On July 19th, 2024, the General Department of Taxation issued Official Letter No. 3115/TCT-CS, accordingly:
In case the foreign supplier TikTok Pte. Ltd has registered, declared, and paid taxes under the provisions of Articles 76, 77, and 78 of Circular No. 80/2021/TT-BTC dated September 29th, 2021, of the Ministry of Finance:
– Regarding VAT declaration and deduction:
One of the conditions for input VAT deduction is to have a VAT invoice for purchased services or a VAT payment document at the import stage or a VAT payment document on behalf of the foreign party. According to the invoice attached to the inquiry letter from the foreign supplier TikTok Pte. Ltd, this is not a VAT invoice for an organization declaring VAT using the deduction method according to the law on invoices and documents, therefore, it does not satisfy the conditions for input VAT deduction according to the regulations.
– Regarding the determination of deductible expenses when calculating corporate income tax:
In case an enterprise in Vietnam receives invoices and documents from a foreign supplier TikTok Pte. Ltd for services related to the business activities of the enterprise, including the name, address, and tax code of the enterprise and meeting the payment conditions for deductible expenses when determining taxable income (including the amount paid that the foreign supplier determines as VAT shown on the invoice and documents of the foreign supplier issued to the Vietnamese enterprise).
