Is there an adjustment to the tax rate after winning the bid?
Ms. Nguyen Thi Kim Hue (Hanoi) asked: In the process of supplying goods, is it okay if the unit changes the VAT rate compared to the winning bid but does not affect the after-tax price of the goods?
Regarding this issue, Hanoi Tax Department has following opinions:
Pursuant to Article 385 of the Civil Code No. 91/2015 / QH13 dated November 24, 2015 defining the concept of a contract: “A contract is an agreement between the parties on the establishment, change or termination of rights, civil obligation ”.
Article 389 of the Civil Code provides for change or withdrawal of request for conclusion of contract:
“1. An offeror may modify or withdraw an offer to enter into a contract in the following cases:
a) If the offeree receives notice of modification or withdrawal of the offer prior to or at the same time as receipt of the offer;
b) The offeror clearly specified the circumstances in which the offer could be modified or withdrawn and such circumstances have in fact arisen.
2. When the offeror modifies the contents of the offer, that offer shall be deemed to be a new offer.”.
In Article 398 of the Civil Code stipulates the content of the contract: “1. The parties in the contract have the right to agree on the content in the contract ”.”.
Pursuant to the Government's Decree No. 177/2013 / ND-CP dated November 14, 2013 detailing and guiding the implementation of a number of articles of the Price Law.
Pursuant to Clause 2, Article 25 of the 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; Law amending and supplementing a number of articles of the Law on Tax Administration and Decree No. 83/2013 / ND-CP dated July 22, 2013 of the Government, regulating the tax assessment for taxpayers paying tax According to the tax law violation declaration method:
“2. Imposition of each factor related to the determination of tax payable
b) The inspector finds that the taxpayer record incorrect sale prices and purchase prices of goods.
The tax authority may refer to the prices of goods and services announced by a authority, or sale prices, purchase prices of similar companies, or sale prices of a large-scale company that sells the same products to determine appropriate prices”.
Pursuant to Circular No. 219/2013 / TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the implementation of the Law on VAT and the Government's Decree No. 209/2013 / ND-CP dated December 18, 2013 on detailing and guiding the implementation of a number of articles of the Law on VAT:
- In Article 9, the tax rate of 0% is specified.
- - In Article 10, the tax rate of 5% is specified.
- In Article 11, the tax rate of 10% is specified.
- In Clause 5, Article 12 provides guidance on determining payable VAT amount.
Pursuant to Article 20 of Circular No. 39/2014 / TT-BTC dated March 31, 2014 of the Ministry of Finance guiding the implementation of Decree No. 51/2010 / ND-CP dated May 14, 2010 and Decree No. 04 /2014 / ND-CP dated January 17, 2014 of the Government regulates on invoices for selling goods and providing services with instructions on handling used invoices as follows:
“Article 20. Handling of issued invoices …
3. In case an invoice is found incorrect after it is given to the buyer, goods are delivered or services are provided, the buyer and the seller are declared tax, the buyer and the seller shall make a record or a written agreement specifying the errors, then the seller shall make a corrective invoice. The corrective invoice must specify the adjustment (increase or decrease) to the quantity of goods, sale prices, VAT rates, VAT amounts on the invoice No. .... . According to the corrective invoice, the buyer and the seller shall adjust the sales, input tax and output tax. Negative numbers must not be written on the corrective invoices.
4. Instructions on handling issued invoices in some cases are provided in Appendix 4 enclosed herewith.”.
Based on the above regulations, Hanoi Tax Department.responds to the following principles:
Contract means an agreement between parties on the establishment, change or termination of civil rights and obligations. Therefore, the parties in the contract have the right to agree on the content of the contract.
If Ms. Hue's company, in the course of providing goods to the customer, changes the VAT rate different from the VAT rate when winning the bid but does not affect the after-tax price of the goods, her company is requested. study and follow the instructions in Decree No. 177/2013 / ND-CP dated November 14, 2013 and Circular No. 156/2013 / TT-BTC dated November 6, 2013 (on goods selling prices); Circular No. 219/2013 / TT-BTC dated December 31, 2013 (on VAT rate); Circular No. 39/2014 / TT-BTC dated 31/3/2014 (on invoice) above.
In the process of implementation, if any problems arise, the company is requested to provide specific documents and contact the supervisory tax authority for detailed instructions.
By: Online Newspaper of the Government / Translator: HaiYen-Bizic
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