VIETNAM NATIONAL UNIVERSITY HO CHI MINH CITY HCM UNIVERSITY OF ECONOMICS AND LAW GRADUATION THESIS ACCOUNTING SERVICES PROVIDED AT DELOITTE VIETNAM ACCOUNTING SERVICES AND BUSIN
Reasons for choosing a topic
Value Added Tax (VAT) is a common tax encountered in the buying and selling of goods, yet understanding and applying it can be challenging In February 2022, the government reduced the VAT rate on certain products, sparking discussions across various forums and information platforms This change has posed significant challenges for businesses in terms of adjustment, accounting, and tax declaration.
Value Added Tax (VAT) is a fascinating subject with a wealth of information to explore This tax impacts both consumers and businesses, making VAT declaration a crucial process that must be systematically organized to enhance business efficiency.
Understanding the significance of VAT accounting is crucial, as my research into accounting services has revealed the complexities and insights surrounding this topic VAT impacts both individual consumers and businesses, making the VAT declaration process a vital step that must be systematically organized to enhance overall business efficiency.
After conducting practical research on VAT accounting and receiving expert guidance from the accounting services department at Deloitte Vietnam, I selected "Accounting Services Provided at Deloitte Vietnam Accounting Services and Business Process Solution Company Limited" as the focus of my internship report and graduation thesis This topic underscores the significance of effective VAT accounting in enhancing business processes.
Research objectives
The project is designed to study the following specific objectives:
Objective 1: Understand the model of accounting organization at the Company and apply the knowledge taught in the lecture hall into practice
Objective 2: Know the method of providing services as well as documents and the process of document rotation, accounting method and tax declaration of the
The objective is to analyze the current state of the Company's VAT accounting services by identifying general advantages and existing feedback Based on this analysis, recommendations will be formulated to enhance the effectiveness and efficiency of the Company's VAT accounting services.
Subjects and scope of research
Deloitte Vietnam Accounting Services and Business Process Solution Company Limited specializes in VAT accounting services, focusing on delivering comprehensive accounting solutions The company utilizes customer data and information as the primary source for its services, ensuring tailored and effective support for clients.
However, because of the security of customer information, the data and information provided are only illustrative, inevitably reducing the practicality as well as the multidimensional view from many sides
Figures are taken in the fourth quarter of 2022.
Research Methodology
- Interview method: conduct online interviews with accounting department staff to find out information about the Company, about accounting work and service provision at the company
The document research method involves an in-depth analysis of Vietnamese accounting standards and the current corporate accounting regime By examining company-provided documents, this approach allows for a comprehensive understanding of the accounting services offered in accordance with state regulations This foundation enables a meaningful comparison between theoretical frameworks and practical applications in the field of accounting.
The observational and descriptive method involves closely monitoring the document circulation process to effectively outline the input and output VAT planning involved in delivering VAT accounting services to clients This approach ensures a comprehensive understanding of the workflow and enhances the quality of service provided.
Theme layout
In addition to the introduction, conclusion, table of contents and references, the thesis consists of three chapters:
Chapter 1: Overview of Deloitte Vietnam accounting services and business process solution company limited
Chapter 2: Introduction to the client company using vat accounting services of Deloitte Vietnam accounting services and business process solution company limited
Chapter 3: The VAT Accounting Process is provided at Deloitte Vietnam accounting services and business process solution company limited
OVERVIEW OF DELOITTE VIETNAM BRANCH OF ACCOUNTING SERVICES AND
Introduction of the company
- History of formation and development
Deloitte Vietnam Business Solutions and Accounting Services Co., Ltd operates as a branch of Deloitte Global and Deloitte Vietnam, officially known as Deloitte Touche Tohmatsu Limited Established in 1845 by William Welch Deloitte, the firm originated with its first office in London.
In 1989, Deloitte, Haskins & Sells merged with Touche Ross to create Deloitte Touche Deloitte Vietnam, originally VACO, was established on May 13, 1991, becoming the first independent auditing firm in Vietnam In 1992, VACO partnered with Deloitte Touche to enhance its expertise, leading to the formation of VACO Deloitte in 1995 A significant milestone occurred in May 2007 when VACO became the first company in Vietnam to successfully convert ownership, after which it officially rebranded as Deloitte Vietnam, a name it continues to operate under today.
