Consolidated document 01/VBHN-BTC year 2024 consolidates the Circular guiding the VAT Law and Decree 209/2013/ND-CP guiding the VAT Law

CIRCULARS

GUIDANCE ON THE IMPLEMENTATION OF THE VALUE ADDED TAX LAW AND DECREE NO. 209/2013/ND-CP DATED DECEMBER 18, 12 OF THE GOVERNMENT DETAILING REGULATIONS AND GUIDANCE ON THE IMPLEMENTATION OF SOME VALUE ADDED TAX LAWS

Circular No. 219/2013/TT-BTC dated December 31, 12 of the Ministry of Finance guiding the implementation of the Law on Value Added Tax and Decree No. 2013/209/ND-CP dated December 2013, 18 of the Government detailing and guiding the implementation of a number of articles of the Law on Value Added Tax, effective from January 12, 2013, amended and supplemented by:

1. Circular No. 119/2014/TT-BTC dated August 25, 8 of the Ministry of Finance amending and supplementing a number of articles of Circular No. 2014/156/TT-BTC dated November 2013, 06, Circular No. 11/2013/TT-BTC dated August 111, 2013, Circular No. 15/8/TT-BTC dated December 2013, 219, Circular No. 2013/31/TT-BTC dated January 12, 2013, Notice Circular No. 08/2013/TT-BTC dated June 10, 01, Circular No. 2013/85/TT-BTC dated March 2011, 17 and Circular No. 6/2011/TT-BTC dated June 39, 2014 of Ministry of Finance to reform and simplify tax administrative procedures, effective from September 31, 3.

2. Circular No. 151/2014/TT-BTC dated October 10, 10 of the Ministry of Finance guiding the implementation of Decree No. 2014/91/ND-CP dated October 2014, 01 of the Government on amending, Supplementing a number of articles in Decrees on tax regulations, effective from November 10, 2014.

3. Circular No. 26/2015/TT-BTC dated February 27, 02 of the Ministry of Finance guiding on value-added tax and tax management in Decree No. 2015/12/ND-CP dated February 2015, 12 of the Government detailing the implementation of the Law amending and supplementing a number of articles of the Law on Taxation and amending and supplementing a number of articles of the Decrees on taxation and amending and supplementing a number of articles of the Circular No. Circular No. 02/2015/TT-BTC dated March 39, 2014 of the Ministry of Finance on invoices for selling goods and providing services, effective from January 31, 3.

4. Circular No. 193/2015/TT-BTC dated November 24, 11 of the Ministry of Finance amending and supplementing Circular No. 2015/219/TT-BTC dated December 2013, 31 of the Ministry of Finance guiding examinations Implementing the Law on Value Added Tax and Decree No. 12/2013/ND-CP dated December 209, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on Value Added Tax, effective from from January 18, 12.

5. Circular No. 130/2016/TT-BTC dated August 12, 8 of the Ministry of Finance guiding Decree No. 2016/100/ND-CP dated July 2016, 01 of the Government detailing the implementation of the Law Amending and supplementing a number of articles of the Law on Value Added Tax, Law on Special Consumption Tax and Law on Tax Administration and amending a number of articles in Tax Circulars, effective from July 7, 2016. 01.

6. Circular No. 173/2016/TT-BTC dated October 28, 10 of the Ministry of Finance amending and supplementing the first paragraph, Clause 2016, Article 3 of Circular No. 15/219/TT-BTC dated December 2013, 31 of the Ministry of Finance (amended and supplemented according to Circular No. 12/2013/TT-BTC dated August 119, 2014, Circular No. 25/8/TT-BTC dated October 2014, 151, Circular No. 2014/10/TT-BTC dated February 10, 2014 of the Ministry of Finance), effective from December 26, 2015.

7. Circular 93/2017/TT-BTC dated September 19, 9 of the Ministry of Finance amending and supplementing Clause 2017 and 3 Article 4 Circular No. 12/219/TT-BTC dated December 2013, 31 ( was amended and supplemented in Circular No. 12/2013/TT-BTC dated August 119, 2014) and abolished Clause 25, Article 8 of Circular No. 2014/7/TT-BTC dated November 11, 156 of the Ministry Finance, effective November 2013, 06.

8. Circular No. 25/2018/TT-BTC dated March 16, 3 of the Ministry of Finance guiding Decree No. 2018/146/ND-CP dated December 2017, 15 of the Government and amending and supplementing a Articles of Circular No. 12/2017/TT-BTC dated June 78, 2014 of the Ministry of Finance, Circular No. 18/6/TT-BTC dated August 2014, 111 of the Ministry of Finance, effective from May 2013, 15.

9. Circular No. 82/2018/TT-BTC dated August 30, 8 of the Ministry of Finance abolishing the content of example 2018 specified in Point a.37 Clause 4 Article 10 Circular No. 7/219/TT-BTC dated December 2013, 31 of the Ministry of Finance guiding the implementation of the Law on Value Added Tax and Decree No. 12/2013/ND-CP dated December 209, 2013 of the Government detailing and guiding the implementation of a Number of articles of the Law on Value Added Tax, effective from October 18, 12.

10. Circular No. 43/2021/TT-BTC dated June 11, 6 of the Ministry of Finance amending and supplementing Clause 2021, Article 11 of Circular No. 10/219/TT-BTC dated December 2013, 31 of the Ministry of Finance guiding the implementation of the Law on Value Added Tax and Decree No. 12/2013/ND-CP dated December 209, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on Value Added Tax ( amended and supplemented in Circular No. 18/12/TT-BTC dated February 2013, 26 of the Ministry of Finance), effective from August 2015, 27.

11. Circular No. 13/2023/TT-BTC dated February 28, 02 of the Ministry of Finance guiding the implementation of Decree No. 2023/49/ND-CP dated July 2022, 29 of the Government amending and supplementing A number of articles of Decree No. 7/2022/ND-CP dated December 209, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on Value Added Tax have been amended and supplemented one number of articles according to Decree No. 18/12/ND-CP, Decree No. 2013/12/ND-CP and Decree No. 2015/100/ND-CP and amending and supplementing Circular No. 2016/146/TT-BTC September 2017, 80 of the Ministry of Finance, effective from April 2021, 29.

