On March 10th, 2020, Hanoi Tax Department issued Official Letter No. 10335/CT-TTHT. Whereby:
In case that the Company has an agreement with the Parent Company, in which the Conpany would pay on behalf of the Parent Company airplane tickets, hotel fees for the Parent Company’s staffs who are sent to Vietnam for business. When the Company makes payment, providers have to issue invoices for the Parent Company. The Company shall not declare, calculate VAT payment with respect to Parent Company’s invoices. When receiving payment form Parent Company, the Company does not need to issue invoice but need to collect documents in accordance with law.
On the case that the provider had issued invoice with the Company’s name, tax code, then the Company must request the provider to revoke and issue a new invoice for the Parent Company. If the provider refuses to do so, when receiving payment from the Parent Company, the Company must issue VAT invoice and calculate VAT in accordance with law.