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THE
MINISTRY OF FINANCE OF VIETNAM
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THE
SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom – Happiness
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No. 01/VBHN-BTC
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Hanoi,
January 04, 2024
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CIRCULAR [1]
GUIDELINES FOR IMPLEMENTATION OF LAW ON VALUE-ADDED TAX AND
GOVERNMENT’S DECREE NO. 209/2013/ND-CP DATED DECEMBER 18, 2013 ELABORATING AND
PROVIDING GUIDELINES FOR LAW ON VALUE-ADDED TAX
The Circular No.
219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance of Vietnam
providing guidelines for the Law on Value-added tax and the Government’s Decree
No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines
for the Law on Value-added tax, coming into force from January 01, 2014, is
amended by:
1. The Circular No.
119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance of Vietnam
providing amendments to the Circular No. 156/2013/TT-BTC dated November 06,
2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No.
219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated
January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No.
39/2014/TT-BTC dated March 31, 2014 and Circular No. 78/2014/TT-BTC dated June
18, 2014 of the Ministry of Finance of Vietnam for reform and simplification of
tax-related administrative procedures, coming into force from September 01, 2014.
2. Pursuant to Circular No.
151/2014/TT-BTC dated October 10, 2014 of the Ministry of Finance of Vietnam
providing guidelines for the Government's Decree No. 91/2014/ND-CP dated
October 01, 2014 providing amendments to Decrees on taxation, coming into force
from November 15, 2014.
3. The Circular No.
26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance of Vietnam providing
guidelines for value-added tax and tax administration under the Government's
Decree No. 12/2015/ND-CP dated February 12, 2015 providing guidelines for the
Law on amendments to laws and decrees on taxation, and amendments to the
Circular No. 39/2014/TT-BTC dated March 31, 2014 of the Ministry of Finance of
Vietnam on invoices for goods sale and service provision, coming into force
from January 01, 2015.
4. The Circular No.
193/2015/TT-BTC dated November 24, 2015 of the Ministry of Finance of Vietnam
providing amendments to the Circular No. 219/2013/TT-BTC dated December 31,
2013 of the Ministry of Finance of Vietnam providing guidelines for the Law on
Value-added tax and the Government’s Decree No. 209/2013/ND-CP dated December
18, 2013 elaborating and providing guidelines for the Law on Value-added tax,
coming into force from January 10, 2016.
5. The Circular No.
130/2016/TT-BTC dated August 12, 2016 of the Ministry of Finance of Vietnam
providing guidelines for the Government’s Decree No. 100/2016/ND-CP dated July
01, 2016 elaborating the Law on amendments to the Law on Value-added tax, the
Law on Excise Tax and the Law on Tax Administration and some Circulars on
taxation, coming into force from July 01, 2016.
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7. The Circular No. 93/2017/TT-BTC
dated September 19, 2017 of the Ministry of Finance of Vietnam providing
amendments to Clauses 3, 4 Article 12 of the Circular No. 219/2013/TT-BTC dated
December 31, 2013 (as amended by the Circular No. 119/2014/TT-BTC dated August
25, 2014) and abrogating clause 7 Article 11 of the Circular No.
156/2013/TT-BTC dated November 06, 2013 of the Ministry of Finance of Vietnam,
coming into force from November 05, 2017.
8. The Circular No.
25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance of Vietnam
providing guidelines for the Government’s Decree No. 146/2017/ND-CP dated
December 15, 2017 providing amendments to the Circular No. 78/2014/TT-BTC dated
June 18, 2014 of the Ministry of Finance of Vietnam, and the Circular No.
111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance of Vietnam,
coming into force from May 01, 2018.
9. The Circular No.
82/2018/TT-BTC dated August 30, 2018 of the Ministry of Finance of Vietnam abrogating
contents of example 37 in point a.4 clause 10 Article 7 of the Circular No.
219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance of Vietnam
providing guidelines for the Law on Value-added tax and the Government’s Decree
No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines
for the Law on Value-added tax, coming into force from October 15, 2018.
10. The Circular No. 43/2021/TT-BTC
dated June 11, 2021 of the Ministry of Finance of Vietnam providing amendments
to clause 11 Article 10 of the Circular No. 219/2013/TT-BTC dated December 31,
2013 of the Ministry of Finance of Vietnam providing guidelines for the Law on
Value-added tax and the Government’s Decree No. 209/2013/ND-CP dated December
18, 2013 elaborating and providing guidelines for the Law on Value-added tax
(as amended by the Circular No. 26/2015/TT-BTC dated February 27, 2015 of the
Ministry of Finance of Vietnam), coming into force from August 01, 2021.
11. The Circular No.
13/2023/TT-BTC dated February 28, 2023 of the Ministry of Finance of Vietnam
providing guidelines for the Government's Decree No. 49/2022/ND-CP dated July
29, 2022 providing amendments to the Government’s Decree No. 209/2013/ND-CP
dated December 18, 2013 elaborating and providing guidelines for some Articles
of the Law on Value-added tax, as amended by the Decree No. 12/2015/ND-CP,
Decree No. 100/2016/ND-CP and Decree No. 146/2017/ND-CP, and providing
amendments to the Circular No. 80/2021/TT-BTC dated September 29, 2021 of the
Ministry of Finance of Vietnam, coming into force from April 14, 2023.
Pursuant to the Law on
value-added tax No. 13/2008/QH12 dated June 03, 2008 and the Law No.
31/2013/QH13 dated June 19, 2013 providing amendments to the Law on value-added
tax;
Pursuant to the Law on tax
administration No. 78/2006/QH11 dated November 29, 2006 and the Law No.
21/2012/QH13 dated November 20, 2012 providing amendments to the Law on tax
administration;
Pursuant to the Government’s
Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing
guidelines for the Law on Value-added Tax;
Pursuant to the Government’s
Decree No. 118/2008/ND-CP dated November 27, 2008 defining functions, tasks,
powers and organizational structure of the Ministry of Finance of Vietnam;
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The Minister of Finance of
Vietnam herein provides the following guidelines for value-added Tax:[2]
Chapter
I
GENERAL
PROVISIONS
Article
1. Scope
This Circular provides
guidelines for taxable objects, non-taxable objects, taxpayers, calculation
basis and methods, deduction, refund and authorities in charge of collecting
value-added tax.
Article
2. Taxable objects
Objects subject to value-added
tax (VAT) (hereinafter referred to as taxable objects) are goods and services
used for production, trading, and consumption in Vietnam (including those
purchased from overseas organizations and individuals), except for non-taxable
objects specified in Article 4 of this Circular.
Article
3. Taxpayers
Payers of VAT are
organizations and individuals that manufacture and/or trade in taxable objects
in Vietnam, regardless of their lines and forms of business (hereinafter
referred to as “business establishments”), and organizations and individuals
that import goods or purchase services from abroad (hereinafter referred to as “importers”),
including:
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2. Business organizations of
political organizations, socio-political organizations, social organizations,
socio-professional organizations, people’s armed forces, public service
organizations, and other organizations;
3. Foreign-invested enterprises
and foreign parties engaging in business cooperation under the Law on Foreign Investment
in Vietnam (currently, the Law on Investment); foreign organizations and
individuals that do business in Vietnam without establishing legal entities in
Vietnam;
4. Individuals, households,
independent groups of businesspeople, and other entities that engage in
manufacturing, trading, or importation;
5. Vietnam-based production
and business organizations and individuals that purchase services (including
services associated with goods) from foreign organizations that do not have
permanent establishments in Vietnam or overseas individuals who are
non-residents in Vietnam shall be VAT payers, unless they are not required to
declare, calculate and pay VAT as prescribed in Clause 2 Article 5 of this
Circular.
Foregoing permanent
establishments and non-residents shall be defined in accordance with the Law on
Corporate Income Tax and the Law on Personal Income Tax.
6. Branches of export
processing enterprises that are established to trade goods and do the tasks
related to goods trading in Vietnam in accordance with laws on industrial
parks, export-processing zones, and economic zones.
Example 1: Sanko Co., Ltd. is
an export processing enterprise. Apart from manufacturing of goods for
exportation, Sanko Co., Ltd. is also licensed to import goods for sale or for
exportation, and Sanko Co., Ltd. must establish a branch to do this task. This
branch shall independently keep accounting records, separately declare and pay
VAT on such task instead of including it in VAT on manufacturing for
exportation.
When importing goods for
distribution (sale), the branch of Sanko Sanko Co., Ltd. shall declare and pay
VAT on the importation and on each sale (including exportation). Sanko Sanko
Co., Ltd. shall use invoices, declare and pay VAT as prescribed.
Article
4. Non-taxable objects
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Preprocessed products are
those that have only been cleaned, dried, husked, grinded, milled, threshed,
split, cut, salted, put in cold storage (cooled or frozen), preserved with
sulfur dioxide, sulfur solution, or other solutions, and other common means of
preservation.
Example 2: Company A signs a
contract to raise pigs with company B, under which company B provides studs,
feeds, veterinary medicines for company A and company A provides, sells pig
products to company B. The payment for pig breeding paid by company B and the pig
products sold by company A to company B are not subject to VAT.
With regard to pig products
received by company B from company A: Whole pigs or fresh meat sold by company
B are not subject to VAT; If company B further processes pigs into products
such as sausage, bacon, grilled chopped meat, or other finished products, they
shall be subject to VAT as prescribed.
2. Breeds of livestock, plant
varieties, including eggs, breeds, seeds, stems, tubers, semen, embryos,
genetic materials that are raised, imported, and traded. The breeds of
livestock and plant varieties that are not subject to VAT are the products of
the importers and traders that have the certificates of registration of animal
breed or plant variety trading issued by regulatory bodies. The animal breeds
and plant varieties that apply quality standards of the state must satisfy the
requirements imposed by the state.
3. Irrigation services,
plowing services, dredging channels, dredging in-field trenches serving
agricultural production; harvesting services.
3a.[4]
Fertilizers are organic and inorganic fertilizers such as phosphate
fertilizers, nitrogenous fertilizer (urea), NPK fertilizer, mixed urea, potash;
biofertilizers and other fertilizers;
Feeds for livestock, poultry,
fish, and other animals (hereinafter referred to as “animal feeds”), including
processed or unprocessed products such as mash, dregs, oil cakes, fish meal,
bone meal, shrimp meal, and other types of animal feeds, animal feed additives
(such as premix, active ingredients, and carriers) prescribed in Clause 1
Article 3 of the Government's Decree No. 08/2010/ND-CP dated February 05, 2010
on management of animal feeds, Clause 2 and Clause 3 Article 1 of Circular No.
50/2014/TT-BNNPTNT dated December 24, 2014 of the Ministry of Agriculture and
Rural Development;
Offshore fishing ships are
ships ≥ 90CV and engaged in fishing or logistics services serving fishing;
machinery and specialized equipment serving extraction and preservation of
products on fishing ships ≥ 90CV engaged in fishing or logistics services
serving fishing;
Machinery and specialized
equipment serving agricultural production, including: tractor; harrowing
machine; milling machine; sowing machine; rootdozer; field leveling device;
seeding machine; transplanter; sugarcane planting machine; rice-sowing machine;
tiller, cultipacker, fertilizer spreader, pesticide sprayers; machine for
harvesting rice, corn, sugarcane, coffee, cotton; machine for harvesting
tubers, fruits, roots; tea-cutting machine, tea-picking machines; threshing
machine; corn peeling machine; soybean crusher; peanut huller; coffee huller,
equipment for preparing coffee, wet rice; dryer for agricultural products
(rice, corn, coffee, pepper, cashew nut, etc.), and aquaculture products;
machine for collecting, loading sugarcane, straw on the field; machine for egg
incubating and hatching; forage harvester; straw, grass baler; milking machine,
and other specialized machines.
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5. State-owned houses sold to
tenants.
6. Transfer of land use
rights.
7. Life insurance, health
insurance, learner’s insurance, other insurance services related to humans;
insurance for livestock, plants and other agriculture insurance services;
insurance for ships and instruments for fishing; reinsurance.
8. The finance, banking, and
securities services below:
a)[5]
Credit extension services, including:
- Lending;
- Discounting and
rediscounting of negotiable instruments and other financial instruments;
- Bank guarantee;
- Finance lease;
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Where a credit institution
collects fees for issuance of credit cards, the fees collected from the clients
that are part of the credit extension process (card issuance fee) according to
the regulations on granting loan of the credit institution such as fee for
early repayment, penalties for late repayment, fee for debt restructuring, fee
for loan management, and other fees that are part of the credit extension process
are not subject to VAT.
The fees related to common
card transactions that are not part of the credit extension process such as fee
for reissuance of PINs, fee for provision of invoice copies, claiming fee, fee
for card replacement, fee for card destruction, fee for card conversion, and
other fees are subject to VAT.
- Domestic and international
factoring for the banks allow to process international payments;
- Revenue from liquidation of
collateral by a credit institution or law enforcement authority or by the
borrowers themselves with authority of the loaner to repay secured loans. To be
specific:
+ Collateral that may be sold
is assets of a secured transaction registered with a competent authority in
accordance with regulations of law on registration of secured transactions.
+ Collateral shall be settled
in accordance with regulations of law on secured transactions.
If the owner of the collateral
defaults on the debt and has to transfer the collateral to a credit institution
for settlement, both parties must follow the prescribed procedure for
transferring collateral and are not required to issue VAT invoices.
Where the credit institution
takes the collateral to clear debt, credit institution shall record an increase
in the value of business assets. When the credit institution
sells the assets, VAT must be declared and paid if it is subject to VAT.
Example 3: In March 2015,
company A, which pays VAT using credit-invoice method, pledges its machinery
and equipment as collateral to take a loan at bank B, which is due in one year
(the deadline is March 31, 2016). On March 31, 2016, company A defaults on the
loan and has to transfer the collateral to bank B. Company A is not required to
issue invoices when transferring the collateral to bank B. When
Bank B sells the collateral to recover the debt, the sold collateral is not
subject to VAT.
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- Information provision
services provided by the units and organizations affiliated to the State bank
for credit institutions to use for credit extension in accordance with the Law
on the State Bank.
Example 4: X is a unit of the
State bank and is allowed by the State bank to provide credit information. In
2014, X signs contracts to provide information for some commercial banks to
serve their credit extension and other activities. The revenue from provision
of credit information serving credit extension is not subject to VAT; the
revenue from provision of credit information serving other activities of the
commercial banks beyond the Law on the State Bank is subject to 10% VAT.
- Other types of credit
extension prescribed by law.
b) Separate loans that are not
a business and irregularly given by taxpayers that are not credit institutions.
Example 5: Joint-stock company
VC has idle money and signs a 6-month loan contract with company T and receives
an interest. Such interest is not subject to VAT.
c) Securities trading
services, including: securities brokerage, proprietary trading, underwriting,
securities investment consultancy, depositing, management of securities
investment funds, management of securities investment companies, management of
securities investment portfolios, market organization services provided by
stock exchanges or securities trading centers, services related to securities
registered or deposited at Vietnam Securities Depository, grant of loans to
customers for conducting margin trading, advance payment for securities sold, and
other securities trading activities as prescribed in the Law on securities.
Information provision,
auctions of shares of issuers, technical support for online transactions of
Stock Exchanges.
d) Capital transfer, including
transfer of a part of or the whole of capital invested in another business
entity (whether or not a new legal entity is established), securities transfer,
transfer of the rights to contribute capital, and other forms of capital
transfer as prescribed by law, including business acquisition in which the
acquirer inherits all rights and obligations of the acquired company as
prescribed by law.
Example 6: In April 2014,
company A contributes capital in the form of machinery and equipment to the
creation of joint-stock company B. The company A’s contribution is valued at
2.5 billion dong, which is equal to 25% of company B’s total capital. In
November 2014, company A sells this capital contribution to ABB Foundation for
4 billion dong. This amount of 4 billion dong is revenue from capital transfer
and not subject to VAT.
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e) Foreign currency trading;
g) Derivative financial
services include: interest rate swaps; forward contracts; futures contracts;
foreign-exchange options; other derivative financial services prescribed by law;
h) Selling collateral put up
by the wholly state-owned organizations established by the Government to settle
bad debts of Vietnamese credit institutions.
9.[6]
Medical and veterinary services, including the examination, treatment and
prevention of diseases for human and animals, birth control, convalescence and
rehabilitation for patients, caring for the elderly and disabled, patient
transportation, medical facilities’ sickbed and sickroom for rent; testing,
radiography; blood and blood products for patients.
Caring for the elderly and
disabled includes health care, nutrition care, cultural activities, sports,
entertainment, physical therapy and rehabilitation for the elderly and disabled.
The revenue from medicines
included in a service package (as per regulations of the Ministry of Health) is
not subjected to VAT.
10. Public postal and
telecommunications services, and public Internet services provided by the
government, postal and telecommunications services from abroad (inbound).
11. Maintenance services of
zoos, flower gardens, parks, street greeneries and public lighting systems;
funeral services. The services mentioned in this Clause do not depend on the
source of payment. To be specific:
a) Maintenance of zoos, flower
gardens, parks, street greeneries, and state-owned forests include management,
tree planting and cultivation, protection of animals in the parks, zoos, public
areas, national forests and national parks;
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c) Funeral services provided
by the business establishments licensed to provide funeral services include
funeral parlor and car rental service, burial service, cremation service, grave
move service, and grave care service.
12. Maintenance, repair, and
construction funded by the people (including contributions and sponsorships),
humanitarian aid for cultural and artistic works, public works, infrastructure,
and housing for beneficiaries of incentive policies.
When a source of funding other
than people’s contribution or humanitarian aid is used that does not exceed 50%
of the total investment in the work, the value of the whole work is not subject
to tax.
When a source of funding other
than people’s contribution or humanitarian aid is used that exceeds 50% of the
total investment in the work, the value of the whole work is subject to VAT.
Social policy beneficiaries
include: People with meritorious services under the law on people with
meritorious services; social protection beneficiaries whose allowances are
derived from state budget; people classified as poor or living just above the
poverty line; and other cases provided for by law.
13. Education and vocational
training as prescribed by law, including foreign language training, artistic
training, sports training, nursing, children’s nursing, and training of other
professions in order to raise extend education, improve professional knowledge
and skills.
The revenues from meal,
student transport collected by educational institutions from preschool to high
school are not subject to tax.
Revenues from boarding school
services; revenues from training (including the case where the examinations and
issuance of qualifications are part of the training course) are not subject to
VAT. If the training institution only organizes the examinations and issues
qualifications that are part of the training course without running the course,
the examinations and issuance of qualifications are also not subject to tax. The
examinations and issuance of qualifications beyond the training course are
subject to VAT.
Example 7: Training center X
is appointed by a competent authority to provide training and issue
qualifications in insurance agent. Center X appoints Y to provide the training
while center X only holds the examinations and issues the qualification in
insurance agent. The examinations and issuance of qualifications are not
subject to VAT.
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15. Publishing, importing
newspapers, magazines, specialist newsletters, political books, textbooks,
teaching materials, law books, scientific books, books using languages of
ethnic minorities, propagation pictures, including those in the form of audio
and video discs/tapes, electronic data; money and money printing.
Newspapers, magazines and
specialized newsletters, including transmission of pages of newspapers,
magazines and specialized newsletters.
Political books being the
books that propagate the political orientation of the Communist Party and the
state to serve political objectives and anniversaries; the books that encourage
good deeds; the books that contain speeches and theoretical researches of
leaders of the Communist Party and the State.
Textbooks being the books used
for teaching and learning from preschool to high school (including books for
reference that are conformable with school programs).
Teaching materials being the
books used for teaching and learning in universities, colleges, junior
colleges, and vocational schools.