Pursuant to the Law on Value-Added Tax No. 13/2008/QH12 dated June 03, 6 and the Law amending and supplementing a number of articles of the Law on Value-Added Tax No. 2008/31/QH2013 dated June 13, 19;

Pursuant to the Law on Tax Administration No. 78/2006/QH11 dated November 29, 11 and the Law amending and supplementing a number of articles of the Law on Tax Administration No. 2006/21/QH2012 dated November 13, 20;

Pursuant to the Government's Decree No. 209/2013/ND-CP dated December 18, 12 detailing and guiding the implementation of a number of articles of the Law on Value Added Tax;

Pursuant to the Decree No. 118 / 2008 / ND-CP dated 27 / 11 / 2008 of the Government defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

At the proposal of the General Director of Taxation,

The Minister of Finance guides the implementation of value added tax as follows:

Chapter I

GENERAL RULES

Article 1. Scope

This Circular provides guidance on taxable objects, non-taxable objects, taxpayers, bases and methods of tax calculation, deduction, tax refund and where to pay value added tax.

Article 2. Taxable subjects

Subjects subject to value added tax (VAT) are goods and services used for production, business and consumption in Vietnam (including goods and services purchased from organizations and individuals abroad). , except for subjects not subject to VAT as guided in Article 4 of this Circular.

Article 3. Taxpayers

VAT payers are organizations and individuals that produce and trade goods and services subject to VAT in Vietnam, regardless of industry, form, or business organization (hereinafter referred to as business establishments). and organizations and individuals importing goods and purchasing services from abroad subject to VAT (hereinafter referred to as importers) include:

1. Business organizations are established and registered for business under the Enterprise Law, State Enterprise Law (now the Enterprise Law), Cooperative Law and other specialized business laws;

2. Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, people's armed units, public service organizations and other organizations ;

3. Foreign-invested enterprises and foreign parties participating in business cooperation under the Law on Foreign Investment in Vietnam (now the Law on Investment); Foreign organizations and individuals doing business in Vietnam but not establishing legal entities in Vietnam;

4. Individuals, households, independent business groups and other entities engaged in production, business and import activities;

5. Organizations and individuals producing and doing business in Vietnam purchasing services (including the purchase of services associated with goods) from foreign organizations without permanent establishments in Vietnam or individuals abroad If you are a non-resident in Vietnam, the organization or individual purchasing the service is a taxpayer, except for cases where you are not required to declare and calculate VAT as guided in Clause 2, Article 5 of this Circular.

Regulations on permanent establishments and non-residents comply with the law on corporate income tax and the law on personal income tax.

6. Branches of export processing enterprises are established to conduct goods purchase and sale activities and activities directly related to goods purchase and sale in Vietnam according to the provisions of law on industrial parks, export processing zones and economic sector.

Example 1: Sanko Company Limited is an export processing enterprise. In addition to production activities for export, Sanko Co., Ltd. is also licensed to exercise the right to import for sale or export. Sanko Co., Ltd. must establish a branch to carry out this activity according to the provisions of law. The branch shall separately account and declare and pay VAT separately for this activity, not accounting for production activities for export.

When importing goods for distribution (sale), Sanko Co., Ltd. Branch declares and pays VAT at the import stage and when sold (including export), Sanko Co., Ltd. uses Use invoices, declare and pay VAT according to regulations.

Article 4. Subjects not subject to VAT

1. Cultivation products (including planted forest products), livestock, aquaculture, farmed and caught seafood that have not been processed into other products or have only undergone normal preliminary processing by organizations and individuals Self-produced, caught, sold and imported.

Newly processed products are usually products that have just been cleaned, dried, peeled, ground, peeled, peeled, deseeded, destemmed, cut, salted, and refrigerated ( chilled, frozen), preserved by sulfur gas, preserved by chemicals to avoid rotting, soaked in sulfur solution or soaked in other preservative solutions and other common forms of preservation.

Example 2: Company A signs a contract to raise pigs with Company B in the form of Company B delivering breeds, food, and veterinary medicine to Company A, and Company A delivering and selling pig products to Company B. The pig raising wages received from Company B and the pig products delivered and sold by Company A to Company B are not subject to VAT.

Pig products received by Company B from Company A: if Company B sells pigs (whole animals) or fresh pork, the sold products are not subject to VAT, if Company B puts pigs into processing. turned into products such as sausages, smoked meat, sausages or other processed products, the sold products are subject to VAT according to regulations.

2. Products are livestock breeds and plant breeds, including breeding eggs, breeding animals, seedlings, seeds, cuttings, tubers, semen, embryos, and genetic material at the stages of farming and import. and commercial business. Animal breeds and plant varieties that are not subject to VAT are products imported and traded by commercial establishments that have a certificate of registration to trade in livestock breeds and plant varieties issued by state management agencies. grant. For products that are livestock breeds or plant breeds that have standards issued by the State, the quality must meet the conditions prescribed by the state.

3. Irrigation and drainage; plowing and harrowing the land; dredging canals and ditches in the field to serve agricultural production; agricultural product harvesting services.

