Businesses will be allowed to continue to use Ministry of Finance issuedinvoices until the end of first quarter next year, according to a newlyissued instruction of Deputy Prime Minister Nguyen Sinh Hung.
The instruction amended the January 1 deadline in an attempt to dealwith obstacles raised through the implementation of Decree No51/2010/ND-CP, which allows most companies to print their own invoicesinstead of having to obtain them from official agencies.
The extension will help save money for those who bought the invoicesfrom the Ministry of Finance but would not have used them prior toDecember 31 2010.
Under the instruction, Hung also agreedin principle with the Finance Ministry's proposal to continue selling‘red' invoices to small-sized businesses and those in poor areas, whocannot afford to print invoices, until the end of next year. Theseinvoices serve as official proof of commercial transactions for tax andother purposes. However, small businesses will have to print their owninvoices as of 2012.
The new instruction also stated thatvouchers used in banking and marine services, which meet internationalregulations, will also be recognised for purposes of taxation. Accordingto current regulations, the vouchers are not recognised as invoices sobanking and marine transportation businesses are still required toobtain ‘red' invoices to pay tax, wasting both time and money. More than350,000 companies are expected to become eligible to print their owninvoices.
Director of the General Taxation Office's PolicyDepartment Cao Anh Tuan said besides providing greater freedom tocompanies to do business, the new policy would completely changebusiness invoice usage.
It would also save the Governmentsome of the costs it incurs in printing the invoices, while companieswould not have to go through the rigmarole of obtaining them, Tuan said.
However, analysts warned there could be difficulties during the process.
Careful monitoring of the printing process was imperative to eliminate the possibility of fraud by print companies, they said.
Tax offices were set for a hard time as thousands of enterprises would register to print their own invoices, they added./.
The instruction amended the January 1 deadline in an attempt to dealwith obstacles raised through the implementation of Decree No51/2010/ND-CP, which allows most companies to print their own invoicesinstead of having to obtain them from official agencies.
The extension will help save money for those who bought the invoicesfrom the Ministry of Finance but would not have used them prior toDecember 31 2010.
Under the instruction, Hung also agreedin principle with the Finance Ministry's proposal to continue selling‘red' invoices to small-sized businesses and those in poor areas, whocannot afford to print invoices, until the end of next year. Theseinvoices serve as official proof of commercial transactions for tax andother purposes. However, small businesses will have to print their owninvoices as of 2012.
The new instruction also stated thatvouchers used in banking and marine services, which meet internationalregulations, will also be recognised for purposes of taxation. Accordingto current regulations, the vouchers are not recognised as invoices sobanking and marine transportation businesses are still required toobtain ‘red' invoices to pay tax, wasting both time and money. More than350,000 companies are expected to become eligible to print their owninvoices.
Director of the General Taxation Office's PolicyDepartment Cao Anh Tuan said besides providing greater freedom tocompanies to do business, the new policy would completely changebusiness invoice usage.
It would also save the Governmentsome of the costs it incurs in printing the invoices, while companieswould not have to go through the rigmarole of obtaining them, Tuan said.
However, analysts warned there could be difficulties during the process.
Careful monitoring of the printing process was imperative to eliminate the possibility of fraud by print companies, they said.
Tax offices were set for a hard time as thousands of enterprises would register to print their own invoices, they added./.