Deloitte Vietnam Accounting Services and Corporate Solutions Co., Ltd branch of Tax and Legal Advisory division Regulated by Deloitte Vietnam and Deloitte Global
• Company name: Branch of Deloitte Vietnam Accounting Services and Business
• Address: 18th Floor, Times Square Building, 57-69F Dong Khoi, Ben Nghe Ward,
District 1, Ho Chi Minh City
• Legal representative: Phan Vu Hoang
• Website: https://www2.deloitte.com/vn/en.html
To date, Deloitte Global has 345,374 employees In which, the Vietnam branch owns more than 1,200 employees working in Hanoi and Ho Chi Minh City offices
“To make an impact that matters”
Make the best impact achievable for the community, for employees, and for customers
• Take care of each other
The company's business activities
Deloitte brings high-quality service to its customers and provides insights to solve their complex business
- Deloitte member firms offer the following services:
Figure 1.2: Services that Deloitte provides to customers
- Tax and Legal (Tax and Legal Consultancy)
Deloitte Vietnam Business Solutions and Accounting Services Company Limited is a branch of Deloitte's Tax and Legal department
- Accounting Services: Monthly Accounting Services; Preparation of financial statements; Chief Accountant Services
- Store accounting records according to the account chart, including accounting documents and VAS compliance ledger in both English and Vietnamese
- Record all accounting transactions on an accrual basis
- Prepare annual legal financial statements according to VAS
- Registration of employees appointed as Chief Accountant of the Company is undertaken by Deloitte Vietnam
- Making payment orders from the Company's bank account based on invoices/receipts/requests provided by the Company
• Tax declaration service: License tax; VAT; CIT; Contractor tax
+ Coordinate with the Company to collect necessary information
+ Submit and track license tax returns to the corresponding tax authority
+ Prepare monthly/quarterly VAT returns according to current requirements + Make annual CIT finalization and send it to customers for approval before submitting it to tax authorities
+ Assist the Company in preparing FCWT refunds related to contracts for purchases and/or services signed by the Company;
• Salary service: Monthly service; PIT finalization
To accurately calculate salaries and other payments, including personal income tax (PIT), social insurance, health insurance, and unemployment insurance, it is essential to gather employment data along with relevant supporting documents, such as labor contracts, assignment letters, payment element instructions, and new hire forms.
Organizational apparatus at the company
Figure 1.3: Organizational chart at the branch of Deloitte Vietnam accounting services and business process solution company limited
The organizational structure of the company is divided into such divisions as: Human Resources Department; Administrative Department; Finance and Accounting Department; Technical Department; Sales Department
In each different department will be hierarchical management organization according to the following levels:
Figure 1.4: Hierarchical organization at the branch of Deloitte Vietnam Business
Solutions and Accounting Services Co., Ltd
1.3.2 Functions and duties of departments
The director serves as the highest authority and legal representative of the company, overseeing overall business performance This role involves making critical strategic decisions and setting directions for the company's growth and development.
- Finance - Accounting Department: Responsible for managing travel expenses for employees Manage timekeeping, overtime marking, and employee pay Check financial revenues and expenditures
- Administration Department: Provide stationery for company employees Organize support and gift policies for customers and employees
- Human Resources Department: Organize personnel recruitment for the company
Human resource management in each different department
The Technical Department oversees the provision of computers and essential equipment to meet employee needs, facilitates the installation of required software, and ensures the company's information security.
- Sales Department: Provide accounting services, tax services and payroll services to clients Generate revenue for the company.
Organization of accounting at the company
- Accounting policies and accounting policies applied at the company:
The company applies the system of 26 Vietnamese accounting standards (VAS) issued by the Ministry of Finance
The company applies the accounting regime according to Circular 200/2014/TT-BTC of the Ministry of Finance issued on September 27, 09, 2021
Assistant DirectorManagerAssistant ManagerSeniorStaff)
VAT calculation method: Deduction method
Depreciation method: Straight line method
Fiscal year: starting from 01/07 to 30/06 of the year
Features of the organization of the accounting voucher system:
The frequently used accounting documents at Deloitte Vietnam Accounting Services and Business Solutions Co., Ltd branches include:
Features of the organization applying the accounting account system:
The unit accountant implements the accounting system as outlined in Circular 200/2014/TT-BTC from the Ministry of Finance, issued on September 27, 2021, while also tailoring it to align with the specific business characteristics of the company.
Form of accounting applied: Form of keeping a General Journal This form is applied by the company through computer software (Excel software) to implement
Accountants utilize verified documents and invoices as the foundation for bookkeeping, meticulously recording transactions in the General Journal They also maintain detailed accounting books based on the collected vouchers and invoices The data captured in the General Journal is subsequently transferred to the Ledger, ensuring accurate categorization within the relevant accounting accounts.
