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According to this Official Letter, after the seller issues invoice and declares tax, if the buyer breachesthe agreement and all parties decide to cancel the contract, the issued invoice shall be allowed to process as the case of returned goods at Point 2.8, Appendix 04 of Circular 39/2014/TT-BTC.
The seller baseson the agreement ofinvoice cancellation between all parties and the documents of invoice cancellation as guidedat Point 2.8, Appendix 04 above to declare the adjustment of sales and output VAT.
If the Company produces molds for foreign customers, but does not export and keeps to continue producing other products, when receiving money for molds, the Company must issue VAT invoice with 10% tax rate, itcan not be entitled to 0% VAT.
According to Clause 1,Article 9 of the Circular 219/2013/TT-BTC, in order to be entitled to 0% VAT, export goods must be shipped abroad or to non-tariff zones.
According to this Official Letter,ifthe Representativeoffice has rented an apartment in a long term for employees from the holding company to stay inshort-day business trips in Vietnam, the rental fees including water and electricity fee shall besubject to PIT.
The PIT taxable income is the amount of rental fee calculated on the number of days that the foreign employee actually stays in this apartment.
Pursuant to Point a, Clause 1, Article 6, Circular 111/2013/TT-BTC, the foreigner who stays in Vietnam from 183 days in 12 consecutive months from the arrival date to Vietnam is a resident individual.
However, in this case, the first tax year of the foreigner is not the calendar year, it is the 12 consecutive months from the first arrival date to Vietnam.The second tax year onward shall be determined by each calendar year.
Example: A foreigner who first cameto Vietnam for working from July 2017. Until June 2018 (12 consecutive months), if he stayed in Vietnam 183 days, he was a resident individual. The first tax period is from July 2017 to June 2018, the second tax period is from January 2018 to December 2018.
According to Clause 2.16, Article 4 of Circular 96/2015/TT-BTC, the prepayment of rental fee of fixed assets is allocated by the number of years of prepayment. However, the repair cost of leased fixed assets is recorded at once or allocated to expenses in the term not exceeding 3 years.
Therefore, if the Company leases a house of an individual for operation and is responsible for repairing the house, the repair cost will be recorded at once or allocated within maximum 3 years.
In case the Company decides to allocate the repair cost within 3 years, if the Company terminates the rental contract early due to ineffective business, the repair cost which has not yet been fully allocated is still considered as reasonable expenses.
In case the Company purchases the software online from a foreign supplier, the Company are responsible for with holding, declaring and paying foreign contractor tax (FCT) on behalf in accordance with Article 11, 12, 13 of Circular 103/2014/TT-BTC.
The Company is allowed to record the cost of software if it is actually related to the production and business activities and meets the conditions on invoices and payment documents as regulation in Article 4 of Circular 96/2015/TT-BTC.
If the foreign supplier does not use invoices as Vietnam regulations, the Company has to show the FCT declarations and payment vouchers as evidence of expense accounting.