What are regulations on VAT payment of press agencies which self-finance part of their operations in Vietnam?

What are regulations on VAT payment of press agencies which self-finance part of their operations in Vietnam? (Illustrative photo)

Article 3 Circular 150/2010/TT-BTC stipulates the VAT payment of press agencies which self-finance part of their operations as follows:

- press agencies which self-finance part of their operations with revenue from advertising activities that have full invoices, documents as per the policies, or has sufficient conditions to accurately determine the revenue from selling goods and services as per contracts and payment documents and can accurately determine the deductible input VAT as per regulations shall declare, deduct, and pay VAT like a fully self-financing press agency.

- The press agency is not entitled to declare or deduct VAT for goods and services purchased using state budget sources.

- In cases where press agencies which self-finance part of their operations has full invoices for goods and services sold according to policies or sufficient conditions to accurately determine the revenue from selling goods and services as per contracts and payment documents but does not have enough invoices for purchased goods and services or cannot accurately determine the deductible input VAT as per regulations, it shall declare and pay VAT according to the direct calculation method on VAT.

- The payable VAT amount is determined as follows:

Revenue x VAT rate (%) on revenue x VAT rate of goods and services sold.

- The VAT rate (%) on revenue used as the basis to determine VAT value is as follows:

- Trading (distribution, supply of goods): 10%- Services, construction (excluding construction with supplied materials): 50%- Manufacturing, transportation, services associated with goods, construction with supplied materials: 30%

To change the VAT calculation method from the deduction method to the direct calculation method on VAT, and vice versa, press agencies which self-finance part of their operations must send a written request to the directly managing tax authority for approval of the change in VAT calculation method. Within ten working days from the receipt of the written request to change the VAT calculation method, the tax authority is responsible for checking and responding in writing whether to approve or not approve the request to change the VAT calculation method.

See further details at: Circular 150/2010/TT-BTC, effective from November 11, 2010.

Nguyen Phu

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE