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Having an added-value invoice on goods purchase is a condition for value-added tax credit

Fri, 24 Feb 2017 10:55:29 AM GMT + 7    Print   Email   Share:

(Chinhphu.vn) – Daknong Printing House is a revenue-generating non-business agency with complete financial autonomy, reporting to Daknong Department of Culture, Sport and Tourism.  Daknong Printing House Construction Project, invested by Daknong Department of Culture, Sport and Tourism, has finalized payments and handover of premises.

The total payment amount of the project was 20 million dongs (including VAT). The invoices were issued to Daknong Department of Culture, Sport and Tourism but not Daknong Printing House. The invoices were issued in 2009; 2011; 2012.

When managing and using the premises, Daknong Printing House has recorded fixed asset depreciation based on estimated price in the contracts between the investor and contractors.

Ms. Truong Thi Hong Linh from Daknong Printing House asked Chinhphu.vn: So far her Printing House has been applying tax credit method. After the handover of all premises, will it be entitled to the above VAT credit?

Daknong Tax Department’s answer to this question:

According to Clause 1, Article 10 of the Law on Value-Added Tax numbered 13/2008/QH12, the value-added tax credit method is specified as follows:

a/ The payable value-added tax amount according to the tax credit method is the output value-added tax amount minus the creditable input value-added tax amount;

b/ The output value-added tax amount is the total amount of value-added tax on sold goods and services indicated in the added-value invoice;

c/ The creditable input value-added tax amount is the total value-added tax amount indicated in the added-value invoice on goods or service purchase and the document proving the payment of value-added tax on imported goods, and must satisfy the conditions specified in Article 12 of this Law.

Point a, Clause 2, Article 12 of the Law on Value-Added Tax specifies the conditions to input value-added tax credit as “Having an added-value invoice on goods or service purchase or a document proving the payment of value-added tax at the stage of importation”.

Based on the above regulations, if the input VAT of Daknong Printing House Construction Project was invoiced to Daknong Department of Culture, Sports and Tourism,  Daknong Printing House is not entitled to VAT credit because that input VAT is not written in the VAT invoice of good and service purchase issued to the  Printing House and that doesn’t meet the condition for input VAT credit. 

  • By : Online Newspaper of the Government /Translator: HaiYen-Bizic

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