On 31 December 2013, Ministry of Finance promulgated Circular 219/2013/ND-CP providing guidance on Law on Value Added Tax and Decree No. 209/2013/NĐ-CP dated 18 December 2013 providing detailed guidance and implementation on a number of articles of Law on Value Added Tax.
 
Below are notable contents of the Circular:
      
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From 01 January 2014, enterprises having revenue of the previous year less than VND 1 billion shall apply the VAT direct method except for cases of self-registration for deduction method.
   
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Newly established enterprises are allowed to declare VAT under deduction method which is registered and belong to one of two following cases:
   
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Enterprise is newly established from a project of enterprise applying VAT deduction method;
   
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Newly established enterprise has invested and purchased fixed assets, machines and equipment with the value of VND 1 billion or more (exclusive of car having 9 seats or less).
   
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This Circular takes effect from 01 January 2014, replacing Circular No. 06/2012/TT-BTC dated 11 January 2012 and Circular No. 65/2013/TT-BTC dated 17/05/2013 issued by Ministry of Finance.
   

This publication is intended for general guidance only and should not form the basis of specific decisions.Please contact author for further information.

Attachments:
Download this file (131231_Circular 219_MoF_VAT (Replace C06)_V.DOC)Circular 219/2013/TT-BTC[V]614 kB