Question:
Our company specializes in trading goods and services that are exempt from VAT. Both input and output goods are not subject to VAT. So, do we have to submit VAT declaration form 01/GTGT on a quarterly basis?
Answer:
Based on Point 7 of Official Letter No. 4943/TCT-KK dated November 23, 2015, issued by the General Department of Taxation providing guidance on certain difficulties in tax declaration and supplementary tax declaration documents, “In the case where the taxpayer only produces and trades goods or services that are not subject to VAT, there is no need to declare or pay VAT. However, if there are sales of goods or services that are subject to VAT (for example, asset liquidation, etc.), the taxpayer must use invoices issued by the tax authority and pay VAT according to regulations.
