On February 10th, 2020, Hanoi Tax Department issued Official Letter No. 4848/CT-TTHT. Whereby:
In case the Company has issued invoices, the buyer has received the goods, the Company and the buyer have made VAT declaration; After that, the Company and the buyer discover that the delivered goods are defected and need to be returned (partly or wholly), then when delivering the goods back to the seller, the buyer must issue an invoice which clearly indicates that the goods were returned to the seller due to improper specifications, quality and VAT amount (if any) as prescribed at Point 2.8, Appendix 4 of Circular No. 39/2014/TT-BTC. Based on the return invoice, the Company declares the adjustment of sales and output VAT, the buyer adjusts the purchase amount and the input VAT at the tax period when the return invoice arises.
