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MINISTRY OF FINANCE
GENERAL TAXATION DEPARTMENT
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No. 502/TCT-CS
Regarding Tax Policy
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SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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Hanoi, February 7, 2025
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To: Hanoi Tax Department
The General Department of Taxation has received the official letters No. 27210/CTHN-TTHT and No. 1140/CTHN-TTHT from the Hanoi Tax Department regarding tax policy and invoices. Regarding this issue, the General Department of Taxation provides the following opinion:
Article 3 of the Value Added Tax (VAT) Law No. 13/2008/QH12 dated June 3, 2008 stipulates taxable objects as follows:
Article 3. Taxable objects
Goods and services used for production, business, and consumption in Vietnam are subject to VAT, except for the objects specified in Article 5 of this Law.
In Clause 1, Article 1 of Law No. 31/2013/QH13 dated June 19, 2013, amending and supplementing some provisions of the VAT Law (GTGT), the non-taxable objects are specified as follows:
Article 5. Non-taxable objects
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Financial, banking, and securities services as follows:
g) Derivatives financial services, including: interest rate swaps; forward contracts; futures contracts; foreign exchange options; other derivative financial services as prescribed by law.
According to Clause 1, Article 4 of Decree No. 123/2020/ND-CP dated October 19, 2020, stipulating principles for the establishment, management, and use of invoices, the following is stated:
Article 4. Principles for establishing, managing, and using invoices
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When selling goods or providing services, the seller must issue an invoice to the buyer (including cases of goods or services for promotion, advertising, samples; goods or services for giving, donating, exchanging, or paying wages to employees and internal consumption (except goods moving internally for further production purposes); goods exported in the form of loan, borrowing, or return) and must fully state the content as stipulated in Article 10 of this Decree. In case of using electronic invoices, it must follow the data format of the tax authority as stipulated in Article 12 of this Decree.
Based on the above provisions, the General Department of Taxation provides the following opinions:
Regarding VAT policy: According to the Hanoi Tax Department's report and accompanying documents, the VQB Joint Stock Company conducts the buying and selling of commodity futures contracts before the price change of these commodities in the global market at the London Metal Exchange. This trading activity does not occur in Vietnam, so it is not within the scope of the VAT Law.
Regarding invoicing: According to the Hanoi Tax Department's report in official letter No. 1140/CTHN-TTHT, if the enterprise does not engage in selling goods or providing services, it is not required to issue invoices under Clause 1, Article 4 of Decree No. 123/2020/ND-CP.
The General Department of Taxation provides this opinion for the Hanoi Tax Department's awareness.
Recipients:
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As above;
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Deputy Director General Đặng Ngọc Minh (for reporting);
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Department of Tax Policy Management; Department of Personnel (Ministry of Finance).
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Department of Legal Affairs, Department of International Cooperation (General Department of Taxation);
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General Department of Taxation website;
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Archive: VT, CS.
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On behalf of the Director General
Deputy Director of the Department of Tax Policy
Pham Thi Minh Hien
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See details here.