Dear Austdoor Joint Stock Company

(Addr.: No. 37, Le Van Thiem, Nhan Chinh ward, Thanh Xuan district, Hanoi city
- TIN: 0101306139)

In reply to the Letter of Inquiry No. 101/ADG-CV/2021 received on February 8, 2021 from Austdoor Joint Stock Company (hereinafter referred to as “Austdoor JSC”) about issuance of invoices in promotional programs, Hanoi city Tax Department is giving Austdoor JSC the following instructions: 

- Pursuant to Article 88 in the Commercial Law dated June 14, 2015 set forth as follows:

“Article 88. Commercial promotion

1. Commercial promotion (sometimes sales promotion or product promotion) refers to an act that a trader performs to promote trades in commodities and provision of services by offering its customers certain benefits. 

2. Trader doing a commercial promotion refers to a trader who:

a) directly promotes the commodity or service that it is dealing in;

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- Pursuant to the Government's Decree No. 81/2018/ND-CP dated May 22, 2018, elaborating on certain articles of the Commercial Law regarding commercial promotion activities, set forth as follows:

+ Article 2 lays down regulated subjects as follows:

“1. Traders doing sales promotion, including:

a) traders involved in the production and trading of goods or services conducting sales promotion directly or through distribution traders such as wholesalers, retailers, agents, franchisers and other distribution traders as regulated by law;

b) traders that do sales promotion for goods or services of other traders under binding agreements.  

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Pursuant to the Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance, providing guidance on implementation of the VAT Law, and the Government’s Decree No. 209/2013/ND-CP dated December 18, 2013, elaborating and providing instructions on implementation of several Articles of the VAT Law, that are set forth as follows:

+ Paragraph 5 of Article 7 lays down instructions on taxable prices of promotional products as follows:

“5. Taxable prices of goods and services used for sales promotion in accordance with trade laws are zero (0). In case they are not conformable with trade laws, tax shall be declared and paid as if they are used internally, given, or donated.

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a) If goods or services are provided free of charge as samples or gifts, taxable prices thereof are zero (0).

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Pursuant to the Circular No. 26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance, providing guidance on implementation of regulations on value-added tax and tax administration set down by the Government's Decree No. 12/2015/ND-CP dated February 12, 2015, providing details about implementation of the Law on Amendments and Supplements to certain Articles of Laws on taxation; Amendments and Supplements to several Articles of Decrees on taxation; and Amendments and Supplements to the Circular No. 39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance on invoices for sale of goods and provision of services.

+ Subparagraph a of paragraph 7 of Article 3 on amendments and supplements to subparagraph b of paragraph 1 of Article 16 of the Circular No. 39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance, providing guidance on issuance of invoices, that is set down as follows:

“a) Amending and supplementing subparagraph b of clause 1 of Article 16 (already amended and supplemented by clause 3 of Article 5 in the Circular No. 119/2014/TT-BTC) as follows:

“b) Sellers must issue invoices for goods and services, including those used for sales promotion, advertising and as samples; goods and services used for donation, exchange, or paid as salaries for employees and those that are used internally (except for goods circulated internally to proceed with production)…"

+ Paragraph 9 of Article 3 on amendments and supplements to 2.4 of Appendix 4 to the Circular No. 39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance, providing guidance on issuance of invoices, that is set down as follows:

“9. Amending and supplementing 2.4 of Appendix 4 as follows:

 “2.4. Use of invoices, receipts for goods/services on sale, advertising, samples, donation, gifts by VAT payers applying credit-invoice method: 

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As stated above, if Austdoor JSC is running any sales promotion program in accordance with commercial law, it is obligatory that invoices for your goods and services need to be issued according to the following rule: The seller is obliged to issue invoices for its goods or services, even when these goods or services are used for sales promotion purposes according to subparagraph a of paragraph 7 and paragraph 9 of Article 3 in the Circular No. 26/2015/TT-BTC mentioned above.

Austdoor JSC is requested to comply with these regulations at your best.

In the course of implementation of tax policies, if there is any issue that may arise, Austdoor JSC can have access to written instructions available on the website of Hanoi city’s Tax Department at http://hanoi.gdt.gov.vn or contact the Inspection Division No. 5 to seek its support in handling such issue.

For your information and compliance./.

PP. DIRECTOR
DEPUTY DIRECTOR




Nguyen Tien Truong

Công văn 7308/CTHN-TTHT năm 2021 về xuất hóa đơn đối với chương trình khuyến mại do Cục Thuế thành phố Hà Nội ban hành