3a. Fertilizers are organic and inorganic fertilizers such as: phosphate fertilizer, nitrogen fertilizer (urea), NPK fertilizer, mixed nitrogen fertilizer, phosphate fertilizer, potash; microbial fertilizers and other fertilizers;

Feed for livestock, poultry, aquaculture and other pet foods, including processed or unprocessed products such as bran, residue, all kinds of oil cake, fish meal, bone meal, Shrimp meal, other feeds for livestock, poultry, aquaculture and other livestock, animal feed additives (such as premix, active ingredients and carriers) as prescribed in Clause 1, Article 3 of the Decree Decision No. 08/2010/ND-CP dated February 05, 02 of the Government on animal feed management and Clause 2010, Clause 2 Article 3 Circular No. 1/50/TT-BNNPTNT dated December 2014, 24 of Ministry of Agriculture and Rural Development;

Offshore fishing vessels are vessels with a main engine capacity of 90CV or more engaged in seafood exploitation or providing logistics services for seafood exploitation; specialized machinery and equipment serving the exploitation and preservation of products for fishing vessels with a total main engine capacity of 90CV or more engaged in seafood exploitation or logistics services serving seafood exploitation;

Specialized machinery and equipment serving agricultural production include: plows; Harrow; milling machine; row slitting machine; original tarpaulin machine; field leveling equipment; seeding machine; transplanting machine; sugarcane planting machines; carpet plating production machine system; cultivators, bed cultivators, spreaders, fertilizer spreaders, and fertilizers; Machines and sprayers for plant protection chemicals; rice, corn, sugarcane, coffee, cotton harvesting machines; tuber, fruit and root harvester; tea cutting machine, tea picking machine; rice threshing machine; corn husk peeling machine; corn threshing machine; soybean thresher; peanut shelling machine; grinding coffee husks; machines and equipment for processing coffee and wet rice; dryer for agricultural products (rice, corn, coffee, pepper, cashew...), seafood; machines for collecting and loading sugarcane, rice, and straw in the fields; poultry egg incubator and hatcher; Grass harvesters, straw and grass balers; milking machines and other specialized machines.

4. Salt products are made from sea water, natural rock salt, refined salt, and iodized salt, the main ingredient of which is sodium chloride (NaCl).

5. State-owned housing is sold by the State to current tenants.

6. Transfer of land use rights.

7. Life insurance, health insurance, student insurance, other insurance services related to people; livestock insurance, crop insurance, other agricultural insurance services; insurance for ships, boats, equipment and other necessary tools directly serving fishing; reinsurance.

8. The following financial, banking and securities trading services:

a) Credit extension services include the following forms:

– Loans;

– Discount, rediscount of negotiable instruments and other valuable papers;

- Bank guarantee;

- Financial leasing;

– Issuing credit cards.

In case a credit institution collects fees related to credit card issuance, the fees collected from customers belong to the credit granting service process (card issuance fee) according to the credit institution's lending regulations. for customers such as early repayment fees, late payment penalties, debt restructuring, loan management and other fees in the credit granting process are not subject to value added tax (VAT).

Common card transaction fees that are not part of the credit granting process such as fees for reissuing pin codes for credit cards, fees for providing copies of transaction invoices, fees for claiming reimbursement when using the card, and fees for reporting theft , lost credit card, credit card cancellation fee, credit card conversion fee and other fees subject to VAT.

– Domestic factoring; International factoring for banks licensed to make international payments;

- Sale of loan security assets by a credit institution or by a judgment enforcement agency or by the borrower selling the security assets themselves under authorization of the lender to repay the secured loan, specifically:

+ Loan security assets to be sold are assets under secured transactions that have been registered with competent authorities in accordance with the law on secured transaction registration.

+ The handling of loan security assets shall be carried out in accordance with the provisions of law on secured transactions.

In case the debt repayment period expires, the person with the secured assets is unable to repay the debt and must hand over the assets to the credit institution so that the credit institution can handle the loan security assets according to the provisions of law. , parties that carry out procedures to hand over secured assets according to the provisions of law are not required to issue VAT invoices.

In case a credit institution receives collateral to replace debt repayment obligations, the credit institution shall account for the increase in asset value to serve production and business according to regulations. When a credit institution sells assets for business activities, if the assets are subject to VAT, the credit institution must declare and pay VAT according to regulations.

Example 3: In March 3, Enterprise A is a business establishment that pays VAT according to the deduction method of mortgaging production lines, machinery and equipment to borrow capital from Bank B, the loan term is 2015 year (term Debt repayment is March 1, 31). By March 3, 2016, Enterprise A is unable to repay debt and must hand over assets to Bank B. When handing over assets, Enterprise A does not have to issue an invoice. When Bank B sells loan security assets to recover debt, the sold assets are not subject to VAT.

Example 3a: In December 12, Enterprise B, a business establishment, pays VAT according to the deduction method of mortgaging factories on land and land use rights to borrow capital at Commercial Bank C, the loan period is 2014 year, debt repayment deadline is December 1, 15, Commercial Bank C and Enterprise B have registered a secured transaction (mortgage of factory on land and land use rights) with the competent authority. By December 12, 2016, Enterprise B was unable to repay its debt and Commercial Bank C agreed in writing to release the mortgage so that Enterprise B could sell its factory to repay the bank's debt. In January 15, the enterprise Enterprise B sells its factory to repay the bank's debt, then the factory sold is not subject to VAT.

– Credit information provision services provided by units and organizations under the State Bank to credit institutions for use in credit granting activities according to the provisions of the State Bank Law.

Example 4: Organization X is a unit of the State Bank authorized by the State Bank to provide credit information services. In 2014, organization Credit serving credit granting activities is not subject to VAT, revenue from credit information provision services serving other activities of commercial banks not according to the provisions of the State Bank Law is subject to VAT. subject to VAT at the rate of 10%.

– Other forms of credit according to the provisions of law.

b) Individual lending activities, not regular business or supply activities of taxpayers who are not credit institutions.

Example 5: VC Joint Stock Company has idle money that is temporarily not serving business activities. VC Joint Stock Company signs a contract to lend money to Company T for a period of 6 months and receives interest, then the amount Interest received by VC Joint Stock Company is not subject to VAT.

c) Securities business includes: Securities brokerage, securities trading, securities underwriting, securities investment consulting, securities depository, securities investment fund management, company management securities investment, securities investment portfolio management, market organization services of a stock exchange or securities trading center, services related to securities registered and deposited at the Depository Center Register for Vietnam Securities, lend money to customers to perform margin transactions, advance money from securities sales and other securities business activities in accordance with the provisions of securities law.

