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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:
81/2000/TT-BTC
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Hanoi, August 02, 2000
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CIRCULAR
GUIDING THE SETTLEMENT OF VALUE ADDED TAX
APPLICABLE TO SUGAR MILLS
Pursuant to the Prime Minister’s Decision No.65/2000/QD-TTg of June 7, 2000 on the
reduction of payable value added tax (VAT) for sugar-producing enterprises, the
Finance Ministry hereby guides the implementation thereof as follows:
I.
SUBJECTS ELIGIBLE FOR BEING CONSIDERED FOR VAT REDUCTION:
1. The cane sugar-producing enterprises that pay
VAT by the tax deduction method and meet difficulties in their production and
business activities, which cause losses, shall be considered for reduction of
payable VAT on sugar products, by-products and waste materials reclaimed in the
sugar production process (leaked molasses, cane residues, sludge residues),
hereinafter collectively called reclaimed waste materials.
2. Enterprises that produce sugar and at the
same time, turn out some other by-products shall have to separately account the
business result of each kind of product. In cases where a sugar-producing
enterprise turns out some other by-products from reclaimed waste materials
(micro-biological fertilizer, pressed boards...) but fails to separately
account the business result of each commodity product, the VAT reduction level
for sugar product and reclaimed waste materials shall be equal to its loss
amount arising in the year but must not exceed the payable VAT on such product.
II. VAT REDUCTION
LEVELS:
1. In 1999, the payable VAT reduction amount
shall be equal to the loss amount but must not exceed the payable VAT amount in
the year.
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2. In 2000, a 50% reduction of monthly payable
VAT amount shall be temporarily given for sugar product and sold-out reclaimed
waste materials. When the annual final settlement is made, if the temporary
reduction amount of monthly payable VAT is larger than the loss amount actually
arising, only the payable VAT reduction amount equal to the loss amount is
effected, while the difference (the temporary payable VAT reduction amount
minus (-) the actual loss amount) must be remitted by the enterprise into the
State budget within 10 days after the annual financial report is made according
to the current regulations.
In cases where an enterprise has already had its
payable VAT amount reduced by 50%, but still suffers from loss, it shall enjoy
further reduction of its payable VAT amount at the level equal to the actual
loss amount, provided that the maximum reduction level must not exceed the
payable VAT amount in the year.
III.
DOSSIERS FOR VAT REDUCTION CONSIDERATION:
Cane sugar-producing enterprises that suffer
from losses shall make dossiers of application for tax reduction consideration,
each comprising:
- An official dispatch requesting tax reduction,
enclosed with the explanation of production costs, selling price without VAT
and VAT on each product or goods item;
- The financial statement of the year for which
it applies for tax reduction;
- The tax settlement report, which clearly
states the payable VAT amount, temporarily reduced VAT amount and remaining VAT
amount to be paid;
- A written appraisal after the tax settlement
report is examined.
IV. THE
PROCEDURAL ORDER AND COMPETENCE FOR CONSIDERING VAT REDUCTION:
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Enterprises’
tax reduction dossiers shall be sent to the tax authority directly managing the
tax collection.
The tax authority that receives the dossiers
shall have to examine such dossiers, verify the accuracy of data therein; and
determine the results of production and sale of sugar products and sold-out
reclaimed waste materials.
Within 15 days after the receipt of a complete
dossier, the tax authority shall consider and issue a tax reduction decision
according to its competence. In cases where a dossier falls beyond its tax reduction-deciding
competence, it shall have to report such in writing to the superior tax
authority requesting the latter’s
consideration and settlement.
2. Competence for deciding tax reduction:
In 2000, the temporary 50% reduction of monthly
payable VAT for the sugar products and sold-out reclaimed waste materials shall
be effected on the basis of data declared to the tax authorities by the
enterprises’ directors
themselves, who are held responsible before law for the accuracy of such data.
At the end of each fiscal year, based on the
approved tax settlement, the competence for deciding the tax reduction shall be
as follows:
- Any VAT reduction level of under VND 1 billion
shall be decided by the director of the provincial/municipal Tax Department.
The Tax Department shall have to notify its decision to the concerned unit and
concurrently send one copy thereof to the General Tax Department instead of a
report.
- Any VAT reduction level of VND 1 billion or
more shall be decided by the General Director of Tax.
3. Settlement of existing problems:
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b/ In cases where a cane sugar-producing
enterprise suffered from losses in 1999, but the VAT amount on its sugar
products and reclaimed waste materials it has paid to the State budget is
higher than the payable level prescribed in the Prime Minister’s Decision No.65/2000/QD-TTg of June 7, 2000 and
this Circular, the director of the concerned Tax Department shall issue a
decision to reimburse the over-paid VAT amount to such enterprise. In case of
under-payment, the enterprise shall have to remit promptly the deficit into the
State budget.
c/ In the first six months of 2000, the cane
sugar producing enterprises, which have not yet enjoyed the temporary 50%
reduction of monthly payable VAT, shall be entitled to temporary 50% reduction
of payable VAT of the first six months of 2000. In cases where the VAT amount
already paid by an enterprise is larger than the payable tax amount (after the
temporary 50% reduction has been effected), the difference shall be cleared
against the payable tax amount of the three subsequent months. After 3 months,
if the already paid VAT amount is not yet fully cleared, the director of the
Tax Department shall issue a decision to reimburse VAT to the enterprise. In
case of under-payment, the enterprise shall have to remit promptly the deficit
into the State budget.
4. Summing up and reporting:
- Quarterly, the provincial/municipal Tax
Departments that settle VAT for the cane sugar-producing enterprises shall have
to make and send sum-up reports to the General Department of Tax on the last
day of each reporting quarter.
- The General Department of Tax shall have to
synthesize the data on VAT reduction for cane sugar producing enterprises, then
report them to the Finance Ministry.
V.
ORGANIZATION OF IMPLEMENTATION:
This Circular takes effect after its signing.
The concerned units are requested to report
promptly any problems arising in the course of implementation to the Finance
Ministry (the General Department of Tax) for study and settlement.
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FOR THE FINANCE MINISTER
VICE MINISTER
Vu Van Ninh