Business VAT declaration according to the deduction method when purchasing goods and services of companies that declare taxes under the direct method. Accountants will receive input invoices that are sales invoices, also known as direct invoices (not VAT invoices). So is direct invoice tax deductible? How to declare Tax?
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Are direct invoices tax deductible?
– Enterprisesdeclaring VAT by deduction method when buying goods and services from companies declaring tax by direct method, they will receive input invoices which are sales invoices or still called direct invoice (not VAT invoice).
– These input sales invoices (not VAT invoices) are not required to declare VAT, not subject to VAT deduction -> Only accounted as expenses when calculating CIT.
Can direct invoices be VAT deductible?< /b>
Based on Clause 10, Article 1 of Circular 26/2015/TT-BTC then ddconditions for deduction of input value added tax “ span>Have a legal value-added invoice of purchased goods or services or receipts of value added tax payment at the stage of importation or receipts of VAT payment on behalf of foreign parties according to the guidance of the Ministry of Finance applicable to foreign organizations without Vietnamese legal status and foreign individuals doing business or earning income in Vietnam” à So, with this regulation, if you want to be able to deduct input VAT, you must have an invoice VAT invoice.
Are direct invoices required to declare tax?
– According to Dispatch No. 3430/TCT-KK dated August 21, 2014 of the General Department of Taxation on declaration sales invoice “Reply to Official Dispatch No. 2046/CT-TTHT dated May 21, 2014 of City Tax Department Da Nang proposed to guide problems on declaration of sales invoices, the General Department of Taxation has the following comments:
1. About instructions for declaration of general sales invoices< /i>
Regular sales invoice (not a VAT invoice) should not be included Invoice list , documents of goods and services purchased (form 01-2/GTGT) for VAT payers by the deduction method”.
– According to Official Letter 736/CT-TTHT dated May 4, 2013 of the Tax Department of Lao Cai province, guiding the declaration of ordinary invoices, specifically as follows: “For normal sales invoice numbers (not VAT invoices), the Company doesn’t declare in the list of invoices and vouchers for goods and services. purchase form 01-2/GTGT. This invoice, if it meets the conditions as prescribed in the Law on Corporate Income Tax, the Company “deducts” when determining taxable income when calculating CIT”
Like that: Currently, the appendices 01-1 and 01-2 on the HTKK software have also been removed, so you do not need to declare any more (or) declare it directly in Criterion 23 on Declaration 01/ VAT.
Are sales invoices included in expenses?< /b>
Based on clause 1, article 4 of Circular 96/2015/TT- BTC regulation:
“Minus the non-deductible expenses mentioned in Clause 2 of this Article, enterprises are allowed to deduct all amounts pay if all of the following conditions are met:
a) Actual expenses incurred related to production and business activities of the enterprise.
b) Expenses with sufficient legal invoices and documents as prescribed by law.
c) Expenses if there is an invoice for buying goods and services each time with a value of 20 million VND or more (price includes VAT) must have proof of non-cash payment upon payment.”
Thus: Sales invoices are included in deductible expenses when calculating CIT.
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