Newsletter

Tax administration

Cancelation of 13-digit tax code for a business location

On 25 April 2022, the General Department of Taxation issued Official Letter No. 1269/TCT-KK regarding tax codes granted to the business locations of an enterprise. Details are as follows:

In case a business location does not declare its taxes directly, or declares its taxes through the Head Office, then the local Tax Office will decide on the cancelation of the business location’s tax code, ensuring that the business location complete all tax obligations before closing its tax code according to Article 15 of Circular No. 105/2020/TT-BTC.

The 13-digit tax code granted to an enterprise’s business location is not granted in connection with the business registration authority, thus its cancelation must also be done independently, with no connection to the business registration authority.

Invoice

Issuance date of export commercial invoice and electronic invoice

On 3 June 2022, the General Department of Customs issued Official Letter No. 2054/TCHQ-GSQL on the use of electronic invoices (E-invoice) for exported goods. Details are as follows:

According to international practice when carrying out procedures for exporting, enterprises need commercial invoices to complete customs procedures and export goods. Commercial invoices are prepared and used based on the Uniform Customs and Practice for Documentary Credits (UCP 600) and must contain all required contents according to international practice.

According to Point b and c, Clause 3, Article 13 of Decree No. 123/2020/ND-CP dated 19 October 2020 by the Government, export VAT invoices shall be issued after procedures for customs declaration is complete. Accordingly, at the time of carrying out customs declaration procedures, the declarant cannot issue VAT invoice (which is required in the customs dossier).

Therefore, electronic VAT invoice must be issued according to the current law of Vietnam, while export commercial invoice shall be issued according to international practice. The issuance date of the 2 invoices are different: a commercial invoice must be issued before starting custom procedures, while electronic VAT invoice shall be issued after procedures are completed.

Registration of E-invoices that do not contain the tax authority’s authorized code

On 8 April 2022, the General Department of Taxation issued Official Letter No. 1058/TCT-DNNCN regarding the use of E-invoices without the tax authority’s authorized code. Details are as follows:

Enterprises using e-invoices without the tax authority’s authorized code and submitting invoice data directly to the General Department of Taxation must satisfy all applicable regulations and must send a written request for direct connection to submit invoice data, specifying the number of invoices used.

Labor and Social Insurances

Adjustment of the rate of social insurance contribution to the occupational accident and disease insurance fund from 1 July 2022

According to Resolution No. 68/2021/NQ-CP dated 1 July 2021, the rate of social insurance contribution to the occupational accident and disease insurance fund is 0% from 1 July 2021 to 30 June 2022. Accordingly, from 1 July 2022, employers must pay social insurance premiums to the occupational accident and disease insurance fund.

Change of regional minimum wage

On 12 June 2022, the Government issued Decree No. 38/2022/ND-CP stipulating the minimum wage for employees working under labor contracts. Accordingly, the monthly minimum wage and the hourly minimum wage for employees working for employers, by region, are as follows:

The Decree takes effect from 01 July 2022.

Customs

Application of tax policies in non-tariff zones

On 30 May 2022, the General Department of Customs issued Official Letter No. 1939/TCHQ-GSQL explaining Clause 10, Article 1 of Decree No. 18/2021/ND-CP issued by the Government. Details are as follows:

In case a responsible Customs office confirms that a company does not satisfy the conditions for customs inspection and supervision applicable to EPEs, from the following day of one year from the effective date of Decree No. 18/2021/ND-CP, the said company shall not be subject to favorable tax policies applicable to enterprises of non-tariff zones. In case the company later clears these conditions and obtains confirmation from the responsible Customs office, it may then continue applying tax policies applicable to non-tariff zones.