At the conclusion of the accounting period, it is essential to summarize the data from the Ledgers to create a trial balance This process involves verifying and reconciling the recorded information in the Ledger with the detailed summary table, which ultimately facilitates the preparation of accurate financial statements.
Accounting books used: General journal, ledger, trial balance are entered directly on Excel software
Figure 1 5 : Diagram of the order of recording the accounting books
Organization of preparation of accounting reports:
Financial statements: Balance sheet, Income statement, Statement of cash flows and Equity statements
Tax reporting: VAT, CIT, PIT
1.4.2 Organization of the accounting apparatus
The accounting structure of the organization is comprised of several specialized departments, including Liability Accounting, Tax Accounting, Payroll Accounting, and Payment Accounting, all overseen by the Chief Accountant Despite this division into smaller units, the management of these departments is conducted in a synchronized manner, adhering to a fixed hierarchy established by the company.
Organizational structure of the accounting apparatus
Figure 1 6 : The organizational structure of the accounting apparatus
- Chief Accountant: Manage and supervise the financial resources of the enterprise
The chief accountant oversees the accounting staff, ensuring accurate management of financial records and statements They play a crucial role in preparing timely financial reports for enterprise management and are accountable to the audit agency for the integrity of the company's books and documents.
Liability accounting involves meticulously tracking each receivable and liability, along with monitoring internal company advances It is essential to reconcile these figures with the company's overall debt situation and that of its customers on a monthly basis, while also scheduling customer debt payments Effective management of debt activities is crucial for businesses to thrive and maintain smooth operations.
Tax accounting involves gathering all necessary invoices and documents to accurately calculate and file tax returns This includes declaring and submitting Personal Income Tax (PIT), Corporate Income Tax (CIT), Value Added Tax (VAT), and fulfilling other tax obligations Businesses must ensure timely payment of taxes as mandated by state regulations.
- Payroll Accounting: Track timesheets and calculate payroll and salary deductions for employees Accurately and promptly calculate the policy on the regime and the salaries, bonuses, allowances for employees
Payment accounting involves managing cash and bank transactions for a company’s payment needs This includes processing employee salaries and external payments, while also handling internal financial tasks Additionally, payment accountants track advances, develop payment plans, and liaise with suppliers to resolve any related issues.
INTRODUCTION TO THE CLIENT COMPANY USING VAT ACCOUNTING SERVICES OF
About the client company
2.1.1 General information about the client company
- Company Name: ABC Company Limited
- Form of capital ownership: Limited liability company with two or more members Shares are held by 2 members Director and chairman of the members' council
- The company was established in 2017
Founded in 2017, ABC Co., Ltd aims to support consumer brands in Southeast Asia, emerging from the acquisition of a market research consulting firm.
2.1.2 Field, line of business, type of business, investor, and year of operation in
Vietnam, investment country, scale of operation of the company
• Market research and opinion polls (Main activities)
• Activities of information technology services an d other related services to computers
• Data processing, leasing related activities
Limited Liability Company Two or more members Shares are held by 2 members:
Director and Chairman of the Members' Council
ABC Company Limited is a subsidiary of another parent company based in Singapore ABC Company Limited is also invested by this parent company
Working in the field of exploration and market research The area of activity is to support consumer brands in Southeast Asia (Nestle, Unilever, Dentsu, Home Credit, CocCoc,
Techcombank, ) The company was formed as a result of the acquisition of the management of another market research consulting firm.
Organization of accounting work at the company
- Organization of the accounting apparatus:
The company does not have its own accounting department The CFO at ABC Co., Ltd will always act as an accountant at the company to perform tasks such as:
• Set up fees for collection and expenditure
ABC Co., Ltd collaborates with Deloitte Vietnam Accounting Services and Business Process Solution Co., Ltd for comprehensive accounting services Each month, the financial director at ABC Co., Ltd submits essential documents, including contracts, invoices, and bank statements, to facilitate accurate accounting support This partnership ensures efficient invoice verification and error correction, enhancing the overall financial management of the company.
