From January 1, 2017, according to the Law on Fees and Charges, the road user fee will change to the price mechanism (determined by the State), so according to the Law on VAT, the price for road use services is subject to VAT.

From January 1, 2017, according to the Law on Fees and Charges, the tolls will be changed to the price mechanism. 

The Phu Loi  Private Company does business in transporting goods by road through stations with tolls. Through the receiving and responding system to the recommendations of businesses, businesses propose to answer some of the following questions:

- Can corporate road tickets declare VAT withholding?

- Some road tickets write: "VAT included", but do not specify the 10% VAT rate, can they be deducted?

- On tolls, some invoice issuing companies do not print items: Date .... month .... year .... issue invoices. How do businesses deal with these road tickets to claim their deduction? Is the same road ticket valid, is the toll collector valid for the date manually to file withholding?

Regarding this issue, The General Department of Taxation answers as follows:

Pursuant to the Law on Fees and Charges No. 97/2015 / QH13 dated November 25, 2015, effective from January 1, 2017. In Circular No. 39/2014 / TT-BTC dated March 21, 2014 of the Ministry of Finance guiding on invoices for selling goods and providing services as follows:

“Article 3. Type and form of invoice

… 2. Types of invoices:

... c) Other invoices include: stamps; ticket; cards; Insurance receipts

… Article 4. Contents on issued invoices

… 3. In some cases, an invoice does not necessarily contain all required contents:

b) The following cases are not required to have all compulsory contents, except for cases where the buyer is an accounting unit that requires the seller to issue an invoice with all the contents as guided in Clause 1 of this Article:

- For stamps and tickets: On stamps and tickets with pre-printed face value, it is not necessary to have the seller's signature or the seller's seal; name, address, tax code, signature of buyer".

In Article 7, Article 14 of Circular No. 219/2013 / TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the VAT as follows:

“Article 7. Taxable prices:

 12. Taxable prices of the goods and services using special receipts on which the selling prices are VAT-inclusive, such as stamps, bus tickets, lottery tickets, etc.:

Article 14. Principles for input VAT deduction:

1. Input VAT on goods and services serving the manufacture or sale of goods/services subject to VAT shall be deducted in full, including non-refundable input VAT on damaged goods.

…15. Input VAT must not be deducted in the following cases::

- The VAT invoice is not legitimate, such as VAT is not written (except for special invoices on which selling prices are VAT-inclusive);…”

Pursuant to the above provisions and guidelines, before January 1, 2017, in the case of a road project constructed with state budget funds, the road toll ticket shall be collected in accordance with the law on tolls. and the fee is not subject to VAT. In cases where the road construction is not invested by the state budget but managed and exploited by the organization or individual and collects the road toll ticket, if the road toll ticket is notified to issue is the invoice according to regulations and the payment price is VAT inclusive, the above-mentioned road user can declare and deduct input VAT according to regulations.

From January 1, 2017, according to the Law on Fees and Charges, the road use fee will be changed to the price mechanism (determined by the State), so according to the Law on VAT, the price for road use services subject to VAT. Therefore, if the road fare ticket to be issued is an invoice as prescribed and the payment price is inclusive of VAT, the road user is based on the road fare ticket. to declare and deduct input VAT according to regulations.

Proposing the Tax Department of Gia Lai Province to specifically guide the Phu Loi Private Company in declaring and deducting VAT for road fares according to regulations.