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VietNamNews

‘Red invoices' on the way out

Update: August, 19/2010 - 08:54

HA NOI — More than 350,000 companies are expected to become eligible to print their own invoices - the so-called Government "red invoices" - beginning next year.

This is expected to provide greater business freedom for them and promote administrative reforms.

At present, most companies have to obtain books of invoices from official agencies.

A draft circular guides the implementation of a new decree (No 51) covering the innovative step.

Under the draft circular, enterprises will be able to print their own receipts if they meet certain requirements.

These include operating in industrial, economic and hi-tech zones, having a tax code, posting charter capital of at least VND10 billion (US$530,000) and having a clean legal profile.

Non-commercial organisations and sole proprietorship businesses will now have to obtain their invoice books from provincial tax departments rather than the Ministry of Finance.

However, lawyer Vu Xuan Tien representing the consultancy firm VFAM Viet Nam said there was no evidence that smaller companies needed less invoices than those with large amounts of charter capital.

For example, a pharmaceutical firm with charter capital of VND5 billion used about 250 invoices a month, 200 higher than real-estate developers who posted VND50 billion.

Therefore, he said, the requirement that VND10 billion was necessary should be revised.

Nguyen Hoang Giang from VLC Law Co said that designing and printing the invoices could be an extra financial burden for small- and medium-sized companies.

He warned that this could lead to price increases for their products and services.

Nguyen Viet Kien from the Aviation Printing Joint Stock Co suggested the ministry provide businesses with the names of leading printing companies that it had used so that they could continue to provide a service.

He added that printing companies that wanted to join this select group had to register with provincial taxation departments.

Director of the Taxation Office's Policy Department Cao Anh Tuan said the new circular was expected to be introduced later this month. — VNS

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