Activities of providing information, organizing auctions of shares of issuing organizations, and providing technical support for online securities transactions of the Stock Exchange.

d) Capital transfer includes the transfer of part or all of the capital invested in another economic organization (regardless of whether or not a new legal entity is established), transfer of securities, transfer of rights Capital contribution and other forms of capital transfer according to the provisions of law, including cases of selling an enterprise to another enterprise for production and business purposes and the purchasing enterprise inherits all rights and obligations of the selling enterprise under provisions of law.

Example 6: In April 4, Company A contributed capital with machinery and equipment to establish Joint Stock Company B. The value of the capital contribution of Company A was received by the Council of the contributing parties. Valuable capital is 2014 billion VND, equal to 2,5% of the capital of Joint Stock Company B. In November 25, Company A sold its capital contribution in Joint Stock Company B to ABB Investment Fund for 11 billion VND. VND, the amount of VND 2014 billion earned by Company A is capital transfer revenue that is not subject to VAT.

d) Sell debt;

e) Foreign currency trading;

g) Derivative financial services include: interest rate swaps; forward contracts; futures contracts; options to buy and sell foreign currencies; other derivative financial services as prescribed by law;

h) Selling security assets of debts of organizations in which the State owns 100% of charter capital established by the Government to handle bad debts of Vietnamese credit institutions.

9. Medical services, veterinary services, including medical examination, treatment, disease prevention services for humans and pets, planned birth services, health nursing services, and rehabilitation services for sick people, care services for the elderly and people with disabilities; Patient transportation, hospital room and bed rental services of medical facilities; tests, screenings, scans, blood and blood products for patients.

Care services for the elderly and people with disabilities include medical care, nutrition and organization of cultural, sports, entertainment, physical therapy and rehabilitation activities for the elderly. , People with disabilities.

In case the medical service package (according to the regulations of the Ministry of Health) includes the use of medicine, the revenue from the medical fee included in the medical service package is also not subject to VAT.

10. Postal services, public telecommunications and universal Internet according to the Government's program; Postal and telecommunications services from abroad to Vietnam (arrival).

11. Services for maintaining zoos, flower gardens, parks, street trees, and public lighting; funeral service. The services mentioned in this clause do not distinguish between payment sources. Specifically:

a) Services for maintaining zoos, flower gardens, parks, street trees, and protecting forests owned by the State, including management activities, planting trees, taking care of trees, protecting birds and animals in parks, zoos, public areas, national forests, national parks;

b) Public lighting includes lighting of streets, alleys, hamlets in residential areas, flower gardens, and parks. Non-taxable revenue is revenue from public lighting activities;

c) Funeral services of establishments with the function of providing funeral services include activities of renting funeral homes, cars for funerals, burials, cremations, reburials, and moving graves , grave care.

12. Maintain, repair, and build with capital contributions from the people (including contributions and sponsorships from organizations and individuals), and humanitarian aid capital for cultural and artistic works engineering, public works, infrastructure and housing for social policy beneficiaries.

In cases where capital sources other than people's contributions or humanitarian aid capital are used, but other capital sources do not exceed 50% of the total capital used for the project, the entire value is not subject to tax. construction.

In case other capital sources other than people's contributions or humanitarian aid capital are used and other capital sources exceed 50% of the total capital used for the project, the entire value of the project is subject to tax. VAT.

Social policy subjects include: people with meritorious services according to the provisions of law on people with meritorious services; Social protection subjects receive subsidies from the state budget; people from poor, near-poor households and other cases as prescribed by law.

13. Teaching and vocational training according to the provisions of law, including teaching foreign languages ​​and information technology; teaching dance, singing, painting, music, theater, circus, physical education and sports; Raising children and teaching other occupations to train and improve cultural qualifications and professional knowledge.

In cases where teaching establishments at all levels from preschool to high school collect money for meals, transportation to pick up and drop off students, and other revenues in the form of collection and payment on behalf of the school, then the meals and transportation fees will be given to students. Picking up students and other revenues and expenses on behalf of these households are also not subject to tax.

Boarding income from pupils, students, and trainees; Training activities (including the organization of exams and issuance of certificates in the training process) provided by training facilities are not subject to VAT. In case the training facility does not directly organize training but only organizes exams and issues certificates in the training process, the activities of organizing exams and issuing certificates are also not subject to tax. In case of providing examination and certification services that are not part of the training process, they are subject to VAT.

Example 7: Training center X is assigned by the competent authority to provide training to issue a practicing certificate as an insurance agent. Training Center X assigns training tasks to unit Y to perform, Training Center X is not subject to VAT.

14. Radio and television broadcasting with state budget capital.

15. Publishing, importing, distributing newspapers, magazines, specialized newsletters, political books, textbooks, course books, legal text books, scientific and technical books, books printed in ethnic script minorities and propaganda paintings, photos, posters, including in the form of audio or video tapes or discs, or electronic data; money, print money.

Newspapers, magazines, and specialized newsletters, including activities of transmitting newspapers, magazines, and specialized newsletters.

Political books are books that propagate the political guidelines of the Party and State to serve political tasks according to topics and themes, and serve anniversaries and traditional days of organizations, levels, branches, local; books of statistics and propaganda for the good people and good deeds movement; Books printed on speeches and theoretical research of Party and State leaders.

Textbooks are books used for teaching and learning at all levels from preschool to high school (including reference books for teachers and students in accordance with the content of the educational program).

Textbooks are books used for teaching and learning in universities, colleges, professional and vocational schools.

Legal document books are books that print legal documents of the State.

Scientific and technical books are books used to introduce and guide scientific and technical knowledge directly related to production and scientific and technical branches.

Books printed in ethnic minority languages ​​include bilingual books in common and ethnic minority languages.

Paintings, photos, and propaganda posters are paintings, photos, posters, all kinds of flyers and leaflets serving the purpose of propaganda, promotion, slogans, photos of leaders, Party flags, National flags, and Union flags. period, Team flag.

16. Public passenger transportation includes public passenger transportation by bus, tram (including tram) along intra-provincial, urban and neighboring routes outside the province according to the provisions of law. traffic laws.

