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THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 10/2000/TT-BTC
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Hanoi,
February 1, 2000
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CIRCULAR
GUIDING THE DECLARATION AND PAYMENT OF
VALUE-ADDED TAX ON GOODS OF BUSINESS ESTABLISHMENTS, WHICH ARE DELIVERED TO AND
SOLD AT THEIR DEPENDENT COST-ACCOUNTING UNITS IN OTHER PROVINCES AND CITIES AND
WHICH ARE DELIVERED TO AND SOLD BY COMMISSION AGENTS AT FIXED PRICES
Pursuant to the VAT Law and the Government’s
Decree No. 28/1998/ND-CP of May 11, 1998 detailing the implementation of the
VAT Law;
In order to guide the VAT declaration and payment to be suitable to the
business organization of business establishments and compatible with Circular
No. 140/1999/TT-BTC of December 2, 1999 guiding the supplements and amendments
to a number of points in Circular No. 73-TC/TCT of October 20, 1997 and
Circular No. 17/1999/TT-BTC of February 5, 1999 of the Finance Ministry guiding
the regime of invoices and vouchers for goods circulated on the market; the
declaration and payment of VAT on goods of business establishments, which are
delivered to and sold at their dependent cost-accounting units in other
provinces and cities, and which are delivered to and sold by commission agents
at the fixed prices, are prescribed as follows:
I. FOR GOODS OF BUSINESS ESTABLISHMENTS, WHICH ARE DELIVERED TO AND
SOLD AT THEIR DEPENDENT COST-ACCOUNTING UNITS IN PROVINCES AND CITIES OTHER
THAN THE LOCALITIES WHERE THE PRODUCTION AND BUSINESS ESTABLISHMENTS ARE
HEADQUARTERED.
1. Making and transferring invoices and vouchers for goods delivered
from stock and internally consumed:
a/ When a production and
business establishment delivers goods to its attached dependent cost-accounting
units such as branches, shops’
based in provinces and cities other than the locality where it is
headquartered, it must make a delivery cum internal transport bill enclosed
with an internal transfer order.
b/ The attached dependent
cost-accounting units, including branches and shops’, must, when selling goods, make added value
invoices for sold goods according to regulations.
If the sold goods are goods
transferred or consigned by the parent company or higher-level units for sale,
the attached units shall base themselves on the quantities and selling prices
of the already sold goods to make a list of invoices for sold goods and send it
to the parent company or higher-level units so that the latter can make
invoices for these goods as prescribed at Point 1c of this Section. The list of
invoices for internally-transferred goods sold in the month shall be made
according to form No. 02/GTGT (issued together with the Finance Ministry’s Circular No.
89/1998/TT-BTC of June 27, 1998) in two copies, one copy kept at the unit and
the other sent to the immediate superior unit (if any) or the head office of
the production and business establishment. The list of invoices for sold goods
shall be made every month. If the quantity and turnover of the sold goods are
large, the units may make such list every five or ten days, to be determined by
the business establishment, so as to ensure the timely tax declaration and
payment.
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2. Tax declaration and payment:
a/ For head offices of the
business establishments:
The head office of a business
establishment shall declare and pay VAT every month in the locality where it is
based, according to current regulations. The turnover to be declared for tax
payment consists of the sale turnover recorded in the added value invoice,
which is earned from the sale of goods directly by the head office of the
business establishment and the turnovers earned from the goods delivered and
sold at its attached units, recorded in the added value invoices issued for
these units as stipulated at Point 1c of this Section (enclosed with the lists
of invoices for internally-transferred goods already sold, made by the attached
units - copies certified and sealed by the business establishment). Where the
establishment has not yet fully and timely summed up the quantities of goods
internally-transferred to the attached units and already sold in the month for
making the added value invoice and tax declaration and payment, the goods sold
in the month for which an invoice has yet been made shall be carried forward to
the subsequent month for invoice making as well as tax declaration and payment.
b/ For attached dependent
cost-accounting units:
Every month, the attached
dependent cost-accounting units, such as branches, shops’, must declare and pay the VAT in the localities
where they are registered, declare and pay taxes, as prescribed in Section II,
Part C, Circular No. 89/1998/TT-BTC (for both internally-transferred goods and
other goods directly bought and sold by them), enclosed with the lists of sale
invoices for internally-transferred goods already sold as reported by attached
units (if any).
