VAT Illustrations

Problem 1
XYZ is VAT deduction method trading company with total sales of the month from 1 July
2014 to 31 July 2014 amounting to VND530 million. The total sale figure includes VAT
charged to the purchasers where applicable. Included in the sales was VND200 million of
export sales. The company satisfies all required documents/procedures for the export.
Proceeds from disposal of a fixed asset is VND11 million, inclusive of VAT, and was not
included in the total sale figure. The fixed asset was subject to 10% VAT on purchase. In
the same period the company had the following purchases (inclusive of VAT and purchased
from VAT deduction method tax payers unless otherwise mentioned).
VND
Purchase of goods for trading 247,500,000
Purchase of goods for trading from VAT direct method tax payer 65,000,000
Computers 20,000,000
Office stationery 14,700,000
Electricity 27,500,000
Salary and statutory contribution 70,000,000
Fuel 6,600,000
Gift stuff for sales promotion purposes (these are still in stock at
theend of the month, VAT at 10%) 55,000,000
Goods purchased for donation to locality (fully used for donation
purposes). The marketable value at the time of use (excluding VAT)
is VND19,000,000 19,800,000

Required:
A. Calculate the VAT payable to or receivable from the tax authority for July 2014. You are
required to show items for which input VAT cannot be claimed stating clearly the reason.Round off
your calculation to the nearest VND.
B. In case of XYZ, state the latest date for declaration and payment of VAT to the taxauthority in
respect of July VAT liability.

Problem 2
TPT Co. is a trading company. It has the following transactions in the month ended 31
December 2018

02/12/18 Import 10 cars from overseas for US$15,000 each. 2 cars will be used as
fixed asset of the company. The minimum price for import duty is
VND300,000,000. The Special Sales Tax rate is 80%, and import duty rate
is 100%.

12/12/18 Import 2 special machines into Vietnam for US$25,000 each. The minimum
price for import duty is VND250,000,000. These machines will be used by the
company as fixed asset. Import duty for these 2 machines is exempted.

20.12.18 Sell 8 cars imported to customers, of which 5 cars are for immediate cash for
VND1,200,000,000 each. The remaining 3 cars are sold on hiredpurchase terms, payments will be in 5
instalments of VND300,000,000each

31.12.18 Invoices for rental expenses in November 2018 for VND120,000,000

All the prices above are contractual / invoice price (i.e. without VAT or import duty).

Required
Calculate VAT incurred during December for TPT Co., assuming the company can separately account for
VAT of each activity