Law books are the books that
contain legislative documents of the State.
Scientific books being the
books used for introducing scientific and technological knowledge related to
manufacturing and branches of science.
The books using languages of
ethnic minorities, including bilingual books using commonly used languages and
languages of ethnic minorities.
Propagation pictures, photos,
posters, leaftlets and brochures being those serving propagation, slogans and
pictures of leaders, the Communist Party flag, the National flag, the flag of
the Youth League and the flag of the Young Pioneers League.
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17. Goods that cannot be
manufactured in Vietnam and must be imported, including:
a) Imported machinery,
equipment, parts, and supplies serving scientific research and technological
development;
b) Imported machinery,
equipment, parts, specialized vehicles and supplies serving petroleum
exploration and extraction and oil field development;
c) Aircrafts (including
engines), oil rigs and ships that cannot be manufactured in Vietnam and are
imported as fixed assets of enterprises or leased from a foreign party to serve
manufacturing, trading, or to sublease.
The importer must present the
customs authority with the documents about customs procedure, customs
supervision and inspection, export and import duties, and administration of tax
on exported and imported goods prescribed by the Ministry of Finance to
determine whether the goods referred to in this Clause are subject to VAT at
the stage of importation.
The Ministry of Planning and
Investment shall compile a list of machinery, equipment, parts, supplies
serving scientific research and technology development that can be manufactured
in Vietnam, a list of machinery, equipment, parts, and specialized vehicles
serving petroleum exploration and extraction and oil field development that can
be manufactured in Vietnam, and a list of aircraft, oil rigs, and ships that
can be manufactured in Vietnam as the basis for identifying those that cannot
be manufactured in Vietnam and need importing.
18. Weapons and specialized
vehicles serving national defense and security.
a) The weapons and specialized
vehicles serving national defense and security enumerated in the list compiled
by the Ministry of Finance in cooperation with the Ministry of National Defense
and the Ministry of Public Security.
The weapons and specialized
vehicles serving national defense and security that are not subject to VAT must
be finished products, or parts, packages used for assembling finished products.
If the weapons and specialized vehicles must be repaired, the repair services
provided by the companies affiliated to the Ministry of National Defense and
the Ministry of Public Security are not subject to VAT.
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The procedure and
documentation for imported weapons and vehicles are not subject to VAT during
importation according to regulations of the Ministry of Finance on customs
procedure, customs supervision and inspection, export and import duties, and
administration of tax on exported and imported goods.
19. Imported goods,
goods/services sold to other organizations and individuals as humanitarian aid
or non-refundable aid in the following cases:
a) Goods imported as
humanitarian aid or non-refundable aid must be certified by the Ministry of
Finance or a Department of Finance;
b) Gifts for regulatory
bodies, political organizations, socio-political organizations,
socio-political-professional organizations, social organizations,
socio-professional organizations, and the people’s armed forces prescribed by
the law on gifts;
c) Gifts for individuals in
Vietnam prescribed by the law on gifts;
d) Belongings of foreign
entities provided with diplomatic immunity prescribed by the law on diplomatic
immunity; belongings brought to Vietnam by Vietnamese people residing overseas;
dd) Belongings in luggage
within tax-free allowance;
The limit on tax-free imported
goods is specified in the Law on Export and Import Duties and its guiding
documents.
Imported goods of the entities
provided with diplomatic immunity are not subject to VAT. Any entity granted
diplomatic immunity that purchases goods/services in Vietnam at VAT-inclusive
prices may claim a refund according to Clause 7 Article 18 of this Circular.
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e) Goods and the
goods/services sold to other organizations and individuals as humanitarian aid
or non-refundable aid for Vietnam.
In order to be exempt from
VAT, the international organization and or foreigner that buys goods/services
in Vietnam as humanitarian aid and non-refundable aid must send a note to the
seller, which specifies their name, the quantity or value of purchased goods, and
bears certification of the aid by the Ministry of Finance and a Department of
Finance.
When selling goods, the seller
must issue an invoice specifying that the goods are sold at VAT-exclusive
prices to a foreign entity as non-refundable aid or humanitarian aid, keep the
aforesaid note as an evidence when declaring tax. Any foreign entity or
international organization that purchases goods/services in Vietnam as
non-refundable aid or humanitarian aid at VAT-inclusive prices may claim a
refund according to Clause 6 Article 18 of this Circular.
20. The goods involved in
merchanting trade transactions or transited through Vietnam’s territory; goods
temporarily imported or temporarily exported; raw materials imported for
manufacturing or export processing under contracts with foreign partners.
The goods and services traded
between a foreign party and a free trade zone, or among free trade zones.
Free trade zones include
export-processing zones, export processing enterprises, tax-suspension
warehouses, bonded warehouses, special economic zones, commercial - industrial
zones, and other economic zones established and provided with similar tax
incentives as free trade zones according to Decisions of the Prime Minister. The
transactions between a free trade zone and an external party are considered
export/import.
The procedures and documents
for considering VAT exemption must comply with instructions of the Ministry of
Finance on customs procedure; customs supervision and inspection; export and
import duties and administration of tax on exports and imports.
21. Technology transfers
according to the Law on Technology Transfer; intellectual property right
transfers according to the Law on Intellectual Property. In case a contract of
technology transfer or intellectual property right transfer is associated with
a transfer of machinery/equipment, only the value of transferred technology or
intellectual property right is not subject to VAT. If such value cannot be
separated, VAT shall be imposed on the total value of the transferred
technology or intellectual property right and machinery/equipment.
Computer software including
software products and software services as prescribed by law.
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Gold in the form of bullions,
pieces, and other forms of unfashioned gold shall be identified in accordance
with the law on gold management and trading.
23.[8]
Exports that are natural resources and/or minerals which have yet to be
processed into other products.
Exports that are products
mainly derived from natural resources and minerals whose total value plus
energy cost makes up at least 51% of the prime cost, except for some cases
specified in Clause 1 Article 1 of the Decree No. 146/2017/ND-CP.
a) Natural resources and
minerals are domestically obtained resources and minerals including metallic
minerals, non-metallic minerals, crude oil, natural gas and coal gas.
b) The ratio of value of a
natural resource/mineral and energy cost to the manufacturing cost shall be
determined according to the following formula:
Ratio
of value of a natural resource/mineral and energy cost to prime cost
=
Value
of a natural resource/mineral + energy cost
x
100%
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Where:
Value of a processed natural
resource/mineral is determined as follows: Value of a natural resource/mineral
directly extracted is direct or indirect costs of extraction of such natural
resource/mineral excluding costs of transport of such natural resource/mineral
from place of extraction to place of processing. Value of a natural
resource/mineral purchased for processing is the actual purchase price
excluding costs of transport of such natural resource/mineral from place of purchase
to place of processing.
Energy costs are costs of fuel,
electrical energy and heat energy.
The value of a natural
resource/mineral and energy cost shall be determined according to the
accounting book value in line with the prime cost sheet.
The prime cost of a product
includes direct material cost, direct labor cost and general manufacturing
cost. Indirect costs of sale, administration, finance and other
affairs are not included in the prime cost.
The ratio of value of natural
resources/minerals and energy cost to prime cost of the exports shall be
determined according to the previous year’s statement and apply stably in the
exporting year. In the first year of export, this ratio shall be determined
according to the investment plan and applied during the exporting year. Where
the investment plan is not available, this ratio shall be determined according
to the products actually exported.
c) If an enterprise does not
export but sells its products to another enterprise that then exports such
products, the enterprise purchasing then exporting the products shall declare
VAT as levied on similar products exported directly by the manufacturing
enterprise.
d) Departments of Taxation of
provinces and cities shall cooperate with regulatory authorities within their
provinces in instructing enterprises manufacturing, trading and exporting
products derived from natural resources/minerals to determine natural
resources/minerals exported without or after further processing into other
products according to product characteristics and product manufacturing process
in order to make declaration as prescribed.
In case the enterprise
declares a natural resource/mineral that has been processed into other products
but it is it is ungrounded for classifying them as other products, the
Department of Taxation shall inform the General Department of Taxation that
will cooperate with Ministries and regulatory authorities in determining such
natural resource/mineral exported without or after further processing into
other products in accordance with regulations of law according to the
enterprise’s exports manufacturing process.
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25. Goods and services of the
household or individual businesses that earn an annual turnover of VND one
hundred million or lower.
The tax liability of the
household business or individual business shall be determined in accordance
with the law on tax administration.
26. The goods and services
below:
a) Duty-free goods at
duty-free shops prescribed by the Prime Minister.
b) Goods in national reserve
sold by national reserve authorities.
c) Charged activities of the
state according to the laws on fees and charged.
d) Bomb and mine clearance
carried out by the army at the constructions funded by government budget.
If the goods that are not
subject to VAT during importation are repurposed, VAT shall be declared and
paid to the customs authority where the customs declaration is registered. The
entities that sell goods to the domestic market must declare and pay VAT to
their supervisory tax authorities.
Article
5. Cases in which it is not required to declare, assess and pay VAT
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Any taxpayer that receives a
monetary compensation, bonus, allowance, payment for transfer of emission
permits, or other revenues must make a receipt for such revenues. The taxpayer
shall make receipts for spending according to the spending purposes.
If compensation is provided in
the form of goods/services, the provider of compensation must issue an invoice,
declare and pay VAT as if such goods/services are sold; the recipient of
compensation shall declare and deduct tax as prescribed.
Any taxpayer that receives
money from another entity to provide a service such as repair, warranty, sales
promotion, or advertising must declare and pay tax as prescribed.
Example 10: Limited Liability
Company P&C earns an interest from buying bonds and a dividend from buying
shares of other companies. Limited Liability Company P&C is not required to
declare and pay VAT on the interest buying bonds and the dividend.
Example 11: Enterprise A
receives a compensation of 50 million dong for contract termination from
company B. Company A shall make a receipt and is not required to declare and
pay VAT on such amount.
Example 12: Enterprise X buys
goods from enterprise Y. Enterprise X pays a deposit to enterprise Y and is
paid an interest on that deposit by enterprise Y. Enterprise X is not required
to declare and pay VAT on such interest.
Example 13: Enterprise X sells
goods to company Z for totally 440 million dong. Under the contract, enterprise
Z shall make payment in installments within 03 months with a late payment
interest rate of 1% of the total payment per month. After 03 months, enterprise
X receives from company Z an amount that includes 440 million dong in price and
13.2 million dong in late payment interest (440 million dong x 1% x 3 months).
Enterprise X is not required to declare and pay VAT on that 13.2 million dong.
Example 14: Insurer A and
company B signs an insurance contract. When insurance is claimed, insurer A
pays compensation in cash to company B as prescribed by the law on insurance. Company
B is not required to declare and pay VAT on this compensation.
Example 15: ABC is a milk
joint-stock company that pays its distributors to do a sales promotion (in
accordance with the laws on trade promotion), marketing, and product display.
When receiving the payment, the distributors that use credit-invoice method shall
issue VAT invoices and calculate VAT at 10%, the distributors that use direct
methods shall only use sale invoices and pay direct VAT at the prescribed rate.
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3. The non-business
organizations and individuals shall not pay VAT on the sale of their assets.
Example 16: Mr. A, who is not
a businessperson, sells a 4-seat car to Mr. B for 600 million dong. Mr. A is
not required to declare and pay VAT on the payment for the car.
Example 17: Mr. E, who is not
a businessperson, pledges a 5-seat car at bank VC to take out a loan. Mr. E
defaults on the loan when the repayment is due, thus bank VC liquidates the
pledged car to recover the debt. The money collected from liquidating the car
is not subject to VAT.
4. The entities that transfer
project on investment in manufacturing of or trade in goods/services subject to
VAT to other companies or cooperatives.
Example 18: Joint-stock
Company P executes a project on construction of an industrial alcohol factory. In
March 2014, 90% of the project is completed according to the design, and the
investment is 26 billion dong. Due to financial difficulties, company P
transfers the incomplete project to joint-stock company X for 28 billion dong. Company
X receives and keeps executing this project. Company P is not required to
declare and pay VAT on the value of the transferred project.
5. A company or cooperative
that pays VAT using credit-invoice method and sells unprocessed or preprocessed
farming, breeding, aquaculture products to another company or cooperative for
commercial purposes shall be exempt from declaring and paying VAT. The selling
price on the VAT invoice is VAT-exclusive price, the line of tax rate must be
left blank and crossed out.
A company or cooperative that
pays VAT using credit-invoice method and sells unprocessed or preprocessed
farming, breeding, aquaculture products to other entities such as household
businesses, individual businesses, other organizations or other individuals has
to declare and pay 5% VAT according to Clause 5 Article 10 of this Circular.
A business household,
individual business, enterprise, cooperative, or business entity that pays VAT
directly on value added using direct method and sells unprocessed or
preprocessed farming, breeding and aquaculture products for commercial purposes
shall declare and pay VAT at 1% of the revenue.
Example 19: Company B, which
pays VAT using credit-invoice method, purchases rice directly from the farmers
or farming companies. This direct purchase of rice from the farmers or farming
companies is not subject to VAT.
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When company B sells rice to
company D, which is a noodle producer, company B is not required to declare and
pay VAT on the rice sold to company D.
On the invoices issued to
exporter C and company D, company B must specify that the sale price is
VAT-exclusive. The line of tax rate must be left blank and crossed out.
When company B directly sells
rice to consumers, 5% VAT shall be declared and paid in accordance with the
instructions in Clause 5 Article 10 of this Circular.
Example 20: Company A, which
is a business organization that pays tax using credit-invoice method, buys
coffee beans from farmers, then sells them to business household H. 5% VAT
shall be levied on the revenue from selling coffee beans to business household
H.
Example 21: After purchasing
tea leaves from a farmer, Mr. X’s household sells them to Mr. Y’s household.
Mr. X’s household must calculate and pay direct VAT at 1% of the revenue from
selling tea leaves to Mr. Y’s household.
If VAT on the invoices for the
unprocessed products or preprocessed products that are sold to a company or
cooperative has been declared, the seller and the buyer must adjust the
invoices to be exempt from V.
6. When transferring
depreciated in-use assets between a business establishment and its wholly-owned
subsidiaries or among the these subsidiaries to serve the manufacturing or
trade of goods/services subject to VAT, invoices and VAT payment are not
required. The taxpayer that transfers their assets must make a Decision on
asset transfer enclosed with the documents about the asset origins.
When transferring a fixed
asset, the value of which has been reassessed, or when transferring an asset to
another business establishment that manufactures or trades in goods/services
that are not subject to VAT, VAT shall be paid and VAT invoices must be made.
7. Other cases:
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a) Assets are contributed to
establish a new company. Contributed assets must have: contribution record,
partnership or cooperation contract; asset valuation record (made by a
valuation council or the contributor or an organization licensed for
valuation), and documents about asset origins.
b) Assets are circulated among
financially dependent subsidiaries of an enterprise (hereinafter referred to as
“dependent units”); assets are circulated when an enterprise is fully divided,
partially divided, amalgamated, merged, or converted. When assets are so
circulated, the taxpayer that has the circulated assets must make an asset
circulation order enclosed with documents about the asset origins and is not required
to issue invoices.
When assets are circulated
among the financially independent subsidiaries or among the subsidiaries that
have full legal status of the same taxpayer, the taxpayer that has the
circulated assets must issue VAT invoice, declare and pay VAT as prescribed,
except of the case in Clause 6 of this Article.
c) Compensation claimed from a
third party under an insurance contract.
d) The delegated payments that
are not related to the sale of goods/services of the taxpayer.
dd) The revenue from
goods/services sold by agents, commissions paid to agents, including: postal
and telecommunications services, lottery, air tickets, bus tickets, train
tickets, ship tickets; international transport agents; air and maritime service
agents entitled to 0% VAT; insurance agents.
e) Revenue and commissions on
selling goods/services that are not subject to VAT.
g)[9]
The business establishment is not required to pay VAT on re-import of exported
goods returned by the foreign buyer. VAT on returned domestic goods shall still
be declared and paid as prescribed.
h.[10]
Organizations or enterprises paid remunerations by regulatory bodies for their
provision of authorized collection or payment services.
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Chapter
II
BASIS
AND METHODS OF TAX CALCULATION
Section
1. Basis for tax calculation
Article
6. Basis for tax calculation
The basis for tax calculation
is taxable prices and tax rates.
Article
7. Taxable prices
1. Taxable prices of goods and
services sold by taxpayer are VAT-exclusive price. Taxable prices of goods and
services subject to special excise tax are the prices inclusive of special
excise tax and exclusive of VAT.
Taxable prices of goods and
services subject to environmental protection tax are the prices inclusive of
environmental protection tax and exclusive of VAT; taxable prices of goods and
services subject to both special excise tax and environmental protection tax
are the prices inclusive of special excise tax and environmental protection tax
but exclusive of VAT.
2. Taxable prices of imported
goods are the prices at the border checkpoint (hereinafter referred to as
“import price”) plus (+) import tax (if any) plus (+) special excise tax (if
any) plus (+) environmental protection tax (if any). The border-gate import
price shall be determined in accordance with regulations on prices for
calculating import duties.
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3. Taxable prices of the goods
and services (whether bought externally or not) used as gifts, donations, or
substitute for wages are the taxable prices of the same kinds or equivalent goods
and services at the same time.
Example 22: Unit A
manufactures electric fans and exchange 50 fans with company B for steel. The
selling price (tax-exclusive) is VND 400,000/fan. Taxable price = 50 x VND
400,000 = VND 20,000,000.
Taxable prices of the
invitations (complimentary) to art performances, fashion shows, beauty
pageants, and sports competitions permitted by competent authorities are zero
(0). The organizer of the show or competition is responsible for the quantity
of invitations and recipients before the show or competition takes places. If
the organizer charges these invitations, the organizer shall incur penalties in
accordance with regulations of law on tax administration.
Example 23: Company X is
permitted by a competent authority to hold a beauty pageant named “Người đẹp Việt
Nam năm 20xx” (“Miss Vietnam 20xx”). Apart from the tickets that are sold,
company X also sends invitations to some VIPs. The list of recipients is
printed on these invitations. When declaring VAT, taxable price of the
invitation is zero (0). If tax authority finds that company X collects money on
these invitations, company X shall incur penalties in accordance with
regulations of law on tax administration.
4.[11]
Taxable prices of goods/services meant for internal use.
Goods internally circulated as
supplies or semi-finished products serving the operation of a manufacturing or
business establishment are exempt from VAT.
When a business establishment
creates its own fixed assets (self-created) to serve the manufacture or sale of
goods subject to VAT, the business establishment is not required to issue
invoices when such fixed assets are completed and approved. Input
VAT on self-created fixed assets shall be declared and deducted as prescribed.
When machinery, equipment, supplies,
or goods are delivered as a loan, borrowing, or repayment, the business
establishment is not required to issue invoices and pay VAT, provided contracts
and relevant proof of payment are available.
Example 24: Unit A is a
manufacturer of electric fans. Unit A installs 50 of these fans in its
workshops to server its business operation. Unit A is not required to pay VAT
on these 50 electric fans.
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Example 26: Joint-stock
company P builds a rest house for its workers. When
the house is finished, company P is not required to issue an invoice. Input VAT
on self-created fixed assets shall be declared and deducted as prescribed.
Example 27: Company Y is a
company that produces bottled water. The VAT-exclusive price for a bottle on
the market is VND 4,000. When company Y uses 300 bottles during its meeting,
VAT shall not be paid.
Example 28: Company Y is a
company that produces bottled water. The VAT-exclusive price for a bottle on
the market is VND 4,000. Company Y delivers 300 bottles for purposes other than
business purposes, company Y must declare and calculate VAT on these 300
bottles. The taxable price is VND 4,000 x 300 = VND 1,200,000.
