Mr. Pham Anh Loc’s Company (in Ho Chi Minh City) was established in 2011, operating in the field of cleaning and tending services, with a turnover of about VND 15 billion / year.

His company is applying to calculate VAT by deduction method. The Company does not buy fixed assets and input goods, so there is no input VAT.

Mr. Loc would like to ask, is your company willing to switch to the method of calculating VAT directly on turnover? If possible, what procedures should the company do?

Regarding this issue, Ho Chi Minh City Tax Department has the following opinion:

Pursuant to Clause 1a, Article 12 of the Ministry of Finance's Circular No. 219/2013 / TT-BTC dated December 31, 2013, guiding VAT:

"First. The tax credit method applicable to business establishments that fully comply with the accounting, invoice and voucher regimes prescribed by the legislation on accounting, invoices and documents that include:

a) Business establishments that are operating with annual revenue from goods sale and service provision of VND 1 billion or more and fully comply with the accounting, invoice and voucher regimes as prescribed by law. on accounting, invoices, vouchers, business households and individuals paying taxes by the method of direct calculation guided in Article 13 of this Circular”.

Based on the above provisions, according to the presentation, Mr. Loc's company was established in 2011, the turnover is about VND 15 billion / year and the accounting, invoice and voucher regimes are prescribed as applicable. The method of calculating VAT by the deduction method must not transfer to the direct method.

Ho Chi Minh City Tax Department. informed Mr. Loc to comply with the provisions of the legal documents cited in this document”.

Based on the above provisions, according to the presentation, Mr. Loc's company was established in 2011, the turnover is about VND 15 billion / year and the regime of accounting, invoices and vouchers as prescribed is in the case of the method of calculating VAT by the deduction method must not transfer to the direct method.