According to the Tax Department of Binh Duong province, in case the export processing company has an Investment Certificate in producing and selling solar energy and is licensed by the Management Board of the Export Processing Zone to sell solar energy to domestic enterprises, this activity is subject to VAT.
When selling solar energy to domestic enterprises, the Company must separately account the revenue and expenses related to this activity in Vietnam for tax purposes (declare, pay tax…).
When collecting money from selling solar energy, if the company applies the direct declaration method, the company will use the invoice with the phrase “Dành cho tổ chức, cá nhân trong khu phi thuế quan” (For organizations/individuals in non-tariff zone) with the selling price includes 10% of the VAT rate.
Regarding VAT declaration, the Company follows the guidance in Circular 80/2021/TT-BTC dated September 29, 2021 of the Ministry of Finance.