Timing for calculating VAT

• Announcement on the 2017 Vietnam CPA and CA conversion exam
• Foreign contractor taxes on imported goods from oversea to Vietnam
• Conditions for deducting and refunding input VAT on exported goods and services

Timing for determining VAT obligation

According to Article 8 on timing for VAT calculation:

1. For goods sale, VAT shall be calculated when the ownership or the right to use goods is transferred to the buyer, whether the payment is made or not.

2. For service provision, VAT shall be calculated when service provision is completed or when the invoice for service provision is made, whether the payment is made or not.

For telecommunications services, VAT shall be calculated when comparing the data about telecommunications charge according to the contracts between telecommunications service providers, but not later than 2 months from the month in which the charge is incurred.

3. For electricity and water supply, VAT shall be calculated when the electricity or water consumption is recorded.

4. For real estate trading, construction of infrastructural works, houses for sale or for lease, VAT shall be  calculated when money is collected according to the project schedule or the contract. The taxpayer shall declare output VAT incurred in the tax period according to collected amount.

5. For construction and installation, including shipbuilding, VAT shall be calculated when the construction or a work is completed and put into use, Whether the payment is made or not.

6. For imported goods, VAT shall be calculated when the customs declaration is registered.