Notary Office with an annual revenue from goods and services sales of one billion VND or more: What tax declaration method should be applied?

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Invoices and documents in the purchase and sale of goods, services by the notary office are regulated as follows?

According to Clause 1, Article 14 of the Law on Value-Added Tax 2008 regulating invoices and documents as follows:

Invoices and Documents

1. The purchase and sale of goods and services must have invoices and documents according to the provisions of law and the following regulations:

a) Business establishments that pay tax by the deduction method use value-added tax invoices; the invoice must be fully and accurately filled in with the required contents, including surcharges and additional fees (if any). In case of selling goods and services subject to value-added tax, if the value-added tax invoice does not state the value-added tax, the output value-added tax will be determined by the payment price on the invoice multiplied by the value-added tax rate, except for the case specified in Clause 2 of this Article;

b) Business establishments that pay tax by the direct calculation method on the added value use sales invoices.

Thus, the notary office with annual revenue from the sale of goods and provision of services of one billion dong or more must fully comply with accounting policies, invoices, and documents according to the provisions of law on accounting, invoices, and documents as stipulated above.

Notary office with annual revenue from the sale of goods, services of one billion dong or more declares tax by which method? (Image from the Internet)

How is the value-added tax deduction for the notary office with annual revenue from the sale of goods, provision of services instructed?

Based on the regulations at Clause 1, Article 12 of Circular 219/2013/TT-BTC guiding the tax deduction method as follows:

Tax Deduction Method

1. The tax deduction method applies to business establishments that fully comply with accounting policies, invoices, and documents according to the provisions of law on accounting, invoices, and documents, including:

a) Operating business establishments with annual revenue from the sale of goods and provision of services of one billion dong or more, and fully comply with accounting policies, invoices, and documents according to the provisions of law on accounting, invoices, and documents, except for households, individual businesses paying tax by the direct calculation method guided in Article 13 of this Circular;

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According to Official Dispatch 2655/TCT-CS in 2022 regarding value-added tax policy issued by the General Department of Taxation on July 25, 2022, as follows:

In case the notary office has annual revenue from the sale of goods and provision of services of one billion dong or more and fully complies with accounting policies, invoices, and documents according to the provisions of law on accounting, invoices, and documents, it is subject to the tax deduction method and uses value-added tax invoices.

The basis for determining revenue for notary offices with annual revenue from one billion dong or more to pay value-added tax is how?

Based on Clause 2, Article 12 of Circular 219/2013/TT-BTC on annual revenue from one billion dong or more as the basis for determining business establishments paying value-added tax by the tax deduction method is determined as follows:

Tax Deduction Method

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2. Annual revenue from one billion dong or more as the basis for determining that business establishments pay value-added tax by the tax deduction method as guided in point a, clause 1 of this Article is the revenue from the sale of goods, provision of services subject to value-added tax, and is determined as follows:

a) Annual revenue is self-determined by the business establishment based on the total of the indicator "Total revenue of goods and services sold out subject to value-added tax" on the monthly value-added tax declaration form of the tax period from November of the previous year to the end of the tax period in October of the current year before the year of determining the value-added tax calculation method, or on the quarterly value-added tax declaration form of the tax period from the fourth quarter of the previous year to the end of the tax period in the third quarter of the current year before the year of determining the value-added tax calculation method. The time of applying the tax calculation method is stable for 2 consecutive years.

b) In case the enterprise is newly established in 2013 and engages in production and business activities in 2013 for less than 12 months, the estimated annual revenue is determined as follows: The total of the indicator "Total revenue of goods and services sold out subject to value-added tax" on the value-added tax declaration form of the tax period of the months of production and business activities divided by (:) the number of months of production and business activities and multiplied by (x) 12 months. In case the estimated revenue determined as above is one billion dong or more, the enterprise applies the tax deduction method. If the estimated revenue determined as above is less than one billion dong, the enterprise applies the direct calculation method for two years, except for cases where the enterprise voluntarily registers to apply the tax deduction method.

c) In case the enterprise declares tax by quarter from July 2013, the revenue of the year is determined as follows: The total of the indicator "Total revenue of goods and services sold out subject to value-added tax" on the value-added tax declaration form of the tax period of months 10, 11, 12 in 2012, the first 6 months of 2013, and the value-added tax declaration form of the tax period of the third quarter in 2013. In case the revenue determined as above is one billion dong or more, the enterprise applies the tax deduction method. If the revenue determined as above is less than one billion dong, the enterprise applies the direct calculation method for two years, except for cases where the enterprise voluntarily registers to apply the tax deduction method.

d) For business establishments temporarily suspending business activities for the entire year, it is determined according to the revenue of the year before the suspension of business activities.

- For business establishments temporarily suspending business activities for a certain period of the year, the revenue is determined according to the number of months, quarters actually engaging in business activities as guided in point b of this clause.

- In case the business establishment engages in business activities for less than 12 months in the year before the suspension of business activities, the revenue is determined according to the number of months, quarters actually engaging in business activities as guided in point b of this clause.

Thus, according to the regulations, the annual revenue from one billion dong or more as the basis for determining business establishments paying value-added tax by the tax deduction method is determined as above.