Example: Cement Company A is
headquartered in Hai Phong. It has Branch B being a dependent cost-accounting
unit based in Hanoi and Shop C being a dependent cost-accounting unit attached
to Branch B and based in Ha Tay. In the month, Company A delivers to Branch B
1,000 tons of cement as internally-transferred goods. In this month Branch B
directly sells 500 tons and delivers to Shop C 300 tons as internally-transferred
goods. In the same month, Shop C sells 150 tons. The making of invoices and
vouchers and tax declaration and payment by these units shall be as follows:
- When Company A and Branch B
deliver internally-transferred goods to their units, they use the delivery cum
internal transport bill.
- Shop C, when selling cement,
must supply invoices to customers, declare and pay the VAT in Ha Tay for sold
goods, including the cement transferred by Branch B already sold (150 tons) and
at the same time make a list of invoices for the quantity of cement already
sold, then send it to Branch B so that the latter can use it as basis for
making the added value invoice for the quantity of cement transferred to Shop C
and sold in Ha Tay (150 tons). Basing itself on the added value invoice made by
Branch B, Shop C shall declare the input VAT for the quantity of cement sold.
- Branch B in Hanoi must declare
and pay VAT in Hanoi for the goods sold in the month, which includes the
quantity of cement transferred by Company A and already sold (650 tons,
including 500 tons sold in Hanoi and 150 tons sold by the shop in Ha Tay). At
the same time, Branch B makes a list of invoices for the quantity of cement
transferred by the company and already sold, i.e. 650 tons, then sends it to
Company A in Hai Phong so that the latter can make the added value invoice for
650 tons of cement already sold. The added value invoice made by Company A
shall be used as basis for Branch B to declare the input VAT for the quantity
of cement already sold (650 tons)
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II. FOR GOODS SOLD BY UNITS THROUGH COMMISSION AGENTS
1. Production and business establishments (the goods owners), when
delivering goods to commission agents for sale at the fixed prices (the
commission agents), as provided for in the Commercial Law, must make a delivery
bill for the goods consigned to agents for sale as prescribed in the Finance
Ministry’s
Circular No. 140/1999/TT-BTC of December 2, 1999, which is enclosed with the
commission agency contract.
Basing itself on the goods
actually consumed through commission agents, the goods owners shall make the
added value invoices reflecting the sold goods and supply them to the
commission agents.
The basis for making such an
invoice is the list of sale invoices for the goods sold through the agent in
the month, which is made and sent by the commission agent as prescribed at
Point 2 of this Section. One invoice shall be made for one list; if the sold
products or product groups are subject to different tax rates, separate lists
shall be made for each type of products subject to the same tax rate. Each
invoice shall be made in three copies, one copy filed at the goods owner, one
copy given to the agent, and one used as voucher for cost-accounting.
This invoice, under column B
(name of product or service) must be clearly inscribed with: "Goods sold
by commission agents." This invoice must not be used as a substitute for
the voucher for goods circulated on the market.
Every month, the goods owner
declares and pays tax for goods sold in the month, including goods sold through
commission agents according to current regulations, enclosed with the copies of
the lists of sale invoices for goods sold through its commission agents, which
are made by such agents, certified and sealed by the goods owner. Where the
time for tax declaration and payment is due but the goods owners have not yet
received such lists so that they cannot make and supply the added value
invoices to the commission agents for declaring the output VAT, such added
value invoices and the tax declaration and payment for the quantity of goods
sold through agents in the month can be made in the subsequent month.
2. The commission agents must make invoices for goods sold by them.
The use of invoices for goods sold through commission agents shall be as
follows:
a/ When selling goods under agency
contracts, the commission agents where the VAT calculation by method of tax
deduction applies shall use agents’
added value invoices. The inscription of these invoices shall comply with the
regulations applicable to those that have goods delivered to agents for sale
with the same pre-VAT selling prices, the tax rate and the VAT amount.
For goods sold through agents
and not subject to VAT or goods sold through agents and subject to VAT and
their owners are subject to tax calculation by the direct method, added value
invoices shall also be used. On such invoices, only the line of the selling
price is written with the price determined by the goods owners; the lines of
the tax rate and VAT amount are left unwritten and crossed with a slash. Where
the goods sold through agents are subject to the special consumption tax, the
commission agents must register with the tax agency for use of sale invoices.
