Công văn 4355/BTC-TCT

To: Tax Departments of provinces and centrally run cities.

The Ministry of Finance has received official dispatch from a number of Tax Departments and enterprises questioning on the currency written on VAT invoices. The opinion of Ministry of Finance in this regard is as followed:

Pursuant to the point 2.e, Article 14, Chapter III of the Circular No. 153/2010/TT-BTC of September 28, 2011 of the Ministry of Finance guiding the invoice of selling goods or providing services:

"e) Currency written on invoice

Currency written on invoice is Vietnam dong.

If the sellers are allowed to sell goods in foreign currency in accordance with the law, the total paid amount shall be written in original currency and the words shall be written in Vietnamese.

Example: USD 10,000 - ten thousand US dollars.

The seller shall also write on the invoice the exchange rate between the foreign currency and Vietnam dong which is the average exchange rate of inter-bank foreign currency market announced by the State Bank of Vietnam at the time of making out the invoice.

If the collected foreign currency has no exchange rate with Vietnam dong, a cross exchange rate with another foreign currency announced by the State Bank of Vietnam shall be written"

Pursuant to Article 22 of the Ordinance on Foreign Exchange, Article 29 of the Government’s Decree No.160/2006/ND-CP of December 28, 2006 regulating the implementation of the Ordinance on Foreign Exchange and Article 1 of the Government’s Decree No. 95/2011/ND-CP of October 20, 2011 amending and supplementing a number of provisions of the Decree No. 202/2004/ND-CP on the punishment of administrative violations in the monetary area and banking activity.

After receiving opinion of the State Bank in Official dispatch No. 106/NHNN-PC of January 09, 2012, the Ministry of Finance gives following opinions:

Where enterprises being allowed to sell goods in foreign currency in accordance with the law, making out VAT invoices for foreign currency turnovers of goods sale and service supplying, items on invoice as unit price, amount, summed amount, VAT amount, total paid amount shall be written in foreign currency, the words for describing the total paid amount in Vietnamese shall written the total paid amount in foreign currency, and concurrently, written clearly on the invoice the exchange rate of Vietnam dong according to the average exchange rate of inter-bank foreign currency market announced by the State Bank of Vietnam at the time of making out invoice.

The foreign currency earnings, if being of no exchange rate with Vietnam dong shall be inscribed in a cross exchange rate with another currency whose exchange rate is announced by the State Bank of Vietnam

The issues relating to the use of foreign currency for transactions, listing, advertising, enterprises are suggested to comply with the provisions of existing Ordinance on management of foreign exchange.

Before the time of promulgation of this official dispatch, where enterprise buy goods and services pay in Vietnam dong and receive invoice from the seller of goods and services in foreign currency with clear written exchange rate into Vietnam dong at the inter-bank average exchange rate announced by the State Bank of Vietnam at the time of making out invoice, then the Tax Department to check:

If the making out invoice is actually associated with the purchase and sale of goods and services providing that had made declaration and tax paid by enterprise selling goods and providing services in accordance with regulations and meet the conditions for VAT deduction in accordance with regulations, then the enterprise buying goods and services shall be credited VAT and account into deductible expenses for calculating of enterprise income tax.

Where enterprises are not allowed to sell goods for foreign currency earnings, but made out and hand to customer VAT invoice on which be written in foreign currency, clear exchange rate into Vietnam dong at the inter-bank average exchange rate announced by the State Bank of Vietnam at the time of making out invoice, and receive payment from customer in Vietnam dong, so the enterprise has making out invoice shall be sanctioned under the provisions the current law on management of foreign exchange.

The Ministry of Finance expresses opinion to Tax Departments of centrally-affiliated cities and provinces know and guidance enterprises. The Tax Departments are suggested to promptly report any problems arising in the implementation process to the Ministry of Finance for research and settlement.