THE GOVERNMENT
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No:
78/1999/ND-CP
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Hanoi, August 20, 1999
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DECREE
SUPPLEMENTING AND AMENDING THE GOVERNMENT’S
DECREE NO. 102/1998/ND-CP OF DECEMBER 21, 1998 WHICH AMENDED AND SUPPLEMENTED A
NUMBER OF ARTICLES OF THE GOVERNMENT’S DECREE NO. 28/1998/ND-CP OF MAY 11, 1998
DETAILING THE IMPLEMENTATION OF THE VAT LAW
THE GOVERNMENT
Pursuant to the Law on Organization of the
Government of September 30, 1992;
Pursuant to the Value Added Tax Law No. 02/1997/QH9 of May 10, 1997;
Pursuant to Point 2, Section IV of the National Assembly’s
Resolution No. 18/1998/QH10 of November 25, 1998 on the draft 1999 Stage
Budget,
DECREES:
Article
1.- To amend, supplement a number of clauses of Article 1 of the
Government’s Decree No. 102/1998/ND-CP of December 21, 1998 on
the amendments, supplements to a number of Articles of the Government’s
Decree No. 28/1998/ND-CP of May 11, 1998 detailing the implementation of the
VAT Law as follows:
1. Clause
1 shall be supplemented and amended as follows:
"1. To amend, supplement a number of
clauses of Articles 4 of the Government’s Decree
No. 28/1998/ND-CP of May 11, 1998 on the subjects which are not liable to VAT:
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- To amend, supplement Clause 13 as follows:
printing, publishing, importing and distribution: newspapers, magazines,
specialized news bulletins, political books, textbooks, coursebooks, books of
legal documents, books printed in ethnic minority languages; propaganda and
agitation posters, pictures and photographs; money printing".
2.
Clause 3 shall be supplemented and amended as follows:
"d) For cases eligible for input tax
deduction at the following rate:
- Production, processing and/or trade
establishments paying value added tax by deduction method, which buy
unprocessed agricultural products, forest products and/or sea products directly
from the producers and/or exploiters without receipts but with lists thereof or
from dealers with sale invoices, shall be eligible for input tax deduction at
rates (%) calculated on the value of purchase goods according to the lists or
invoices as follows:
+ The rate of 5% for cultivation products of
trees which yield resins, latex or oil, cotton plants, sugar canes, fresh bud
tea, paddy, rice, corn, potatoes, manioc; for husbandry products being cattle,
poultry, fish, shrimp and other aquatic products.
+ The rate of 3% for all kinds of agricultural
and/or forest products not defined in the group of products eligible for 5%
deduction mentioned above.
- Production and/or processing establishments
paying value added tax by deduction method, which buy assorted discarded
materials directly from discarded materials collectors without receipts but
with lists thereof, or from dealers with sale invoices shall be eligible for
input tax deduction at rates (%) calculated on the value of purchase goods
according to the lists or invoices as follows:
+ The rate of 5% for discarded iron or steel
materials;
+ The rate of 3% for other kinds of discarded
materials.
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+ The rate of 5% for indemnities from insurance
business activities.
+ The rate of 4% for goods subject to special
consumption tax of trading establishments which bought them from production
establishments for sale;
+ The rate of 3% for soil, rock, sand, gravel,
which production and/or construction establishments bought directly from
exploiters without receipts but with lists thereof or from dealers with sale
invoices;
+ The rate of 3% for all other kinds of goods
bought from businessmen with sale invoices.
The calculation of tax deduction or input tax
reimbursement stipulated above shall not apply to cases where these products
are used as raw materials for production or processing of export goods or
bought for export.
- In cases where the Vietnamese party signs a
contract with a foreign contractor and pays VAT instead of the latter, the
former shall be eligible for deduction of the input tax already paid".
3. Point
2, Clause 5, shall be amended and supplemented as follows:
"2. A number of following products, goods
and/or services confronted with difficulties in their production and/or
business shall be eligible for the 50% tax reduction:
- Mechanical products (except for consumer
mechanical products);
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- Moulds of all types;
- Coal, coke;
- Computers;
- Basic chemicals products;
- Explosive materials;
- Car tyres of from 900-20 upwards;
- Products which are raw materials for
production of curative and preventive medicines liable to VAT in the 10% tax
rate group;
- Artificial limbs, crutches, wheelchairs for
disabled people;
- Goods liable to special consumption tax at the
trading stage with tax paid according to tax deduction method;
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- Construction, installation;
- Dredging narrow passages, canals, river ports,
seaports.
- All kinds of books liable to VAT in the 10%
tax rate group;
- Transportation, goods loading and unloading;
- Hotels, tourism, restaurants;
- Video film distribution and screening".
Article 2.- This Decree takes effect as from September 1,
1999.
Article 3.- The Minister of Finance guides the
implementation of this Decree.
The ministers, the heads of the ministerial
level agencies, the heads of the agencies attached to the Government, and the
presidents of the People’s Committees of the provinces
and centrally-run cities shall have to implement this Decree.
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ON BEHALF OF THE GOVERNMENT
FOR THE PRIME MINISTER
DEPUTY PRIME MINISTER
Nguyen Tan Dung