- Accounting policies and accounting policies applied at the company:
The company applies the system of 26 Vietnamese accounting standards (VAS) issued by the Ministry of Finance
The Company applies the accounting system according to Circular 200/2014/TT- BTC of the Ministry of Finance issued on September 27, 2021
VAT calculation method: Deduction method
Depreciation method: Straight line method
Fiscal year: from January 1 to December 31 of the year
Tax return period: Declare temporary corporate income tax on a quarterly basis
- Organizational characteristics of the accounting voucher system:
The commonly used accounting documents at ABC Co., Ltd can be mentioned as:
• List of purchased goods and services
• List of goods and services sold
• List of purchased goods and services
• List of goods and services sold
- Characteristics of the organization and application of the accounting system:
The unit accountant implements the accounting system in accordance with Circular 200/2014/TT-BTC from the Ministry of Finance, effective September 27, 2021, tailoring it to the company's specific business characteristics The accounts are meticulously categorized by various types of expenses and revenues, with a clear and detailed division of expense types, facilitating accurate allocation and determination of business accounts for the reporting period.
Figure 2.1: Account system used at ABC Co., Ltd
Applicable accounting form: General journal entry form This form is applied by the company through computer software (Excel software) to implement.
Daily bookkeeping involves the meticulous recording of transactions using verified vouchers and invoices Accountants utilize these documents to update the general journal, ensuring all transactions are accurately captured Subsequently, this data is transferred to relevant detailed accounting books and cards, and finally, the ledger is updated according to the appropriate accounting accounts.
At the conclusion of the accounting period, it is essential to summarize the data from the account ledgers to create an accurate balance sheet After verifying and reconciling the information, the figures recorded in the general ledger and detailed summary table are utilized to prepare the financial statements.
Accounting books used: General journal, detailed ledger, arising balance sheet are entered directly on Excel software
• Financial statements: Balance sheet; Report on business results; Statements of cash flows; Notes to the financial statements
• Tax report: VAT; CIT; Personal income tax; FCT.
The Accounting Process is provided at Deloitte Vietnam accounting services and
General introduction accounting process providing at the branch of Accounting
Services and Business Solutions company Deloitte Vietnam
Figure 3.1: General process of providing VAT accounting services to customers
3.1.1 Offer services and quotes to customers
Service proposals that can be provided and quoted to customers are made on Powerpoint software so that it can be easily presented and explained to customers more easily understood
The presentation consists of 2 main contents: Scope of work (Services provided to customers) and Fee (Quotation for those services)
Service proposals and quotes for customers Client
Making Contracts and Signing Contracts
End the process of communicating with the customer
Figure 3.2: Powerpoint presents service offerings and quotes to customers
Value Added Tax ("VAT") service proposal – Declare monthly or quarterly
- Coordinate with the Customer to collect the necessary information
- Prepare quarterly VAT returns in accordance with applicable requirements
(ensuring that all VAT requirements can be reviewed) and transmit them to the Customer for approval
- Assist the Company in the stage of submitting VAT returns to tax authorities when the Company reviews and approves
- Instruct the Company on any VAT payable to the tax authorities
A service accountant will conduct a Background Check to assess the financial stability of the client company, ensuring it can afford the services provided This evaluation is based on the information supplied by the customer.
- Company information: Name, date of establishment, address
- Company representative information: Name, Personal information
- Information of the parent company of the company providing the service: Name, date of establishment, address,
- Representative information of the parent company: Name, Personal information ,
Figure 3.3: Fill-in form to check customer information
3.1.3 Receive and check invoices and vouchers
Customers submit monthly invoices and documents for service accountants to review Upon receipt, these invoices are organized into distinct files, categorized as input and output invoices Each file is named clearly with the corresponding invoice number and customer name, ensuring easy identification and classification.
Ensure all necessary documents are accounted for and verify their accuracy If any documents are missing, the customer's company must resubmit them to complete all invoices for the specified period Additionally, pay close attention to invoices lacking VAT documentation, as it is crucial for customers to promptly provide the necessary invoices.
When dealing with invoices, it is crucial to focus on specific characteristics, as VAT on these invoices is non-deductible Therefore, it is essential to inform the customer to ensure that accurate invoices are provided.
• Incorrect information: Name, address, tax ID of buyer and seller
• Incorrectly recording the actual value of the goods
• Short invoice, no goods attached
• The invoice does not specify the tax rate and amount of VAT
3.1.4 Determining business accounts, processing information
- Based on the information contained in accounting documents, the accounting team will record information in the Accounting Books Based on accounting documents, fill in the general logbook, Detailed ledger
The accounting team must prepare a balance sheet using the information and figures from previously closed ledgers and detailed books This process ensures that the statistics are clear and precise, helping to prevent potential issues in the future.
