In case the Newspaper itself guarantees part of its regular expenses, does it have to pay corporate income tax (CIT) according to Circular 150/2010?

What is purchasing with deferred payment or installment payment?

According to Article 453 of the 2015 Civil Code, the regulations on purchasing with deferred payment and installment payment are as follows:

“Article 453: Purchase on deferred payment, installment payment:

1. The parties can agree that the buyer defer or pay the purchase price in installments within a period of time after receiving the purchased property. The seller retains ownership of the property sold until the buyer pays in full, unless otherwise agreed.

2. Purchase contracts on deferred payment or installment payments must be made in writing. The buyer has the right to use the purchased property on deferred payment or installment payments and must bear the risks during the period of use, unless otherwise agreed.”

Thus, deferred payment purchase is a case where the buyer receives the purchased property and will pay the purchase price after a certain period of time. Buying in installments is a case where the buyer receives the purchased property and must pay for the property in installments within a certain period of time.

Can businesses declare value-added tax on unpaid deferred payment purchase invoices?

Pursuant to Clause 10, Article 1 of Circular 26/2015/TT-BTC amending and supplementing Article 15 (amended and supplemented in the Circular 119/2014/TT-BTC and Circular 151/2014/TT-BTC of the Ministry of Finance) as follows:

– For goods and services purchased on deferred payment or installments with a value of twenty million VND or more, business establishments shall base on the written contract to purchase goods and services, value-added invoices and bank payment documents of goods and services purchased on deferred or installment payments to declare and deduct input value-added tax. In case there is no proof of payment via bank due to the time of payment according to the contract, the business establishment can still declare and deduct input value added tax.

– In case when making payment, the business establishment does not have payment documents via bank, the business establishment must declare and adjust to reduce the amount of value-added tax (VAT) that has been deducted for the value of goods and services that do not have payment documents via bank in the tax period in which the cash payment arises (including in cases where the tax authority and functional agencies have decided to inspect and examine the tax period in which VAT has been declared and deducted).

Thus, for invoices that businesses buy on deferred payment and have not yet paid, the business can still declare input VAT if the goods have not yet reached the time of payment according to the contract.

If there are no payment documents, does the business have to adjust the reduction?

In Clause 10, Article 1 of Circular 26/2015/TT-BTC, it is stipulated as follows:

“In case when making payment, the business establishment does not have payment documents via bank, the business establishment must declare and adjust to reduce the amount of VAT that has been deducted for the value of goods and services without documents for payment via bank in the tax period in which the cash payment arises (including in cases where tax authorities and functional agencies have decided to inspect and examine the tax period in which VAT has arisen). declaration, deduction).”

Thus, according to the above regulations, businesses must declare and adjust the amount of deductible VAT when they pay without bank payment documents for goods and services worth over 20 million VND. Enterprises do not have to make downward adjustments until the payment deadline arrives and the enterprise has not yet paid for the goods.

In Clause 1, Article 18, Circular 219/2013/TT-BTC (amended by Clause 3, Article 1, Circular 130/2016/TT-BTC), subjects eligible for VAT refund are specified as follows:

“1. If a business establishment pays VAT using the tax deduction method, if there is an input VAT amount that has not been fully deducted in the month (in case of monthly declaration) or in a quarter (in case of quarterly declaration), it will be deducted in the next period.

In case a business establishment has a VAT amount that has not been fully deducted arising before the monthly tax period 7/2016 (in case of monthly declaration) or before the tax period of quarter 3/2016 (in case of quarterly declaration) are eligible for VAT refund according to the instructions in Clause 1, Article 18 of Circular No. 219/2013/TT-BTC, the tax authority will resolve the tax refund according to the provisions of law.

For example: Enterprise A declares VAT quarterly, at In the tax period of the third quarter of 2016, if the VAT amount that has not been fully deducted is 80 million, business A will be able to deduct it in the tax period of the fourth quarter of 2016. In case the tax period of the fourth quarter of 2016, the first quarter of 2017 and the second quarter of 2017, there is still a VAT amount that has not been fully deducted, then business A will transfer the undeducted VAT amount to continue to deduct it in the quarterly tax period. March 2017 and subsequent tax periods.”

Thus, if an enterprise has input VAT that has not been fully deducted, it will be deducted in the next period. In case a business establishment has VAT that has not been fully deducted before the tax period of July 2016 (for the case of monthly declaration) or before the tax period of the third quarter of 2016 (for the case of quarterly declaration) is eligible for VAT refund according to the instructions in Clause 1, Article 18 of Circular No. 219/2013/TT-BTC, the tax authority will resolve the tax refund according to the provisions of law. law.