Question:
Our company purchases vodka from our subsidiary company for the purpose of giving it as gifts to customers and for entertaining guests. When giving gifts to customers, we issue the required gift invoices. However, when we issue vodka to the company’s leadership and branch directors for entertaining guests as part of our business activities, what documents does our company need to have in order to record the expenses that can be deducted?
Answer:
Based on Circular No. 219/2013/TT-BTC dated December 31, 2013, by the Ministry of Finance, providing guidance on VAT.
Based on Clause 2, Article 3 of Circular No. 119/2014/TT-BTC dated August 25, 2014, by the Ministry of Finance, amending and supplementing Clause 4 of Article 7 of Circular No. 219/2013/TT-BTC dated December 31, 2013, by the Ministry of Finance, regarding VAT calculation for products and goods consumed internally.
Based on Circular No. 39/2014/TT-BTC dated March 31, 2014, by the Ministry of Finance, providing guidance on invoices and documents for the sale of goods and provision of services.
Based on Article 4 of Circular No. 96/2015/TT-BTC dated June 22, 2015, by the Ministry of Finance, amending and supplementing Article 6 of Circular No. 78/2014/TT-BTC dated June 18, 2014, by the Ministry of Finance, providing guidance on corporate income tax, which regulates deductible and non-deductible expenses. In the case that the company purchases goods for gifting and entertaining guests, when the company issues goods for gifting to customers, the company creates VAT invoices, calculates and declares VAT. In the case that the company issues goods for entertaining guests as part of its business activities, the company generates a delivery note and does not need to calculate and declare VAT. If the expenses meet the conditions specified in Article 4 of Circular No. 96/2015/TT-BTC, they can be deducted as expenses when determining taxable income for corporate income tax.
Question:
Recently, our company was audited by the tax authority. During the audit of our input VAT invoices, the tax authority found that some of the invoices we received were not valid because at the time of the tax audit, the supplier had their tax code suspended due to not operating at their registered business address. However, at the time when we purchased the goods, the supplier was operating normally. Unfortunately, the supplier did not inform us of the issuance of those invoices and did not report the use of those invoices. As a result, our company had to exclude those invoices, even though we could prove that the purchase of goods and services was completely legitimate. After our company completed the tax inspection, the supplier has reinstated their tax code, and the supplier has issued new invoices to replace the invalid ones mentioned above. So, we would like to ask: Can we declare VAT deduction for the new invoices issued by the supplier to replace the invalid ones? How should we record these invoices in our accounting books?
Answer:
Based on Clause 5, Article 10 of Circular No. 156/2013/TT-BTC dated November 6, 2013, by the Ministry of Finance, guiding the implementation of certain provisions of the Tax Management Law regarding supplementary declarations, adjustments to tax declarations, in principle, enterprises that have been audited or inspected by tax authorities leading to a reduction in the amount of tax payable, an increase in the amount of tax already refunded, or an increase in the amount of tax deductible, are not allowed to make supplementary declarations or adjustments as prescribed. In the case that your company has been audited by the tax authority, and some of the input invoices were found to be invalid, resulting in the reduction of deductible input VAT and exclusion of those invoices, your company is not allowed to make adjustments or supplementary declarations for these invoices according to the regulations.
Question:
Our company purchases goods in Germany and exports them directly to Madagascar without importing them into Vietnam. Does our company need to issue invoices for tax declaration purposes?
Answer:
Based on Article 9 of Circular No. 219/2013/TT-BTC dated December 31, 2013, by the Ministry of Finance, which regulates a 0% VAT rate, in the case that your company purchases goods in Germany and sells them to customers in Madagascar without importing the goods into Vietnam, this case is considered as goods sold at a place of delivery outside of Vietnam. Your company can apply a 0% VAT rate if it meets the conditions specified in Clause 2.a of Article 9 of Circular No. 219/2013/TT-BTC