- Summarize the invoices on the input VAT statement and Output VAT invoice to proceed with the calculation of payable VAT
The accountant reviews the prepared accounting books and verifies the invoices according to regulations, calculating the VAT accordingly They summarize the operations on the output VAT statement while deducting the input VAT A comparison is made with the previously completed balance sheet and the derivative balance sheet to identify any discrepancies and understand the reasons for these differences.
To declare VAT using HTKK software, ensure that all information is completed accurately in the declaration fields Export the declaration in both XML and PDF formats Additionally, provide the customer with an Excel file containing the calculated VAT and the completed VAT declaration for their review.
- After completing the above tasks, the declaration will be sent to the tax authority and remind the customer to pay VAT on time
- Law on Tax Administration 2019 No 38/2019/QH14
- Circular 219/2013/TT-BTC guiding the implementation of the Law on Value
- Circular 26/2015/TT-BTC adjusts some points of Circular 219/2013/TT-BTC
- Circular 173/2016/TT-BTC adjusting bank payment documents of Circular
219/2013/TT-BTC and Circular 26/2015/TT-BTC
- Decree 125/2020/ND-CP stipulates penalties for administrative violations of taxes and invoices
- Decree 126/2020/ND-CP details a number of articles of the Law on Tax
Administration 2019 guiding the tax declaration deadline
- Circular 80/2021/TT-BTC guiding the implementation of a number of articles of the Law on Tax Administration 2019 and Decree 126/2020/ND-CP
- And some other relevant provisions.
VAT accounting at the branch of Deloitte Vietnam Accounting Services and Business
Business Solutions Co., Ltd applied at ABC Co., Ltd
ABC Co., Ltd's input VAT primarily arises from various activities, including call center service charges, the purchase of electronic equipment, employee food expenses, delivery service fees, office rental and associated costs, as well as stationery purchases.
- These goods and services have a VAT rate of 10% Besides, according to Circular
No 78/2021/TT-BTC of the Ministry of Finance issued on September 17, 2021, there are goods and services input VAT rate is 8%
- Usage vouchers and document circulation process
- Economic contract (Purchase and sale contract) between two parties
- Proof of payment to the seller:
+ Voucher: If the invoice has a total payment value of less than VND 20 million
+ Payment authorization or non-cash payment documents: If the invoice has a total payment value of VND 20 million or more
Figure 3.4: Flow diagram of input VAT documents
Get a quote, make an order Order confirmation and signing
Export goods according to the contract
Receipt of goods and input VAT invoice
Receive input VAT invoice and store
Receive input VAT invoices and record operations
Make a payment procedure Make a cheque
Spending money and bookkeeping funds
Examble 1: On 28/10/2022, ABC Company received an invoice from Deloitte
Vietnam Tax Consulting Co., Ltd for payroll service fee in 07/2022 with an invoice value of 7,614,000 (Including 8% VAT) Unpaid to the provider (Based on VAT invoice No 00001476 in Appendix 1.1)
- The National Assembly has officially approved Resolution 43/2022/QH-15 on fiscal and monetary policies to support the Socio -economic Recovery and Development Program
- In which, the outstanding content is reducing VAT from 10% to 8% (ie 2% reduction) of the value added tax rate in 2022
- This Resolution is effective from January 11, 2022 to December 31, 2023
Examble 2: On October 4, 2022, ABC Company received an October office lease invoice from The Sentry Company Limited Company ABC has not paid the supplier Invoice value 102,599,640 (Including 8% and 10% VAT) (Pursuant to invoice
00000025 of Appendix 1.2) Accounting for accounting:
- According to the Government's Decree 15/2022/ND-CP on regulations on tax exemption and reduction policies according to the National Assembly's Resolution
The No 43/2022/QH15 legislation outlines fiscal and monetary policies aimed at supporting the socio-economic recovery program It includes provisions for a reduction in value-added tax (VAT) for certain goods and services currently taxed at a rate of 10%, with specific exemptions for selected categories.
+ Telecommunications, financial activities, banking, real estate trading, securities, insurance, metals and mining produ cts, prefabricated metal products, chemical products, coke, petroleum refined, chemical products
+ Products, services and goods subject to excise tax
+ Information technology in accordance with the law on information technology
The value-added tax reduction outlined in Article 1 of Decree 15/2022/ND-CP applies to all stages, including import, production, processing, business, and trade, for various types of goods and services.
