Crediting VAT

In case where an enterprise conducts business with respect to computer software not subject to VAT and other goods subject to VAT, the enterprise shall only be required to declare and credit input VAT with respect to goods and services used for trading goods subject to VAT. The enterprise shall not declare and credit input VAT with respect to goods and services used for computer software business not subject to VAT.

With respect to goods and services used for conducting business with respect goods and services subject to VAT as well as computer software not subject to VAT, the input VAT of which is not separately calculated, the input VAT shall be credited in accordance with the percentage of turnover earned from goods and services subject to VAT against the turnover of sold goods. (According to Official Letter 4110 TCT/NV6 dated November 14, 2003 of GDT).

[Sao Viet Legal Consultants]

 

Category: Legal