(Chinhphu.vn) - For expenses of gifts, enterprises shall still be accounted as deductible expenses, and at the same time, enterprises shall have to issue invoices and calculate VAT as invoices for the sale of goods and services to customers.
Mobifone Service Company area 9 - Branch of Mobifone Telecom Corporation (Can Tho City) holds yearly customer conferences in the form of package subscriptions, including expenses for organization and gifts, MC, the singers, parties ... The company still accounts for all expenses on outside purchasing services cost.
The costs of gifts are included in the service package so there is no activity of warehousing and unloading at the Department of Industry and Trade. The company requested for answer, do costs of gift have to issue invoice to pay value added tax (VAT)? Do the costs for MC, singers in the service package to be accounted?
Regarding this issue, The Tax department of Can Tho City would like to answer as follows:
Pursuant to Clause 3, Article 7 of Circular No. 219/2013 / TT-BTC of 31/12/2013, guiding the implementation of the VAT Law, stipulating the tax calculation prices: " For products, goods and services (including those purchased from outside or produced by business establishments themselves) which are used for barter, presentation as gifts, donation or payment of salaries, the taxed price is that of goods or services of the same or similar type at the time of carrying out such activity. ".
Point b, Clause 2.4, Appendix 4 promulgated together with the Finance Ministry's Circular No. 39/2014 / TT-BTC of March 31, 2014, shall guide the making of sale invoices of goods and services in a number of cases: Use of invoices and vouchers for goods, services of sale promotion, advertisement, sample goods, gifts, donations and internal consumption of organizations declaring and paying VAT by the deduction method:
b) For goods and services used for gifts, donations, exchanges, wage payment for laborers and internal consumption, VAT invoices (or sale invoices) must be made on the filled invoices.
Expenses are deducted when determining taxable income
Clause 1, Article 6 of Circular No. 78/2014 / TT-BTC was amended in Circular No. 96/2015 / TT-BTC dated 22/6/2015 guiding the implementation of the Law on Enterprise Income Tax Define: "Article 4 .- To amend and supplement Article 6 of Circular No. 78/2014 / TT-BTC (amended and supplemented in Clause 2, Article 6 of Circular No. 19/2014 / TT-BTC and Article 1 Circular No. 151/2014 / TT-BTC) as follows:
Article 6. Deductible and non-deductible expenses for determining taxable income
1. Except expenses specified in Clause 2 of this Article, enterprises may deduct all expenses that fully satisfy the following conditions:
a/ Actual expenses arising in relation to production and business activities of enterprises;
b/ Expenses with adequate lawful invoices and documents as required by law;
c/ for expenses for purchase of goods or services with invoices valued at VND 20 million or more (VAT-inclusive prices) each,
There must be non- cash payment documents; Non-cash payment documents must comply with legal documents on value-added tax;”
As be presented, Mobifone Service Company area 9 - Branch of Mobifone Telecom Corporation (Can Tho City) holds yearly customer conferences in the form of package subscriptions, including expenses for organization and gifts, MC, the singers, parties ... The company still accounts for all expenses on outside purchasing services cost.
Based on the above provisions, If the above expenses meet the conditions specified in Clause 1, Article 6 of Circular No. 78/2014 / TT-BTC was amended in Article 4 of Circular No. 96/2015 / TT-BTC: for production and business activities of enterprises; having enough invoices and vouchers and having non-cash payment vouchers for goods or service purchase invoices valued at VND 20 million or more (the prices inclusive of VAT), they shall be accounted into expenses that are deducted when determining taxable income.
Particularly for gifts, the enterprises shall still be accounted as deductible expenses. At the same time, enterprises shall have to issue invoices and calculate VAT as invoices for the sale of goods and services to customers.
- By : Online Newspaper of the Government / Translator: HaiYen-Bizic
- Calculation of tax when transferring rights of using lease land
- Business conditions to the quarterly tax declaration
- Is it leasing Land payment once for whole leasing term higher than annual payment?
- Calculation of personal income tax to foreign contractors
- Having an added-value invoice on goods purchase is a condition for value-added tax credit
- Conditions of VAT refund with goods for export
- Vietnam forms emergency response teams as bird flu ravages China
- Prince William urges Vietnamese to protect wildlife in New Year video message
- Decree on casino business released
- Hanoi will not ask churches, temples to ring out to mark Tet: official
- Thai investor to develop solar power project in Quang Ngai
- Aquatic export may touch US$ 7.4 bln in 2017