When a business establishment
using internal goods/services for business such as transport, aviation, rail
transport, postal services and telecommunications, it is not required to
calculated output VAT. The business establishment must issue written
regulations on the types and quantity of goods/services used internally.
5. Taxable prices of goods and
services used for sales promotion in accordance with trade laws are zero (0).
In case they are not conformable with trade laws, tax shall be declared and
paid as if they are used internally, given, or donated.
Some forms of sales promotion:
a) If goods or services are
provided free of charge as samples or gifts, taxable prices are zero (0).
Example 29: Company P is a
manufacturer of carbonated drinks. In 2014, company P does a sales promotion in
the form of “buy 10 get 01 free” in May and December. The sales promotion in
May 2014 is conformable with trade laws, thus taxable price of every product
given free of charge in May 2014 is zero (0). The sales promotion in May 2014
is conformable with trade laws, thus taxable price of every product given free
of charge in May 2014 is zero (0).
The sales promotion in
December 2014 is not conformable with trade laws, thus company P must declare
and pay VAT on the products given free of charge in December 2014.
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Example 30: N is a
telecommunications company that sells prepaid cards. Company N registers a sale
promotion in the form of price reduction from April 01, 2014 to the end of
April 20, 2014, during which a prepaid card is sold for 90,000 VND is stead of
100,000 VND. The taxable price of a prepaid card during the sales promotion is
calculated as follows:
c) If vouchers are given when
goods or services are sold, VAT on is not levied on the vouchers.
6. Taxable prices of asset
rental such as housing, offices, workshops, warehouses, yards, vehicles,
machinery, equipment are the VAT-exclusive rents.
If the rent is paid by installments
or prepaid for a period of time, the taxable price is the installment or the
prepaid amount exclusive of VAT.
The rent agreed by both
parties is the rent written in the contract. If a rent bracket is prescribed by
law, the rent must be charged within that bracket.
7. If a commodity is paid for
by installments, the taxable price is the original price exclusive of VAT and
interest.
Example 31: Company X sells a
100cc X motorbike and allows its customer to pay for the motorbike by
installments. The total price exclusive of VAT is 25.5 million dong, including
25 million dong in selling price and 0.5 million dong in interest, thus the
taxable price is 25 million dong.
8. Taxable prices for goods
processing are the prices under the processing contracts exclusive of VAT,
inclusive of wages, costs of fuel, machinery, raw materials, and other expenses
serving the processing.
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a) If the price is inclusive
of building materials, the taxable price is the VAT-exclusive price inclusive
of building materials.
Example 32: Company B is
contracted to complete a construction. The VAT-exclusive payment 1,500 million
dong including 1,000 million dong in the value of building materials, then
taxable price is 1,500 million dong.
b) If the
price is exclusive of building materials, machinery, or equipment, the taxable
price is the VAT-exclusive construction price exclusive of building materials,
machinery, or equipment.
Example 33:
Company B is contracted to complete a construction. The total value of the
construction is 1,500 million dong (VAT-exclusive); the value of building
materials provided by investor A is 1,000 million dong, then taxable price is
1,500 million dong - 1,000 million dong = 500 million dong.
c) Taxable
prices of completed and transferred works are their VAT-exclusive value.
Example 34: Company X (party
A) hires company Y (party B) to build a new workshop.
The total value
(VAT-exclusive) of the construction is 200 billion dong, including:
- Construction
value: 80 billion dong
- Value
of equipment provided by party B: 120 billion dong
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- Total
amount payable: 220 billion dong
- Party
A shall:
+ Receive
the completed workshop and record an increase of 200 billion dong in the value
of fixed assets (VAT-exclusive)
+ 20
billion dong in VAT may be deducted from output VAT on sold products or
refunded.
If party A agrees to pay 80
billion dong to party B for the completed and transferred works, the taxable
prices is 80 billion dong.
10.[12]
Regarding real estate transfer, the taxable price shall be determined in
accordance with regulations in Clause 1 Article 1 of Government’s Decree No. 49/2022/ND-CP
dated July 29, 2022.
11. The
VAT-exclusive remunerations or commissions for running an agent or brokering
the sale of goods/services, export and import entrustment are taxable prices.
12. Taxable
prices of the goods and services using special receipts on which the selling
prices are VAT-inclusive, such as stamps, bus tickets, lottery tickets, etc.:
VAT-exclusive
price =
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1 +
tax rate (%)
13.[13]
Taxable prices for electricity generation by the Vietnam Electricity
(EVN) shall be determined in accordance with regulations in Clause 1
Article 1 of Government’s Decree No. 49/2022/ND-CP dated July 29, 2022.
14. Regarding casino business,
prize-winning electronic games or betting entertainment services, the taxable
price is excise tax-inclusive earnings from these services, excluding prizes or
payouts already paid to customers.
Taxable price is calculated as
follows:
Taxable
price =
Collected
amount
1 +
tax rate
Example 41: In a tax period, a
casino presents the following figures:
- Total
amount collected from players at the exchange counter: 43 billion dong.
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Actual revenue: 43 billion
dong - 10 billion dong = 33 billion dong
The revenue of 33 billion dong
is inclusive of VAT and special excise tax.
Taxable price is calculated as
follows:
Taxable
price =
33
billion dong
= 30
billion dong
1 +
10%
15. Taxable
prices of transport and material handling services are the VAT-exclusive
charges, whether the materials are handled by the taxpayer itself or by another
service provider.
16. The
price of an all-inclusive package of travel services (inclusive of meals,
accommodation, and travel) is considered VAT-inclusive.
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Taxable
price =
Price
of the package
1 +
tax rate
If the price is inclusive of
the costs of return flights, meals, accommodation, and other expenses overseas
(if valid receipts are presented), such costs may be deducted from the taxable
price. Input VAT on the goods and services serving the all-inclusive
tour shall be deducted in full.
Example 42: Ho Chi Minh City
Tourism company signs a contract to provide an all-inclusive package tour in
Vietnam for 50 Thai tourists for 05 days. The total payment for the tour is USD
32,000. Ho Chi Minh City Tourism company must pay for the air
tickets, meals, accommodation, and sightseeing under the contract. The payment
for return air tickets is USD 10,000 (1 USD = 20,000 VND).
The taxable price is
calculated as follows:
+ Taxable
revenue:
(USD
32,000 - USD 10,000) x VND 20,000 = VND 440,000,000
+ Taxable
price:
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=
VND 400,000,000
1 +
10%
Ho Chi Minh City Tourism
company may deduct the input VAT on the goods and services serving the tour.
Example 43: Hanoi Tourism
company signs a contract to provide an all-inclusive tour in China for
Vietnamese tourists for 05 days. The price is USD 400/tourist. Hanoi Tourism
company must pay USD 300/person to China tourism company. Accordingly, the
taxable price is: 400 - 300 = 100 (USD/person).
17. The
collectible from pawnbroking services, including the interest and other
revenues from the sale of pawned articles, is VAT-inclusive.
Taxable price is calculated as
follows:
Taxable
price =
Collectible
1 +
tax rate
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Taxable price is calculated as
follows:
VND
110 million
=
VND 100 million
1 +
10%
18. The
prices on the covers of the books subject to VAT according to the Law on
Publishing are VAT-inclusive prices and shall be used to calculate VAT and
revenues. If books are sold at prices other than the prices on the
cover, VAT shall be imposed on the actual selling price.
19. Taxable
prices of printing is the payment for printing. If the
contractual price includes printing price and paper price, the taxable price is
also inclusive of paper price.
20. VAT-exclusive
remunerations or commissions on brokering assessment, brokering compensation
examination, claiming compensation from a third person (including the costs)
earned by the insurer are taxable prices.
21. In the
case of service purchase in Clause 5 Article 3 of this Circular, taxable price
is the VAT-exclusive price written in the service contract.
22. Taxable
price of the goods and services mentioned in Clauses from 1 to 21 include the
surcharges payable to the sellers.
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Taxable price is expressed as
VND. …[14]
(abrogated)
Article
8. Time for VAT calculation
1. For goods sale, VAT shall
be calculated when the ownership or the right to use goods is transferred to
the buyer, whether the payment is made or not.
2. For service provision, VAT
shall be calculated when the service provision is completed or when the invoice
for service provision is made, whether the payment is made or not.
For telecommunications
services, VAT shall be calculated when comparing the data about
telecommunications charge under the contracts between telecommunications
service providers, but not later than 2 months from the month in which the
charge is incurred.
3. For
electricity and water supply, VAT shall be calculated when the electricity or
water consumption is recorded.
4. For real estate trading,
construction of infrastructure facilities, and construction of houses for
selling, transfer or lease, VAT shall be calculated when payment is made
according to the project schedule or the payment schedule specified in the
contract. The business entity shall declare output VAT incurred in the tax
period according to total collected amounts.
5. With regard to construction
and installation activities, including shipbuilding, VAT shall be calculated at
the time of commissioning and acceptance of the finished works, or their items,
or construction/installation amounts, whether or not the payment is made.
6. For
imported goods, VAT shall be calculated when the customs declaration is
registered.
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1. 0% VAT
is applied to exported goods and services; construction and installation
overseas and in free trade zones; international transport; exported goods and
services that are not subject to VAT, except for the cases in Clause 3 of this
Article, in which 0% VAT is not applied.
Exported goods and services
are those that are sold to overseas organizations and individuals and are
consumed outside Vietnam, sold to the entities in free trade zones, or sold to
foreign customers as prescribed by law.
a) Exported goods include:
- The
goods exported to other countries, including those under entrustment contracts;
- The
goods sold to free trade zones as prescribed by the Prime Minister; the goods
sold to duty-free shops;
- The
goods that are delivered to the recipients outside Vietnam;
- Parts
and supplies for repairing, maintaining vehicles, machinery, and equipment of
foreign entities, and those that are used outside Vietnam;
- Cases
of deemed exportation:
+ Forwarded
processed goods under trade laws on international goods trade and export
processing.
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+ The
goods exported to be sold at overseas fairs or exhibitions.
b) Exported
services include the services directly provided for overseas organizations and
individuals and are consumed overseas; the services provided for the entities
in free trade zones and consumed within the free trade zones.
Overseas individuals include
foreigners who do not reside in Vietnam and overseas Vietnamese who reside in
foreign countries and also stay outside Vietnam during the service provision. Organizations
and individuals in a free trade zone are those having completed business registration
procedures and other cases specified by the Prime Minister of Vietnam.
Where a service is provided
both in and outside Vietnam under a service contract signed by and between two
taxpayers in Vietnam or having permanent establishments in Vietnam, the 0% rate
only applies to the value of services provided outside Vietnam, except the case
of insurance service for imported goods where the 0% rate applies to total
value of the contract. If the value of service provided in Vietnam is not
separately specified in the contract, the taxable price shall be determined
according to the ratio (%) of costs incurred in Vietnam to total costs.
The service provider that is a
taxpayer in Vietnam must provide documents proving that the services are
provided outside Vietnam.
Example 45: Company B signs a
contract with company C to provide some services including consultancy, survey,
and design for company C’s project of investment in Cambodia (both company B
and company C are Vietnamese companies). According
to the contract, there are services that provided in Vietnam and services
provided in Cambodia. 0% tax shall apply to the value of the services provided
in Cambodia. Company B must pay VAT on the revenue from the services provided
in Vietnam.
Example 46: Company D provides
some services for company X, including consultancy, survey, and feasibility
study on a project in Laos. Company D is paid 5 billion dong for this contract,
inclusive of VAT on the services provided in Vietnam. The
contract does not separate the revenue earned in Vietnam from the revenue
earned in Laos. The expense incurred in Laos (cost of survey) is 1.5 billion
dong and the expense incurred in Vietnam (cost of consolidating and reporting)
is 2.5 billion dong.
The VAT-inclusive revenue from
the services provided in Vietnam is calculated as follows:
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2.5
billion dong + 1.5 billion dong
= 3,125 billion dong
If company D presents
documents proving that company D sent employees to Laos to carry out the
survey, and the documents proving that company D purchased goods serving the
survey in Laos, 0% tax shall be applied to the revenue from the services
provided in Laos, which equals 1.875 billion dong (5 billion dong – 3.125
billion dong = 1.875 billion dong).
c) International transport
prescribed in this Clause includes passenger transport and freight transport
along international routes from Vietnam to other countries and vice versa, or
any route the point of departure and point of destination of which are both in
foreign countries, regardless of availability of vehicles for direct
consignment. If the international transport contract includes a domestic
segment, the domestic segment is also included in the international transport.
Example 47: Company X in
Vietnam uses their ships to transport goods from Singapore to Korea. The
revenue from this transport is considered revenue from international transport.
d) Aviation
services and maritime services directly provided to overseas organizations or
via agents, including:
0% tax shall be applied to the
following aviation services: catering; aircraft takeoff and landing; airport
apron; aircraft security; security screening; luggage conveyance at terminals;
terrestrial technical services; aircraft protection; aircraft towing; aircraft
guiding; passenger boarding bridges; air controlling; flight crew and passenger
transport in the airport apron; freight handling and checking; passenger
service charges for international flights from Vietnamese airports.
0% tax shall be applied to the
following maritime services: ship towing; pilotage; sea rescue; wharves;
freight handling; moorings; hatch control; hull cleaning; freight checking;
registration.
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- Construction
or installation overseas or in free trade zones;
- The
goods and services that are not subject to VAT when being exported, except for
the cases in Clause 3 of this Article, in which 0% tax is not applied;
- Aircraft
or vessel repair services provided to foreign organizations or individuals.
2. Conditions
for application of 0% tax:
a) The
documents below are compulsory for exports:
- A sale
contract, export processing contract, or export entrustment contract;
- Bank
receipts for payment for exports and other documents prescribed by law;
- A
customs declaration prescribed in Clause 2 Article 16 of this Circular.
If goods are delivered to a
recipient outside Vietnam, the seller must provide documents proving the
delivery of goods outside Vietnam such as: a contract to buy goods signed with
an overseas buyer, a contract to sell goods signed with the buyer, documents
proving that goods are received outside Vietnam such as commercial invoices,
bills of lading, packaging notes, Certificates of Origin, etc.; bank receipt
for the payment to the overseas seller by the taxpayer, bank receipt for the
payment to the taxpayer by the buyer.
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b) The documents below are
compulsory for exported services:
- A
contract to provide services for an organization or individual in another
country or in a free trade zone;
- Bank
receipts for payment for exported services and other documents prescribed by
law;
Apart from presenting the
aforesaid documents, providers of repair services for foreign aircraft and sea
vessels must follow the procedure for importing the aircraft or vessel to
Vietnam, and follow the procedure for exporting them after they are repaired in
order to be eligible for 0% tax.
c) The
documents below are compulsory for international transport:
- An
international passenger transport or freight transport contract between the
service provider and the service buyer. For
passenger transport, the contract may be substituted with tickets. Providers
of international transport services must comply with regulations of law on
transport.
- Documents
proving that payment is made by bank transfer or another method considered bank
transfers. Receipts for direct payment are compulsory for passenger
transport.
d) For
aviation services and maritime services:
d.1) 0% tax
shall be applied to the services provided within the international airports and
cargo terminals, provided the following documents are presented:
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- Receipts
for bank transfers or other payments considered bank transfer. If
services are provided for an overseas organization or airline on an irregular,
unscheduled basis without any contract, a receipt for direct payment made by
the overseas organization or airline is compulsory.
The aforesaid documents are
not compulsory for passenger service charges.
d.2) 0% tax
shall be applied to the maritime services provided within the port area,
provided the following documents are presented:
- A
service contract with an overseas organization or a shipping agent, or a
written request for services by an overseas organization or shipping agent;
- Documents
proving that the overseas organization or shipping agent makes payment to the
service provider is made by bank transfer or another method considered bank
transfer.
3.[15]
The 0% tax rate shall not apply to:
- Overseas
reinsurance; technology transfer, overseas transfer of intellectual property
rights; capital transfer, credit extension, outward securities investment;
derivative financial services; outbound postal and telecommunications services
(including those provided for the entities in free trade zones; provision of
sale of prepaid phone cards abroad or in free trade zones); exported products
being natural resources and minerals as per Clause 23 Article 4 of the
Circular; tobacco and alcoholic beverages imported then re-exported; goods and
services provided for individuals who have not registered to do business in
free trade zones, except for the cases defined by the Prime Minister.
Tobacco and alcoholic
beverages that are imported then exported shall not incur output VAT upon
export. However, input VAT shall not be deducted.
- Petroleum
supplied domestically to motor vehicles of the businesses that operate in free
trade zones;
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- Services
that business establishments provide to the entities operating in free trade
zones, such as: leasing of houses, conference rooms, offices, hotels,
warehouses; transportation of workers; food and beverage (except the industrial
catering service and food and beverage service rendered in free trade zones);
- The
tax rate of 0% is not applicable to the following services provided in Vietnam
to overseas entities:
+ Sports
competition, art performances, cultural events, entertainment, conference,
hotel, education, advertisement and tourism;
+ Online
payment services;
+ Services
in connection with the sale, distribution and consumption of goods in Vietnam.
Article
10. Tax rate of 5%
10% tax shall be levied on the goods and services below:
1. Clean water serving manufacture and everyday life, except for
bottled water and other soft drinks subject to 10% tax.
2.[16]
Ores used for fertilizer manufacture; pesticides and growth
stimulants for plants and animals, including:
a) Ores
used for manufacture of fertilizers such as apatite ore used for manufacture of
phosphate fertilizers, humus used as biofertilizers;
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c) Growth stimulants for
animals and plants.
3.[17]
(abrogated)
4. Dredging
channels, canals, ponds, and lakes serving agriculture; plant cultivation;
preprocessing and preservation of agricultural products (except for dredging
in-field trenches mentioned in Clause 3 Article 4 of this Circular).
Preprocessing and preservation
of agricultural products include drying, husking, threshing, cutting, grinding,
putting into cold storage, salting, and other usual means of preservation
mentioned in Clause 1 Article 4 of this Circular.
5. The
farming, breeding and aquaculture products that are unprocessed or preprocessed
or preserved (defined in Clause 1 Article 4 of this Circular), except for the
cases in Clause 5 Article 5 of this Circular.
The unprocessed farming
products mentioned in this Clause include unhusked rice, husked rice, corn,
potatoes, cassava and wheat.
6. Preprocessed
latex in the form of crepe, sheets, rubber or nuggets; preprocessed turpentine;
fishing nets, cords and fibers for making fishing nets; specialized fibers or
cords for making fishing nets, regardless of raw materials.
7. Fresh
foods for business, unprocessed forestry products for business, except for
wood, bamboo sprouts, and the products enumerated in Clause 1 Article 4 of this
Circular.
Fresh foods include the foods
that have not been cooked or processed into other products, or have only been
cleaned, skinned, cut, frozen, or dried in a way that they are still fresh
foods such as meat of livestock and poultry, shrimps, crabs, fish, and other
aquaculture products. 10% tax shall be levied on seasoned foods.
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Example 49: Company A produces
seasoned triggerfish under the following procedure: fresh triggerfish are
caught and filleted, then seasoned with sugar, salt, solpitol, then packaged
and frozen. The seasoned triggerfish is subject to 10% VAT.
8. Sugar;
by-products during the sugar manufacture process including molasses, bagasse
and mud waste.
