Abolition of Example Guides on Calculating Deductible Land Prices for VAT Calculation

On August 30, 2018, the Ministry of Finance issued Circular 82/2018/TT-BTC, abolishing the content of Example 37 stipulated in Point a.4, Clause 10, Article 7 of Circular 219/2013/TT-BTC, which provides guidance on the implementation of the Law on Value-Added Tax and Decree 209/2013/ND-CP detailing and guiding the implementation of certain articles of the Law on Value-Added Tax.

Circular 82 has abolished example 37 of Circular 219/2013/TT-BTC, other contents will continue to be implemented.

To be specific:Example 37: In August 2013, Company A received a transfer (purchase) of 200m² of land from individual B in Binh An Residential Area, province X with a transfer price of 6 billion VND. Company A has a notarized land use right transfer contract in accordance with the provisions of the land law, and payment documents for individual B amounting to 6 billion VND. Company A did not invest in any construction on this land. In October 2014, Company A transferred the piece of land purchased from individual B mentioned above for 9 billion VND (resold it for 9 billion VND), then Company A issued a VAT invoice and declared, paid VAT; the deductible land price in the VAT taxable price is the land price at the time of receiving the transfer (6 billion VND).

Circular 82/2018/TT-BTC is effective from October 15, 2018.

- Thanh Lam -

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