Office leasing is classified as a segment of the real estate business According to Article 1 of Decree 15/2022/ND-CP, the real estate business's goods and services must maintain a minimum rate of 10%, without any reduction to 8%, while continuing to adhere to the previous payment rate of 10%.
Examble 3: On 31/11/2022, ABC Company received an invoice for Virtual Call
Center Service charges for November from a branch of CMC Telecommunications
Infrastructure Joint Stock Company (Hanoi) worth 200,000, 10% VAT (Based on invoice No 00009502 of Appendix 1.3), the accounting accountant:
Examble 4: On November 1, 2022, ABC company received an invoice for employee meals from Tuk Tuk Thai Bistro JSC 2,999,430 (including 8% VAT) Sister H paid for this bill on behalf of ABC (Pursuant to invoice No 11427 of Appendix 1.4) Accounting for accounting:
Examble 5: On 3/12/2022, Tan Tien Stationery Co., Ltd sent ABC Co., Ltd an invoice to buy stationery, Ms Huyen paid this invoice for the company The invoice value is 261,740, the VAT rate is 8%: 20,939 (Pursuant to invoice No 7969 of Appendix 1.5), the accounting is as follows:
3.2.1.4 Illustrated data in the summary and detailed in Excel software
On the general ledger, it is necessary to fill in information such as:
- Notation for more classification distinction: GJ is the comprehension sign for the input bill
- Accounting period recorded: Since these invoices recorded in Q4 are in 10, 11, and
12, the accounting period will record 2210, 2211, and 2212
- Invoice date: Based on the date stated on the invoice, October 28, 2022 will be recorded as 20221028 by the service accountant
- Interpretation: Based on the content of the invoice to write the content
- Customer name: Based on the invoice information to abbreviate the customer's company name
- Account number: Accountants use DR 133100 in CR 33100 to record operations
- VAT amount: Rely on the invoice to fill in this information
In the ledger of accounts 133100, the accountant fills in the following information:
Output VAT arises mainly from market research and public opinion polling and management consulting
These exploration and research services have a VAT rate of 8% or 10%
3.2.2.2 Usage vouchers and document circulation process
Figure 3.7: The flow chart of output VAT vouchers
Account 333110 output VAT, VAT payable
Examble 1: On 14/10/2022, ABC Company issued an invoice to provide market research services "Customer satisfaction survey on the design of the restaurant" to Pizza Vietnam Co., Ltd with an invoice value of 43,884,185, VAT rate of 8% not collected from customers (Pursuant to invoice 109 of Appendix 2.1), accounta nt:
Get a quote and make an order
Order confirmation and contract signing
Receive output VAT invoices and recognize business
Collection and bookkeeping of funds
Examble 2: On 30/11/2022, ABC Co., Ltd issued an invoice for providing services to Unilever Vietnam International Co., Ltd "MKT-CMI_161122_SLDW_Research SLDW Cinnamon (Claim test)", order value 79,006,104 (In cluding 8% VAT) (Pursuant to invoice 136 of Appendix 2.2), accountants:
Examble 3: On 30/ 11/2022 ABC Company invoiced 30% of the Total Value of the Research project to assess Topica's brand health compared to competitors" to Topica English Education Joint Stock Company" The order value is 109,000,080 (Including 8% VAT) without customer charge (Pursuant to invoice 139 of Appendix 2.3) Accounting for accounting:
Examble 4: On December 27, 2022, ABC Company issued an invoice to Nestle
Vietnam Co., Ltd has conducted market research for the "Premium Scheme Evaluation" project, with an invoice amounting to 90,922,200 VND and a VAT of 7,273,776 VND at an 8% rate, which remains uncollected from customers, as referenced in invoice 151 of Appendix 2.4.
Examble 5: On 31/12/2022, ABC Company invoiced the YouGov Profiles package for Home Credit Vietnam Financial Company Limited Invoice value 185,895,000 (Including 8% VAT) not collected by customer Pursuant to invoice 159, the accountant assesses:
3.2.2.5 Illustrated data in the summary and detailed in Excel software
- Notation to distinguish more type: AR is the sign understood to know the output invoice
- Account number: Accountants use DR 131000 in CR 333110 to record operations
- VAT amount: Rely on the invoice to fill in this information
In the ledger of accounts 333110 the accountant fills in the following information :
3.2.3 Determine and declare VAT payable
According to Clause 15 Article 14 of Circular 219/2013/TT-BTC
A business establishment may not charge input VAT deduction in the following cases:
VAT invoices are often misused in violation of legal provisions, particularly when they fail to accurately record VAT amounts This issue arises except in specific instances where VAT invoices are intended to document prices that include VAT.