17. Goods that cannot be produced domestically may be imported in the following cases:

a) Imported machinery, equipment, spare parts and supplies for direct use in scientific research and technological development activities;

b) Machinery, equipment, spare parts, specialized means of transport and supplies need to be imported to conduct search, exploration and development of oil and gas fields;

c) Airplanes (including aircraft engines), drilling rigs, and ships that cannot be produced domestically are imported to create fixed assets of the enterprise or rented from foreign countries to use for production, business, rental, sublease.

To determine whether goods are not subject to VAT at the import stage specified in this Clause, the importer must present to the customs authority documents according to the Ministry of Finance's instructions on customs procedures; customs inspection and supervision; export tax, import tax and tax administration for exported and imported goods.

List of machinery, equipment, spare parts and supplies that can be produced domestically to serve as a basis for distinguishing those that cannot be produced domestically and need to be imported for direct use in scientific research and technological development; List of machinery, equipment, spare parts, specialized means of transport and supplies that can be produced domestically as a basis for distinguishing those that cannot be produced domestically and need to be imported to carry out operations. Search, explore and develop oil and gas fields; List of aircraft, drilling rigs, and ships that can be produced domestically as a basis for distinguishing those that cannot be produced domestically and need to be imported to create fixed assets of the enterprise or leased from foreign countries for use. Applicable for production, business, lease, and sublease issued by the Ministry of Planning and Investment.

18. Weapons and equipment specifically used for national defense and security.

a) Weapons and equipment specialized for national defense and security according to the List of weapons and equipment specialized for national defense and security issued by the Ministry of Finance in agreement with the Ministry of National Defense and the Ministry of Public Security.

Weapons and equipment specifically used for national defense and security that are not subject to VAT must be complete, complete products or specialized parts, components, and packaging used to assemble and preserve products. complete product. In cases where weapons and specialized equipment used to serve national defense and security must be repaired, weapons and equipment repair services performed by enterprises of the Ministry of National Defense and the Ministry of Public Security are not subject to VAT. .

b) Imported weapons and equipment (including supplies, machinery, equipment, and spare parts) exclusively used for national defense and security are exempt from import tax according to the provisions of the Law on Export Tax, import tax or import according to annual quota approved by the Prime Minister.

Documents and procedures for imported weapons and ammunition are not subject to VAT at the import stage according to the Ministry of Finance's instructions on customs procedures; customs inspection and supervision; export tax, import tax and tax administration for exported and imported goods.

19. Imported goods and goods and services sold to organizations and individuals for humanitarian aid and non-refundable aid in the following cases:

a) Imported goods in the case of humanitarian aid or non-refundable aid must be confirmed by the Ministry of Finance or Department of Finance;

b) Gifts to state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, armed units People comply with the provisions of law on gifts and donations;

c) Gifts and gifts to individuals in Vietnam shall comply with the provisions of law on gifts and gifts;

d) Belongings of foreign organizations and individuals according to diplomatic immunity standards according to the provisions of law on diplomatic immunity and privileges; Goods are belongings of Vietnamese people residing abroad when returning home;

d) Goods carried on person within duty-free baggage standards;

The level of imported goods that are not subject to VAT at the import stage is according to the import tax exemption level specified in the Law on Export Tax and Import Tax and guiding documents.

Imported goods of organizations and individuals that are subject to diplomatic immunity according to the provisions of law on diplomatic privileges and immunities are not subject to VAT. In case the subject of diplomatic immunity purchases goods and services in Vietnam that have VAT, it is subject to tax refund according to the instructions in Clause 7, Article 18 of this Circular.

Subjects, goods, and documentation procedures to enjoy diplomatic immunities guided in this Article shall comply with the guidance of the Ministry of Finance on VAT refund for diplomatic missions and agencies. Consulates and representative agencies of international organizations in Vietnam.

e) Goods and services sold to foreign organizations and individuals, international organizations for humanitarian aid or non-refundable aid to Vietnam.

Procedures for international organizations and foreigners to buy goods and services in Vietnam for humanitarian aid and non-refundable aid to Vietnam that are not subject to VAT: international organizations and foreigners must send a document to the sales establishment, clearly stating the name of the international organization or foreigner purchasing goods and services for humanitarian aid or non-refundable aid to Vietnam, the quantity or value of the type. purchased goods; confirmation from the Ministry of Finance or Department of Finance about this aid.

When selling goods, business establishments must issue invoices in accordance with the law on invoices, clearly stating that the goods are sold to foreign organizations and individuals, international organizations for non-refundable aid, Humanitarian aid does not include VAT and retains documents from international organizations or Vietnamese representative agencies as a basis for tax declaration. In cases where foreign organizations and individuals or international organizations purchase goods and services in Vietnam for non-refundable aid or humanitarian aid with VAT, they are eligible for tax refund according to the instructions in Clause 6 of Article. 18 This Circular.

20. Goods transferred or transited through Vietnamese territory; temporarily imported and re-exported goods; temporarily exported and re-imported goods; imported raw materials and supplies to produce and process export goods according to production and export processing contracts signed with foreign parties.

Goods and services are traded between foreign countries and non-tariff zones and between non-tariff zones with each other.

Non-tariff zones include: export processing zones, export processing enterprises, tax bonded warehouses, tax bonded areas, bonded warehouses, special economic and trade zones, commercial and industrial zones and other economic areas designated Establish and enjoy tax incentives such as non-tariff zones according to the Prime Minister's Decision. The relationship of buying, selling and exchanging goods between these zones and the outside world is an export and import relationship.

Documents and procedures to determine and handle non-collection of VAT in these cases comply with the Ministry of Finance's instructions on customs procedures; customs inspection and supervision; export tax, import tax and tax administration for exported and imported goods.

21. Technology transfer according to the provisions of the Law on Technology Transfer; Transfer intellectual property rights according to the provisions of the Intellectual Property Law. In case a technology transfer contract or intellectual property rights transfer includes the transfer of machinery and equipment, the subject is not subject to VAT calculated on the value of the transferred technology or intellectual property rights. cede; If it is not possible to separate, VAT is calculated on the value of technology, intellectual property rights transferred, transferred along with machinery and equipment.

