Telecommunication promotional goods and services will have 0% tax rate

According to the General Department of Taxation, pursuant to the provisions of Ministry of Finance Circular No.26/2015/TT-BTC dated February 27th, 2015 on billing and business characteristics of telecommunication and information technology services, invoicing forpromotional goods and services would follow the regulations of the State in trade promotion activities. In particular:

In case Mobifone implements promotional activities using goods and services (regardless of the promotional value being less or more than 200,000 VND) and the client does not get an invoice, based on the records relating to the promotion campaign, contracts and minutes of delivery, at the end of every day Mobifone will establish a common invoice recordingthe total promotional value for customers, the taxable value is zero.

In case Mobifone implements promotional activities using telecommunication servicesand the client does not get an invoice, based on promotional data on the billing system, the service provider under Mobifone will establish a common invoice recordingthe total promotional value every month, the taxable value is zero.

In caseMobifone signs a lease contract with another organization to organize events orcustomer care conferences, that organization will create aninvoice recording the total contract value. Mobifone do not have to create invoices for the value of goods and services given to customersin this case.