Which account is used for output VAT ccounting in Vietnam? When is the VAT invoice used in Vietnam?

Which account is used for output VAT ccounting in Vietnam?

According to Clause 3, Article 52 of Circular 200/2014/TT-BTC, the accounting is specified as follows:

- Output VAT Accounting (Account 33311)

+ Output VAT accounting for payment under the deduction method:

When issuing VAT invoices under the deduction method and the enterprise pays VAT based on the deduction method, accounting reflects revenue and income at pre-VAT sales prices, and the VAT payable is separately recorded at the time of invoice issuance, as follows:

Debit to Accounts 111, 112, 131 (total payment amount)

Credit to Accounts 511, 515, 711 (pre-VAT prices)

Credit to Account 3331 – VAT payable (33311).

+ Output VAT accounting for payment under the direct method:

Accounting can choose one of the following two ledger methods:

Method 1: Separate the VAT payable immediately upon invoice issuance, execute as outlined in point a above.

Method 2: Record revenue including VAT payable under the direct method. Periodically, when determining the VAT payable, accounting records the reduction in revenue and corresponding income:

Debit to Accounts 511, 515, 711

Credit to Account 3331 – VAT payable (33311).

+ When paying VAT to the State Budget, record:

Debit to Account 3331 – VAT payable

Credit to Accounts 111, 112.

Thus, output VAT accounting is Account 33311.

Which account is used for output VAT ccounting in Vietnam? When is the VAT invoice used in Vietnam? (Image from the Internet)

When is the VAT invoice used in Vietnam?

Article 8 of Decree 123/2020/ND-CP provides regulations on invoice types as follows:

Invoice Types

Invoices stipulated in this Decree include the following types:

1. VAT invoices are reserved for organizations declaring VAT by the deduction method for activities involving:

a) Sale of goods, provision of services domestically;

b) International transportation activities;

c) Exporting to non-tariff zones and cases considered as export;

d) Export of goods, provision of services abroad.

2. Sales invoices are intended for the following organizations and individuals:

a) Organizations and individuals declare and calculate VAT by the direct method for activities involving:

- Sale of goods, provision of services domestically;

- International transportation activities;

- Exporting to non-tariff zones and cases considered as export;

- Export of goods, provision of services abroad.

b) Organizations and individuals in non-tariff zones when selling goods, providing services domestically and when transacting between organizations and individuals in non-tariff zones, exporting goods, providing services abroad, must specify "For organizations and individuals in non-tariff zones" on the invoice.

...

Thus, electronic invoices are used when organizations declare VAT by the deduction method for:

- Sale of goods, provision of services domestically;

- International transportation activities;

- Exports to non-tariff zones and cases considered as exports;

- Exportation of goods and provision of services abroad.

What is the content of the Accounting for output VAT - Account 33311 in Vietnam?

According to Clause 3, Article 52 of Circular 200/2014/TT-BTC, the accounting is specified as follows:

- Import VAT Accounting (Account 33312)

+ When importing materials, goods, fixed assets, accounting reflects the payable import tax, the total payment amount, and the value of imported materials, goods, and fixed assets (excluding import VAT), record:

Debit to Accounts 152, 153, 156, 211, 611,...

Credit to Account 333 – Taxes and amounts payable to the State (3333)

Credit to Accounts 111, 112, 331,...

+ Reflect the payable import VAT:

If the import VAT payable is deductible, record:

Debit to Account 133 – Deductible VAT

Credit to Account 3331 – VAT payable (33312).

If the payable import VAT is non-deductible, it must be included in the value of imported materials, goods, fixed assets, record:

Debit to Accounts 152, 153, 156, 211, 611,...

Credit to Account 3331 – VAT payable (33312).

+ When actually paying import VAT to the State Budget, record:

Debit to Account 3331 – VAT payable (33312)

Credit to Accounts 111, 112,...

+ In the case of entrusted import (applicable to the entrusting party)

Upon receiving notification of the import VAT payment obligation from the entrusted party, the entrusting party records the deductible import VAT payable, record:

Debit to Account 133 – Deductible VAT

Credit to Account 3331 – VAT payable (33312).

When receiving documents of tax payment to the State Budget from the entrusted party, the entrusting party reflects the reduction in the obligation to the State Budget concerning import VAT, record:

Debit to Account 3331 – VAT payable (33312)

Credit to Accounts 111, 112 (if payment is made to the entrusted party immediately)

Credit to Account 3388 – Other payables (if the import VAT has not been paid to the entrusted party)

Credit to Account 138 – Other receivables (reduce the amount advanced to the entrusted party for paying import VAT)

The entrusted party does not reflect the payable import VAT like the entrusting party but only records the amount paid on behalf of the entrusting party, record:

Debit to Account 138 – Other receivables (to recover the amount paid on behalf)

Debit to Account 3388 – Other payables (deduct from the amount received from the entrusting party)

Credit to Accounts 111, 112.

Deductible VAT Accounting

Periodically, accounting calculates and determines the deductible VAT against the output VAT payable during the period, record:

Debit to Account 3331 – VAT payable (33311)

Credit to Account 133 – Deductible VAT.

If at the time a transaction occurs, it is not clear whether the input VAT for goods or services is deductible, accounting records the total input VAT on Account 133. Periodically, when determining non-deductible VAT with output VAT, accounting reflects it in the related costs, record:

Debit to Account 632 – Cost of Goods Sold (non-deductible input VAT for sold inventory)

Debit to Accounts 641, 642 (non-deductible input VAT for selling and administrative expenses)

Credit to Account 133 – Deductible VAT.

Reduced Payable VAT Accounting

If the enterprise is granted a reduction in payable VAT, accounting records the reduced VAT into other income, record:

Debit to Account 33311 – VAT payable (if subtracted from the payable tax)

Debit to Accounts 111, 112 – If the reduction is received in cash

Credit to Account 711 – Other income.

Refundable Input VAT Accounting

If the enterprise receives a VAT refund according to the law due to input VAT exceeding output VAT, record:

Debit to Accounts 111, 112

Credit to Account 133 – Deductible VAT.

Thus, the Accounting for output VAT - Account 33311 reflects the payable import tax, the total payment amount, and the value of imported materials, goods, and fixed assets (excluding import VAT).