Q&A on Tax Policy and Law

Ask:Dear Tax Department, please inform me: My company has purchased and sold goods from a supplier twice in the same day, the total value of the above two invoices is 36 million VND, both invoices were paid in cash. The company declared and deducted tax in August 2015. However, according to regulations, the above two invoices are not eligible for input VAT deduction, so how should we adjust?

Nghe An Tax Department responded as follows:

In Clause 5, Article 10, Circular No. 156/2013/TT-BTC dated November 6, 2013 of the Ministry of Finance guiding the implementation of a number of articles of the Law on Tax Administration and Decree No. 83/2013/ND-CP dated July 22, 2013 of the Government, it is guided that:

“5. Additional declaration of tax declaration documents
a) After the deadline for submitting tax declarations as prescribed, if taxpayers discover that the tax declarations submitted to the Tax Authority contain errors, they may file additional tax declarations.

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Additional tax declaration dossiers can be submitted to the Tax authority on any working day, regardless of the deadline for submitting the next tax declaration dossier, but must be before the Tax authority or competent authority announces the decision to conduct tax audit or tax inspection at the taxpayer's headquarters;...

b) Additional declaration documents
- The tax declaration of the tax period with errors has been supplemented and adjusted;
- Explanation of additional declaration and adjustment form No. 01/KHBS issued with this Circular (in case of additional declaration and adjustment with tax difference);
- Attached documents explaining the figures in the supplementary and adjusted declaration.

c) Cases of additional declaration of tax declaration dossiers
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c. 2) In case the taxpayer makes additional tax declarations that increase the tax payable, the taxpayer shall prepare additional declarations and self-determine the late payment amount based on the increased tax payable, the number of days of late payment, and the late payment rate as prescribed. In case the taxpayer fails to self-determine or incorrectly determines the late payment amount, the Tax authority shall determine the late payment amount and notify the taxpayer.

Based on the above instructions, in case your company has declared input VAT deduction of the above 2 invoices in the tax declaration period of August 2015, the company shall make additional declarations and adjustments to the VAT declaration of August 2015 according to the instructions in Clause 5, Article 10, Circular No. 156/2013/TT-BTC mentioned above, but must be before the Tax authority or competent authority announces the decision to conduct tax inspection and tax audit at the taxpayer's headquarters.

NGHE AN TAX DEPARTMENT