On May 27, Mr. Nguyen Huu Chinh - Deputy Head of the Dong Hoi - Quang Ninh Inter-district Tax Team said that after receiving information from the press, the unit had a direct dialogue with the accountants of 160 kindergartens and primary schools in the area.
Mr. Chinh affirmed that there is no double tax collection for meals at schools. After the dialogue, the two sides determined that some information about collection and payment of household fees does not require tax declaration.
The Deputy Head of the Dong Hoi - Quang Ninh Inter-district Tax Team informed that the meal rate tax is a service fee according to the provisions of law.
Mr. Doan Vi Tuyen - Deputy Head of the Tax Department of Region XI said that tax teams in Quang Binh province have had dialogues to clearly explain the taxes to schools in the area.
Mr. Doan Vi Tuyen said that current law has two methods of calculating VAT: deduction and direct. The deduction method applies to units with full invoices and documents and are entitled to input tax deduction. As for the direct application of the method to unqualified units, the tax will be calculated on the total revenue without deduction of input tax - leading to the rate of meals being taxed even if tax has been paid when purchasing raw materials.
"The tax industry does not impose any method, but allows units to choose according to their accounting ability, but it is necessary to ensure compliance with regulations," said Mr. Tuyen.
He also pledged to send tax officials to work directly with schools to guide tax declaration and payment accurately, promptly reporting to the Provincial People's Committee as required.
As reported by Lao Dong Newspaper, many schools in the province have received documents requesting declaration and payment of VAT for expenses such as boarding meals, hiring cooking staff, security guards, drinking water, inspection papers, etc. In particular, each meal worth VND 23,000 is charged an additional 3% VAT, causing many worries.
The Head of the Tax Department of Region XI has established verification and direct inspection teams at a number of public schools in the area such as Nam Ly Primary School No. 1, Bac Ly Primary School No. 2, Vinh Ninh Kindergarten and Lam Hoa Kindergarten.
This is a move to verify the reflection related to tax collection on students' meals, and implement the direction of the Chairman of the Provincial People's Committee.
