To:  No. 515 Investment and Construction Joint Stock Company
Address: 338-340, D3 Street, Van Thanh Bac, Binh Thanh District, Ho Chi Minh City
TIN: 0304198986

In response to your Company's document No. 26/CV/TCKT dated March 03, 2020 regarding tax policies, Ho Chi Minh City Department of Taxation hereby gives guidelines as follows:

Pursuant to the Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance providing guidelines on value-added tax (VAT);

+ Clause 5 Article 8 stipulates the time for VAT calculation as follows:

“5. With regard to construction and installation activities, including shipbuilding, VAT shall be calculated at the time of commissioning and acceptance of the finished works, or their items, or construction/installation amounts, whether or not the payment is made.”.

+ Article 11 stipulates VAT rate of 10% as follows:

“10% rate shall be applied to goods/services other than the ones prescribed in Article 4, Article 9 and Article 10 of this Circular.

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“a) Item “Ngày tháng năm” (Date of invoice):

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Date of a service invoice is the date of completion of service provision, whether or not the payment is made.  Where the payment is made in advance or during the service provision, the date of invoice is the date of payment.

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With regard to construction and installation activities, the date of invoice is the date of commissioning and acceptance of the finished works, or their items, or construction/installation amounts, whether or not the payment is made.

Where multiple deliveries are required, or each work item or service phase is accepted, it is required to issue an invoice showing quantity, value of goods or service for each respective delivery or acceptance.

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Pursuant to the document No. 5406/BTC-TCT dated April 23, 2015 on deduction of VAT.

Pursuant to the abovementioned regulations, your Company has performed the contract package “Design and construction of roads to the centers of Xuan Duong - Ai Quoc Commune (Loc Binh District) and Thai Binh Commune (Lang Son Province)" under a contract signed by and between your Company and the sub-contractor, namely Truong Thanh Investment and Construction Joint Stock Company (hereinafter referred to as "Truong Thanh JSC"). In principle, Truong Thanh JSC must issue an invoice to your Company when two parties enters into the written record of commissioning and acceptance of finished construction works or work items (whether or not the payment is made) so that your Company may use the invoice for calculating and paying VAT and CIT as prescribed.

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Your Company is requested to comply with the legislative documents referred to in this document./.

PP. DIRECTOR
DEPUTY DIRECTOR




Nguyen Nam Binh