9. Products
made of jute, sedge, bamboo, rattan, thatch, reed, thysanoloena maxima Kuntze,
dendrocalamus barbatus, straws, copra, coconut shells, hyacinth and other
handicrafts made of recycled materials from agriculture being products produced
or processed from main materials being jute, sedge, bamboo, reed, thysanoloena
maxima Kuntze or dendrocalamus barbatus and thatch such as jute carpets, jute
fibre, jute bags, jute strings, coconut fiber or sedge mats; grass brooms and
ropes made of bamboo or coconut fibers, conical hats, bamboo blinds; bamboo
chopsticks, dendrocalamus chopsticks; preprocessed cotton; newspaper printing
paper.
10.[18]
(abrogated)
11.[19]
Medical equipment and tools including medical machines and
equipment: screening, scanning and imaging equipment for medical examination
and treatment; specialized equipment for surgery, treatment, emergency medical
service vehicle; measuring instrument for measuring blood pressure, cardiac
activities, pulse, blood transfusion instrument; syringes; contraception
equipment; medical equipment requiring import permit, circulation registration
certificate or notice on receipt of standard declaration according to
regulations of law on healthcare or according to list of medical equipment
under specialized management of Ministry of Health to which HS codes are
assigned according to Vietnam’s nomenclature of exports and imports attached to
the Circular No. 14/2018/TT-BYT dated May 15, 2018 of Minister of Health and
amending documents (if any).
Medical cotton, bandages and
first-aid; medical prevention and treatment medicine including final medicine
products, pharmaceutical starting materials, except functional food; vaccine;
medical biologicals, distilled water for diluting injectable medicines,
intravenous fluids; hats, clothes, facemasks, surgical gloves, gloves, leg
cover, shoe cover, towels, specialized medical gloves, breast implants and
dermal fillers (excluding cosmetics); chemicals for experiment and
sterilization for medical use.
12. Teaching
aids including models, pictures, boards, chalks, rulers, compasses, other
equipment and instruments for teaching, research, and scientific
experimentation.
13. Artistic,
exhibition, physical training and sporting activities; art performances;
cinematography; importing, distributing, and showing films.
a) Artistic,
exhibition, physical training and sporting activities except for revenues from
the sale of goods, the lease of parking areas and from fair and exhibition
booths.
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c) Cinematography;
importing, distributing, and showing films, except for the products mentioned
in Clause 15 Article 4 of this Circular.
14. Children’s
toys; books other than those that are not subject to VAT mentioned in Clause 15
Article 4 of this Circular.
15. Scientific
and technological services which mean the activities that serve or assist in
scientific research and technology development; the activities related to
intellectual property; transfer of technologies, technical regulations and
standards related to measurement, product quality, goods, nuclear and radiation
safety, and atomic energy; consultancy, training, dissemination, and
application of scientific and technological achievements to socio-economic
fields under contracts for scientific and technological services defined in the
Law on Science and Technology, not including online games and Internet-based
entertainments.
16. Sale,
lease, and lease purchase of social housing according to the Law on Housing. Social
housing means the housing invested in by the state or the organizations and
individuals from various economic sectors, which satisfy the criteria for
housing in terms of selling prices, rents, and eligible buyers according to
regulations of law on housing.
Article
11. Tax rate of 10%
10% tax shall be levied on the
goods and services that are not mentioned in Article 4, Article 9 and Article
10 of this Circular.
The rates of VAT mentioned in
Article 10 and Article 11 shall be uniformly applied to the each type of goods
and services, whether they are imported, manufactured, processed, or traded.
Example 50: 10% tax is levied
on apparel. That means the tax rate is always 10% whether such apparel is
imported manufactured, processed, or traded.
VAT on the products made of
recycled wastes and scrap is the same as VAT on the wastes and scrap when they
are sold.
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If the rate of VAT in the preferential
import tariff schedule is found unconformable with this Circular, this Circular
shall apply. If different rates of VAT are applied to the same kind of
goods that are imported or manufactured in Vietnam, the local tax authority and
customs authority must send a report to the Ministry of Finance for guidance.
Section
2. TAX CALCULATION METHODS
Article
12. Credit-invoice method
1. Credit-invoice
method is applied by the taxpayers that adhere to the accounting and invoicing
practice according to accounting and invoicing laws, including:
a) Any
taxpayer that earns at least one billion dong in annual revenue from selling
goods and services Credit-invoice, provided the taxpayer adheres to the
accounting and invoicing practice according to accounting and invoicing laws,
except for household and individual businesses mentioned in Article 13 of this
Circular;
b) Any
taxpayer that voluntarily applies credit-invoice method, except for the
household and individual businesses that pay tax using direct method mentioned
in Article 13 of this Circular;
c) If a foreign entity
supplying goods and services for exploring, developing and exploiting oil and
gas pays VAT using credit-invoice method, Vietnamese party shall declare and
pay VAT on their behalf.
2. The
annual revenue mentioned in Point a Clause 1 of this Article is the revenue
from selling taxable goods and services, which is calculated as follows:
a) Annual
revenue earned by a taxpayer is determined by the taxpayer itself according to
“Total revenue from selling goods and services subject to VAT” on the VAT
declarations from November of the previous month to the end of October of the
current year, which precedes the year in which tax accounting method may be
changed; or on the VAT declarations from the fourth of the previous year to the
end of the third quarter of the previous year, which precedes the year in which
tax accounting method may be changed. The
method shall be applied for two consecutive years.
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Aggregate the revenue from
selling goods and services subject to VAT on the monthly VAT declarations from
November 2012 to the end of October 2013.
If the annual revenue
calculated is 1 billion dong or more, enterprise A may apply credit-invoice
method for 02 years (2014 and 2015).
If the annual revenue
calculated is less than 1 billion dong, enterprise A must apply direct method
according to Article 13 of this Circular for 02 years (2014 and 2015), unless
enterprise A voluntarily applies credit-invoice method according to Clause 3 of
this Article.
b) If the
company has not operated for 12 months, the annual revenue shall be estimated
by aggregating the revenue from selling goods and services subject to VAT on
the monthly VAT declarations and dividing (:) it by the operational months, and
then multiplying (x) it by 12 months. If the
estimated annual revenue is one billion dong or more, the enterprise may apply
credit-invoice method. If the estimated annual revenue is less than one billion
dong, the enterprise must apply direct method for 02 years, unless it
voluntarily applies credit-invoice method.
Example 52: Enterprise B was
established and inaugurated from March 2013. To determine the tax accounting
method applied in 2014 and 2015, enterprise B estimates its annual revenue by
aggregating the revenue from selling goods and services subject to VAT on the
monthly VAT declarations of March, April, May, June, July, August, September,
October, and November, dividing (:) it by 9 months, and then multiplying (x) it
by 12 months.
If the estimated annual
revenue is one billion dong or more, the enterprise may apply credit-invoice
method. If the estimated annual revenue is less than one billion
dong, enterprise B must apply direct method for 02 years, unless it voluntarily
applies credit-invoice method.
c) If the company starts
declaring tax quarterly from July 2013, the annual revenue shall be calculated
by aggregating the total revenue from selling goods and services subject to VAT
on the monthly VAT declarations of October, November and December in 2012, the
first six months of 2013, and the VAT declaration of the third quarter of 2013.
If the annual revenue calculated is one billion dong or more, the enterprise
shall apply credit-invoice method. If the
annual revenue is less than one billion dong, the enterprise must apply direct
method for 02 years, unless it voluntarily applies credit-invoice method.
d) If the
taxpayer suspends their business for the whole year, the annual revenue is the
revenue of the year preceding the year over which the business is suspended.
If the taxpayer suspends their
business for a certain period of time in the year, the revenue earned during
the operational months and quarters according to Point b of this Clause shall
be considered annual revenue.
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3.[20]
Business establishments that voluntarily apply credit-invoice
method include:
a) Any
enterprise or cooperative that earns an annual revenue of below 1 billion dong
from selling goods or providing services subject to VAT and adhere to
regulations on bookkeeping and invoicing.
b) Any new enterprise derived
from a project of a business establishment that pays VAT using credit-invoice
method.
Any new enterprise that is
making investment in a project approved by a competent authority and
voluntarily applies credit-invoice method.
Any new enterprise or
cooperative that has a project, which is not approved by a competent authority,
an investment plan approved by a competent person of the company, and
voluntarily applies credit-invoice method.
c) Any new enterprise or
cooperative that makes investment, purchases, or receives capital contribution
in the form of fixed assets, machinery, equipment, tools, or has a contract to
lease business premises.
d) Any
foreign entity doing business in Vietnam under a main contract or subcontract.
dd) [21]
Any business entity that can separate input VAT from output
VAT, excluding enterprises and cooperatives.
The tax calculation method of
a business establishment shall comply with the VAT declaration documents and
instructions in Article 11 of Circular No. 156/2013/TT-BTC (amended by Article
1 of Circular No. 119/2014/TT-BTC and Article 2 of Circular No.
26/2015/TT-BTC).
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a) If a
business establishment trades in jewelry, it must separate revenue from this
operation and apply direct method to pay VAT thereon in accordance with Article
13 of this Circular.
b) When
an enterprise applying credit-invoice method establishes branches (including
those derived from its projects), the tax calculation method applied by the
branches is the same as that applied by the enterprise if such branches declare
VAT independently. Any branch that does not sell goods, does
not earn revenue, or any branch in the same province as the headquarter which
does not declare tax independently shall have tax declared at the headquarter
of the enterprise.
c) Any
new enterprise or cooperative that is not mentioned in Clause 3 of this Article
shall apply the direct method prescribed in Article 13 of this Circular.
d) [23](abrogated)
5. VAT
payable:
VAT
payable
=
Output
VAT
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Where:
a) Output
VAT equals the total VAT on sold goods and services written on the VAT invoices.
The VAT amount written in the
VAT invoice equals the taxable price of goods and services multiplied (x) by
the VAT rate of such goods and services.
In case the
selling price is VAT-inclusive, output VAT equals (=) selling price minus (-)
taxable price according to Clause 12 Article 7 of this Circular.
The taxpayer that is eligible
to use credit-invoice method must calculate and pay VAT on goods and services
when they are sold. When issuing a sale invoice, the taxpayer must clearly write
the VAT-exclusive prices, VAT, and total amount payable by the buyer. If the
invoice only has the selling price (where special invoices are allowed) without
specifying the VAT-exclusive price and VAT, the VAT shall be levied on the
selling price.
Example 54: An enterprise
sells F6 steels at VAT-exclusive price VND 11,000,000/tonne; 10% VAT =
1,100,000 VND/tonne. However, the selling price written on some invoices is VND
12,100,000/tonne. In this case, VAT will be VND 1,210,000/tonne (VND
12,100,000/tonne x 10%) instead of the pre-tax price of VND 11,000,000/tone.
Taxpayers must adhere to accounting and invoicing practice in accordance with
the laws on accounting and invoicing. In
case the tax authority finds an incorrect VAT rate on an invoice for the sale
of goods and services, follow the instructions below:
If the incorrect VAT rate is
higher than that prescribed by the legislative documents on VAT, the taxpayer
must pay tax at the rate written on the invoice; if the incorrect VAT rate is
lower than that prescribed by the legislative documents on VAT, the taxpayer
must pay tax at the rate prescribed by the legislative documents on VAT.
b) Input
VAT equals (=) total VAT on invoice VAT for purchase of goods and services
(including fixed assets) serving the manufacture or sale of taxable goods and
services, VAT on receipts for payment of tax on imported goods or payment of
VAT on behalf of a foreign organization, which does not have a legal status in
Vietnam, or a foreigner doing business in Vietnam or earning income in Vietnam.
If special receipts, on which
selling prices are VAT-inclusive, are permitted, the taxpayer may calculate
VAT-exclusive prices and input VAT according to the VAT-inclusive prices and
the instructions in Clause 12 Article 7 of this Circular.
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Example 55: In a tax period,
company A pays 110 million dong inclusive of VAT for deductible input services
that are subject to 10% tax (special receipts bearing VAT-inclusive prices are
used for the services), then deductible input VAT is calculated as follows:
110
million dong
x
10% = 100 million dong
1 +
10%
VAT-exclusive price is 100
million dong; VAT is 10 million dong.
In case the tax authority
finds an incorrect VAT rate on an invoice issued by the goods buyer:
If the VAT rate on the invoice
is higher than that prescribed by tax laws, input VAT shall be deducted at the
rate prescribed by the legislative documents on VAT. If it
is proven that the seller declared and paid tax at the rate on the invoice,
input VAT may be deducted at the rate written on the invoice as long as it is
certified by the supervisory tax authority of the seller. If the VAT rate on
the invoice is lower than that prescribed by the legislative documents on VAT,
input VAT shall be deducted at the rate written on the invoice.
In case the tax authority
finds an incorrect VAT rate on an invoice issued by the goods seller: If VAT
has been paid by the seller when goods are imported, and the VAT rate on the
VAT invoice issued to consumer is equal to the VAT rate declared when goods are
imported and when goods are sold, but this rate is lower than that prescribed
by the legislative documents on VAT and the taxpayer is not able to collect
additional payment from the consumer, then the payment collected from the
consumer under the VAT invoice is considered inclusive of VAT at the rate
prescribed by the legislative documents on VAT, which is used to calculate VAT
payable and revenue subject to corporate income tax.
Example 56: In March 2014,
taxpayer A, who is eligible to apply credit-invoice method, imports products
named “CHAIR MM”, and has paid 5% VAT during importation. In May 2014, taxpayer
A sells 01 “CHAIR MM” to buyer B for 100 million dong exclusive of VAT. Because
5% VAT has been paid during importation, the VAT invoice issued by taxpayer A
to buyer B indicates 100 million dong in taxable price, 5% VAT, 5 million dong
in VAT, and 105 million dong in total amount. This amount has been paid off by
buyer B.
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The total payment made by
buyer B, which is 105 million dong, is considered inclusive of 10% VAT. The
correct VAT payable is:
105
million dong
x
10% = 9.545 million dong
1 +
10%
Additional VAT payable by
taxpayer A:
9.545 million dong - 5 million
dong = 4.545 million dong.
Taxable revenue from selling
the “CHAIR MM” to buyer B:
105 million dong – 9.545
million dong = 95.455 million dong.
Article
13. Direct method
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The added value of gold,
silver or precious stones is the payment price of gold, silver or precious
stones sold minus (-) the payment price of corresponding gold, silver or
precious stones purchased.
The payment price of gold,
silver or precious stones sold is the actual selling price written in the
invoice issued when selling gold, silver or precious stones, including
processing costs (if any), VAT and other surcharges or additional charges
earned by the seller.
The payment price of gold,
silver or precious stones purchased is the value, inclusive of VAT, of gold,
silver or precious stones purchased, or imported, and used for trading or
processing of corresponding gold, silver or precious stones to be sold.
If the added value of gold,
silver or precious stones in a tax period is a negative number, it may be
offset against the positive number of the added value of gold, silver or
precious stones. If there is no positive number of the added value or the
positive number of the added value is not sufficient for offsetting against the
negative number of the added value, the latter shall be carried forward to the
next period. Upon the end of a calendar year, the remaining negative number of
the added value shall not be carried forward to the next year.
2. The VAT amount payable
using the direct method is calculated by multiplying the rate (%) by revenue
and applied as follows:
a) This
method may be applied by the following entities:
- The
operational enterprises and cooperatives that earn less than one billion dong
in annual revenues, except for those that voluntarily apply credit-invoice
method prescribed in Clause 3 Article 12 of this Circular;
- New enterprises and
cooperatives, except for case of voluntary payment of VAT using credit-invoice
method as prescribed in Clause 3 Article 12 of this Circular;
- Household and individual
businesses;
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- The
business entities other than enterprises and cooperatives, except for those
that voluntarily apply credit-invoice method.
b) Direct
VAT rates applied to various business lines:
- From
goods distribution or goods supply: 1%;
- From
services or construction exclusive of building materials: 5%;<
- Manufacturing,
transport, services associated with goods, construction inclusive of building
materials: 3%;
- Other lines
of business: 2%.
c) The
taxable revenue is the total revenue from selling goods and services, which is
written on the sale invoice for taxable goods and services, inclusive of the
surcharges to which the seller is entitled.
The rates above are not
applied to the revenue from selling the goods and services that are not subject
to VAT and revenue from exported goods and services.
Example 57: Company A is a
company that declares and pays VAT using direct method. Company A earns revenue
from selling computer software and consultancy on company establishment.
Company A shall not pay direct VAT from selling computer software, which is not
subject to VAT), and must pay direct VAT at 5% of the revenue from consultancy
on company establishment.
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3. The
direct VAT payable by a household business or individual business that pays VAT
at a flat rate depends on the declaration made by the taxpayer, the data of the
tax authority, the result of the investigation into the taxpayer’s actual
revenue, and opinions of the local Tax Advisory Council.
If the taxpayer that pays tax
at a flat rate engages in multiple lines of business, the rate on the primary
business line shall be applied.
4. The
list of direct VAT rates mentioned in Clause 2 and Clause 3 of this Article is
enclosed herewith.
Chapter
III
TAX
DEDUCTION AND REFUND
Section
1. TAX DEDUCTION
Article
14. Rules for deducting input VAT
1. Input
VAT on goods and services serving the manufacture or sale of goods/services
subject to VAT shall be deducted in full, including non-refundable input VAT on
damaged goods.
Non-refundable input VAT on
damage goods may be deducted in an event of natural disaster, blaze, damage
that is not covered by insurance, degraded or expired goods that must be
destroyed. The taxpayer must present sufficient documents to prove the
damage not covered by insurance.
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Input VAT on goods and
services forming fixed assets such as canteen, recreation room, locker room,
parking lot, restroom, water tank serving workers at the workplace, housing and
medical facility for workers in industrial parks shall be deducted in full.
VAT on the rents for the
houses for workers in an industrial park paid by the taxpayer may be deducted
if the houses are conformable with laws on houses for workers in industrial
parks in terms of design standards and rents. If the
taxpayer builds or purchases houses outside the industrial parks serving
workers in the industrial park, VAT on these housed may be deducted in full if
they are conformable with the design standards applied to houses for workers in
industrial parks.
When a taxpayer pays foreign experts
for their works in Vietnam or holding managerial positions in Vietnam under
labor contracts signed, the rent for houses for such foreign experts must not
be deducted.
If the foreign experts are
still employees of an overseas enterprise, receive wages and benefits from the
overseas enterprise over the period of work in Vietnam, and the overseas
enterprise and the taxpayer in Vietnam is signs a contract specifying that the
taxpayer in Vietnam must cover the costs of accommodation for the foreign experts
while they are working in Vietnam, then the VAT on the accommodation costs paid
by the taxpayer shall be deducted.
2.[25]
When goods and services (including fixed assets) are
purchased to serve the manufacture or sale of both the goods/services that are
subject to VAT and goods/services that are not subject to VAT, only VAT on the
goods and services serving the manufacture or sale of the goods/services
subject to VAT shall be deducted. The
taxpayer must separate the deductible input VAT from non-deductible one.
Otherwise, input VAT shall be deducted according to the ratio of revenue
subject to VAT, revenue not subject to VAT to the total revenue from selling
goods and services, including revenue not subject to VAT that cannot be
separated.
The taxpayer that sells both
goods/services that are subject to VAT and goods/services that are not subject
to VAT may temporarily deduct all of the VAT on purchased goods, services, and
fixed assets incurred in the month/quarter. At the end of the year, the
taxpayer shall determine the actual deductible input VAT in the year and adjust
the amount of input VAT deducted during the year.
