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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:
119/1999/TT-BTC
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Hanoi, October 5, 1999
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CIRCULAR
GUIDING THE APPLICATION OF THE LAW ON VALUE
ADDED TAX (VAT) TO DIPLOMATIC MISSIONS, CONSULAR OFFICES AND REPRESENTATIVE
OFFICES OF INTERNATIONAL ORGANIZATIONS IN VIETNAM
In order
to create favorable conditions for and meet the needs of the work and daily
life of subjects enjoying the privileges and immunities under Vietnamese laws
and in compliance with the international conventions which Vietnam has signed
or acceded to;
Pursuant to the Government’s
Decree No. 28/1998/ND-CP of May 11, 1998 detailing the implementation of the
Law on Value Added Tax;
Pursuant to the Government’s
Decree No. 73/CP of July 30, 1994 detailing the implementation of the Ordinance
on the privileges and immunities for foreign diplomatic missions, consular
offices and representative offices of international organizations in Vietnam;
Pursuant to the Prime Minister’s
Decision No. 205/1998/QD-TTg of October 19, 1998 promulgating the Regulation on
duty-free shops;
After consulting the Ministry for Foreign Affairs, the Ministry of Trade and
the General Department of Customs, the Ministry of Finance hereby guides the
implementation of the value added tax privileges and immunity as follows:
I.
SUBJECTS ENTITLED TO VAT IMMUNITY
1. Foreign diplomatic missions and consular
offices, and representative offices of international organizations in the
United Nations system, which are based in Vietnam (hereafter collectively
referred to as the representative offices) and heads of such representative
offices shall enjoy the VAT privileges and immunity for commodities and
services imported or purchased on the Vietnamese market, including:
- Services of leasing houses for use as
headquarters of the representative offices and residences of the heads of such
representative offices.
- Electricity and water for daily use by
headquarters of the representative offices and residences of the heads of such
representative offices.
- Telephone, facsimile and services of
installation thereof (including mobile phone).
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- Commodities and services used for the
construction, renovation, maintenance and/or repair of houses being the sending
countries’ assets which are used as headquarters of the
representative offices or residences of the heads of such representative
offices.
- Office facilities and equipment for
head-quarters of the representative offices and residences of the heads of such
representative offices.
- Commodities imported or purchased in the
country as specified in Circular No. 04/TTLB of February 12, 1996.
- Some other essential commodities purchased at
licensed duty-free shops.
2. Diplomatic and consular officials, officials
of international organizations, and administrative and technical personnel of
the representative offices shall enjoy VAT privileges and immunity for
commodities and services imported or purchased on the Vietnamese market,
including:
- Commodity items imported or purchased in the
country within the quantity limits prescribed in Joint Circular No. 04/TT-LB of
February 12, 1996 of the Ministry of Trade, the Ministry for Foreign Affairs,
the Ministry of Finance and the General Department of Customs.
- Petrol or diesel for the representative
offices’ cars which bear diplomatic number plates (NG), not
more than 300 liters/01 month/01 car.
- A number of other essential commodities
purchased at licensed duty-free shops.
3. The representative offices of
inter-governmental organizations outside the United Nations system and staff
members thereof, as well as their family members living together with them in
households shall also enjoy the VAT privileges and immunity under the
international conventions which Vietnam has signed with such international
organizations.
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4. Cases where such assets as residential
houses, automobiles and motorcycles are allowed to be assigned among diplomatic
missions, consular offices and/or their staff members shall not be subject to
VAT.
II. THE
PROCEDURES FOR EFFECTING VAT IMMUNITY
Commodities and services on the above-specified
list which are supplied by Vietnamese or foreign organizations and/or
individuals licensed to conduct business activities in Vietnam to subjects
mentioned at Points 1, 2 and 3 above shall not be subject to VAT.
Representative offices and individuals mentioned at Points 1, 2 and 3 above
shall not have to pay VAT when procuring such commodities and services.
When issuing invoices to subjects enjoying VAT
privileges and immunity, business establishments shall use invoices which shall
not state such tax but only the subjects eligible for VAT privileges and
immunity.
Offices and individuals mentioned at Points 1, 2
and 3 above, when purchasing commodities and services, shall have to produce to
the commodity sellers or service providers the certificates of subjects
eligible for VAT privileges and immunity for such commodities and services,
granted by the Protocol Department of the Ministry for Foreign Affairs (the
originals or their copies with seals and signatures of the competent persons of
the agencies entitled to diplomatic privileges and immunities).
A certificate of subject eligible for VAT
privileges and immunity shall contain the following principal details:
- Name and address in Vietnam of the subject
eligible for VAT privileges and immunity;
- Appellations of commodities and/or services
immune from VAT;
- Names of business organizations and/or
individuals supplying such commodities and/or services. In cases of imported
commodities, such must be clearly stated;
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III.
IMPLEMENTATION EFFECT
The provisions of this Circular shall apply to
the subjects enjoying the diplomatic privileges and immunities on the principle
of mutual benefits.
This Circular replaces Circular No.
43/1999/TT-BTC of April 20, 1999 and takes effect 15 days after its signing.
Other regulations on taxation applicable to subjects enjoying the privileges
and immunity which are not mentioned in this Circular shall still comply with
the provisions of the current tax legislation and the guidance in Joint
Circular No. 04/TTLB of February 12, 1996 of the Ministry for Foreign Affairs,
the Ministry of Trade, the Ministry of Finance and the General Department of
Customs.
FOR THE MINISTER OF FINANCE
VICE MINISTER
Pham Van Trong