Which account is the output VAT recorded in Vietnam?

Vietnam: Which account is the output VAT recorded?

Account 333 – Taxes and Obligations Payable to the State is stipulated in Clause 2, Article 52 of Circular 200/2014/TT-BTC as follows:

Account 333 – Taxes and Obligations Payable to the State

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2. Structure and content reflected by Account 333 – Taxes and Obligations Payable to the State

Debit:

- The amount of VAT deducted during the period;

- Taxes, fees, charges, and amounts paid to the State Budget;

- Taxes reduced from the amount payable;

- VAT on returned, discounted goods sold.

Credit:

- Output VAT and import VAT payable;

- Taxes, fees, charges, and other amounts payable to the State Budget.

Credit balance:

Taxes, fees, charges, and other amounts remaining payable to the State Budget.

In exceptional cases, Account 333 may have a debit balance. The debit balance (if any) of Account 333 reflects taxes and amounts paid exceeding those payable to the State, or it may reflect taxes paid that are exempt, reduced, or refundable but have not yet been refunded.

Account 333 - Taxes and Obligations Payable to the State includes 9 sub-accounts:

- Account 3331 - VAT Payable: Reflects the output VAT, import VAT payable, deducted VAT, VAT paid, and remaining payable to the State Budget.

Account 3331 includes 2 sub-accounts:

+ Account 33311 - Output VAT: Used to reflect output VAT, deducted input VAT, VAT on returned, discounted goods, VAT payable, paid, and remaining payable for products, goods, services consumed during the period.

+ Account 33312 - Import VAT: Used to reflect import VAT payable, paid, and remaining payable to the State Budget.

- Account 3332 - Special Consumption Tax: Reflects the special consumption tax payable, paid, and remaining payable to the State Budget.

- Account 3333 - Export, Import Duty: Reflects the export and import duty payable, paid, and remaining payable to the State Budget.

- Account 3334 - Corporate Income Tax: Reflects the corporate income tax payable, paid, and remaining payable to the State Budget.

- Account 3335 - Personal Income Tax: Reflects the personal income tax payable, paid, and remaining payable to the State Budget.

- Account 3336 - Natural Resource Tax: Reflects the natural resource tax payable, paid, and remaining payable to the State Budget.

- Account 3337 - Land Tax, Land Rent: Reflects the land tax, land rent payable, paid, and remaining payable to the State Budget.

- Account 3338- Environmental Protection Tax and Other Taxes: Reflects amounts payable, paid, and remaining payable concerning environmental protection tax and other taxes, such as business license tax, taxes paid on behalf of foreign organizations and individuals doing business in Vietnam, etc.

+ Account 33381: Environmental Protection Tax: Reflects the environmental protection tax payable, paid, and remaining payable;

+ Account 33382: Other Taxes: Reflects amounts payable, paid, and remaining for other taxes. Enterprises are allowed to open detailed level 4 accounts for each type of tax suitable for management requirements.

- Account 3339 - Fees, Charges, and Other Obligations Payable: Reflects amounts payable, paid, and remaining for fees, charges, and other obligations to the State outside of those recorded in accounts 3331 to 3338. This account also reflects state subsidies for enterprises (if any), such as subsidies and price support.

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Thus, the output VAT is recorded through Account 33311, which is a level-3 account under Account 3331.

Within this, Account 33311 - Output VAT is used to reflect the output VAT, deducted input VAT, VAT on returned or discounted goods sold, VAT payable, paid, and remaining for products, goods, services consumed during the period.

Which account is the output VAT recorded in Vietnam? (Image from Internet)

How is the output VAT payable recorded in Vietnam?

Based on regulations in Point 3.1.1, Clause 3, Article 52 of Circular 200/2014/TT-BTC, when output VAT payable arises, accountants perform accounting according to several main economic transactions as follows:

(i) Accounting for output VAT payable under the deduction method:

When issuing a VAT invoice using the deduction method and the enterprise pays VAT using the deduction method, revenue and income are recognized without VAT, the VAT payable is recorded separately at the time of invoice issuance, recorded as:

Debit accounts 111, 112, 131 (total payment amount)

Credit accounts 511, 515, 711 (amount excluding VAT)

Credit Account 3331 - VAT Payable (33311).

(ii) Accounting for output VAT payable under the direct method:

Accountants may choose one of two recording methods as follows:

- Method 1: Separate right away the VAT payable upon invoice issuance, performed as point a mentioned above;

- Method 2: Recognize revenue including VAT payable under the direct method, periodically when determining VAT payable, accountants reduce corresponding revenue and income:

Debit accounts 511, 515, 711

Credit Account 3331 - VAT Payable (33311).

Note: When paying VAT into the State Budget, record as:

Debit Account 3331 - VAT Payable

Credit accounts 111, 112.

Is the currency unit in accounting Vietnamese Dong?

Based on the regulations in Article 3 of Circular 200/2014/TT-BTC, the currency unit in accounting is Vietnamese Dong (national symbol “đ”; international symbol “VND”), used for recording in accounting books, preparing, and presenting the financial statements of the enterprise.

In cases where the accounting entity primarily collects and spends in foreign currencies and meets the criteria stipulated in Article 4 of Circular 200/2014/TT-BTC, it can choose one foreign currency as the currency unit for bookkeeping.