How to write a non-VAT invoice

Learn how to write a non-VAT invoice with our step-by-step guide, ensuring compliance and clarity for your business transactions. In this article, Viet An tax agent will provide information related to goods and services that are not subject to VAT and guide how to write the most specific invoice for goods not subject to VAT.

Subjects not subject to VAT as prescribed

First, your business needs to identify which products, goods, and services are not subject to VAT to get an accurate basis to help write e-invoices accurately. The following is a list of some subjects not subject to VAT:

• Products of cultivation, animal husbandry, aquaculture and aquaculture and fishing that have not been processed into other products or have only been preliminarily processed by organizations and individuals that produce and catch them for sale and at the import stage.
• Enterprises and cooperatives that purchase cultivation, animal husbandry, aquaculture or fishery products that have not been processed into other products or sold only through ordinary preliminary processing to other enterprises or cooperatives are not required to declare and calculate VAT but are entitled to input VAT deduction.
• Products are livestock breeds, plant varieties; Salt Products
• Medical services, veterinary services; Teaching, vocational training; Publishing, importing and distributing newspapers, magazines, specialized newsletters, political books, textbooks and textbooks,…
• Imported goods and goods and services sold to organizations and individuals for humanitarian aid and non-refundable aid.
• Organizations and individuals receive compensation revenues in cash, bonuses, support money, money for transfer of emission rights and other financial revenues.
• Compensation in goods and services: Compensation establishments must make invoices and declare, calculate and pay VAT as for the sale of goods and services; the compensation recipient shall declare and deduct according to regulations.
• Organizations and individuals engaged in production and business in Vietnam that purchase services from foreign organizations that do not have permanent establishments in Vietnam, and individuals abroad who are non-residents in Vietnam and these services are provided outside Vietnam.
• Organizations and individuals that do not do business and are not VAT payers sell assets.
• Enterprises and cooperatives shall pay VAT by the method of deduction for the sale of unprocessed cultivation, aquaculture and seafood products into other products or only through ordinary preliminary processing for enterprises and cooperatives at the stage of commercial business. TH sells to other subjects: declare, calculate and pay VAT at the rate of 5%.
• Revenue from the sale of agents and commission revenue from the sale of agents at the prescribed prices of:
  • Post, telecommunications, lottery ticket sales, air tickets, cars, trains, ships, insurance sales.
  • International transport, aviation and maritime service industries that are eligible to apply tax rate is 0%.
  • HHDV is not subject to VAT.

Instructions on how to declare invoices that are not subject to VAT

How to declare non-taxable output invoices

• For enterprises that declare VAT by the deduction method, by the declaration period, for goods sold not subject to tax, they will fill in indicator 26 on the declaration form 01/GTGT on the cooperative.
• For the direct VAT declaration method, by the declaration period, goods and services sold not subject to tax will be filled in “Index No. 21” on the declaration form 04/GTGT (HTKK).

Instructions for declaration of non-taxable input invoices

According to the principle of input VAT deduction, purchased goods and services that are not subject to tax will not be deducted VAT. Therefore, it will not appear on the VAT return.

Instructions on how to write a non-VAT invoice

Here, Viet An tax agent will guide you on how to write an invoice for goods that are not subject to VAT:

For invoices of goods and services not subject to VAT, they are written as follows:

• For the line “Add money for goods” on the invoice, it is the total amount of money of goods and services not subject to VAT;
• The line “Tax rate”: do not write and must be crossed out, add a % sign at the end;
• The line “VAT money”: not written and must be crossed out;
• The line “Total payment”: write the correct amount with the line “Add the line money”.

Some questions related to how to write a non-VAT order

If an enterprise declares by the deduction method both the revenue of VAT-liable goods and services and the revenue of non-taxable goods and services, how to declare output VAT?

On the declaration form No. 01/GTGT, the turnover of non-taxable goods and services will be declared in indicator 26. Taxable revenue will be decomposed and declared in each indicator 29, 30, 32 corresponding to each part of the tax rate.

Can an enterprise trading in non-taxable goods and services be entitled to deduction and refund of input VAT?

Goods, services and fixed assets purchased and used simultaneously for both taxable and non-VAT-liable production and business activities:

• If separate accounting is possible: Only the input VAT amount of HHDV used for the production and business of HHDV subject to VAT may be deducted.
• If separate accounting is not possible: The deducted input VAT amount is determined by ALLOCATION.
  • Allocation according to revenue criteria: Allocation according to the ratio (%) between VAT-liable revenue, non-declaration and VAT calculation and payment compared to the total revenue of HHDV sold, including non-declaration revenue, tax calculation and payment cannot be separately accounted for.

Above are some contents related to how to write a non-VAT invoice that Viet An tax agent wants to convey to readers. Please contact us if your unit needs advice and solve problems related to taxes and accompanying legal obligations!