VAT invoice for businesses established from January 01, 2014

Ngoc Truc Co., Ltd. and other companies consulted Pham & Associates about the matter of VAT invoice for businesses established from January 01, 2014.

In this regard, Pham & Associates had the views as follows:

Under the provisions of Circular 219/2013/TT-BTC of the Ministry of Finance dated December 31, 2013, became effective as from January 01, 2014, new businesses established from January 01, had fixed assets, machinery and equipment from 1 billion VND (excluded cars of 9 seats or less for the businesses not operating in the field of transport, tourism, hotel), had to use “direct invoice” (the invoices without VAT).

Prior to the difficulty of businesses as well as Taxation Offices, on March 26, 2014, the Ministry of Finance issued a correspondence no. 3795/BTC-TCT that gave a grace time to allow using VAT invoices to businesses/enterprises which were established from January 01 to February 28, 2014.

A new regulation without a schedule of implementation will cause great difficulties for businesses/enterprises, because:

- The companies doing business in the field of services/trading are very difficult to meet the conditions of fixed assets valued from 1 billion VND. E.g. their fixed assets may be a few computers, facsimile machines, copiers etc.

- In almost cases, the clients are not willing to receive direct invoices.

We do hope that, in the coming time, the Ministry of Finance will have the amendments to solve the difficulties and obstacles to ensure the legitimate rights and interests of new businesses.

For more information about this matter, please contact us via Email: hanoi@pham.com.vn

Pham and Associates