3.[26]
The input VAT on fixed assets, machinery, and equipment,
including the input VAT on the lease of these assets, machinery, and equipment,
and other input VAT relating to assets, machinery, and equipment such as
warranty or repair shall be not deducted and shall be included in costs of
fixed assets or the deductible expense prescribed in Law on Corporate Income
Tax and its guiding documents in the following cases: specialized fixed assets
used for the manufacture of weapons and specialized vehicles for security and
defense; fixed assets, machinery, equipment of credit institutions, reinsurers
and life insurers, securities companies, health facilities, training
institutions; civil aircraft and yachts not used for commercial cargo
transport, passenger transport, tourism or hotel operation.
With regard to fixed assets
being cars with fewer than 9 seats (except for cars used for cargo transport,
passenger transport, tourism, or hotel operation; cars used for display and
test drive by car dealers) whose value is 1.6 billion dong or more (exclusive
of VAT), the input VAT amount in proportion to the amount in excess of 1.6
billion dong shall not be deducted.
4. Some
cases of VAT deduction:
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Example 58: Enterprise X
invests in raw materials and a factory to fillet tra fish and river catfish and
produce frozen shrimps for export. Enterprise
X has a closed production line, including the breeding line, ponds, fences,
irrigation system, boats, and other raw materials such as feeds, veterinary medicines,
and the processing line. Enterprise X may deduct input VAT on fixed assets and
purchases that are not fixed assets during the manufacture and processing.
Example 58a:[27]
Enterprise A invests in a raising zone and a factory to
create a closed manufacture process from raising (including the lease of a
raising zone in which the breeds, ponds, fences, irrigation system, ships,
animal feeds, veterinary medicines, veterinary services, etc. are invested in
by Company A) to processing tra fish fillets for export and domestic sale. During
the manufacturing process, enterprise A has bought tra fish from other
enterprises and farmer households. Tra
fish bought externally are gathered at enterprise A’s ponds where enterprise
A’s tra fish are raised before being brought into the factory. Tra
fish raised by the enterprise and tra fish bought externally are processed into
fish fillets in the factory in accordance with the procedure: Raw material -
cleaning - head removal, skinning - gutting - filletting - salting - freezing -
sale. Enterprise A shall declare VAT as follows:
- Enterprise
A may deduct the whole input VAT on fixed assets and purchased goods/services
that are not fixed assets serving the preparation of tra fish fillet
preprocessing.
- Exported
fillets of tra fish raised by enterprise A shall apply 0% tax. The enterprise
may deduct input VAT on export of tra fish fillets in full. If the
enterprise raise tra fish and then process them into tra fish fillets for
export and domestic sale, the input VAT shall be proportional to the ratio of
export revenue to the total revenue (revenue from export and revenue from
domestic sale).
Example 59: Enterprise Y
invests in raw materials and a factory to produce and process dairy (sterilized
milk, yogurt, cheese, etc.). Enterprise Y has a closed
production line, including the breeding line, farms, stables, fences, milking
devices, sanitation system, raw materials such as feeds and veterinary
medicine, and the processing line. Enterprise
Y may deduct input VAT on fixed assets and purchases that are not fixed assets
during the manufacture and processing.
b) If the
taxpayer has a project of investment that is divided into multiple stages, has
a closed production line, and uses non-taxable products to manufacture taxable
goods, but non-taxable goods and services are provided during infrastructural
development stage, the input VAT incurred during the infrastructural
development stage in fixed assets may be deducted in full. The
taxpayer must separate the VAT on the assets other than those serving
manufacture of and trading in non-taxable goods and services to deduct tax
according to the ratio of taxable revenue to total revenue from selling goods
and services.
If the taxpayer makes a
commitment to keep producing taxable products, VAT may be deducted during
infrastructural development stage. If the
input VAT incurred during the infrastructural development stage has been
declared, deducted, and refund, but then found to be not eligible for deduction
or refund, the taxpayer must make an adjustment and pay tax that has been
deducted or refunded. If the taxpayer fails to make the adjustment, tax authority
shall collect the tax arrears and impose penalties as prescribed. The
taxpayer is totally responsible to the law for the report and explanation for
the tax deduction and tax refund, which are submitted to tax authority.
If the taxpayer sells
unprocessed or preprocessed agricultural, forestry and aquaculture products
that are not subject to VAT, the VAT on purchases may also be deducted according
to the ratio of revenue from selling taxable goods and services to the total
revenue.
Example 60: Enterprise A has
project on investment in a rubber plantation and incurs input VAT during
infrastructural development stage. Enterprise A does not have raw materials to
manufacture taxable products (including the unprocessed products or processed
products that are subject to VAT) but have a project to build a factory to
treat rubber latex into products subject to VAT) and declares to keep using the
farming products to manufacture taxable products. Enterprise A may deduct the
input VAT in full.
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If the enterprise uses part of
the rubber latex for manufacturing taxable products, and sell the rest, the
input VAT shall be deducted as follows:
- Input
VAT on fixed assets (rubber tree plantation, processing factory, etc.) may be
deducted in full (including VAT incurred during infrastructural development
stage).
- Input
VAT on goods and services shall be deducted according to the ratio of revenue
from selling taxable goods and services to the total revenue.
c) The taxpayers (including
the new business establishments) that provide both goods and services subject
to VAT and goods and services that are not subject to VAT may provisionally
deduct input VAT on fixed assets incurred during infrastructural development
stage according to the ratio of revenue from selling goods and services subject
to VAT to the total revenue according to their business and manufacturing plan. The
provisionally deducted VAT shall be adjusted to the ratio of revenue from
selling goods and services subject to VAT to the total revenue over three years
from the first year in which revenue is earned.
Example 61: Z is a new
enterprise derived from a project on investment in transport. According to the
business plan, company Z is supposed to earn revenue from public passenger
transport, advertising, vehicle maintenance and repair. The revenue from
passenger transport by bus accounts for 30% of the total revenue. The
infrastructural development stage lasts for 02 years (from June 2014 to May
2016), including buying vehicles, building bus stops and infrastructure. During
this period, 70% of the input VAT on fixed assets and purchases serving the
creation of the company is provisionally deducted and refunded (VAT on the
vehicles used as public buses is not deducted). Enterprise Z is inaugurated and
starts earning revenue from June 2016. Three years later, at the end of May
2019, the revenue from public passenger transport by bus makes up 35% of total
revenue from goods and services. Enterprise Z shall reduce the deductible VAT
by 5% (= 70% - 65%) and aggregate the arrears with the VAT payable in May 2019.
The enterprise shall not incur any fine or late payment interest.
5. Input
VAT on the goods (whether purchased externally or produced by the taxpayer)
used as gifts, used for sale promotions or advertising serving the manufacture
of sale of taxable goods may be deducted.
6. The
VAT paid under a decision on tax imposition made by a customs authority shall
be deducted in full, unless penalties for tax fraud or avoidance are imposed by
the customs authority.
7. Input
VAT on goods and services serving the manufacture or sale of taxable goods and
services mentioned in Article 4 of this Circular must not be deducted, except
for the following cases:
a) VAT on
purchased goods and services serving the provision of goods and services for
the foreign entities that use them as humanitarian aid or non-refundable aid
according to Clause 19 Article 4 of this Circular shall be deducted in full;
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8. VAT
shall be declared and deducted in the period during which it is incurred,
whether the products are used or still in storage.
If the taxpayer finds that the
input VAT is incorrectly declared, an adjustment may be made before the tax
authority or a competent authority announces the decision on tax inspection at
the taxpayer’s premises.
9. Input
VAT that is not deductible shall be aggregated with costs to calculate
corporate income tax, or aggregated with costs of fixed assets, except for the
VAT on any purchase that costs 20 million dong or more without receipts for
non-cash payments.
10. The
headquarters that do not directly run the business, the administrative units
affiliated to hospitals, medical stations, sanitariums, institutes, schools, etc.
that are not taxpayers must not deduct or claim refund of input VAT on the
purchases serving their operation.
If such units sell taxable
goods and services, VAT on these goods and services shall be separately
declared and paid.
Example 62: Though the headquarter
of company A does not directly run the business and is funded by its
affiliates, it leases out part of its office building. In this case, the
headquarter must separately declare and pay tax on the office lease. Input VAT
on goods and services serving the operation of the headquarter shall not be
deducted or refunded.
11. Input
VAT of goods and services serving provision of goods and services that are not
subject to VAT mentioned in Article 5 of this Circular (except for Clause 2 and
Clause 3 of Article 5) may be deducted in full.
12. When
the taxpayer authorizes another entity to make a purchase, the invoice for
which bears the name of the authorized buyer, input VAT on such purchase may be
deducted in the following cases:
a) An
insurer authorizes the policyholder to have the policyholder’s assets repaired
(invoices for the repair cost and parts bear the name of the policyholder),
then pays the policyholder for the invoices under the insurance contract. In
this case the insurer may deduct VAT on such invoices. If the amount paid to
the policyholder is 20 million dong or above, it must be made by bank transfer.
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13. When a
non-business entity contributes assets to a limited liability company or a
joint-stock company, the receipt for this contribution is the certificate of
capital contribution and the asset transfer note. If the
contributed assets are brand new, have legitimate invoices, and are accepted by
the capital transfer council, the value of this contribution is the
VAT-inclusive value written on the invoice. The recipient of the contribution
may deduct the VAT on the invoice for the purchase of such assets from the
contributor.
14. The
taxpayer that switches over from direct method to credit-invoice method may
start deducting VAT on purchases from the first tax period in which
credit-invoice method is applied.
The taxpayer that switches
over from credit-invoice method to direct method may aggregate the VAT on
purchases that is not completely deducted before switching with deductible
expenses when calculating the income subject to corporate income tax, except
for the refundable VAT on the purchases that were made before switching
according to Article 18 of this Circular and the legislative documents that
were effective before this Circular comes into force.
Example 63: Company A is
applying credit-invoice method in 2014 and 2015. From January 01, 2016, company
A is no longer eligible to apply credit-invoice method. Company A sent a claim
for tax refund the tax authority from November 2014 to the end of October 2015
(when revenue is calculated to decide the tax accounting method in 2016 and
2017). The claimed refund is 350 million dong and the input VAT that remains is
50 million dong according to the VAT declaration of November 2015. Company A
shall receive the full refund of 350 million dong. The remaining input VAT of
50 million dong shall be transferred to the tax period of December 2015. If
input VAT on the VAT declaration of December 2016 is not completely deducted,
company A may aggregate it with deductible expenses when calculating the income
subject to corporate income tax.
14a.[28] Input
VAT on goods, services, fixed assets serving manufacture of: fertilizers,
specialized machinery and equipment serving agricultural production, offshore
fishing ships, animal feeds that are sold domestically shall be included in
deductible expenses when determining income subject to corporate income tax
instead of being declared and deducted, except for VAT on purchased of goods,
services, fixed assets that are incurred before January 01, 2015, written on
VAT invoices or proof of VAT payment upon importation and satisfy conditions for
deduction, tax refund, and are eligible for tax refund as prescribed in Article
18 of Circular No. 219/2013/TT-BTC dated December 31, 2013 and this Circular.
15. Input
VAT must not be deducted in the following cases:
- The
VAT invoice is not legitimate, such as VAT is not written (except for special
invoices on which selling prices are VAT-inclusive);
- The
invoice does not contain or does not contain the correct name, address or TIN
of the seller, thus rendering the seller unidentifiable;
- The
name, address, or tax code of the buyer on the invoice is incorrect (except for
the case in Clause 12 of this Article);
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- The
invoice does not reflect the actual value of goods and services.
16. Other
cases prescribed by the Ministry of Finance.
Article
15. Conditions for input VAT deduction [29]
1. Legitimate
VAT invoices for purchases or receipts for payment of VAT on imported goods, or
receipts for payment of VAT on behalf of foreign organizations that do not have
Vietnamese legal status and the organizations and individuals, and the
foreigners that do business or earn income in Vietnam.
2. Proofs
non-cash payments for the purchases (including imported goods) that cost 20
million dong or more, except for the imports that cost below 20 million dong
each, purchases that cost below 20 million dong inclusive of VAT, and imports
being gifts, donations from overseas entities.
Receipts for non-cash payments
include bank transfer receipts and other receipts for non-cash payments
prescribed in Clause 3 and Clause 4 of this Article.
3. Bank
transfer confirmations are documentary evidence proving the transfer of money
from the buyer’s account to the seller’s account opened at providers of payment
services under legitimate payment methods such as checks, payment orders, cash
collection orders, bank cards, credit cards, SIM cards (digital wallets) and
other means of payment as prescribed (including the cases in which the buyer
transfer money from the buyer’s account to the seller’s account carrying the
name of the owner of a sole proprietorship or from the buyer's account carrying
the name of the owner of the sole proprietorship to the seller's account).[30]
a) Proofs of the buyer's
payment to the seller's account or proofs of payments in the manners that are
not conformable with applicable regulations of law are not eligible for
deduction and refund of VAN on purposes that cost 20 million dong or more.
b) Any purchase that costs 20
million dong or more (VAT-inclusive) shall not be deducted if there is no bank
transfer receipt.
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Where the taxpayer does not
have bank transfer receipts when making payments, the taxpayer shall declare a
reduction of deducted input VAT on the value of goods/services without bank
transfer receipts in the tax period during which the cash payment is made (even
if the tax authority and competent authorities have decided an inspection of
the tax period in which VAT is declared and deducted.
4. Other cases in which
non-cash payments are used for deducting input VAT:
a) If goods and services are
purchased by offsetting their value against the value of sold goods and
services, or by lending goods under contracts, a certification of this kind of
transaction and data comparison record made by both parties is compulsory. If
the payment is offset against third party’s debt, a debt offsetting record made
by all three parties is compulsory.
b) If the contract allows
goods and services to be purchased on credit in the forms of loans or debt
offsetting via a third party, it is required to have the loan contract and the
receipts for transfer of money from the creditor’s account to the debtor’s
account, even when the value of purchased goods and services is offset against
the amount paid by the buyer on behalf of the seller or the amount provided for
the buyer by the seller.
c) If a third party is
authorized to receive the payment for purchases by bank transfer (including the
case in which the seller requests the buyer to wire the payment to a third
party appointed by the seller), this authorization must be agreed in the
contract, and the third party must be a lawful legal person or natural person.
After the payment is made this
way, if the remaining value that is paid in cash is 20 million dong or more,
tax shall only be deducted if bank transfer receipts are presented.
d) If payment for purchases is
wired to a third party’s account at a State Treasury, which is opened to
enforce money collection, input VAT may be deducted.
Example 68:
Company A buys goods of
company B and still owes money to company B. However, company B
still owes tax to government budget. According to the Law on Tax
Administration, when the tax authority collects company B’s money and assets
that are held by company A to enforce tax decision, the money transferred by
company A to the account at the State Treasury is considered bank transfer, and
the corresponding VAT on purchased goods may be deducted.
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Company C signs a business
contract to provide goods with company D, and company D still owes company C
for the goods.
A competent authority decides
to collect the money owed to company C by company D and transfer it to an
account at a State Treasury to resolve disputes over sale contracts between
company C and its partners.
When company D transfers money
the account at the State Treasury (this transfer is not stipulated in the
contract between company C and company D), the transfer is also considered bank
transfer and the corresponding VAT on purchased goods may be deducted.
5. When the total value of
multiple purchases, each of which costs below 20 million dong, that are made in
the same day is 20 million dong or more, tax shall only be deducted if bank
transfer receipts are presented. The supplier is a taxpayer that has a TIN and
pay VAT directly.
In case the taxpayer has
financially dependent stores that use the same TIN and invoice form, if the
invoice shall have the text "Cửa hàng số:" ("Store No.") to
differentiate the taxpayer's stores and bears the seal of each store, then each
store shall be considered a supplier.
Article
16. Conditions for deducting and refunding input VAT on exported goods and
services
VAT on exported goods and
services (except for the cases in Article 17 of this Circular) shall only be
deducted and refunded when the documents mentioned in Clause 2 Article 9 and
Clause 1 Article 15 of this Circular are presented. To be specific:
1. The contract to sell,
process goods, or provide services for a foreign entity. If the exported is
entrusted, the compulsory documents are the entrustment contract and the note
of entrustment contract finalization or a debt comparison note between the
entrusting party and the entrusted party, specifying the quantity, categories,
value of exported goods, the export contract number; the date and amount of
money on the bank transfer receipt for the payment between the foreign party
and the entrusted party, the date and amount of money on the receipt for
payment to the entrusting party by the entrusted party, number and date of the
customs declaration of exported goods made by the entrusted party.
2. If customs procedure has
been completed in accordance with instructions of the Ministry of Finance: the
customs declaration.
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The customs declaration is not
needed in the following cases:
- The software and export
exported via electronic means. The taxpayer must follow the procedure for
certifying that the buyer has received the exported services or software via
electronic means in accordance with the laws on electronic commerce.
- The construction or
installation executed overseas or in free trade zones.
- Supply of electricity,
water, stationery, and goods serving everyday life of export processing company,
including food and consumables (including personal protective equipment such as
clothes, hats, shoes, boots and gloves).
3. Payment for exported goods
and services must be made by bank transfer
a) Bank transfer means the
transfer of money from the importer’s account to the exporter's account at
banks in accordance with the contract and regulations of the banks. Payment
receipts are credit notes of the exporter’s bank regarding the amount
transferred from the importer’s account. If the payment is deferred, the
agreement on deferred payment must be included in the export contract. When the
payment is due, the taxpayer must obtain the bank transfer receipt. If the
export is entrusted, it is required to have a bank transfer receipt issued by
the foreign party to the entrusted party, and the entrusted party must pay by
bank transfer for the exported goods to the entrusting party. If the foreign
party directly pays the exporting party, the exporting party must have the bank
transfer receipt and this payment must be stipulated in the contract.
b) The cases below are also
considered bank transfer:
b.1) When the payment for
exported goods and services is offset against a debt to a foreign entity, the
following documents are compulsory:
- A loan contract (if the loan
is due within 01 year); or certification of loan issued by the State Bank of
Vietnam (if the loan is due after 01 year).
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The export contract must allow
the payment to be offset against the debt to a foreign entity.
- A certification of the debt
offsetting made by the foreign entity.
- After offsetting, the
remaining amount must be paid by bank transfer. The bank transfer receipts must
be conformable with this Point.
b.2) When the payment for
exported goods and services is offset against a debt to a foreign entity, the
following documents are compulsory:
- Capital contribution
contract.
- An export contract that
allows payment for exported goods and services to be used as capital
contribution to an overseas importer.
If the capital contribution is
smaller than the revenue from exported goods, the difference must be paid by
bank transfer in accordance with this Point.
b.3) If the foreign party
authorizes a third party, which is a foreign entity, to makes the payment, such
authorization must be agreed in the export contract (or the contract appendix
or amendment).
b.4) It is considered a bank
transfer if the foreign party requests a third party that is an organization in
Vietnam to offset the payment against a debt to the foreign party by paying the
amount payable to the exporter by bank transfer (provided the offsetting is
agreed in the export contract, contract appendix or amendment); the bank of the
exporter issues a credit note to certify the amount transferred from the third
party’s account; and the exporter presents a debt comparison certified by the
foreign party and the third party.
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- The export contract
(contract appendix or amendment) that contains the agreement on debt
offsetting.
- The credit note issued by
the bank, which acts as a payment receipt for the amount received by the
Vietnamese exporter from the fourth party’s account.
- A debt comparison certified
by relevant parties (between the exporter and importer, between the third party
and the fourth party).
b.6) If the foreign party
authorizes its representative office in Vietnam to transfer the payment to the
exporter’s account, such authorization is agreed in the export contract,
contract appendix, or amendments (if any).
b.7)31 If the
foreign party (not applied to individuals) transfers the payment from a deposit
account opened by the foreign party at a credit institution in Vietnam, this
method of payment must be agreed in the export contract, the contract appendix
or its amendment. The payment receipt is the credit note issued by the
exporter’s bank about the amount received from the foreign buyer’s account who
signs the contract.
