activities. The entity receiving sales agency must declare, calculate, and pay VAT on goods in inventory as of December 31, 2003. For infrastructure leasing activities, a rate of 10% applies to new businesses, while existing contracts may continue to apply a rate of 5%. Any issues will be reflected and resolved by the General Department of Taxation.
적용 범위
Entities receiving sales agency; entities conducting infrastructure leasing activities.
핵심 사항
- Entity receiving sales agency → must declare, calculate, and pay VAT on inventory as of December 31, 2003, based on actual quantities and current selling prices.
- Sales agency supplier → issues VAT invoices to the entity receiving sales agency according to the current tax rate for the basis of declaration, deduction, and tax payment.
- New infrastructure leasing activities → apply a tax rate of 10%.
- Leasing contracts signed before January 1, 2004, with a tax rate of 5% → may continue to apply a tax rate of 5% for the remaining lease period of the contract.
🌐 이 문서의 사회적 영향
- Positive impact: Reduces legal risks and increases transparency in the declaration and payment of VAT on agent inventory; supports enterprises in complying with tax regulations.
- Negative impact: May increase financial management burdens for businesses when they have to declare and pay VAT in detail.
❓ 자주 묻는 질문
What should the entity receiving sales agency do to declare, calculate, and pay VAT?
The entity receiving sales agency must base its declaration on the actual quantity of goods in inventory as of December 31, 2003, and the selling price of the goods to issue invoices for returning goods to the sales agency supplier. Simultaneously, the sales agency supplier will issue VAT invoices to the entity receiving sales agency according to the current tax rate.
What tax rate applies to infrastructure leasing activities?
New infrastructure leasing activities apply a tax rate of 10%. For existing contracts signed before January 1, 2004, with a tax rate of 5%, the 5% rate continues to apply for the remaining lease period of the contract.
What should a business do when signing an infrastructure leasing contract?
When signing an infrastructure leasing contract, if it is a new activity, apply a tax rate of 10%. If signed before January 1, 2004, with a tax rate of 5%, the 5% rate continues to apply for the remaining lease period of the contract.
Can the entity receiving sales agency declare and deduct VAT on inventory?
To declare and deduct VAT on inventory as of December 31, 2003, the entity receiving sales agency must base its declaration on the actual quantity of goods in inventory as of December 31, 2003, and the selling price of the goods to issue invoices for returning goods to the sales agency supplier.
What should be done if there are issues during the implementation of this circular?
If there are any issues, units must reflect them to the General Department of Taxation for research and resolution.
전문
LETTER
OF THE MINISTRY OF FINANCE NUMBER 7802 TC/TCT ON JULY 14, 2004
REGARDING THE IMPLEMENTATION OF VALUE ADDED TAX FOR INVENTORY OF AGENTS; LEASING INFRASTRUCTURE
OF THE AGENT; LEASING INFRASTRUCTURE
Dear: Provincial Tax Departments
Pursuant to Decree No. 158/2003/NĐ-CP dated December 10, 2003 of the Government detailing the implementation of the Law on Value Added Tax and the Law Amending and Supplementing Certain Provisions of the Law on Value Added Tax, the Ministry of Finance issued Circular No. 120/2003/TT-BTC dated December 12, 2003 guiding the implementation of the aforementioned Decree. In the course of implementation, some difficulties have arisen, which the Ministry of Finance now provides specific guidance on the following matters:
1. Declaration and payment of value added tax for inventory of goods as of December 31, 2003 of the entity receiving consignment sales at commission price:
Based on the guidance at Point 2, Section II, Part C of Circular No. 120/2003/TT-BTC (mentioned above), the entity receiving consignment sales at commission price must declare, calculate, and pay value added tax on consignment sales and commission income from agency activities. To be eligible for declaration and deduction of value added tax on consignment goods remaining in inventory as of December 31, 2003 with invoices from the consignor, the consignee must base on the actual quantity of goods in inventory as of December 31, 2003 and the selling price of the goods to issue an invoice for returning the goods to the consignor according to the content of the consignor's invoice before January 1, 2004. Simultaneously, the consignor issues a value added tax invoice to the consignee for the quantity of goods at the current tax rate as the basis for declaration and deduction of value added tax by both parties.
2. Tax rate of value added tax for leasing infrastructure:
Based on the guidance at Point 3.16, Section II, Part B of Circular No. 120/2003/TT-BTC mentioned above, the activity of leasing technical infrastructure of business entities granted land or leased land by the State to invest in technical infrastructure for lease in industrial zones, high-tech zones, and other economic zones as prescribed by the Government shall apply a value added tax rate of 10%. For business entities leasing technical infrastructure that have signed lease contracts with value added tax included at a rate of 5% and have collected part of the rent before January 1, 2004, they may continue to apply a value added tax rate of 5% for the remaining lease period of the contract.
During the implementation process, if there are any difficulties, please report them to the Ministry of Finance (General Department of Taxation) for study and resolution.
관계도
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