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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. 1/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:
5 billion dong x
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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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IMPLEMENTATION37
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./.”