However, the insurance company's invoice is issued directly to each member according to the ratio of the joint venture. The head of the consortium has transferred the fee payment to the whole consortium.

Mr. Ho asked, is it legal for a joint venture member to transfer the premium to the head of the joint venture (while the insurance company's invoice is issued directly to the joint venture member)?

Da Nang City’s Tax Department responded to this problem as follows:

Pursuant to Clause 1, Article 4 of Decree No. 123/2020/ND-CP dated October 19, 2020 of the Government providing for the principles of making, managing and using invoices and documents;

In Clause 4.c, Article 15 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance (amended and supplemented in Circular No. 119/2013/TT-BTC dated May 28,2014 and Circular No. 26/2015/TT-BTC dated December 27, 2015 of the Ministry of Finance guiding cases where purchased goods and services are authorized to be paid through a third party for payment via banks.

Accordingly, in case the insurance company has a contract to provide construction insurance services for each member of the consortium, the insurance company must issue an invoice for each member of the consortium (the buyer).

In case the members of the partnership authorize the head of the partnership (the third party) to pay the insurance company (the seller), this payment must be specified in the contract in the form of a written document according to current regulations.

Please base on the actual situation to compare with relevant regulations and guidelines to comply with the provisions of law.

The Tax Department of Da Nang City replied to Mr. Ho Dong Ho to know. In case you need to discuss further, please contact directly with the Tax Department (Propaganda and Support Department) for guidance or more information about tax policy at the website of the Tax Department of Da Nang City at the address: https://danang.gdt.gov.vn

According to Chinhphu.vn (Government Newspaper)