If the importer is a foreign
private company and the payment via the current account of the private company
owner that is opened at a credit institution in Vietnam is agreed in the export
contract (or contract appendix, amendment), this payment is considered bank
transfer.
When checking the deduction and
refund of tax on exported goods that are paid for via the bank account, the tax
authority must cooperate with the credit institution where the account is
opened to ensure that the payment and transfer is made for intended purposes
and in accordance with law. Any person who brings money
across the border upon entry must declare that such money is for making payment
for each particular sale contract and export declaration, and present the sale
contracts and export declaration for customs officials to check and compare. In
case the entering person is not a representative of the foreign company that
directly signs the sale contract with the Vietnamese company, it is required to
have a power of attorney (in English or translated into Vietnam together with
the original version in the language of an adjacent country) made by the
foreign entity that signs such sale contract. This power of attorney is only
warrants one time of bringing money into Vietnam and the amount of money under
the sale contract must be specified thereon.
b.8) In case the foreign party
makes the payment by bank transfer but the amount on the receipt does not match
the amount payable under the contract:
- If the amount on the bank
transfer receipt is smaller than the amount payable under the contract, the
taxpayer must provide explanation such as transferring fee, price reduction due
to insufficient quality or quantity (a written agreement between the buyer and
the seller must be made in this case), etc.;
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The taxpayer is responsible
for the explanation provided and the amendments (if any).
b.9) In case the foreign party
makes the payment by bank transfer but name of the bank on the bank transfer
receipt does not match that in the contract, it shall be considered legitimate
if its contents indicate the names of the payer, the recipient, the number of the
export contract, the amount payable that are consistent with the concluded
export contract.
b.10) The taxpayer exports
goods and services to a foreign party (second party), imports goods and
services from another foreign party or buys goods from an entity in Vietnam
(third party). If the taxpayer reaches an agreement with the second party and
third party that the second party will pay the third party by bank transfer the
amount the taxpayer is supposed to pay to the third party , this agreement must
be specified in the export contract, import contract, or sale contract (or its
appendix or amendment). The taxpayer must present the debt comparison certified
by relevant parties (between the taxpayer and the second party, between the
taxpayer and the third party).
b.11) In case the foreign
party refuses the exported goods for legitimate reasons, and the taxpayer finds
another buyer in the same country, the application for tax refund consists of
every export document related to the export contract with the initial buyer
(contract, customs declaration, invoices), a written explanation for the
difference in the buyer’s name, and every export document related to the new
buyer (contract, invoices, bank transfer receipt, and other necessary
documents).
c) Other cases of payment for
exported goods and services prescribed by the Government:
c.1) If the labor export
company directly collects money from the workers, it is required to have
receipts for such payments.
c.2) When goods are exported
to be sold at a fair or exhibition overseas, and the revenue is remitted to
Vietnam in foreign currency, the taxpayer must declares the revenue in foreign
currency collected from selling goods overseas and the receipts for remittance
to a bank in Vietnam.
c.3) When goods or services
are exported to repay government debt, it is required to have a certification
by a foreign trade bank that the exported goods has been accepted by the
foreign party as repayment, or that the dossier has been sent to the foreign
party. Payment receipts must comply with instructions of the Ministry of
Finance.
c.4) Exported goods/services
shall be paid in kind when the export is paid by offsetting the value of
exported goods/services or payment for processing against the value of
goods/services purchased from the foreign party.
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- An export contract that
contains the agreement on payment in kind.
- A contract to buy
goods/services from the foreign party.
- A customs declaration of
imported goods being offset against exported goods/services.
- A certification of the value
of exported goods/services being offset against the value of imported
goods/services.
- After offsetting, the
difference must be paid by bank transfer. Bank transfer receipts must comply
with this Clause.
c.5) The export of goods to
bordering countries under the Prime Minister’s regulations on administration of
border trading must comply with the instructions of the Ministry of Finance and
the State Bank.
c.6) Some cases of goods and
services using other methods of payments prescribed by relevant laws.
d) In the following cases, tax
shall be deducted and refunded without bank transfer receipts:
d.1) If the foreign party
defaults on the payment, the exporter must make a written explanation and use
one of the following documents as a substitute for the bank transfer receipt:
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- A petition sent to a court
or competent authority of the buyer’s home country enclosed with a notification
or certification of the receipt of this petition by the court or the competent
authority (01 copy); or
- A court’s ruling that the
taxpayer wins the case (01 copy); or
- Papers of foreign competent
authorities certifying or notifying that the foreign party has gone bankrupt or
insolvent (01 copy).
d.2) If exported goods must be
destroyed due to their inferior quality, the exporter must submit a written
explanation and may use the destruction record (or a paper certifying the
destruction) issued by the agency in charge of the destruction (01 copy)
enclosed with a bank transfer receipt for the destruction cost payable by the
exporter, or enclosed with the paper proving that the destruction cost is
covered by the buyer or a third party (01 copy).
If the importer is follows the
procedure for goods destruction overseas, the destruction record (or a paper
certifying the destruction) shall bear the importer's name.
d.3) If the exported goods is
damaged, the exporter must make a written explanation and use one of the
following documents as a substitute for the wire transfer receipt:
- A certification by a
competent authority that the damage is incurred beyond Vietnam’s boundary (01
copy); or
- A record certifying that
goods is damage in transit beyond Vietnam’s boundary (01 copy).
If the exporter has received a
compensation for the damaged goods, a bank transfer receipt for the
compensation must be enclosed (01 copy).
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The exporter is responsible
for the accuracy of the substitutes for the wire transfer receipt mentioned
above.
4.32
Commercial invoices. The date of determining revenue from export to calculate
tax is the date on which customs procedure completion is confirmed on the
customs declaration.
Article
17. Conditions for deduction and refund of input VAT in some cases of deemed
export
1. Compulsory documents for
forwarded processed goods defined by the laws on international trade and export
processing:
a) Export processing contract
and its appendices (if any), specifying the recipient of goods in Vietnam.
b) VAT invoices specifying the
processing price and the quantity of processed goods (under the contract signed
with the foreign party), and name of the recipient appointed by the foreign
party.
c) A forwarding note certified
by the sender, the recipient, and the customs authority that monitors the
processing contract.
d) Payment for processed goods
must be made by bank transfer in accordance with Article 16 of this Circular.
The procedure for forwarding
processed products and forwarding note must comply with instructions of the
General Department of Vietnam Customs.
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In this case, Company A is a
forwarding processor of goods for export. When sending the soles to company B,
company A must specify the quantity, category, and specifications of the
products. The 800 million dong in revenue from processing the soles is eligible
for 0% VAT.
2. Compulsory documents for
domestic exports:
a) A sale contract or a
processing contract requiring goods to be delivered to a recipient in Vietnam;
b) A customs declaration of
domestic exports has gone through customs procedure;
c) A VAT invoice or export
invoice specifying the buyer’s name, recipient, and delivery address in
Vietnam;
d) The goods sold to foreign
traders and delivered to a location in Vietnam must be paid with convertible
foreign currencies by bank transfer. Wire transfer receipts must comply with
this Clause 3 Article 16 of this Circular. If the appointed recipient is
authorized by the foreign party to pay the exporter, the currency used for
payment must comply with the regulations of law on foreign exchange.
dd) The goods for in-country
export of a foreign-invested company must be conformable with the investment
license.
3. When goods and supplies are
exported by a Vietnamese company to execute a construction overseas, the
Vietnamese company must provide the following documents to deduct or receive
VAT refund:
a) The customs declaration in
accordance with Clause 2 Article 16 of this Circular.
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c) An export entrustment
contract (if the export is entrusted).
4. When goods and supplies are
sold by one Vietnamese company to another to execute a construction overseas
and are received overseas, the Vietnamese company must provide the following
documents to deduct or receive refund of VAT on exported goods:
a) The customs declaration in
accordance with Clause 2 Article 16 of this Circular.
b) The exported goods must be
consistent with the manifest of exported goods serving the execution of
overseas construction, which is approved by the Director of the Vietnamese
enterprise.
c) A sale contract between two
Vietnamese companies specifying the delivery terms, the quantity, category and
value of goods.
d) An export entrustment
contract (if the export is entrusted).
dd) Bank transfer receipts.
e) VAT invoices for the goods.
If the holder of exported
goods or goods deemed exports according to Article 16 and Article 17 of this
Circular has obtained a certification from the customs authority but does not
have one of the other documents, output VAT shall not be incurred but input VAT
shall not be deducted. If any of the compulsory documents for forwarded
processed goods and goods for in-country export is missing, VAT shall be paid
as if they are sold domestically. If the regulations on bank transfer are not
complied with or the payments are not considered bank transfer, the taxpayer
shall not be eligible for 0% VAT, shall not incur output VAT, but must not
deduct input VAT.
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Article
18. Cases of VAT refund 33
1. The monthly or quarterly
amount of input VAT which has not been fully deducted from the VAT paid by a
taxpayer adopting the invoice credit method in the period shall be deducted
from the VAT incurred in the subsequent period.
If a business taxpayer’s VAT
is not fully deducted before the tax period of July 2016 (if tax is declared
monthly) or of the 3rd quarter of 2016 (if tax is declared quarterly) but that
taxpayer is eligible for VAT refund as per Clause 1 Article 18 of the Circular
No. 219/2013/TT-BTC , tax authorities shall refund the tax as per the laws.
Example: Enterprise A declares
VAT on quarterly basis. In the tax period of the 3rd quarter in 2016, its
remaining deductible VAT is 80 million dong. It may be deducted from the VAT
incurred in the 4th quarter of 2016. If the tax deductible is not fully deducted
in the 4th quarter of 2016, the 1st quarter and the 2nd quarter of 2017,
enterprise A may deduct it from the VAT incurred in the 3rd quarter of 2017 and
in subsequent tax periods.
2.34
Business establishments shall be eligible for VAT refund regarding investment
projects in accordance with regulations in Clause 3 Article 1 of Government’s
Decree No. 49/2022/ND-CP dated July 29, 2022.
3.35 (replaced)
4.36 Refund
of tax on exported goods and services
a) In a month (if tax is
declared monthly) or quarter (if tax is declared quarterly), if the input VAT
on exported goods/services (including goods that are imported and subsequently
exported to non-tariff areas and the goods that are imported and subsequently
exported to other countries) of a business establishment remains at least 300
million dong after being offset against, it shall be refunded by month or
quarter. If such input VAT is less than 300 million dong, it shall be offset
against in the next month/quarter.
In a month/quarter, if a
business establishment has both exported goods/services and goods/services sold
domestically, input VAT on purchases used for manufacturing of exported
goods/services shall be separately recorded. Otherwise,
input VAT shall be determined according to the ratio of revenue from exported
goods/services to total revenue from goods/services accrued from the tax period
succeeding the period in which tax is refunded to the current period in which
tax refund is claimed.
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Certain cases of eligibility
for tax refund upon exportation: The business establishment that has goods
exported through entrustment; the business establishment that processes exports
for foreign principals on a contract basis; the business establishment that has
goods and materials exported for overseas construction works; and the business
establishment whose exports are delivered to other domestic entities as
requested by the importers.
b) VAT will not be refunded if
the goods are imported and then exported outside a customs controlled area in
accordance with regulations of law on customs or the goods are exported outside
the customs control area in accordance with regulations of law on customs.
c) The tax authority shall
grant a refund before inspection if the taxpayer who is a manufacturer of
exports has not incurred any penalty for smuggling, illegal cross-border
transport of goods, tax evasion, tax fraud, trade fraud for two consecutive
years or the taxpayer does not pose a high risk according to the Law on Tax
Administration and its instructional documents.
5. A business establishment
paying VAT using the credit-invoice method may claim refund of overpaid VAT or
input VAT that remains after deduction upon its ownership transfer, conversion,
merger, amalgamation, division, dissolution, bankruptcy or shutdown.
A business establishment that
is dissolved or bankrupt or shut down before it is put into operation and thus
has not incurred output VAT is not required to adjust the amount of VAT that
was declared, deducted or refunded. Such business establishment must inform its
supervisory tax authority of its dissolution, bankruptcy or shutdown as per
regulations.
The refunded amount of VAT,
upon a business establishment's completion of formalities as per the laws on
dissolution or bankruptcy, shall be settled as per the laws on dissolution,
bankruptcy and tax administration while the un-refunded amount of VAT shall not
be refundable.
If a business establishment
shuts down and incurs no output VAT on its main business activities, it shall
return the tax refund to the state budget. If VAT-levied assets
are sold, the relevant input VAT on such assets shall not be subjected to
adjustment.
Example: In 2015, Enterprise
A, being under investment, did not initiate any business operation. The input
VAT of VND 700 million which was incurred during its investment phase was
refunded by tax authorities in August 2015. Enterprise A, in February 2016,
decided to dissolve due to hardship. It informed tax authorities of its intent
to dissolve. Prior to Enterprise A's completion of legal formalities for
dissolution, tax authorities did not reclaim the VAT refund. Enterprise A, in
twenty days before its fulfillment of legal formalities for official
dissolution in October 2016, sold one (01) asset. Input VAT on such asset which
was refunded was not subjected to adjustment. Enterprise A shall make out a
declaration of refund VAT on the unsold assets and return such refund.
6. Projects and programs
financed by grant ODA, grant aids or humanitarian aids shall be eligible for
VAT refund.
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b) VAT paid on goods and services
shall be refunded to Vietnam-based organizations spending foreign entities’
humanitarian aids on such goods and services for projects and programs that
utilize grant aids and humanitarian aids.
Example: Red Cross was aided
an amount of 200 million dong by an international organization to purchase
humanitarian goods for the people in disaster-stricken provinces. The pre-tax
worth of the goods was 200 million dong, plus an amount of 20 million dong in
VAT. Red Cross shall receive a refund of 20 million dong as per regulations.
VAT paid on the projects and
programs financed by grant ODA shall be refunded in accordance with the
guidelines of the Ministry of Finance.
7. Entities granted diplomatic
immunities and privileges as per relevant laws shall receive a refund of VAT
paid, according to the VAT invoice or the receipt stating the VAT-included
price, on the goods and services that they purchase in Vietnam for consumption.
8. A foreigner or Vietnamese
national residing overseas who carries a passport or immigration document
issued by a foreign competent authority shall have VAT on goods purchased in
Vietnam refunded when they are carried in his/her luggage upon exit from
Vietnam. The refund of VAT shall be subject to the guidelines of the Ministry
of Finance on VAT refund for the goods that foreigners and Vietnamese
expatriates purchase in Vietnam and carry upon departure.
9. Tax refund for the
businesses shall be at the discretion of competent authorities as per the laws
and according to the cases of value added tax refund as defined in
international treaties to which the Socialist Republic of Vietnam is a
signatory.
Article
19. Conditions and procedure for VAT refund
1. To be eligible for tax
refund according to Points 1 to 5 Article 18 of this Circular, the taxpayer
must pay tax using credit-invoice method, be issued with a Certificate of
Business registration or investment license or practice certificate, or a
decision on establishment issued by a competent authority, have a legal seal,
keep accounting records in accordance with accounting laws, and have deposit
accounts at banks according to the taxpayer’s TIN.
2. Input VAT that has been
claimed on the VAT declaration must not be aggregated with the deductible tax
of the next month.
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Article
20. Place of tax payment
1. Taxpayer shall declare and
pay VAT in the locality where the business is situated.
2. If the taxpayer that
declares and pays VAT using credit-invoice method has a financially dependent
manufacturing facility in a province other than the province where the
headquarter is situated, VAT shall be paid in both provinces.
3. If an enterprise or
cooperative that uses direct method has a manufacturing facility in a province
other than that where the headquarter is situated, or engages in
extraprovincial sale, the enterprise or cooperative shall pay direct VAT on the
revenue earned from extraprovincial sale in the province where the sale is
made. The enterprise or cooperative is not required to pay direct VAT on such
revenue, which has been declared at paid, at the headquarter.
4. When a provider of
telecommunications services provides postpaid telecommunications services in a
province other than the province where their headquarter is situated, and
establish a financially dependent branch that pays VAT using credit-invoice
method and also provides postpaid telecommunications services in that same
province, the provider of telecommunications services shall declare and pay VAT
on postpaid telecommunications services as follows:
- VAT on the total revenue
from postpaid telecommunications services of the provide shall be declared at
the supervisory tax authority of the headquarter.
- VAT shall be paid in the
provinces where the headquarter and the financially dependent branch are
situated.
Direct VAT shall be paid at 2%
of the revenue from telecommunications services provided in the province where
the financially dependent branch is situated (postpaid telecommunications
services are subject to 10% tax).
5. VAT shall be declared and
paid in accordance with the Law on Tax Administration and its guiding
documents.
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IMPLEMENTATION 37
Article
21. Effect
1. This Circular comes into
force from January 01, 2014 and supersedes the Circular No. 06/2012/TT-BTC
dated January 11, 2012 and the Circular No. 65/2013/TT-BTC dated May 17, 2013
of the Ministry of Finance.
2. Any taxpayer that declares
VAT quarterly from July 01, 2013 shall receive VAT refund before the tax period
of January 2014 (if tax is declared monthly) or before the first quarter of
2014 (if tax is declared quarterly) if input VAT is not completely deducted
after 03 consecutive tax periods.
Example 85: Enterprise A
declares tax monthly in May and June 2013, and starts declaring tax quarterly
from the third quarter of 2013. If input VAT incurred in May 2013, June 2013,
and the third quarter of 2013 is not completely deducted, company A will
receive a refund of VAT at the end of the third quarter of 2013.
Example 86: Enterprise B
declares tax monthly in June 2013 and starts declaring tax quarterly from the
third quarter of 2013. If input VAT incurred in June 2013, and the third
quarter of 2013 and the fourth quarter of 2013 is not completely deducted,
enterprise B will receive a refund of VAT at the end of the fourth quarter of
2013.
3. Before January 2014 (if tax
is declared monthly) or before the first quarter of 2014 (if tax is declared
quarterly), any taxpayer that is eligible for tax refund according to the
Circular No. 06/2012/TT-BTC dated January 11, 2012 and the Circular No.
65/2013/TT-BTC dated May 2013 of the Ministry of Finance shall receive a VAT
refund.
At the end of December 2013
(if tax is declared monthly) or the fourth quarter of 2013 (if tax is declared
quarterly), the input VAT that is not completely deducted after less than 03
consecutive tax periods in 2013 shall be transferred to 2014 to deduct and
claim refund according to Clause 1 Article 18 of this Circular.
Example 87: VAT incurred by
enterprise A is not completely deducted in October, November and December 2013.
Thus, enterprise A shall receive a VAT refund according to Clause 1 Article 18
of the Circular No. 06/2012/TT-BTC dated January 11, 2012 of the Ministry of
Finance.
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Example 89: Enterprise C
incurs VAT in the third quarter of 2013. The input VAT that is not completely
deducted in the fourth quarter of 2013 shall be transferred to 2014, during
which tax refund will be considered, according to Clause 1 Article 18 of this
Circular.
4. Every taxpayer shall deduct
input VAT on fixed assets incurred before January 01, 2014 in accordance with
the Circular No. 06/2012/TT-BTC dated January 11, 2012 and the Circular No.
65/2013/TT-BTC dated May 17, 2013 of the Ministry of Finance; the input VAT on
fixed assets incurred from January 01, 2014 onwards shall be deducted in accordance
with this Circular.
5. The input VAT on
unprocessed or preprocessed farming, breeding, fishery products incurred before
January 01, 2014 must be enumerated in the manifest of purchases on the VAT
declaration of December 2013 or the fourth quarter of 2013.