- The invoice does not record or incorrectly record one of the criteria such as name, address, tax identification number of the seller, so the seller cannot be identified;
An invoice that fails to accurately capture essential details, such as the buyer's name, address, or tax identification number, can hinder the identification of the buyer, unless otherwise specified in Clause 12 of this Article.
- Fake invoices, VAT payment documents, erased invoices, fals e invoices (no goods and services attached);
- The invoice states the incorrect value of the goods or services purchased, sold or exchanged
Therefore, invalid invoices according to accounting regulations will exclude such invoices not included in the deductible VAT
Figure 3.10: List of invoices lack information in Q4.2022
To ensure accuracy and eliminate errors, it is essential to summarize and compare the output and input VAT invoices with the data recorded on the balance sheet.
- Comparison with the balance sheet incurring account 133100
- Comparison with the balance sheet incurring account 333100
- Determine the total amount of output VAT incurred
Output VAT incurred in the fourth quarter of 2022 = 3,510,735 + 5,852,304 + 8,074,080 + 7,273,776 + 13,770,000 + = 503,054,153
- Determine the amount of input VAT to be deducted
Input VAT deducted in April 2022:
564.000 + 926.640 + 8.190.000 + 20.000 + 222.180 + 20.939 + = 221.038.792 The formula for calculating VAT payable according to the withholding method is specified in Article 12 of Circular 219/2013/TT-BTC:
VAT payable = Output VAT - Input VAT is deducted
3.2.3.2 Illustrated data on the list
Figure 3.11: List of invoices lack information in Q4 Deductible input VAT statement
Figure 3.12: List of invoices lack information in Q4.2022
Comparison with the balance sheet incurring account 133100
- In the fourth quarter of 2022, at the end of the period on the balance sheet, the balance of account 133100 was 222,052,901;
- The amount of input VAT that the accountant aggregated is valued at 221,038,792
COMMENTS AND RECOMMENDATIONS
Comments
4.1.1 Comments on the organizational structure of the branch of Deloitte Vietnam
Accounting Services and Business Process Solution Co., Ltd
• Organization of the company apparatus:
- In general, the organizational structure at the branch o f Deloitte Vietnam
Accounting Services and Business Process Solution Co., Ltd is quite tight
The organizational structure of a company's general management is characterized by a well-defined hierarchy, typical of large corporations This clear division of ranks and qualifications ensures that all reports are meticulously reviewed, guaranteeing high levels of accuracy and honesty, while minimizing the occurrence of errors.
- Different departments in the company always perform well in each of their positions Specific tasks in each department are done quickly and always ensure the interests of employees
The company prioritizes the security of internal information through a well-structured and systematic approach All applications utilized for communication between employees and with customers are designed to maintain a high standard of professionalism and organization.
During the busy season, it is crucial to implement responsive policies and benefits for employees, fostering a supportive work environment that enables them to perform at their best.
• Organization of the accounting apparatus:
To establish an effective accounting system, it is essential to clearly define roles and responsibilities within the team, ensuring a well-structured relationship among accounting personnel Building a team of highly qualified accountants with a strong sense of responsibility is crucial Additionally, staying updated with the latest information promptly is vital for operational efficiency The accounting department should function in a professional and transparent manner to enhance trust and accountability.
The accounting system is structured hierarchically, ensuring that reports submitted to employees and senior departments undergo thorough verification based on their expertise This meticulous process enhances accuracy and significantly reduces the likelihood of errors.
4.1.2 Comments on the accounting services provided at the company branch of
Deloitte Vietnam Accounting Services and Business Process Solution Co., Ltd.
- Dedication to customers: Each customer is always fully supported, from consulting to reporting results Figures are always reflected honestly and objectively
- Experienced human resource system: the team at Deloitte with consultants with many years of practice, high professional qualifications, good professional handling
- The declaration process is always strictly controlled, full invoices and documents for each arising operation are summarized
- Flexible when declaring, targets are changed in accordance with business characteristics, re-checking through many steps to ensure that data is no longer erroneous before sending to customers
- The information system handles and stores information well, the employees easily exchange, communicate internally, retrieve data quickly and easily
- The implementation process from the beginning to the completion of the report is clearly organized Comply with the provisions of the law
The company prioritizes high-quality human resources by regularly conducting internal training, seminars, and knowledge-sharing sessions for employees This commitment ensures that the team remains prepared, swiftly updates information, and adapts to social changes and legal requirements, catering effectively to the unique needs of each client.
