Conversion of VAT calculation methods
Conversion of VAT calculation methods In official announcement 4526/TCT-KK issued on 05th, November, 2019, General Tax Department has detailed guidance on the procedures of notifying and converting VAT calculation methods from direct method to tax credit method.
According to such official announcement, tax credit method is applied to:
- Operating-business units have revenue from goods trading, services providing from 01 billions Dong and over and implement fully account, bill, reception regulations, excluding business households, individuals paying tax in direct method;
- Business units voluntarily register to apply tax credit method and have annual revenue from VAT taxable goods trading, services providing under 01 billions and implement fully account, bill, reception regulations;
- New established business units that its revenue in the first solar year is 01 billion and over but still implement fully account, bill, reception regulations and voluntarily apply tax credit method…;
To such cases above, if having demand to convert to tax credit method, business units must submit Value Added Tax Return (Form No. 01/GTGT and Form No. 02/GTGT) to tax agencies to account Value Added Tax and at the same time register Value Added Tax calculation method for the next year in tax credit method.
For more details please contact
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