22 December 2021
Binh Duong Province Tax Department issued the Official Letter No. 11480/CTHDU-TTHT dated 29 November 2021 with the following contents:
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In case the enterprise provides freight support for customers and money support for distributors to bring goods to the construction site, and these support amounts are accompanied by conditions (repair, warranty, promotion, advertising, etc.) stated in the contract in order to promote the consumption of the enterprise's products, when receiving the support amount, the customer makes a VAT invoice for the business and must declare and pay VAT according to the laws.
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For the support amount without conditions, it is not required to declare, calculate and pay VAT. When customers receive this support amount, they must prepare receipts according to the laws. Enterprises shall base on spending purposes to make payment receipts.
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In case the enterprise has monetary compensation for damage to customers, this compensation amount is not subject to VAT declaration and calculation according to the laws. When customers receive this support amount, they must prepare receipts according to the laws. Enterprises based on spending purposes to make payment receipts.
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