Computer software includes software products and software services as prescribed by law.

22. Imported gold in bars, pieces and other types of gold that have not been processed into fine arts, jewelry or other products.

Gold in bars, pieces and unprocessed types of gold are determined according to the provisions of law on gold management and trading.

23. Exported products are exploited resources and minerals that have not been processed into other products.

Exported products are goods processed directly from raw materials such as natural resources and minerals, with the total value of natural resources and minerals plus energy costs accounting for 51% or more of the product's production cost. except for some cases as prescribed in Clause 1, Article 1 of Decree No. 146/2017/ND-CP.

a) Natural resources and minerals are resources and minerals of domestic origin, including: Metal minerals; non-metallic minerals; crude oil; natural gas; coalgas.

b) Determining the proportion of value of natural resources, minerals and energy costs on cost price is carried out according to the formula:

In which:

The value of resources and minerals put into processing is determined as follows: For directly exploited resources and minerals, it is the direct and indirect costs of exploiting the resources and minerals, excluding transportation costs. transfer resources and minerals from the place of exploitation to the place of processing; For resources and minerals purchased for further processing, the actual purchase price does not include the cost of transporting resources and minerals from the place of purchase to the place of processing.

Energy costs include: fuel, electricity, heat.

The value of natural resources, minerals and energy costs is determined according to the accounting book value in accordance with the Product Cost Calculation Summary Table.

Product manufacturing costs include: Direct material costs, direct labor costs and general manufacturing costs. Indirect costs such as selling costs, management costs, financial costs and other costs are not included in the product production cost.

The ratio of the value of natural resources, minerals and energy costs to the product production cost is determined based on the previous year's settlement and this ratio is applied stably during the year of export. In the case of the first year of exporting products, the ratio of the value of natural resources, minerals and energy costs to the product production cost is determined according to the investment plan and this ratio is applied stably during the year. export; In case there is no investment plan, the ratio of the value of natural resources, minerals and energy costs to the product production cost is determined according to the reality of the exported product.

c) In case an enterprise does not export but sells to another enterprise for export, the enterprise purchasing these goods for export must declare VAT as if the same type of product was directly exported by the manufacturing enterprise.

d) Tax Departments of provinces and cities coordinate with specialized state management agencies in the area according to the functions and tasks of each agency to guide enterprises with production and export business activities. Products from natural resources and minerals, based on product characteristics and product manufacturing process, determine whether the exported product is a natural resource or mineral that has been processed or has not been processed into other products to make declaration. according to the law.

In cases where an enterprise declares a product that has been processed into another product but the product manufacturing process does not have enough basis to determine it as another product, the Tax Department is responsible for reporting to the General Department of Taxation to coordinate with other agencies. Ministries and specialized state management agencies base on the enterprise's export product production process to determine whether the exported product is a natural resource or mineral that has not been processed into other products or has been processed into another product. other products as prescribed by law.

24. Artificial products used to replace body parts of patients, including products that are permanently implanted in the human body; crutches, wheelchairs and other specialized equipment for disabled people.

25. Goods and services of business households and individuals with annual revenue of one hundred million VND or less.

Determining whether business households or individuals are or are not subject to VAT is carried out according to the guidance of the law on tax administration.

26. The following goods and services:

a) Goods sold duty-free at duty-free shops according to regulations of the Prime Minister.

b) National reserve goods are sold by the national reserve agency.

c) Activities that collect fees and charges from the State according to the law on fees and charges.

d) Clearing of mines and explosives is carried out by defense units for projects invested with state budget capital.

If goods are not subject to VAT at the import stage according to the provisions of this Article, if the purpose of use is changed, they must declare and pay VAT at the import stage according to regulations with the customs office where the customs declaration is registered. Organizations and individuals selling goods to the domestic market must declare and pay VAT to the directly managing tax agency according to regulations.

Article 5. Cases where VAT declaration and payment are not required

1. Organizations and individuals receive monetary compensation (including compensation for land and assets on land when land is recovered according to the decision of a competent State agency), bonuses , subsidy money, emission rights transfer money and other financial revenues.

Business establishments, when receiving proceeds from compensation, bonuses, support money, transfer of emission rights and other financial revenues, shall make receipts according to regulations. For business establishments that spend money, based on the spending purposes to make money payment vouchers.

In case of compensation by goods or services, compensation establishments must make invoices and declare, calculate and pay VAT as for goods and service sale; establishments receiving compensation and declaration and deduction according to regulations.

In case a business establishment receives money from organizations or individuals to perform services for organizations and individuals such as repair, warranty, promotion, advertising, it must declare and pay taxes according to regulations.

Example 10: P&C LLC receives interest from buying bonds and dividends from buying stocks of other businesses. P&C Company Limited is not required to declare and pay VAT on interest from bond purchases and dividends received.

Example 11: Enterprise A receives compensation for damage due to contract cancellation from enterprise B of 50 million VND, enterprise A prepares a collection document and does not have to declare and pay VAT on the above amount.

Example 12: Enterprise X buys goods from enterprise Y, enterprise VAT on interest received.

Example 13: Enterprise X sells goods to enterprise Z, the total payment price is 440 million VND. According to the contract, company Z makes deferred payment within 3 months, the interest rate on deferred payment is 1%/month/total payment price of the contract. After 3 months, enterprise Business X does not have to declare and pay VAT on this amount of 440 million VND.

Example 14: Insurance company A and Company B sign an insurance contract in the form of cash insurance. When an insurance risk occurs, insurance company A compensates Company B in money according to the provisions of insurance law. Company B does not have to declare and pay VAT on the insurance compensation amount received.

Example 15: ABC Dairy Joint Stock Company spends money on distributors (business organizations and individuals) to carry out promotional programs (according to the provisions of law on trade promotion activities). , marketing, displaying products for the Company (distributors receive this money to perform services for the Company), then when receiving money, in case the distributor is a VAT payer using the deduction method and invoicing VAT and calculate VAT at the 10% tax rate. In case the distributor is a direct VAT payer, use the sales invoice and determine the tax payable according to the ratio (%) on revenue according to regulations.

