On June 4, 2024, the Tax Department of Bac Giang province issued Official Dispatch 4175/CTBGI-TTHT on issuing invoices to collect electricity and water bills.
Pursuant to Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the implementation of the Law on Value Added Tax and Decree No. 209/2013/ND-CP dated December 18, 2013 of The Government details and guides the implementation of a number of articles of the Value Added Tax Law; Pursuant to Clause 2, Article 1 of Circular No. 130/2016/TT-BTC dated August 12, 2016 of the Ministry of Finance amending and supplementing a number of articles of Circular No. 219/2013/TT-BTC dated December 31 /2013 of the Ministry of Finance guiding the implementation of the Law on Value Added Tax and Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law Value added tax (amended and supplemented according to Circular No. 119/2014/TT-BTC dated August 25, 2014, Circular No. 151/2014/TT-BTC dated October 10, 2014 and Circular No. No. 26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance):
In case the Company does not have the function of providing clean water services, wastewater treatment and electricity supply, but the company's factory lease has not yet completed the procedures for signing a contract to buy clean water and treat water. waste and purchase electricity from direct suppliers. In the contract between the Company and the factory subleasing unit, there is an agreement to pay on behalf of customers the costs of using clean water, wastewater, and electricity that are billed to customers. If the input invoice bears the Company's name, address, and tax code, when collecting this payment on behalf of the Company, the Company must issue an invoice according to regulations. The application of the Company's VAT rate is based on the tax rate stated above. Input invoices of actual goods provided according to the instructions in Article 10 and Article 11 of Circular No. 219/2013/TT-BTC.
It is recommended that the Company and the unit subleasing the Company's factory sign a contract for purchasing clean water, wastewater treatment, and purchasing electricity with the direct supplier to use the above services and invoice. Documentation, tax declaration and payment in accordance with the law. In case the direct purchase contract has not been signed, when the Company issues an invoice to collect electricity bills for the company's factory sublease, it is not eligible to apply the 0% tax rate.
