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MINISTRY OF
FINANCE
GENERAL DEPARTMENT OF TAXATION
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SOCIALIST
REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 5056/TCT-CS
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Hanoi, December
13, 2018
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To: Tax
Department of Bac Lieu Province
In response to Official Dispatch No.524/CT-TTHT
dated May 18, 2018 of Tax Department of Bac Lieu province regarding payment for
uniform of employees in vouchers by PetroVietnam Packaging Joint Stock Company
(hereinafter referred to as “PPC"), below are opinions from the General
Department of Taxation:
1/ With regard to vouchers:
Pursuant to Clause 7 and 9 Article 3 of Circular
No.26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance providing
guidelines for VAT and tax management: “7. Article is amended as follows:
a) Point b Clause 1 Article 16 (which is amended
in Point 3 Clause 3 Article 5 of Circular No.119/2014/TT-BTC) is amended as
follows:
“b) When selling
goods and services, including those used for trade promotion, advertising,
samples, goods and services used for donation, exchange, or paid as salaries
(except for goods internally circulated or internally used to proceed
production), the seller must issue invoices.
Pursuant to regulations provided in Clause 2
Article 20 of Circular No.39/2014/TT-BTC dated March 31, 2014 of the Ministry
of Finance on guidelines for invoices: “2. In
case an issued invoice is found incorrect after it is given to the buyer but
before goods are delivered or services are provided, or after it is given to
the buyer but before the buyer and the seller declare tax, the invoice shall be
deleted; the buyer and the seller shall make a record on withdrawal of copies
of the incorrect invoice.
The withdrawal
record must specify the reasons for invoice withdrawal.
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The seller shall
cross out the copies, keep the incorrect invoice, and issue a new invoice as
prescribed.”
Pursuant to Official Dispatch No.3612/TCT-CC dated
August 12, 2016 of the General Department of Taxation: 2. In terms of
questions concerning the receipt used in case of sale of vouchers of Vinecom
Limited Liability Company (hereinafter referred to as “Vinecom LLC")
Pursuant to:
- Point b Clause 1 Article 16 of Circular
No.39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance (amended in
Point a Clause 3 Article 5 of Circular No.119/2014/TT-BTC dated August 25, 2014
of the Ministry of Finance)
“b) When selling goods and services, including
those used for trade promotion, advertising, samples, goods and services used
for donation, exchange, or paid as salaries and internal consumption (except
for goods internally circulated to proceed production), the seller must issue
invoices.”
- Point 1 and 2 Article 8 of Circular
No.219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance providing
for time for calculating VAT:
“1. For goods sale, VAT shall be calculated when
the ownership or the right to use goods is transferred to the buyer, whether
the payment is made or not.
2. For service provision, VAT shall be
calculated when the service is completely provided or the invoice for service
provision is issued, whether the payment is made or not.
Clause 1 Article 6 of Circular No.78/2014/TT-BTC
dated June 18, 2014 of the Ministry of Finance (amended in Clause 2 Article 6
of Circular No.119/2014/TT- BTC dated August 25, 2014 of the Ministry of
Finance) providing for deductible and non-deductible expenses for determination
of taxable income:
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a) Realized expenses arise out of production and
business operations of the enterprise;
b) Expenses have adequate lawful invoices and
documents as required by laws
c) For expenses incurred on purchase of goods or
services with invoices valued at VND 20 million or more (VAT-inclusive prices)
each, non-cash payment documents are required.
Non-cash payment documents shall comply with
provisions of legal documents on value-added tax. "
Pursuant to the aforesaid regulations, vouchers
(Adayroi vouchers and e-vouchers) issued by Vinecom LLC are documents with
monetary value that can be used as payment instruments. As for that reason,
voucher issuance is not considered sale of goods or services, so it is not
required to issue sale invoices and calculate value-added tax.
Business establishments which buy and use
vouchers issued by Vinecom LLC for the purpose of promotion, gifting,
presentation, exchange or payment as salaries to their employees are not
required to issue invoices.
According to receipts of Vinecom LLC and
documents related to promotion, gifting or exchange programs or payment as
salaries, the expenses will be deductible if all requirements specified in
Clause 1 Article 6 of Circular No.78/2014/TT-BTC dated June 18, 2014 (amended
in Clause 2 Article 6 of Circular No.119/2014/TT-BTC dated August 25, 2014 of
the Ministry of Finance.) are satisfied.
When business establishments buy the vouchers
issued by Vinecom LLC and use such vouchers to purchase goods on the website
ADAYROI.COM, Vinecom LLC shall officially transfer the ownership of the goods,
issue invoices, declare VAT and determine revenues subject to corporation
income tax. According to invoices issued by Vinecom LLC, the expenses will be
deductible if all requirements specified in Clause 1 Article 6 of Circular
No.78/2014/TT-BTC dated June 18, 2014 (amended in Clause 2 Article 6 of
Circular No.119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance.)
are satisfied.
If the VAT invoice issued by the seller specifies
the vouchers as goods, such invoice will be considered incorrect as prescribed
in Clause 7 Article 3 of Circular No.26/2015/TT-BTC dated February 27, 2015 of
the Ministry of Finance and Official Dispatch No.3612/TCT-CC dated August 12,
2016 of the General Department of Taxation. As for that reason, PPC and the
seller shall make a record on withdrawal of the incorrect invoice under
provisions provided in Clause 2 Article 20 of Circular No.39/2014/TT-BTC
mentioned above.
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Pursuant to Point a Clause 2 Article 2 of Circular
No.111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance providing
guidelines for personal income tax:
“Article 2. Taxable incomes
2. Incomes from salaries and remunerations
Incomes from salaries and remunerations are
incomes paid to employees from employers, including:
a) Salaries, remunerations and other amounts
paid as salaries or remunerations in cash or not in cash.”
The vouchers given to employees by PPC shall be
considered taxable incomes (as specified in Point a Clause 2 Article 2 of
Circular No.111/2013/TT-BTC) and must be included in their personal income tax
statements.
3/ With regard to costs for provision of
perquisites for employees working in harmful environment:
Pursuant to regulations in Clause 2 and 5 Article 3
of Circular No.25/2013/TT-BLDTBXH dated October 18, 2013 of the Ministry of
Labor, War Invalids and Social Affairs on rules for provision of perquisites:
“2. Perquisites must not be converted into cash
or included in salaries.
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Pursuant to regulations in Clause 7 Article 3 of
Circular No.26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance: “7.
Article 16 shall be amended as follows:
a) Point b Clause 1 Article 16 (amended in Point
3 Clause 3 Article 5 of Circular No.119/2014/TT-BTC) is amended as follows:
“b) When selling goods and services, including
those used for trade promotion, advertising, samples, goods and services used
for donation, exchange, or paid as salaries (except for goods internally
circulated or internally used to proceed production), the seller must issue
invoices.
If PPC purchases milk and provide such milk for its
employees as a gift, a VAT invoice shall be issued as prescribed in Clause 7
Article 3 of Circular No.26/2015/TT-BTC mentioned above.
VAT invoices are not required in case PPC pays for
perquisites provided for employees working in harmful environment. Such expense
may be included in reasonable expense when calculating taxable incomes as
regulated.
PP.
DIRECTOR GENERAL
DIRECTOR GENERAL OF DEPARTMENT FOR POLICIES
Luu Duc Huy
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