The Ministry of Finance issued the Circular No. 119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance amending and supplementing a number of articles of the Circular No. 156/2013/TT-BTC, Circular No. 111/2013/TT-BTC, Circular No. 219/2013/TT-BTC, Circular No. 08/2013/TT-BTC, Circular No. 85/2011/TT-BTC, Circular No. 39/2014/TT-BTC and Circular No. 78/2014/TT-BTC in order to simplify tax formalities.
In addition to the amendments and supplements on tax declaration forms, tax declaration dossier, this Circular also regulates on tax declaration rules of household or individual who leases out their property. Of which, it is shown clearly that if the income a household or individual earns from the property lease in a year is VND 100 million or less, or the monthly rent in the year is VND 8.4 million or less, it is not required to declare and pay VAT or personal income tax, and the tax authority shall not issue separate invoices in this case.
The Circular also supplements business establishments that are not required to pay VAT on re-import of exported goods. Specifically, the business establishment is not required to pay VAT on re-import of exported goods returned by the foreign buyer. VAT on returned domestic goods shall still be declared and paid as prescribed.
One of the most significant points of this Circular is that any new company or cooperative that make investment, purchases, or receive capital contribution in the form of fixed assets, machinery, equipment, tools, or has a contract to lease business premises shall voluntarily apply credit-invoice method; instead of the limit value of fixed assets, machinery, equipment must be one billion or over as previously.
This Circular takes effect on September 01, 2014.
