On September 06th, 2023, Bac Giang Tax Department issued Official Letter No. 6664/CTBGI-TTHT, according to which:
Company A in Vietnam signs a contract to purchase equipment with a foreign contractor, Company X (foreign prime contractor). During the contract implementation process, Company X has appointed Vietnamese subcontractor (Company B) to perform the technical design, construction design, prepare the total estimate, provide personnel who are specialized experts to guide installation, commissioning, acceptance, handover… In this case, Company B (Vietnamese subcontractor) must be responsible for the prime contractor (Company X), Company B (subcontractor) shall issue VAT invoices to Company X (prime contractor) according to regulations.
