Question:
Based on Circular No. 93/2017/TT-BTC dated September 19, 2017, amending and supplementing Clause 3, Clause 4 of Article 12 of Circular No. 219/2013/TT-BTC dated December 31, 2013 by the Ministry of Finance (amended and supplemented by Circular No. 119/2014/TT-BTC dated August 25, 2014 by the Ministry of Finance) as follows: “Remove point d of Clause 4 of Article 12 (amended and supplemented by Circular No. 119/2014/TT-BTC dated August 25, 2014 by the Ministry of Finance).”
The company was established on March 12, 2014, and applied the direct tax calculation method on revenue from the year of establishment 2014 until the end of 2019. In 2019, the company achieved sales revenue of 1 billion and maintained complete accounting records, invoices, and supporting documents. Can the company switch to the value-added tax deduction method in this year 2020?
Answer:
Based on Clause 2, Article 12 of Circular No. 219/2013/TT-BTC dated December 31, 2013 by the Ministry of Finance, which guides value-added tax, it stipulates the value-added tax deduction method.
In the case of a company established on March 12, 2014, and applying the direct method of calculating value-added tax on revenue. From 2015 to the end of 2018, the company continued to apply the direct method on revenue. Based on the revenue of 2018, the company applied the direct method on revenue from 2019, so the company must stably declare the method of calculating value-added tax for the years 2019 and 2020. Therefore, in 2020, the company is not allowed to switch to the tax deduction method.