2. Organizations and individuals producing and doing business in Vietnam purchase services from foreign organizations that do not have permanent establishments in Vietnam, and individuals abroad who are not residents of Vietnam, including cases: repair of means of transport, machinery and equipment (including supplies and spare parts); advertising, marketing; investment and trade promotion; brokering goods sales and providing services abroad; train; dividing fees for international postal and telecommunications services between Vietnam and foreign countries where these services are performed outside Vietnam, and services for renting transmission lines and satellite bandwidths from foreign countries in accordance with the provisions of law .

3. Non-business organizations and individuals who are not VAT payers sell assets.

Example 16: Mr. A is a non-business individual who sells 01 4-seat car to Mr. B for 600 million VND, then Mr. A does not have to declare and calculate VAT on the proceeds from the car sale.

Example 17: Mr. E is a non-business individual who mortgaged 01 5-seat car to VC bank to borrow money. At the time of payment according to the contract, Mr. The above does not require declaring and calculating VAT.

4. Organizations and individuals transfer investment projects to produce and trade goods and services subject to value-added tax to businesses and cooperatives.

Example 18: Joint Stock Company P carries out an investment project to build an industrial alcohol factory. By March 3, the investment project had completed 2014% of the design project and the investment value was 90 billion VND. Due to financial difficulties, P Joint Stock Company decided to transfer the entire investment project to X Joint Stock Company with a transfer price of 26 billion VND. X Joint Stock Company received the transfer of the above investment project to continue producing industrial alcohol. Joint Stock Company P does not have to declare and pay VAT on the value of the project transferred to Joint Stock Company X.

5. Enterprises and cooperatives that pay VAT according to the deduction method sell crop, livestock, aquaculture and seafood products that have not been processed into other products or have only undergone normal pre-processing to businesses and cooperatives. Cooperatives at the commercial business stage do not have to declare, calculate and pay VAT. On the VAT invoice, write the selling price line as the price without VAT, the tax rate and VAT lines are not recorded and crossed out.

In case an enterprise or cooperative pays VAT using the deduction method and sells crop, livestock, and aquatic products that have not yet been processed into other products or have only undergone normal preliminary processing to other subjects such as households, Business individuals and other organizations and individuals must declare, calculate and pay VAT at the 5% tax rate guided in Clause 5, Article 10 of this Circular.

Business households, individuals, enterprises, cooperatives and other economic organizations pay VAT according to the direct calculation method on VAT when selling unprocessed crop and livestock products, aquaculture and fishing products. into other products or just through normal preliminary processing at the commercial business stage, then declare, calculate and pay VAT at the rate of 1% of revenue.

Example 19: Food Company B is a business establishment that pays VAT according to the deduction method and purchases rice from organizations and individuals that directly grow and sell rice. When sold, rice is not subject to VAT.

In case Food Company B sells rice to Import-Export Company C, Food Company B does not have to declare, calculate and pay VAT on the rice sold to Import-Export Company C.

Food Company B sells rice to Company D (a vermicelli and pho production enterprise), then Food Company B does not have to declare, calculate and pay VAT on the rice sold to Company D.

On the VAT invoice prepared and delivered to Import-Export Company C, Company D, and Food Company B, clearly state the selling price is the price without VAT, the tax rate and VAT lines are not recorded and crossed out.

Food company B that sells rice directly to consumers shall declare and pay VAT at the VAT rate of 5% according to the instructions in Clause 5, Article 10 of this Circular.

Example 20: Company A, LLC is a business that pays tax according to the deduction method for buying green coffee from coffee farmers, then Company A sells this amount of green coffee to business household H, then the Company's revenue is LLC A from selling green coffee to business household H applies a tax rate of 5%.

Example 21: After purchasing tea leaves from the tea growing household and selling them to Mr. Y's household, Mr.

In the case of crop, livestock, and aquatic products that have not yet been processed into other products or have only undergone normal preliminary processing and are sold to businesses or cooperatives that have invoiced, declared, and calculated VAT, the seller and The buyer must adjust the invoice to avoid having to declare and pay VAT according to the instructions in this clause.

6. Fixed assets in use that have been depreciated when transferred according to the value recorded in the accounting books between the business establishment and its member units that are 100% owned by a business establishment. or between member units with 100% capital owned by a business establishment to serve the production and business of goods and services subject to VAT, they do not have to make invoices, declare and pay VAT. . Business establishments that have fixed assets transferred must have a Decision or Order to transfer assets accompanied by a set of asset origin documents.

In case the fixed asset is transferred and has its asset value re-evaluated or transferred to an establishment that produces and sells goods and services that are not subject to VAT, a VAT invoice must be prepared, declared and paid. VAT according to regulations.

7. Other cases:

Business establishments are not required to declare and pay taxes in the following cases:

a) Contribute capital with assets to establish an enterprise. Assets contributed as capital to the enterprise must include: minutes of capital contribution for production and business, joint venture and association contracts; Minutes of asset valuation of the Council for capital contribution delivery and receipt of capital contributors (or valuation document of an organization with valuation function as prescribed by law), accompanied by a set of documents on the origin of assets .

b) Transfer assets between dependent accounting units in the enterprise; Transfer of assets when dividing, separating, consolidating, merging, or converting business types. Assets transferred between dependent accounting member units within the business establishment; When assets are transferred when dividing, separating, consolidating, merging, or converting the type of enterprise, the business establishment with the transferred assets must have an asset transfer order, accompanied by a set of documents on the origin of the assets and not invoice must be issued.

