Does Center have to provide invoices when receiving some money for support?

Tue, 14 Feb 2017 13:58:34 PM GMT + 7    Print   Email   Share:

Thot Not (Can Tho) Industrial Park Infrastructure Construction Center is a business public unit, self-balancing revenues and expenditures, specializes in the business of industrial park’s infrastructure. In addition, the Center also provides wastewater treatment services for enterprises in the industrial park and the other service activities. During the process of providing wastewater treatment services and investment in infrastructure, the Centre is supported some money by enterprises. However, the enterprises request Center to provide invoices.

Thot Not (Can Tho) Industrial Park Infrastructure Construction Center would like to suggest for answers, is it appropriate with the provision when the enterprises request invoices to amount of money for support? If making the invoice is consistent, Does the Center have to make a declaration of value added tax and ccompany income tax?

For this issue, Can Tho Tax Department answers as follows:

 Thot Not (Can Tho) Industrial Park Infrastructure Construction Center is a business public unit, has a tax code: 1800578031, registered the VAT under the deduction method. Clause 1, Article 5 of Circular No. 219/2013 / TT-BTC guiding the case of non-declaration and payment of VAT:

"1. Organizations and individuals receive remittances in cash compensation (including compensation for land and property on land when land is recovered according to the decision of the competent State authorities ), bonuses, grants, money for tranfering emission rights and other financial charges.

Business establishments after receiving proceeds on compensation, bonuses, grants, money for transferring emission rights and other financial charges, shall have to write the receipts in accordance with the provision.  For business establishments which spend money, shall have to provide payment vouchers based on the purpose of spending money.

In case compensation of goods and services, the compensation establishment must have invoices, declare and calculate the VAT as the same for sales of goods and services; compensation receiving establishment must declares and deducts the VAT in accordance with the provision.

Where business establishments receive money from organizations and individuals to perform services for organizations and individuals such as repairation, guarantee, promotion, advertisement, they must declare and pay taxes according to provision.

Example 15: ABC Milk Joint Stock Company spends money for the distributors (the organizations and individuals are doing business) to carry out promotions (as stipulated by the law on trade promotion activities), marketing, displaying products for the company (the distributors receive these money to perform services for the company), when receiving, in case distributors are payable the VAT by deduction method of making VAT invoices and calculation of VAT with tax rate of 10%.  In case distributors are payable the VAT by direct method, they shall use the bills of sales and determine the amount of payable tax under the percentage (%) of revenue as prescribed ".

 Base on the provisions above, in case the Thot Not (Can Tho) Industrial Park Infrastructure Construction Center receive some money to support implementation of the meter installation wastewater flow to the wastewater treatment charge of the business, when collecting money they have to provide  VAT invoice at the rate of 10%, to declare VAT and company income tax as prescribed.


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


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