Do you have to issue VAT invoices?

Only VAT-registered businesses can issue VAT invoices and if you’re VAT-registered, you must issue a VAT invoice whenever you supply standard rate or reduced rate goods or services to another VAT-registered person. Normally you must issue a VAT invoice within 30 days of the date you make the supply.

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What is VAT invoice in Vietnam?

VAT Invoices A VAT invoice is an invoice reserved for organizations and individuals that declare and calculate VAT by the credit method in the following activities: Sale of goods and provision of services inland; International transport; Export of goods into non-tariff zones and cases regarded as export.

Is VAT applicable in Vietnam?

Value-added tax (VAT) VAT applies to goods and services used for production, trading, and consumption in Vietnam (including goods and services purchased from non-residents), with certain exemptions.

How do I get a VAT invoice?

Each invoice must include:

The same invoice number, date and address information as detailed above.
The new VAT registration number, which must now be added to all invoices.
A description of the services to which the VAT applies.
The prevailing rate (currently 20% for typical contractor services)
The actual VAT amount.

When can you issue a VAT only invoice?

Accounting Records It’s worth bearing in mind that, ordinarily, a VAT invoice should be issued within 30 days of the date of supply or the date of payment (where you’re paid in advance).

Does a supplier have to provide a VAT invoice?

There’s no legal obligation to provide an invoice unless both you and your customer are VAT registered.

Who has to pay VAT in Vietnam?

Value Added Tax (VAT) is the indirect tax which applies to goods and services used for production, trade and consumption in Vietnam. Goods and services purchased from overseas are also subject to VAT. The general tax rate is 10%. In respect of goods purchased from overseas, VAT must be paid at import stage.

What is Red invoice Vietnam?

Simply put, a “red invoice” is the nickname given to Vietnam’s Value Added Tax (VAT) invoices. Such invoices are mandated to undertake commercial activities such as the sale of goods and services, imports of foreign goods, and exports to non-tariff zones.

Can I give a VAT invoice?

You can refuse to provide an invoice unless you’re VAT registered and the customer can show they are making the purchase for a VAT-registered business or other organisation.

Whats the difference between an invoice and a VAT invoice?

While a commercial invoice is simply the standard type of payment demand issued after the delivery of goods and services, VAT invoices have a much more specific purpose. In short, you must issue a valid VAT invoice to charge VAT on sales or reclaim VAT that you’re charged for goods and services.

Do I have to issue invoices?

An invoice is a legally binding document that lists the products or services that were provided to a customer, with a detailed breakdown of costs. They’re usually used for B2B (business-to-business) transactions. The law states that if you and the other party are registered for VAT, you have to provide an invoice.

Who should a VAT invoice be addressed to?

The guidance regarding VAT invoices can be read in section 16 of the VAT Guide Notice 700. It only advises that the VAT invoice needs to have the customer’s name and address as we would normally expect the VAT invoice to be issued to the principal place of business for the customer.

How is VAT calculated in Vietnam?

The company sells medical equipment in Vietnam, which is subject to 5 percent VAT.

Selling price of equipment = US$100.
Purchasing price of equipment = US$80.
Added value of medical equipment = US$100 – US$80 = US$20.
Payable VAT amount = US$20*5% = US$1.

What is a VAT invoice?

A VAT invoice is a specific type of invoice that’s issued when a sale is subject to sales tax. Create and send a VAT invoice in less than a minute with SumUp Invoices. Only businesses that are registered for VAT should issue VAT invoices, and it’s only compulsory to do so if your customer is also registered for VAT.

How do I issue an invoice?

How to create an invoice: step-by-step

Make your invoice look professional. The first step is to put your invoice together.
Clearly mark your invoice.
Add company name and information.
Write a description of the goods or services you’re charging for.
Don’t forget the dates.
Add up the money owed.
Mention payment terms.

Is it a legal requirement to send an invoice?

Invoices help to protect your business’ cash flows, maintain records and fulfil your tax obligations. You must issue invoices promptly in order to avoid any delay in the customer making payment. It is the legal obligation of the seller to invoice the customer once the product is sold or the services are provided.

Can anyone issue an invoice?

If you are doing work as a private individual, you can issue a private invoice for it. The value of the goods or services being provided is not important. The invoice can also be addressed to another individual, as well as to a company.

Does VAT invoice need company name?

A tax invoice is supposed to show the person to whom the goods or services are supplied. So, if an invoice is not in the name of the business, it usually means that the supply was not made to it. In principle, therefore, it should not recover VAT on invoices in the name of third parties.

Can you issue a tax invoice in foreign currency?

The existence of Rule 34 of CGST Rules, 2017 which specifies the rate of exchange of foreign currency to be used for determination of value of supply validates the fact that a tax invoice can be issued in any currency other than Indian Rupees.

Who is responsible for issuing invoice?

Invoice clerks, also known as billing clerks, send invoices to clients, issue account statements, and generate credit memos.