Circular 93/2017/TT-BTC on administrative procedures reform on registration and switching calculation method of Value Added Tax
Global Tax Update:October 2017/Vietnam
On 19 September 2017, The Ministry of Finance issued Circular 93/2017/TT-BTC (“Circular 93”) on the administrative procedures reform on registration and switching calculation method of Value Added Tax (“VAT”). The new contents of the Circular 93 were also further guided in the Official Letter No. 4253/TCT-CS dated 20 September 2017 by the General Department of Taxation. (Global Tax Update: October 2017/Vietnam)
CIRCULAR 93/2017/TT-BTC AMENDING REGULATIONS ON THE ADMINISTRATIVE PROCEDURES ON REGISTRATION AND SWITCHING CALCULATION METHOD OF VALUE ADDED TAX
In this Tax Alert, Deloitte Vietnam would like to summarize notable contents of Circular 93 with new amendments and supplements in relation to the removal of submission requirement of Form 06/GTGT when registering and changing VAT calculation method as follows:
(1) Annul the requirement to lodge Form 06/GTGT for registration of VAT deduction method for newly set up companies and operating companies with VAT taxable revenue of less than VND 1 billion per annum.
(2) Annul the requirement to lodge Form 06/GTGT upon change in the VAT calculation method.
(3) Supplement the guidance that the VAT calculation method shall be automatically determined based on the type of VAT forms submitted to the tax office: