Công văn 2978/TCT-CS của Tổng cục Thuế về chính sách thuế

THE MINISTRY OF FINANCE
THE GENERAL DEPARTMENT OF TAXATION 

Official Dispatch No. 2978/TCT-CS dated July 06, 2017 of the General Department of Taxation on tax policies

To:Department of Taxation of  Hanoi city.

The General Department of Taxation has received the Official Dispatch No. 32180/CT-TTHT dated May 19, 2017 of the Department of Taxation of Ha Noi city requesting the guidance on the issuance of invoices by accommodation establishments in Vietnam such as hotels and hostels and taxes imposed on online reservation services in Vietnam provided by overseas companies (hereinafter referred to as “foreign contractors”) that fail to satisfy conditions for paying value added tax (VAT) according to credit-invoice method or paying corporate income tax (CIT) on taxable income. Regarding to this issue, the General Department of Taxation hereby provide the following instructions0}

1.Policies on taxes incurred by foreign contractors.

Instructions of Official Dispatch No. 848/BTC-TCT dated January 18, 2017 of the Ministry of Finance shall apply to taxes incurred by foreign contractors.

2.Issuance of invoices by accommodation establishments

Pursuant to Point a Clause 1 Article 16 of Circular No. 39/2014/TT-BTC of the Ministry of Finance on the issuance of invoices.

Pursuant to Clause 2 Article 16 of Circular No. 39/2014/TT-BTC on date of invoices.

Pursuant to Point d Clause 2 Article 26 of Circular  No. 39/2014/TT-BTC on obligations of organizations and individuals selling goods and providing services.

Pursuant to Clause 1 Article 15 of integrated document No. 16/VBHN-BTC dated June 17, 2015 of the Ministry of Finance on conditions for input value-added tax credit.

Pursuant to Article 6 of integrated document No. 26/VBHN-BTC dated September 14, 2015 of the Ministry of Finance on deductible and non-deductible expenses when determining taxable incomes.

Owing to the fact that customers are direct users of room rental services of the accommodation establishment and the foreign contractor is on the broker receiving commissions, the accommodation establishment shall issue invoices to customers based on the prices inclusive of commissions payable to the foreign contractor. The accommodation establishment may include the commissions in deductible expenses when calculating CIT and deduct the VAT paid on behalf of the foreign contractor from the VAT payable in accordance with applicable regulations.

For the General Director

The Director of the Department of Policy

Luu Duc Huy