Article
22. VAT collection
1. Tax authorities shall
organize the collection of VAT and refund of VAT incurred by business
establishments.
2. Customs authorities shall
organize the collection of VAT on imported goods.
Difficulties that arise during
the implementation of this Circular should be promptly reported to the Ministry
of Finance for timely resolution./.
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PP. MINISTER
DEPUTY MINISTER
Cao Anh Tuan
APPENDIX
RATES OF DIRECT VAT APPLIED TO VARIOUS BUSINESS LINES
(Enclosed with the Circular No. 219/2013/TT-BTC dated December 31,
2013 of the Ministry of Finance)
1) Goods supply and
distribution: 1%
- Wholesaling and retailing
goods (except for goods sold by agents that earn commissions).
2) Services, construction
exclusive of building materials: 5%
- Accommodation, hotel, motel
services;
- Leases on houses, land,
stores, workshops, assets, and other personal chattels;
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- Postal services and mailing;
- Commissions for running
agents, auction and brokerage services;
- Legal counseling, audit,
accounting, and financial counseling; tax brokerage and customs brokerage;
- Data processing services,
lease on information portals, IT and telecommunications equipment;
- Office assistance services
and other business assistance services;
- Steambath, massage, karaoke,
nightclub, billards, Internet, and video game services;
- Tailoring, laundry services;
hairdressing services;
- Other repair services
including computer repair and domestic appliance repair;
- Infrastructural development
consultancy, design, and supervision services;
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- Construction and
installation exclusive of building materials (including installation of
industrial machinery and equipment).
3) Manufacturing, transport,
services attached to goods, construction inclusive of building materials: 3%
- Manufacturing and processing
products and goods;
- Mineral mining and
processing;
- Cargo and passenger
transport;
- Services attached to goods
such as training, maintenance, technology transfers attached to goods sale;
- Food and drink services;
- Repair and maintenance of
machinery, equipment, means of transport, automobiles, motorcycles and other
motor vehicles;
- Construction and
installation inclusive of building materials (including installation of
industrial machinery and equipment).
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- Production of products
subject to 5% VAT under credit-invoice method;
- Provision of services
subject to 5% VAT under credit-invoice method;
- Other lines of business not
mentioned above.
[1] This
is consolidated document of the following 12 Circulars:
- The
Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance
of Vietnam providing guidelines for the Law on Value-added tax and the
Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and
providing guidelines for the Law on Value-added tax, coming into force from
January 01, 2014;
- The Circular
No. 119/2014/TT-BTC dated August 25, 2014 of the Ministry of Finance of Vietnam
providing amendments to the Circular No. 156/2013/TT-BTC dated November 06,
2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular No.
219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated
January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No.
39/2014/TT-BTC dated March 31, 2014 and Circular No. 78/2014/TT-BTC dated June
18, 2014 of the Ministry of Finance of Vietnam for reform and simplification of
tax-related administrative procedures, coming into force from September 01,
2014 (hereinafter referred to as the “Circular No. 119/2014/TT-BTC).
- Pursuant
to Circular No. 151/2014/TT-BTC dated October 10, 2014 of the Ministry of
Finance of Vietnam providing guidelines for the Government's Decree No.
91/2014/ND-CP dated October 01, 2014 providing amendments to Decrees on
taxation, coming into force from November 15, 2014 (hereinafter referred to as
the “Circular No. 151/2014/TT-BTC”).
- The
Circular No. 26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance
of Vietnam providing guidelines for value-added tax and tax administration
under the Government's Decree No. 12/2015/ND-CP dated February 12, 2015
providing guidelines for the Law on amendments to laws and decrees on taxation,
and amendments to the Circular No. 39/2014/TT-BTC dated March 31, 2014 of the
Ministry of Finance of Vietnam on invoices for goods sale and service
provision, coming into force from January 01, 2015 (hereinafter referred to as
“the Circular No. 26/2015/TT-BTC).
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- The
Circular No. 130/2016/TT-BTC dated August 12, 2016 of the Ministry of Finance
of Vietnam providing guidelines for the Government’s Decree No. 100/2016/ND-CP
dated July 01, 2016 elaborating the Law on amendments to the Law on Value-added
tax, the Law on Excise Tax and the Law on Tax Administration and some Circulars
on taxation, coming into force from July 01, 2016 (hereinafter referred to as
“the Circular No. 130/2016/TT-BTC”).
- The
Circular No. 173/2016/TT-BTC dated October 28, 2016 of the Ministry of Finance
of Vietnam providing amendments to the first paragraph of Clause 3 Article 15
of the Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of
Finance of Vietnam (as amended by the Circular No. 119/2014/TT-BTC dated August
25, 2014, Circular No. 151/2014/TT-BTC dated October 10, 2014, Circular No.
26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance of Vietnam),
coming into force from December 15, 2016 (hereinafter referred to as “the
Circular No. 173/2016/TT-BTC”).
- The
Circular No. 93/2017/TT-BTC dated September 19, 2017 of the Ministry of Finance
of Vietnam providing amendments to Clauses 3, 4 Article 12 of the Circular No.
219/2013/TT-BTC dated December 31, 2013 (as amended by the Circular No.
119/2014/TT-BTC dated August 25, 2014) and abrogating clause 7 Article 11 of
the Circular No. 156/2013/TT-BTC dated November 06, 2013 of the Ministry of
Finance of Vietnam, coming into force from November 05, 2017 (hereinafter
referred to as “the Circular No. 93/2017/TT-BTC”).
- The
Circular No. 25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance of
Vietnam providing guidelines for the Government’s Decree No. 146/2017/ND-CP
dated December 15, 2017 providing amendments to the Circular No. 78/2014/TT-BTC
dated June 18, 2014 of the Ministry of Finance of Vietnam, and the Circular No.
111/2013/TT-BTC dated August 15, 2013 of the Ministry of Finance of Vietnam,
coming into force from May 01, 2018 (hereinafter referred to as “the Circular
No. 25/2018/TT-BTC”).
- The
Circular No. 82/2018/TT-BTC dated August 30, 2018 of the Ministry of Finance of
Vietnam abrogating contents of example 37 in point a.4 clause 10 Article 7 of
the Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of
Finance of Vietnam providing guidelines for the Law on Value-added tax and the
Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and
providing guidelines for the Law on Value-added tax, coming into force from
October 15, 2018 (hereinafter referred to as “the Circular No.
82/2018/TT-BTC”).
- The
Circular No. 43/2021/TT-BTC dated June 11, 2021 of the Ministry of Finance of
Vietnam providing amendments to clause 11 Article 10 of the Circular No.
219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance of Vietnam
providing guidelines for the Law on Value-added tax and the Government’s Decree
No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines
for the Law on Value-added tax (as amended by the Circular No. 26/2015/TT-BTC
dated February 27, 2015 of the Ministry of Finance of Vietnam), coming into
force from August 01, 2021 (hereinafter referred to as “the Circular No.
43/2021/TT-BTC”).
- The
Circular No. 13/2023/TT-BTC dated February 28, 2023 of the Ministry of Finance
of Vietnam providing guidelines for the Government's Decree No. 49/2022/ND-CP
dated July 29, 2022 providing amendments to the Government’s Decree No.
209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines for
some Articles of the Law on Value-added tax, as amended by the Decree No.
12/2015/ND-CP, Decree No. 100/2016/ND-CP and Decree No. 146/2017/ND-CP, and
providing amendments to the Circular No. 80/2021/TT-BTC dated September 29,
2021 of the Ministry of Finance of Vietnam, coming into force from April 14,
2023 (hereinafter referred to as “Circular No. 13/2023/TT-BTC”).
This document supersedes none of 12
Circulars mentioned above.
[2] The
Circular No. 119/2014/TT-BTC is promulgated pursuant to:
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The Law on value-added tax No.
13/2008/QH12 dated June 03, 2008 and the Law No. 31/2013/QH13 dated June 19,
2013 providing amendments to the Law on value-added tax;
The Government’s Decree No.
83/2013/ND-CP dated July 22, 2013 on guidelines for implementation of the Law
on Tax Administration and the Law on Amendments to the Law on Tax
Administration;
The Government’s Decree No.
209/2013/ND-CP dated December 18, 2013 elaborating and providing guidelines for
the Law on Value-added Tax;
The Government’s Decree No.
51/2010/ND-CP dated May 14, 2010 on invoices for goods sale and service
provision and the Decree No. 04/2014/ND-CP dated January 17, 2014 on amendments
to the Decree No. 51/2010/ND-CP dated May 14, 2010;
The Government’s Decree No.
218/2013/ND-CP dated December 26, 2013 on guidelines for implementation of the
Law on Corporate Income Tax;
The Government’s Decree No.
215/2013/ND-CP dated December 23, 2013 defining functions, tasks, powers and
organizational structure of Ministry of Finance;
At the request of Director of
the General Department of Taxation,
Reforming and simplifying
administrative procedures related to tax, the Minister of Finance hereby
provides guidelines for amendments to some contents as follows:”
- The
Circular No. 151/2014/TT-BTC is promulgated pursuant to:
“The Law on Tax Administration No. 78/2006/QH11 and Law No.
21/2012/QH13 on Amendments to the Law on Tax Administration;
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The Law on Value-Added
Tax No. 13/2008/QH12 dated June 03, 2008 and Law on Amendments to the Law on
Value-Added Tax;
The Law on Corporate
Income Tax No. 14/2008/QH12 and Law No. 32/2013/QH13 on amendments to the Law
on Corporate Income Tax;
The Government’s Decree
No. 83/2013/ND-CP dated July 22, 2013 on guidelines for implementation of the
Law on Tax Administration and the Law on Amendments to the Law on Tax
Administration;
The Government’s Decree
No. 65/2013/ND-CP dated June 27, 2013 on guidelines for implementation of the
Law on Personal Income Tax and the Law on Amendments to the Law on Personal
Income Tax;
The Government’s Decree
No. 209/2013/ND-CP dated December 18, 2013 on guidelines for implementation of
the Law on Value-Added Tax;
The Government’s Decree
No. 218/2013/ND-CP dated December 26, 2013 on guidelines for implementation of
the Law on Corporate Income Tax;
The Government’s Decree
No. 91/2014/ND-CP dated October 01, 2014 on amendments to tax decrees;
The Government's Decree
No. 215/2013/ND-CP dated December 23, 2013 defining the functions, tasks,
powers and organizational structure of the Ministry of Finance;
At the request of the
Director of the General Department of Taxation,
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- The
Circular No. 26/2015/TT-BTC is promulgated pursuant to:
The Law on Tax
Administration No. 78/2006/QH11 and Law No. 21/2012/QH13 on amendments to the
Law on Tax Administration;
The Law on Value-Added
Tax No. 13/2008/QH12 dated June 03, 2008 and Law on Amendments to the Law on
Value-Added Tax;
The Law No.
71/2014/QH13 on Amendments to Laws on Taxation;
The Government’s Decree
No. 51/2010/ND-CP dated May 14, 2010 and the Government’s Decree No.
04/2014/ND-CP dated January 17, 2014 on invoices for goods sale and service
provision;
The Government’s Decree
No. 83/2013/ND-CP dated July 22, 2013 on guidelines for implementation of the
Law on Tax Administration and the Law on Amendments to the Law on Tax
Administration;
The Government’s Decree
No. 209/2013/ND-CP dated December 18, 2013 on guidelines for implementation of
the Law on Value-Added Tax;
The Government’s Decree
No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of
the Law on Amendments to Laws and Decrees on Taxation;
The Government's Decree
No. 215/2013/ND-CP dated November 23, 2013 defining the functions, tasks,
powers and organizational structure of the Ministry of Finance;
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The Minister of Finance
provide guidelines for value-added tax, tax administration and invoices for
goods sale and service provision as follows:”
- The
Circular No. 193/2015/TT-BTC is promulgated pursuant to:
“The
Law on Value-added Tax No. 13/2008/QH12 dated June 03, 2008 and Law on
amendments to the Law on Value-added Tax No. 31/2013/QH13 dated June 19, 2013;
The
Law No. 71/2014/QH13 on Amendments to Laws on Taxation dated November 26, 2014;
The
Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 on guidelines
for implementation of the Law on Value-Added Tax;
The
Government’s Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on Amendments to Laws and Decrees on Taxation;
The
Government's Decree No. 215/2013/ND-CP dated November 23, 2013 defining the
functions, tasks, powers and organizational structure of the Ministry of
Finance;
In
furtherance of the Government’s Resolution the Government’s regular meeting -
August 2015 dated September 07, 2015;
At the
request of the Director of the General Department of Taxation,
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- The
Circular No. 130/2016/TT-BTC is promulgated pursuant to:
“The Law on Tax
Administration No. 78/2006/QH11 and Law No. 21/2012/QH13 on Amendments to the
Law on Tax Administration;
The Law on Value-Added
Tax No. 13/2008/QH12 dated June 03, 2008 and Law on Amendments to the Law on
Value-Added Tax;
The Law No.
106/2016/QH13 on amendments to the Law on Amendments to Certain Articles of the
Law on Value Added Tax, the Law on Special Excise Tax and the Law on Tax
Administration;
The Law on Corporate
Income Tax No. 14/2008/QH12 and Law No. 32/2013/QH13 on amendments to the Law
on Corporate Income Tax;
The Government’s Decree
No. 83/2013/ND-CP dated July 22, 2013 on guidelines for implementation of the
Law on Tax Administration and the Law on Amendments to the Law on Tax
Administration;
The Government’s Decree
No. 218/2013/ND-CP dated December 26, 2013 on guidelines for implementation of
the Law on Corporate Income Tax;
The Government’s Decree
No. 100/2016/ND-CP dated July 01, 2016 on the implementation of the Law on
Amendments to Certain Articles of the Law on Value Added Tax, the Law on
Special Excise Tax and the Law on Tax Administration;
The Government's Decree
No. 215/2013/ND-CP dated December 23, 2013 defining the functions, tasks,
powers and organizational structure of the Ministry of Finance;
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The Minister of Finance
promulgates a Circular to provide guidelines for implementation of the
Government’s Decree No. 100/2016/ND-CP dated July 01, 2016 on the
implementation of the Law on Amendments to Certain Articles of the Law on Value
Added Tax, the Law on Special Excise Tax and the Law on Tax Administration and
to Certain Articles of Tax-related Circulars as follows:”
- The Circular No.
173/2016/TT-BTC is promulgated pursuant to:
“The
Law on Tax Administration No. 78/2006/QH11 and Law No. 21/2012/QH13 on
Amendments to the Law on Tax Administration;
The
Law on Value-added Tax No. 13/2008/QH12 and Law No. 31/2013/QH13 on amendments
to the Law on Value-Added Tax; Law No. 71/2014/QH13 on Amendments to the Laws
on taxation;
The
Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 providing
guidance on some Articles of the Law on Value-Added Tax; the Government's
Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to tax decrees;
The
Government’s Decree No. 83/2013/ND-CP dated July 22, 2013 on guidelines for
implementation of the Law on Tax Administration and the Law on Amendments to
the Law on Tax Administration;
The
Government’s Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on Amendments to Laws and Decrees on Taxation;
The
Government's Decree No. 215/2013/ND-CP dated December 23, 2013 defining the
functions, tasks, powers and organizational structure of the Ministry of
Finance;
At the
request of the Director of the General Department of Taxation,
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- The
Circular No. 93/2017/TT-BTC is promulgated pursuant to:
“The
Law on Tax Administration No. 78/2006/QH11 and Law No. 21/2012/QH13 on
Amendments to the Law on Tax Administration;
The
Law on Value-Added Tax No. 13/2008/QH12 dated June 03, 2008 and Law on
Amendments to the Law on Value-Added Tax;
The
Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 providing
guidance on some Articles of the Law on Value-Added Tax; the Government's
Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to tax decrees;
The
Government’s Decree No. 83/2013/ND-CP dated July 22, 2013 on guidelines for
implementation of the Law on Tax Administration and the Law on Amendments to
the Law on Tax Administration;
The
Government’s Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on Amendments to Laws and Decrees on Taxation;
The
Government's Decree No. 87/2017/ND-CP dated July 26, 2017 defining the
functions, tasks, powers and organizational structure of the Ministry of
Finance;
At the
request of the Director of the General Department of Taxation,
The
Minister of Finance promulgates a Circular on amendments to Clause 3 and Clause
4 Article 12 of Circular No. 219/2013/TT-BTC dated December 31, 2013 (amended
by the Circular No. 119/2014/TT-BTC dated August 25, 2014) and abrogation of
Clause 7 Article 11 of Circular No. 156/2013/TT-BTC dated November 06, 2013 as
follows:”
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“The Law on Securities
No. 70/2006/QH11 dated June 29, 2006 and Law No. 62/2010/QH12 on amendments to
the Law on Securities dated November 24, 2010;
The Law on Personal
Income Tax No. 04/2007/QH12 dated November 21, 2007 and Law on amendments to
the Law on Personal Income Tax No. 26/2012/QH13 dated November 22, 2012;
Pursuant to the Law on
Enterprises No. 68/2014/QH13 dated November 26, 2014;
The Law No.
71/2014/QH13 on Amendments to Laws on Taxation dated November 26, 2014;
The Law No.
106/2016/QH13 on amendments to the Law on Amendments to Certain Articles of the
Law on Value Added Tax, the Law on Special Excise Tax and the Law on Tax
Administration;
The Government’s Decree
No. 65/2013/ND-CP dated June 27, 2013 on guidelines for implementation of the
Law on Personal Income Tax and the Law on Amendments to the Law on Personal
Income Tax;
The Government’s Decree
No. 12/2015/ND-CP dated February 12, 2015 on guidelines for implementation of
the Law on Amendments to Laws and Decrees on Taxation;
The Government’s Decree
No. 100/2016/ND-CP dated July 01, 2016 on the implementation of the Law on
Amendments to Certain Articles of the Law on Value Added Tax, the Law on
Special Excise Tax and the Law on Tax Administration;
The Government’s Decree
No. 146/2017/ND-CP dated December 12, 2017 on amendments to the Government’s
Decree No. 100/2016/ND-CP dated July 01, 2016 and Government’s Decree No.