Accountants often rely solely on manual data entry in Excel, which can lead to confusion and errors when handling large volumes of valuable information This manual process not only increases the likelihood of mistakes but also consumes significant time and human resources, making it an inefficient approach to accounting.
- In communicating with customers: contacting customers via email is sometimes delayed, confirmation is not timely, the document system is in complete
During peak seasons, employees often juggle multiple customers simultaneously, which can result in delays and disruptions This increased workload frequently leads to employee burnout and affects the quality of VAT accounting services provided to clients.
- For each customer, each company will have different characteristics, so it leads to missing invoices or understatements, misprescribing invoices or mistakenly recording invoice values is still existing
In VAT accounting, it's crucial for accountants to meticulously review invoices when preparing output and input VAT statements Failure to do so can lead to the inclusion of invalid or duplicate invoices, which may negatively impact the customer company during tax authority audits.
Some recommendations to improve the accounting of receivables to suppliers
- Through the internship of VAT declaration at the branch of Deloitte Vietnam
Accounting Services and Business Process Solution Co., Ltd assessed the client's company and found its processes to be generally comprehensive However, to enhance efficiency, it is essential for the company to effectively highlight its strengths while addressing areas that require improvement To facilitate better operations, I would like to offer several recommendations.
- The company needs to add manpower, avoid work pressure on former employees, allocate more efficient workflows to employees at a ll levels
Implementing appropriate accounting software can significantly reduce working time and optimize human resource allocation Additionally, utilizing such software enhances accountants' skills and knowledge, ultimately improving the efficiency of the accounting process.
Service accountants must exercise diligence and precision when handling VAT for clients by thoroughly verifying invoices Prior to finalizing the statement, it is essential to confirm the validity of each invoice and check for any duplicates to ensure data accuracy.
- There are more internal training sessions, VAT experience sharing sessions
Regularly update the latest information on VAT so that it can be applied in the working process
Value Added Tax (VAT) is an indirect tax familiar to many, applied to the added value of goods and services throughout their production, distribution, and consumption stages While consumers ultimately bear the cost of VAT, it is the businesses and production units that are responsible for declaring and remitting the tax to the government.
Navigating VAT declaration presents significant challenges for businesses due to the complexities of legal documents, circulars, and societal changes My internship at Deloitte Vietnam Accounting Services and Business Process Solution Co., Ltd highlighted the importance of practical experience alongside theoretical learning This hands-on approach not only enriched my specialized knowledge but also revealed the limitations of theory when not applied in real-world scenarios, often leading to disputes Additionally, I gained valuable insights into the VAT declaration process, document collection in service enterprises, and actively participated in aspects of the declaration itself.
Upon finishing my internship, I have recognized the significance of declaring and paying VAT In this report, I aim to share my insights to enhance the completeness of the declaration process Acknowledging the time constraints, I understand that this report may have its limitations, and I welcome feedback and guidance from my teachers and colleagues to refine the topic further.
1 National Assembly 14, Law on Tax Administration No 38/2019/QH14
2 Ministry of Finance, Circular 219/2013/TT-BTC, Guidance on Value Added Tax
3 Ministry of Finance, Circular 26/2015/TT-BTC, Adjusting some points of Circular 219/2013/TT-BTC
4 Ministry of Finance, Circular 173/2016/TT-BTC, Adjustment of bank payment documents of Circular 219/2013/TT-BTC and Circular 26/2015/TT-BTC
5 The Government, Decree 125/2020/ND-CP, Regulations on sanctioning administrative violations on taxes and invoices
6 The Government, Decree 126/2020/ND-CP, detailing a number of articles of the Law on Tax Administration 2019 guiding the time limit for tax declaration
7 Ministry of Finance, Circular 80/2021/TT-BTC, Guiding the implementation of a number of articles of the Law on Tax Administration 2019 and Decree 126/2020/ND -CP
8 National Assembly No 15, Resolution No 43/2022/QH15, Fiscal and monetary policies to support the socio-economic recovery and development program
9 Deloitte Vietnam Accounting Services and Business Solutions Co., Ltd (2022),
10 Deloitte Vietnam Accounting Services and Business Solutions Co., Ltd (2022), Internal training documents
Appendix 3.2.3.3: Export declaration as XML