Question:
Our company operates as an intermediary in selling electronic invoices for a company specialized in providing electronic invoice software. Since the telecommunications company develops its electronic invoice software in-house, it is exempt from VAT. Now, we would like to inquire: when our company achieves a sales volume of 10 million VND, the telecommunications company issues an invoice to the customer and grants us a commission of 1 million VND. We would like to know whether the invoice for this commission of 1 million VND that we issue to the telecommunications company is exempt from VAT, or is the VAT rate 10%?
Answer:
-Based on Point 21 of Article 4, Point e of Article 7, and Article 11 of Circular No. 219/2013/TT-BTC dated December 31, 2013, issued by the Ministry of Finance, providing guidance on VAT.
-Based on Official Letter No. 4268/TCT-CS dated November 1, 2018, from the General Department of Taxation regarding electronic invoices.
-Based on the above regulations:
- It is recommended that the telecommunications company, which is the company that develops its electronic invoice software in-house, should contact the relevant telecommunications information management agency to establish specific criteria for determining whether the services provided by your company fall under the category of software products or services.
- In the case where your company acts as an intermediary in selling electronic invoices for a company that specializes in providing electronic invoice software and receives a commission, the general principles are as follows:
+ If the electronic invoice software is determined by the competent authority to be software products or software services, when your company receives the commission, it should issue a VAT invoice without specifying the tax rate, and the tax amount should be zero, following the provisions in Point e of Article 7, Article 5 of Circular No. 219/2013/TT-BTC issued by the Ministry of Finance.
+ If the electronic invoice software is determined not to be software products or software services by the competent authority, when your company receives the commission, you should issue a VAT invoice, calculate, and declare VAT at the rate of 10%.