12/2015/ND-CP dated February 12, 2015;
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At the request of the
Director of the General Department of Taxation,
The
Minister of Finance promulgates a Circular on guidelines for the Government’s
Decree No. 146/2017/ND-CP dated December 12, 2017 on amendments to some
articles of the Circular No. 78/2014/TT-BTC dated June 18, 2014 of the Ministry
of Finance and Circular No. 111/2013/TT-BTC dated August 15, 2013 of the
Ministry of Finance as follows:”
- The
Circular No. 82/2018/TT-BTC is promulgated pursuant to:
“The
Law on Tax Administration No. 78/2006/QH11 and Law No. 21/2012/QH13 on
Amendments to the Law on Tax Administration;
The
Law on Value-Added Tax No. 13/2008/QH12 and Law No. 31/2013/QH13 on amendments
to the Law on Value-Added Tax; Law No. 71/2014/QH13 on Amendments to the Laws
on taxation;
The
Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 providing
guidance on some Articles of the Law on Value-Added Tax; the Government's
Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to tax decrees;
The
Government’s Decree No. 83/2013/ND-CP dated July 22, 2013 on guidelines for
implementation of the Law on Tax Administration and the Law on Amendments to
the Law on Tax Administration;
The
Government’s Decree No. 12/2015/ND-CP dated February 12, 2015 on guidelines for
implementation of the Law on Amendments to Laws and Decrees on Taxation;
The
Government's Decree No. 87/2017/ND-CP dated July 26, 2017 defining the
functions, tasks, powers and organizational structure of the Ministry of
Finance;
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The
Minister of Finance promulgates a Circular on repeal of Example 37 in Point a.4
Clause 10 Article 7 of the Circular No. 219/2013/TT-BTC of the Ministry of
Finance dated December 31, 2013 providing guidance on implementation of the Law
on Value-added Tax and the Government's Decree No. 209/2013/ND-CP dated
December 18, 2013 providing guidance on some Articles of the Law on Value-Added
Tax:”
- The
Circular No. 43/2021/TT-BTC is promulgated pursuant to:
“The
Law on Tax Administration dated June 13, 2019;
The
Law on Value-Added Tax dated June 3, 2008; Law on amendment to Law on
Value-Added Tax dated June 19, 2013;
The
Decree No. 126/2020/ND-CP dated October 19, 2020 of the Government on
elaborating to Law on Tax Administration;
The
Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 providing
guidance on some Articles of the Law on Value-Added Tax; the Government's
Decree No. 91/2014/ND-CP dated October 01, 2014 on amendments to tax decrees;
The
Government's Decree No. 87/2017/ND-CP dated July 26, 2017 defining the
functions, tasks, powers and organizational structure of the Ministry of
Finance;
At the
request of the Director of the General Department of Taxation,
The Minister of Finance of
Vietnam promulgates a Circular on amendments to Clause 11 Article 10 of the
Circular No. 219/2013/TT-BTC dated December 31, 2013 of Ministry of Finance
providing guidance on implementation of the Law on Value-Added Tax and
Government’s Decree No. 209/2013/ND-CP dated December 18, 2013 providing
guidance on some Articles of the Law on Value-Added Tax (amended by the
Circular No. 26/2015/TT-BTC dated February 27, 2015 of Ministry of Finance) as
follows:”
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The Law on Value-Added Tax
dated June 03, 2008 and the Law on Amendments to the Law on Value-Added Tax
dated June 19, 2013;
The Law on amendments to tax
laws dated November 26, 2014 and the Law on amendments to the Law on
value-added tax, the Law on Excise Tax and the Law on Tax Administration dated
April 06, 2016;
The Law on Tax Administration
dated June 13, 2019;
The Government’s Decree No.
209/2013/ND-CP dated December 18, 2013 providing guidelines for the Law on
Value-added Tax;
The Government’s Decree No.
12/2015/ND-CP dated February 12, 2015 elaborating the Law on amendments to tax
laws and decrees on taxation;
The Government’s Decree No.
100/2016/ND-CP dated July 01, 2016 elaborating and providing guidance on the
Law on amendments to certain articles of the Law on value-added tax, the Law on
excise tax and the Law on tax administration;
The Government’s Decree No.
146/2017/ND-CP dated December 15, 2017 providing amendments to the Government’s
Decree No. 100/2016/ND-CP dated July 01, 2016 and the Government’s Decree No.
12/2015/ND-CP dated February 12, 2015;
The Government's Decree No.
49/2022/ND-CP dated July 29, 2022 providing amendments to the Government’s
Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing
guidelines for some Articles of the Law on Value-added tax, as amended by the
Decree No. 12/2015/ND-CP, Decree No. 100/2016/ND-CP and Decree No. 146/2017/ND-CP;
The Government’s Decree No.
126/2020/ND-CP dated October 19, 2020 on elaboration of the Law on Tax
Administration;
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At the request of the Director
of the General Department of Taxation,
The Minister of Finance of Vietnam
promulgates a Circular providing guidelines for the Government's Decree No.
49/2022/ND-CP dated July 29, 2022 providing amendments to the Government’s
Decree No. 209/2013/ND-CP dated December 18, 2013 elaborating and providing
guidelines for some Articles of the Law on Value-added tax, as amended by the
Decree No. 12/2015/ND-CP, Decree No. 100/2016/ND-CP and Decree No. 146/2017/ND-CP,
and providing amendments to the Circular No. 80/2021/TT-BTC dated September 29,
2021 of the Ministry of Finance of Vietnam as follows:”
[3] This Clause is amended
according to Clause 1 Article 1 of the Circular No. 26/2015/TT-BTC, coming into
force from January 01, 2015.
[4] This Clause is amended
according to Clause 2 Article 1 of the Circular No. 26/2015/TT-BTC, coming into
force from January 01, 2015.
[5] This
Point is amended according to Clause 3 Article 1 of the Circular No.
26/2015/TT-BTC, coming into force from January 01, 2015.
(This Point is amended is amended for the
first time by Article 8 of the Circular No. 151/2014/TT-BTC, coming into force
from November 15, 2014).
[6] This Clause is amended
according to point a Clause 1 Article 1 of the Circular No. 130/2016/TT-BTC,
coming into force from July 01, 2016.
[7] This Clause is amended
according to point a Clause 1 Article 1 of the Circular No. 130/2016/TT-BTC,
coming into force from July 01, 2016.
[8] This
Clause is amended according to Article 1 of the Circular No.25/2018/TT-BTC,
coming into force from January 01, 2018.
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[9] This Point is added
according to Clause 1 Article 3 of the Circular No. 119/2014/TT-BTC, coming
into force from September 01, 2014.
[10] This point is added
according to Article 1 of the Circular No. 193/2015/TT-BTC, coming into force
from January 10, 2016.
[11] This Clause is amended
according to Clause 2 Article 3 of the Circular No. 119/2014/TT-BTC, coming
into force from September 01, 2014.
[12] This
Clause is amended according to Clause 1 Article 1 of the Circular No.
13/2023/TT-BTC, coming into force from April 14, 2023.
(This Clause is amended for the first time
by Clause 4 Article 1 of Decree No. 26/2015/TT-BTC, coming into force from
January 01, 2015; and amended for the second time by clause 1 Article 1 of the
Circular No. 82/2018/TT-BTC, coming into force from October 15, 2018).
[13] This Clause is amended
according to Clause 2 Article 1 of the Circular No. 13/2023/TT-BTC, coming into
force from April 14, 2023.
[14] Regulations
on exchange rates applied when determining revenues and calculating taxes are
annulled by Clause 4 Article 4 of the Circular No. 26/2015/TT-BTC, coming into
force from 01 January, 2015.
[15] This
Clause is amended according to Clause 2 Article 1 of the Circular No.
130/2016/TT-BTC, coming into force from July 01, 2016.
(The first bullet in Clause 3 Article 9 is amended for the
first time by Clause 5 Article 1 of the Circular No. 26/2015/TT-BTC, coming
into force January 01, 2015).
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[17] This Clause is
abrogated according to Clause 7 Article 1 of the Circular No. 26/2015/TT-BTC,
coming into force from January 01, 2015.
[18] This Clause is
abrogated according to Clause 7 Article 1 of the Circular No. 26/2015/TT-BTC,
coming into force from January 01, 2015.
[19] This
Clause is amended according to Article 1 of the Circular No. 43/2021/TT-BTC,
coming into force from August 01, 2021.
(This Clause is amended for the first time
according to Clause 8 Article 1 of the Circular No. 26/2015/TT-BTC, coming into
force from January
01, 2015).
[20] This Clause is amended
according to Clause 3 Article 3 of the Circular No. 119/2014/TT-BTC, coming
into force from September
01, 2014.
[21] This
Point is amended according to Clause 1 Article 1 of the Circular No.
93/2017/TT-BTC, coming into force from November 05, 2017.
(This point is amended for the first time
according to Clause 3 Article 3 of the Circular No. 119/2014/TT-BTC, coming
into force from September 01, 2014).
[22] This Clause is amended
according to Clause 3 Article 3 of the Circular No. 119/2014/TT-BTC, coming
into force from September 01, 2014.
[23] This
point is abrogated according to clause 2 Article 1 of the Circular No.
93/2017/TT-BTC, coming into force from November 05, 2017.
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[24] This Clause is amended
according to Clause 4 Article 3 of the Circular No. 119/2014/TT-BTC, coming
into force from September 01, 2014.
[25] This Clause is amended
according to point a Clause 9 Article 1 of the Circular No. 26/2015/TT-BTC,
coming into force from January 01, 2015.
[26] This Clause is amended
according to Article 9 of the Circular No. 151/2014/TT-BTC, coming into force
from November
15, 2014.
[27] This example is added according to
Clause 5 Article 3 of the Circular No. 119/2014/TT-BTC, coming into force from September 01, 2014.
[28] This Clause is added
according to point b Clause 9 Article 1 of the Circular No. 26/2015/TT-BTC,
coming into force from January 01, 2015.
[29] This
Article is amended according to Clause 10 Article 1 of the Circular No.
26/2015/TT-BTC, coming into force from January 01, 2015.
(The first paragraph in Clause 3, Point c Clause 3, Point c
Clause 4 of this Article are amended for the first time by Clause 6 Article 3
of the Circular No. 119/2014/TT-BTC, which has been effective since September
01, 2014; Point c Clause 3 of this Article is amended for the second time by
Article 10 of the Circular No. 151/2014/TT-BTC, coming into force from November
15, 2014).
[30] This paragraph
is
amended according to Article 1 of the Circular No. 173/2016/TT-BTC, which has been
effective since December 15, 2016.
(This paragraph is amended for the first time by
Point b Clause 6 Article 3 of the Circular No. 119/2014/TT-BTC, which has been
effective since September 01, 2014; is amended for the second time by Clause 10
Article 1 of the Circular No. 26/2015/TT-BTC, which has been effective since
January 01, 2015).
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32This Clause is amended
by Clause 7 Article 3 of the Circular No. 119/2014/TT-BTC, which has been
effective since September 01, 2014.
33 This
Article is amended by Clause 3 Article 1 of the Circular No. 130/2016/TT-BTC,
which has been effective since July 01, 2016.
(Clause 3, Clause 4, Clause 5 of this
Article are amended for the first time by Clause 12 Article 1 of the Circular
No. 26/2015/TT-BTC, which has been effective since January 01, 2015).
34 This
Clause is replaced according to Clause 3 Article 1 of the Circular No.
13/2023/TT-BTC, coming into force from April 14, 2023.
Provisions on refund of VAT on investment
projects of business establishments engaging in conditional business lines
shall apply from the date of entry into force of the Decree No. 100/2016/ND-CP
dated July 01, 2016 as prescribed in clause 2 Article 2 of the Government’s
Decree No. 49/2022/ND-CP dated July 29, 2022 as prescribed in clause 2 Article
3 of the Circular No. 13/2023/TT-BTC.
35 This Clause is
replaced according to Clause 3 Article 1 of the Circular No. 13/2023/TT-BTC,
coming into force from April 14, 2023.
36 This
Clause is amended by Article 2 of the Circular No. 25/2018/TT-BTC, which has
been effective since May 01, 2018.
(This clause is amended for the first time
by Point b Clause 12 Article 1 of the Circular No. 26/2015/TT-BTC, which has
been effective since January 01, 2015; is amended for the second time by Clause
3 Article 1 of the Circular No. 130/2016/TT-BTC, which has been effective since
July 01, 2016).
37
Article 7 of the Circular No. 119/2014/TT-BTC, which has been effective since
September 01, 2014, stipulates that:
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1. This
Circular comes into force from September 01, 2014.
When a company needs time to prepare
for following the procedures and making the forms provided in the Circulars
mentioned in Clause 2 of this Article, it may choose the procedures and forms
according to current regulations and the regulations on amendment by October
31, 2014 without being required to notify and register with the tax authority. The
General Department of Taxation shall provide instructions on the implementation
of this regulation.
2. The
instructions and forms provided in the Circular No. 156/2013/TT-BTC dated
November 06, 2013, Circular No. 111/2013/TT-BTC dated August 15, 2013, Circular
No. 219/2013/TT-BTC dated December 31, 2013, Circular No. 08/2013/TT-BTC dated
January 10, 2013, Circular No. 85/2011/TT-BTC dated June 17, 2011, Circular No.
39/2014/TT-BTC dated March 31, 2014 and Circular No. 78/2014/TT-BTC dated June
18, 2014 of the Ministry of Finance that is amended, replaced or annulled by
this Circular are repealed.
3. Other
administrative procedures related to taxation that are not mentioned in this
Circular shall be implemented according to applicable regulations of law.
Difficulties that arise during
the implementation of this Circular should be promptly reported to the Ministry
of Finance for resolution./.”
- Articles
22, 24 and 25 of the Circular No. 151/2014/TT-BTC, coming into force from
November 15, 2014, stipulate as follows:
“Article 22. Effect
This Circular comes into force
from November 15, 2014.
Regulations in Chapter I of
this Circular shall apply to the corporate income tax period from 2014.
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Article 25. Responsibility
for implementation
1. People’s
Committees of provinces and central-affiliated cities shall direct competent
agencies to correctly implement regulations of the Government and guidance of
the Ministry of Finance.
2. The
tax authorities are responsible for instructing organizations and individuals
to implement regulations of this Circular.
3. Regulated
entities of this Circular must implement the guidelines provided in this
Circular.
Difficulties that arise during
the implementation of this Circular should be promptly reported to the Ministry
of Finance for consideration./.”
- Articles
4 and 5 of the Circular No. 26/2015/TT-BTC, coming into force from January 01,
2015, stipulate that:
“Article 4. Effect
1. This
Circular comes into force from the effective date of the Law No. 71/2014/QH13
on amendments to tax laws and the Government's Decree No. 12/2015/ND-CP on
guidelines for the Law on Amendments to tax laws and decrees on taxation.
2. Clause
2 Article 1 of this Circular shall apply to the contracts to buy agriculture
machinery signed before the effective date of the Law No. 71/2014/QH13 (those
mentioned in Clause 11 Article 10 of Circular No. 219/2013/TT-BTC , which is
amended in Clause 2 Article 1 of this Circular) under which the ownership or
right of use is transferred after the effective date of the Law No.
71/2014/QH13.
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4. Regulations
on List of invoices, receipts for purchases and sales, and regulations on
exchange rates applied when determining revenues and calculating taxes in the
following documents shall be annulled:
- Circular
No. 05/2012/TT-BTC dated January 05, 2012 and Decree No. 113/2011/ND-CP dated
December 08, 2011.
- Circular
No. 219/2013/TT-BTC dated December 31, 2013 and the Government's Decree No.
209/2013/ND-CP dated December 18, 2013.
- Circular
No. 156/2013/TT-BTC dated November 06, 2013.
- The
Circular No. 119/2014/TT-BTC dated August 25, 2014.
5. Notices
of tax exemption or reduction according to International Agreements submitted
to tax authorities before this Circular comes into force shall be retained
together with relevant documents in accordance with this Circular by agents or
representative offices in Vietnam of foreign transport companies.
6. During
the implementation of this Circular, if the documents cited in this Circular
are amended or replaced, the new documents shall apply.”
Article 5. Responsibility for
implementation
1. People’s
Committees of provinces and central-affiliated cities shall direct competent
agencies to correctly implement regulations of the Government and guidance of
the Ministry of Finance.
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3. Regulated
entities of this Circular must implement the guidelines provided in this
Circular.
Difficulties that arise during
the implementation of this Circular should be promptly reported to the Ministry
of Finance of Vietnam for consideration./.”
- Article
2 of the Circular No. 193/2015/TT-BTC, coming into force from January 10, 2016,
stipulates that:
“Article 2. Effect
1. This Circular comes into
force from January 10, 2016.
2. Organizations or
enterprises paid remunerations by regulatory authorities for their provision of
authorized collection or payment services before the entry into force of this
Circular shall follow instructions provided for in this Circular.
Difficulties that arise during
the implementation of this Circular should be promptly reported to the Ministry
of Finance (General Department of Taxation) for consideration and resolution./.”
- Articles
6 and 7 of the Circular No. 130/2016/TT-BTC, coming into force from July 01,
2016, stipulate that:
“Article 6. Effect
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2. Article
4 of this Circular takes effect from the tax period of 2016.
Article 7. Implementation
1. People’s
Committees of provinces and central-affiliated cities shall direct competent
agencies to correctly implement regulations of the Government and guidance of
the Ministry of Finance.
2. The
tax authorities are responsible for instructing organizations and individuals
to implement regulations of this Circular.
3. Regulated
entities of this Circular must implement the guidelines provided in this
Circular.
Difficulties that arise during
the implementation of this Circular should be promptly reported to the Ministry
of Finance of Vietnam for consideration./.”
- Article
2 of the Circular No. 173/2016/TT-BTC, coming into force from December 15,
2016, stipulates that:
“Article 2.
This Circular comes into force
from December 15, 2016.
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- Article
3 of the Circular No. 93/2017/TT-BTC, coming into force from November 05, 2017,
stipulates that:
“Article 3. Effect
This Circular comes into force
from November 05, 2017.
Difficulties that arise during
the implementation of this Circular should be promptly reported to the Ministry
of Finance for consideration./.”
- Article
5 of the Circular No. 25/2018/TT-BTC, coming into force from May 01, 2018,
stipulates that:
“Article 5. Effect
1. This
Circular comes into force from May 01, 2018.
2. Cases
that arise from February 01, 2018 and are the subject of the Decree No.
146/2017/ND-CP are specified in the Decree No. 146/2017/ND-CP and Article 1,
Article 2, Clauses 2, 3 and 4 Article 3 of this Circular.
3. Difficulties
that arise during the implementation of this Circular should be promptly
reported to the Ministry of Finance of Vietnam for consideration.”
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“Article 2.
1. This
Circular comes into force from October 15, 2018.
2. Difficulties
that arise during the implementation of this Circular should be promptly
reported to the Ministry of Finance of Vietnam for consideration./.”
- Article
2 of the Circular No. 43/2021/TT-BTC, coming into force from August 01, 2021,
stipulates that:
“Article 2. Effect
1. This
Circular comes into force from August 01, 2021.
2. Difficulties
that arise during the implementation of this Circular should be promptly
reported to the Ministry of Finance of Vietnam for consideration./.”
- Article
3 of the Circular No. 13/2023/TT-BTC, coming into force from April 14, 2023,
stipulates that:
“Article 3. Effect
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2. Provisions
on refund of VAT on investment projects of business establishments engaging in
conditional business lines as prescribed in clause 3 Article 1 of this Circular
shall apply from the date of entry into force of the Decree No. 100/2016/ND-CP
dated July 01, 2016 as prescribed in clause 2 Article 2 of the Government’s
Decree No. 49/2022/ND-CP dated July 29, 2022.
Adjustments to value-added
tax, late payment interest, and fines for administrative violations of tax (if
any) according to regulations in Clause 2 Article 2 of Government’s Decree
No. 49/2022/ND-CP dated July 29, 2022:
a) If a tax agency has issued
decision to reclaim VAT refunds, impose late payment interest and fines for
administrative tax offences, such tax agency shall issue a decision on
adjustment according to Form No. 38 attached to Government’s Decree No. 118/2021/ND-CP dated
December 23, 2021. If the business
establishment has additionally declared the reclaimed VAT refund, such business
establishment and tax agency shall adjust the reclaimed VAT refund and late
payment interest according to Form No. 02/KTT attached to Circular
No. 80/2021/TT-BTC dated September, 29 2021 of the Ministry of
Finance .
b) The reclaimed VAT refund
whether the business establishment has offset the reclaimed VAT refund against
VAT payable on business operation activities, late payment interest and fines
for administrative violations of tax (if any) paid for state budget before the
effective date of this Circular shall be adjusted according to regulations in
Article 25 and Section 2, Chapter V of Circular No. 80/2021/TT-BTC dated
September 29, 2021 of the Ministry of Finance. If
over-reclaimed VAT refund is returned, it shall be taken from the VAT refund
budget.
Difficulties that arise during the
implementation of this Circular should be promptly reported to the Ministry of
Finance for timely resolution./.”