Value Added Tax (“VAT”)

Issuance of invoices for capital contribution activity

On 16 May 2024, Da Nang Tax Department issued Official Letter No. 4371/CTDAN-TTHT with following content:

In case a company contributes capital by assets (with all invoices and documents as prescribed) to establish a business enterprise, the company does not need to declare and pay VAT. Dossier for assets contributed as capital to the enterprise must include: Minutes of capital contribution, Joint venture contracts/Agreements; Minutes of asset valuation of the Council for capital contribution (or valuation document of an organization with valuation function as prescribed by law), accompanied by a set of documents on the origin of assets, according to the instructions in Clause 7, Article 5 of Circular No. 219/2013/TT-BTC of the Ministry of Finance.

In case the company performs construction works or installs construction items… and uses the value of these constructions to contribute capital to another enterprise, this activity is subject to VAT according to the guidance in Article 2 of Circular No. 219/2013/TT-BTC of the Ministry of Finance; The company must issue invoices according to the provisions of Clause 1, Article 4 of Decree No. 123/2020/ND-CP of the Government.


Payment proof of VISA fee

On 10 June 2024, Binh Duong Tax Department issued Official Letter No. 15380/CTBDU-TTHT with following content:

In case a company submits for electronic visa application for foreigners via the government’s online visa issuance website and makes payment of visa application fee to the service providers, if the document of this expense meets the conditions related to the production and business activities of the enterprise; has enough legal invoices and documents (in case the service provider does not issue invoices, there must be documents proving as follows: confirmation from the Government website, electronic visa results,…) and payment documents according to the provisions of law on VAT and CIT, these are included in deductible expenses when determining CIT.

In case the documents related to the above transactions are presented in the form of electronic information or data, these data must be accurate and reliable. This electronic information and data are stored, accessible and usable in complete form when necessary according to the provisions of the Law on Electronic Transactions No. 20/2023/QH15 dated 22 June 2023.


Tax policy on transportation fee support  

On 17 May 2024, Hanoi Department issued Official Letter No. 28812/CTHN-TTHT with following content:

– Regarding invoice: In case a company provides transportation fee support to a buyer to promote the consumption of the company’s products, when receiving the support money, the buyer shall issue VAT invoice to the company, declare and pay VAT according to regulations.

– Regarding deductible expense for CIT: The transportation fee support agreed by both parties in a debt offsetting record as a basis for deduction from the value of purchased goods and is specifically specified in the contract/contract appendix is considered as deductible expense when determining CIT in case it meets the conditions specified in Article 4 of Circular No. 96/2015/TT-BTC dated 22 June 2015 of the Ministry of Finance.