Are invoices that have been changed eligible for input VAT deduction in Vietnam?

Are invoices that have been changed eligible for input VAT deduction in Vietnam?

Pursuant to Clause 15, Article 14 of Circular 219/2013/TT-BTC, regulations on businesses not eligible for VAT deduction are as follows:

Principle of Input Value-Added Tax Deduction

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15. Businesses are not eligible for input VAT deduction in the following cases:

- The VAT invoice is used not in accordance with the law, such as a VAT invoice not stating VAT (except for special cases where the VAT invoice stating the payment price includes VAT);

- The invoice does not record or incorrectly records details such as the seller's name, address, or tax code, making the seller unidentifiable;

- The invoice does not record or incorrectly records details such as the buyer's name, address, or tax code, making the buyer unidentifiable (except as guided in Clause 12 of this Article);

- Fake VAT invoices, changed invoices, or blank invoices (without accompanying goods or services);*

- Invoices recording values inaccurately reflecting the actual value of purchased, sold, or exchanged goods and services.

16. Other specific cases are implemented according to separate guidance from the Ministry of Finance.

Based on the above regulations, an changed invoice will not be eligible for input VAT deduction.

Are invoices that have been changed eligible for input VAT deduction in Vietnam? (Image from Internet)

What are cases of VAT refund in Vietnam?

Based on Article 13 of the Law on Value-Added Tax 2008, amended by Clause 7, Article 1 of the Amendment to the Law on Value-Added Tax 2013, and further amended by Clause 3, Article 1 of the Law on Value-Added Tax, Excise Tax Law, and Tax Administration Law Amendment 2016, the cases for VAT refund are as follows:

- Businesses paying VAT using the credit method can carry over any unused input VAT from the month or quarter to the next period.

In the case of businesses registered for VAT payment using the credit method with a new investment project in the investment stage, if the input VAT on goods and services purchased for investment has not been deducted and the remaining tax amount is three hundred million dong or more, VAT is refundable.

Businesses are not refunded VAT but can carry forward the undeducted input VAT of investment projects to the next period in accordance with investment law, in cases such as:

+ Investment projects where businesses do not contribute sufficient charter capital as registered; engage in conditional business lines without meeting business conditions according to the Investment Law or do not ensure compliance with business conditions during operation;

+ Investment projects exploiting natural resources and minerals licensed from July 01, 2016, or investment projects producing goods where the total value of natural resources, minerals, and energy costs account for 51% or more of the product price according to the investment project.

- Businesses with exports of goods or services in a month or quarter having undeducted input VAT of three hundred million dong or more are eligible for VAT refund monthly or quarterly, except for goods imported for export, and exported goods not fulfilling the export process under the Customs Law 2014.

The refund is processed before inspection for exporters not violating tax, customs laws continuously for two years; taxpayers not being high-risk according to the Tax Administration Law 2019.

- Businesses paying VAT by the credit method can receive a VAT refund for overpaid taxes or undeducted input VAT when transferring ownership, restructuring such as mergers, consolidations, divisions, dissolutions, bankruptcies, or ceasing operations.

- Foreigners, overseas Vietnamese carrying a passport or entry document granted by foreign authorities are refunded VAT on goods purchased in Vietnam and taken when exiting the country.

- VAT refunds related to programs, projects funded by non-refundable official development assistance (ODA) or humanitarian aid are detailed as follows:

+ Program owners, main contractors, and organizations assigned by foreign donors to manage projects using non-refundable ODA are refunded VAT paid on goods and services purchased in Vietnam for the project;

+ Organizations in Vietnam using non-refundable assistance, humanitarian aid from foreign organizations and individuals to purchase goods and services for assistance programs and projects in Vietnam receive VAT refunds.

- Entities eligible for diplomatic immunity according to diplomacy privilege laws on purchasing goods and services in Vietnam for use receive VAT refunds indicated on VAT invoices or payment documents with stated VAT included.

- Businesses with a VAT refund decision by a competent authority according to the law or cases where VAT refunds are governed by international treaties which Socialist Republic of Vietnam is a member.

Which entities are VAT payers in Vietnam?

According to Article 4 of the Law on Value-Added Tax 2008, entities subject to VAT are specifically prescribed as follows:

VAT payers are organizations and individuals producing, trading goods, and services subject to VAT (hereinafter referred to as business establishments), and organizations and individuals importing goods subject to VAT (hereinafter referred to as importers).