What is the guidance on issuing electricity and water bills for real estate leasees in Vietnam?
- What is the guidance on issuing electricity and water bills for real estate leasees in Vietnam?
- What information does the content of the building lease agreement in Vietnam include?
- Which entities are entitled to purchase, receive, rent, or lease purchase real estate from real estate enterprises in Vietnam?
What is the guidance on issuing electricity and water bills for real estate leasees in Vietnam?
The issuance of electricity and water bills for real estate leasees in Vietnam is guided by the Hanoi Tax Department in Official Dispatch 76782/CTHN-TTHT in 2023 as follows:
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Based on the above provisions, in case the Company signs an agreement with a customer, including information on the fee for using tap water. If the invoice bears the name, address and tax identification number of the Company, when collecting this fee, the Company must issue a VAT invoice, applying the VAT rate according to the actual goods supplied and declare and pay VAT according to regulations.
The taxable price for real estate business services, land use rights belonging to the owner, user or leasee includes surcharges and additional fees in addition to the price of goods and services that the Company is entitled to as prescribed in Clause 22 Article 7 of Circular 219/2013/TT-BTC.
The VAT rate shown on the invoice is the VAT rate corresponding to each type of goods and services in accordance with the law on value-added tax as guided in Article 10 of Decree 123/2020/ND-CP.
In case the company provides real estate business services (industry code 6810) under the list of goods and services specified in Appendix I promulgated under the Government's Decree No. 44/2023/ND-CP dated June 10, 2023, the VAT rate of 8% is not applied.
Thus, the issuance of electricity and water bills to real estate leasees is as follows:
In case the building lease agreement between the company and the customer has an agreement to pay for water and electricity bills for customers, in case the electricity and water bill bears the name, address, and tax identification number of the Company, when the company collects the fee, it must be responsible for issuing electricity and water bills to the real estate leasee as follows:
- Issue VAT invoice.
- Apply VAT rate according to the actual goods supplied and declare and pay VAT.
In case the company provides real estate business services (industry code 6810) under the list of goods and services specified in Appendix I promulgated under the Government's Decree No. 44/2023/ND-CP dated June 10, 2023, the VAT rate of 8% is not applied.
What information does the content of the building lease agreement in Vietnam include?
In Article 14 of the 2014 Real Estate Business Law, the content of the building lease agreement in Vietnam includes:
1. Names and addresses of contracting parties;
2. Information about the real estate;
3. Sale, lease, or lease purchase price;
4. Payment method and deadline;
5. Real estate transfer deadline and enclosed documents;
6. Warranty;
7. Rights and obligations of contracting parties;
8. Liability for any breaches of agreement;
9. Penalties for any breaches of agreement;
10. Cases in which the agreement is terminated and solutions;
11. Dispute settlement;
12. Effective date of the agreement.
Which entities are entitled to purchase, receive, rent, or lease purchase real estate from real estate enterprises in Vietnam?
In Article 14 of the 2014 Real Estate Business Law:
Entities entitled to purchase, receive, rent, or lease purchase real estate from real estate enterprises
1. Any Vietnamese organization or individual may purchase, receive, rent, or lease purchase real estate.
2. Overseas Vietnamese or foreign entities may rent real estate for use; may purchase, rent, lease purchase houses as prescribed in laws on housing.
Overseas Vietnamese or foreign-invested companies may purchase, lease purchase buildings for use for offices or business facilities according to their proper utilities.
3. Overseas Vietnamese or real estate foreign-invested companies may purchase, receive, rent, or lease purchase real estate for business as prescribed in Article 11 of this Law.
Thus, entities are entitled to purchase, receive, rent, or lease purchase real estate from real estate enterprises in Vietnam include:
- Any Vietnamese organization or individual.
- Overseas Vietnamese or foreign entities may rent real estate for use; may purchase, rent, lease purchase houses as prescribed in laws on housing.
Overseas Vietnamese are allowed to lease real estate in the following cases:
+ Lease houses for sublease.
+ Lease land of the State for building houses for lease; build houses or constructions other than houses on such land for sale, for lease, or for lease purchase;
+ Lease land of organizations, households or individuals for building houses for lease according to proper land use.
- Real estate foreign-invested companies are allowed to lease real estate in the following cases:
+ Lease houses for sublease.
+ Lease land of the State for building houses for lease; build houses or constructions other than houses on such land for sale, for lease, or lease purchase;
+ Lease land in industrial parks, industrial complexes, export-processing zones, hi-tech zones, or economic zones for building buildings for trading for the proper land use.
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