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Electronic Rent Payments: How to Calculate

Electronic Rent Payments: How to Calculate

Among the fees when renting an office, the electricity bill is the top priority. Each office leasing unit will have different electronic rent payments. To find out the problem of electricity bills when renting an office, learn through the following sharing.

Current price list of electronic rent payments for offices

Current price list of electronic rent payments for offices

Currently, office buildings all charge electronic rent payments on the area, service fees, and electricity and water fees for traditional offices. Virtual office businesses often offer free electricity and water for leased offices. In addition, for other types of offices, tenants must pay for the use of meeting rooms as well as other costs. An important fee to note is electricity when renting an office.

At each office and building, the management board will attach a separate electricity meter. This meter will calculate the amount of electricity that the company uses, thereby converting it into a monthly electricity bill.

The formula for calculating specific electricity bill: electricity consumed x unit price of electricity on the contract

Current retail price of electricity:

  • From 22kV and above
    • Normal Hours: 2.442
    • Off-peak hours: 1.361
    • Rush hour: 4,251
  • From 6kV to less than 22kV
    • Regular Hours: 2.629
    • Off-peak hours: 1,547
    • Rush hour: 4,4000
  • Less than 6kV
    • Normal Hours: 2,666
    • Off-peak hours: 1.622
    • Rush hour: 4,587

Besides buildings that use the state electricity tariff, there are some buildings that set their own electricity prices. This electricity price ranges from 3,500 VND/kWh to 4,500 VND/kWh.

In addition, the price of electricity is not entirely dependent on the building’s class. Grade A or B or C buildings often use the same electricity price.

In case an enterprise leases an office to install its own meter from the Vietnam Electricity Group

In case an enterprise leases an office to install its own meter from the Vietnam Electricity Group

In this case, when there is a need to install a separate meter for Electricity of Vietnam, the staff of the Electricity of Vietnam will come to the office to survey directly in order to apply electricity prices in accordance with the law. law and sign a power purchase contract with the office leasing enterprise.

In the case of office rental for business purposes, most of the electricity retail prices will be applied for business, specifically:

  • From 22kV and above
    • Normal Hours: 2.442
    • Off-peak hours: 1.361
    • Rush hour: 4,251
  • From 6kV to less than 22kV
    • Regular Hours: 2.629
    • Off-peak hours: 1,547
    • Rush hour: 4,4000
  • Less than 6kV
    • Normal Hours: 2,666
    • Off-peak hours: 1.622
    • Rush hour: 4,587

Note: In case, the business rents an office and the homeowner installs their own meter without following the regulations of the Electricity of Vietnam, the electricity price may not be according to the above table.

In case an enterprise leases an office without installing its own meter of the Electricity of Vietnam (EVN)

In case an enterprise leases an office without installing its own meter of the Electricity of Vietnam (EVN)

In case the homeowner has an electricity retail license

If the landlord has a retail electricity license, the electricity price for office rental will be applied to the retail electricity price for the business. This retail operation will be managed by the Vietnam Electricity Group.

In case the homeowner does not have an electricity retail license

In this case, the law does not have specific provisions. When the landlord does not have an electricity retail license, the electricity price when renting an office will be agreed upon by the two tenants and the lessor.

Therefore, businesses need to have a clear written agreement when renting an office.

Notes when accounting for office electronic rent payments

Ways to calculate electricity bill when Renting an Office

Normally, the office lease contract will specify the electricity price on a specific electricity word. When signing the contract, the lessor will install 1 electricity meter for each company. Therefore, businesses that rent offices need to pay attention and clearly agree on how to calculate electricity before renting an office.

When renting an office, businesses should choose offices for rent with electricity rates applied according to state regulations. This will avoid the situation of increased fees when using the owner’s own electricity price. At the same time, ensure transparency and clarity when signing contracts.

However, the fixed price for the office above the contract also changes due to the change in the general electricity price, so some office buildings will usually add and subtract % of the loss on the electricity price. Some small buildings can be charged according to the state electricity unit price.

ways to calculate the price of electronic rent payments and water

Normally, the water fee when renting an office will be included in the general cost of the rent.

However, some companies that operate in industries related to high water use or have a sewage system have to install a separate water meter in the building. At the same time, the building must have its own water and sewage pipes.

In this case, water bill = water consumption * unit price of water.

Pay attention to the number of electric meters

Pay attention to the number of electric meters

When starting to work, the lessee needs to close the indicators related to electricity and water meters at the office. This will help you avoid being charged extra for electricity used by previous customers. Limits unnecessarily controversial between parties in calculating electricity bills when renting offices.

Check the electromechanical work regularly

Electric meters used for a long time will easily have the error of electrical letters. Enterprises need to regularly check the operation of companies. Avoid losing money unjustly when the meter runs wrong.

Does electricity cost have to be billed?

Electricity and water bills are in the name of the lessor, however, the electricity and water bills will be paid by the lessee. If this electricity and water bill is given to the lessee, the lessee will not be charged the cost, and cannot deduct VAT because the name on the invoice belongs to the lessor.

In order for the lessee to have legal accounting documents, the lessor must issue an invoice to the lessee. In there:

  • The amount in the bill must be exactly the amount charged by the electricity supplier from the lessor.
  • The content of the invoice must contain the information “recovering the electricity bill of the period arising from … to… The amount on the invoice will correspond to the amount of electricity consumed by the lessee.
  • Invoices are fully written in the amount excluding VAT, VAT amount, and total payment.

Are electricity costs taxable?

Because of the bill, the supplier of electricity and the country of origin bears the name of the lessor. The lessor then returns it to the lessee with the information that the seller is the lessor and the buyer is the lessee. So in this case, the lessor makes a normal tax declaration.

Note: Unlike the case of collection and payment on behalf of the lessee, the invoice is in the name of the lessee. For example, Electricity and water suppliers issue an invoice to the lessee (the invoice is in the name of the lessee), but the lessor pays this amount for the lessee. In this case, the lessor is not required to declare and calculate VAT as well as CIT of this collection and payment activity.

Therefore, when the electricity bill bears the name of the lessor, and the lessor collects and pays this amount, this invoice must declare and pay tax.

You can read the previous article here: Office Space Lighting Standards: In Office Design

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Q: What are the legal requirements for lease contracts in Vietnam?

Vietnam has specific legal requirements for lease contracts, such as registration with the local authority and the inclusion of certain clauses, including those related to rent adjustment, termination, and dispute resolution.

Q: What are the different types of lease contracts available in Vietnam?

There are several types of lease contracts available in Vietnam, including commercial office leasing, co-working space lease contracts, and business center lease contracts.

Q: What is an office lease contract?

An office lease contract is a legally binding agreement between a landlord and a tenant, which sets out the terms and conditions for renting office space.

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huyho

Professional Content Writter about the office space for lease, coworking, serviced office, retailed space.

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