Vietnamese Authorities have released a range of changes, all effective from 1 January 2015, which your accounting team needs to be aware of and action accordingly. A selection of these include:
Circular 200/2014/TT-BTC has introduced a number of changes for the 2015 financial year regarding accounting ledgers, including:
- Removing some accounts from the standard Vietnamese Chart of Accounts
- Addition of some further accounts to the standard Vietnamese Chart of Accounts
- Changing of the names of a small number of accounts and sub-accounts in the standard Vietnamese Chart of Accounts
- Changes to the presentation of selected financial information in financial reports (including Profit and Loss and Balance Sheet)
- Accounting voucher changes, whereby internally designed vouchers can now be used where they comply with accounting laws.
- Certain elements of accounting ledgers and forms can now be internally designed, provided that they comply with accounting laws.
Circular 26/2015/TT-BTC introduces changes for VAT and invoicing effective 1 January 2015. These include:
- Removal of the requirement to submit a list of invoices for sales and purchases, along with other supplementary documentation, in monthly and quarterly VAT declarations.
- The requirement to register the use of Vietnamese without diacritics and the use of “comma” (,) between thousands has been removed.
- Tax department no longer has the authority to limit the number of invoices allowed to be issued by enterprises in a period.
- Invoices are no longer required for internal consumption for continuation of production processes.
- Adjustment invoices are no longer required where there is an error in the buyers name or address, provided the tax code is correct. Only a minute signed by both parties with correcting information is now required.
- Tax department is required to approve or reject an application for eligible taxpayers to use self or pre-printed invoices within 5 working days of the receipt of an application. No response after 5 days is to be regarded as an approval.
- The requirement for businesses with “cashiers” (including hotels and restaurants), to have their systems connected to tax authorities for exchange of sales and payment information. Further guidance is to be issued on how this will be implemented.
We suggest that your accounting team review the Circulars and supporting information thoroughly, and ensure that all items effecting your business are understood and actioned (or, at least, an action plan put in place).