May household businesses issue VAT invoices in Vietnam? When is the time to issue VAT invoices for the sale of confiscated property?

May household businesses issue VAT invoices in Vietnam?

Pursuant to Clause 1, Article 8 of Decree 123/2020/ND-CP, it is stipulated as follows:

Types of Invoice

Invoices stipulated in this Decree include the following types:

1. Value-added tax invoice is an invoice for organizations that declare value-added tax by the deduction method used for the following activities:

a) Sale of goods, provision of services domestically;

b) International transportation activities;

c) Entry into non-tariff zones and other cases considered as exports;

d) Export of goods, provision of services abroad.

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VAT invoices are invoices designated for organizations declaring value-added tax by the deduction method.

Furthermore, according to Clause 2, Article 10 of the Value-Added Tax Law 2008 as amended and supplemented by Clause 4, Article 1 of the Amended Value-Added Tax Law 2013, the deduction method is regulated as follows:

- The deduction method applies to business establishments that fully implement accounting, invoices, and vouchers policies according to the provisions of law on accounting, invoices, and vouchers including:

+ Business establishments with annual revenue from the sale of goods, provision of services of one billion dong or more, except households and individual businesses;

+ Business establishments voluntarily registering for application of the deduction method, except households and individual businesses.

Thus, it can be understood that household businesses do not fall under the entities using the value-added tax deduction method and are not entitled to issue VAT invoices.

May household businesses issue VAT invoices in Vietnam? When is the time to issue VAT invoices for the sale of confiscated property? (Image from Internet)

When is the time to issue VAT invoices for the sale of confiscated property?

According to regulations in Article 9 of Decree 123/2020/ND-CP, the timing for issuing invoices is clearly stipulated as follows:

* Time to Issue Invoices When Selling Goods*

The time to issue invoices for the sale of goods (including state property, confiscated property, property consigned to the state budget, and sales of national reserves) is when the ownership or use rights of the goods are transferred to the buyer, regardless of whether the payment has been received.

* Time to Issue Invoices When Providing Services*

- The time to issue invoices for providing services is when the service provision is completed, regardless of whether the payment has been received or not.

- If the service provider collects money in advance or during service provision, the time to issue the invoice is when money is collected (excluding advance payment collected for contract assurance involving services: accounting, auditing, financial consultancy, tax; valuation; supervision consultancy; surveying, technical design; construction investment project formulation).

Note: In cases of multiple deliveries or handing over of individual parts/phases of service, each delivery or phase must have an invoice for the delivered quantity or value of goods/services.

Thus, the time to issue VAT invoices when selling confiscated property is the time of transfer of ownership or use rights of goods to the buyer, irrespective of whether the payment has been received.

What are VAT invoices used for?

Based on Article 8 of Decree 123/2020/ND-CP, the following is stipulated:

Types of Invoice

Invoices stipulated in this Decree include the following types:

1. Value-added tax invoice is an invoice for organizations declaring value-added tax by the deduction method used for the following activities:

a) Sale of goods, provision of services domestically;

b) International transportation activities;

c) Entry into non-tariff zones and other cases considered as exports;

d) Export of goods, provision of services abroad.

2. Sales invoice is an invoice for organizations and individuals as follows:

a) Organizations and individuals declaring and calculating value-added tax by the direct method for the following activities:

- Sale of goods, provision of services domestically;

- International transportation activities;

- Entry into non-tariff zones and other cases considered as exports;

- Export of goods, provision of services abroad.

b) Organizations and individuals in non-tariff zones when selling goods, providing services to the domestic market and when selling goods, providing services among organizations and individuals in non-tariff zones with each other, export goods, provide services abroad, the invoice should clearly state “For organizations, individuals in non-tariff zones”.

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Thus, VAT invoices are used in the following activities:

- Sale of goods, provision of services domestically;- International transportation activities;- Entry into non-tariff zones and other cases considered as exports;- Export of goods, provision of services abroad.