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3. When settling the commission payment, the commission agents must
supply invoices to the goods owners. If the commission agents are subject to
VAT calculation by the tax deduction method, they shall use added value
invoices. On such an invoice the line of the selling price is written with the
commission money, the line of the VAT amount is left unwritten and crossed with
a slash; if the commission agents are subject to tax calculation by the direct
method, they shall use sale invoices (ordinary invoices).
4. At the month’s
end, the commission agents shall make lists of sale invoices for goods sold by
themselves in the month according to form No. 02/GTGT issued together with
Circular No. 89/1998/TT-BTC and send them to the goods owners, which shall
serve as basis for the latter to make added value invoices for the goods
consumed in the month by the commission agents.
A list of sale invoices for the
goods sold by the agent in the month shall be made in three copies, one copy
filed at the agent, one copy sent to the goods owner and one copy sent together
with the agent’s
tax payment declaration to the tax agency directly in charge of tax collection.
If the quantity of sold goods is large, the goods owner may require that such
list should be made for every five or ten days to ensure the timely tax
declaration and payment.
5. The commission agents shall not have to declare, calculate and
pay VAT for the goods consigned to them for sale and their commission earnings
but for every month, within the first ten days of the subsequent month at the
latest, they must make a list of sale invoices for consigned goods already sold
by them in the month as prescribed at Point 4 of this Section as well as a list
of invoices and vouchers for bought-in goods according to form No. 03/GTGT for
goods consigned to commission agents, which is issued together with the Finance
Ministry’s
Circular No. 89/1998/TT-BTC of June 27, 1998, then send them to the tax agency
directly managing the agents.
- To be exempt from calculation
and payment of VAT on goods sold by agents and on their commission earnings,
the commission agents prescribed by the Commercial Law must fully meet the
following conditions:
+ Having a sale agency contract
which clearly specifies the commission and the selling price set by the goods
owner.
+ The invoices for goods sold by
the agents are made under the provisions of this Circular.
+ The payment of goods sales and
agency commission is made in installments after a given amount of goods is
sold.
- The commission agents that
fail to fully meet the above-mentioned conditions must declare, calculate and
pay VAT on the goods sold by themselves as in cases of definitive sale and
purchase. The commission earnings shall be accounted as other incomes and
subject to enterprise income tax.
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III. IMPLEMENTATION EFFECT
This Circular takes effect 15
days after its signing and applies to the VAT declaration and payment from
January 1st, 2000.
For those establishments which,
for management and cost-accounting conditions and requirements, do not want to
use the delivery bill cum internal transport card or the delivery bill for
goods consigned to agents, they can use added value invoices right when
delivering goods to their dependent cost-accounting units in other provinces or
to commission agents. The head offices of the establishments and their
dependent cost-accounting units based in different localities shall base
themselves on the added value invoices to declare and pay VAT in the localities
where they are based as prescribed at Point 1, Section II, Part C of the
Finance Ministry’s
Circular No. 89/1998/TT-BTC of June 27, 1998. They must register with the tax
agencies which directly manage them for the vouchers to be used. They must use
only either the added value invoice or the delivery bill cum internal transport
card or the delivery bill for goods consigned to agents for sale when
delivering goods to attached units in other localities or to commission agents.
This Circular’s provisions on the
use of invoices (sale invoices), the delivery bill cum internal transport card
or the delivery bill for goods consigned to agents for sale shall also apply to
the units that produce goods subject to special consumption tax when delivering
such goods to their attached dependent cost-accounting units or to commission
agents for sale.
The provisions which are
contrary to those in this Circular are now annulled. The use of invoices, tax
codes, and registration of tax payment applicable to production/business
establishments and their attached dependent cost-accounting units in other
provinces and/or cities, and commission agents shall still comply with the
provisions in Circular No. 89/1998/TT-BTC of June 27, 1998, Circular No.
175/1998/TT-BTC of December 24, 1998 of the Ministry of Finance and other
relevant guiding documents.
In the course of implementation,
if any problems arise, agencies and enterprises are requested to report them to
the Ministry of Finance for settlement.
FOR THE MINISTER OF FINANCE
VICE MINISTER
Pham Van Trong