In case assets are transferred between independent accounting units or between member units with full legal status in the same business establishment, the business establishment having the transferred assets must issue a VAT invoice. and declare and pay VAT according to regulations, except for the cases guided in Clause 6 of this Article.

c) Collecting claims from third parties in insurance activities.

d) Receivables not related to the sale of goods and services of the business establishment.

d) Revenue from goods and services sold by agents and commission revenue from agency activities selling at the prescribed price of the principal to receive commissions from services: postal, telecommunications, ticket sales lottery, airline, car, train, and ship tickets; international shipping agent; agents of aviation and maritime services that are subject to the 0% VAT rate; insurance sales agent.

e) Revenue from goods and services and agency commission revenue earned from agency activities selling goods and services are not subject to VAT.

g) Business establishments do not have to pay VAT at the import stage in case they import goods that have been exported but are returned by the foreign party. When a business establishment sells these returned goods domestically, it must declare and pay VAT according to regulations.

H. Organizations and businesses receive remunerations from state agencies for performing collection and payment activities on behalf of state agencies.

Remunerations for collecting and paying on behalf of state agencies that are not required to declare, calculate and pay VAT specified in this point are remunerations received from activities: collection of voluntary social insurance, voluntary health insurance volunteer for the Social Insurance agency; pay preferential benefits to people with meritorious services and other benefits to the Ministry of Labor, War Invalids and Social Affairs; Tax collection from individual households to tax authorities and other collections and payments to State agencies.

Chapter II

TAX BASIS AND METHODOLOGY

Section 1. TAX BASIS

Article 6. Tax bases

The basis for calculating value-added tax is the taxable price and tax rate.

Article 7. Taxable price

1. For goods and services sold by production and business establishments, the selling price does not include VAT. For goods and services subject to special consumption tax, the selling price includes special consumption tax but does not include VAT.

For goods subject to environmental protection tax, the selling price includes environmental protection tax but does not include value added tax; For goods that are both subject to special consumption tax and environmental protection tax, the selling price includes special consumption tax and environmental protection tax but does not include value added tax.

2. For imported goods, it is the import price at the border gate plus (+) with import tax (if any), plus (+) with special consumption tax (if any), plus (+) with protection tax environment (if any). The import price at the border gate is determined according to regulations on taxable prices of imported goods.

In case imported goods are exempted or reduced from import tax, the VAT calculation price is the import price plus (+) with import tax determined according to the tax rate payable after exemption or reduction.

3. For products, goods, and services (including purchased from outside or produced by business establishments) used for exchange, gifts, donations, or payment on behalf of wages, the VAT calculation price of the goods is , services of the same type or equivalent at the time these activities arise.

Example 22: Unit A produces electric fans, uses 50 fan products to exchange with facility B for iron and steel, the selling price (without tax) is 400.000 VND/unit. The VAT calculation price is 50 x 400.000 VND = 20.000.000 VND.

Special gifts and invitations (on the invitation clearly state no payment) to art performances, fashion shows, beauty and model contests, and sports competitions permitted by competent state agencies According to the provisions of law, the taxable price is determined to be zero (0). The facility organizing performing arts determines and is responsible for the number of invitations and the list of organizations and individuals that the facility brings and gives invitations to before the performance or sports competition takes place. sports. In case the establishment commits fraud and still collects money for the invitation, it will be handled according to the provisions of law on tax administration.

Example 23: Joint Stock Company to give as gifts or donations without charge to invite a number of delegates to attend and cheer for the contest. These invitations have a list of organizations and individuals receiving them. When declaring value-added tax, the tax price for the number of invitations and gifts is determined to be zero (20). In case the tax authority discovers that Joint Stock Company X still collects money when giving gifts or invitations, Joint Stock Company X will be handled according to the provisions of law on tax administration.

4. Taxable prices for products, goods and services for internal consumption.

Internally circulated goods such as goods exported for internal warehouse transfer, export of materials, semi-finished products, to continue the production process in a production or business establishment or goods and services provided by the establishment. Export or supply business used to serve business activities is not required to calculate and pay VAT.

In case a business establishment manufactures or builds its own fixed assets (self-made fixed assets) to serve the production and trading of goods and services subject to VAT, upon completion, acceptance and handover , business establishments do not have to issue invoices. Input VAT that forms self-made fixed assets shall be declared and deducted according to regulations.

In case of exporting machinery, equipment, supplies and goods in the form of loan, loan or refund, if there is a contract and relevant documents related to the transaction, the business establishment is not required to make a invoice. application, calculation and payment of VAT.

Example 24: Unit A is an enterprise producing electric fans, using 50 fan products to install in production workshops to serve business activities of the marketing unit. manufactures 50 products of this electric fan.

Example 25: Garment manufacturing establishment B has a yarn workshop and a sewing workshop. If establishment B exports finished yarn from the yarn workshop to the garment factory to continue the production process, establishment B is not required to calculate and pay VAT on yarn exported to the garment factory.

Example 26: Joint Stock Company P builds a mid-shift motel for workers in the production and business area. P Joint Stock Company does not have affiliated units, groups or teams to carry out this construction activity. When completing and taking over the motel in the middle of the shift, P Joint Stock Company does not have to issue an invoice. Input VAT to form motels between shifts is declared and deducted according to regulations.

Example 27: Company Y is an enterprise that produces bottled drinking water. The price without VAT of 1 bottle of bottled water on the market is 4.000 VND. Company Y exports 300 bottles of bottled water to serve at company meetings, Company Y does not have to declare and calculate VAT.

Example 28: Company Y is an enterprise that produces bottled drinking water, the price without VAT of 1 bottle of bottled water on the market is 4.000 VND. Company Y exports 300 bottles of bottled water for the purpose of not serving production and business activities, then Company Y must declare and calculate VAT on 300 bottles of water exported for use not serving the above production and business activities with Taxable price is 4.000 x 300 = 1.200.000 VND.

Particularly for business establishments that use goods and services for internal consumption or internal circulation for production and business purposes such as transportation, aviation, railways, post and telecommunications, VAT is not required. output, business establishments must have documents Clearly stipulate the subjects and levels of control of goods and services for internal use according to prescribed authority.

5. For products, goods and services used for promotion according to the provisions of commercial law, the taxable price is determined to be zero (0); In case goods and services are used for promotion but do not comply with the provisions of commercial law, they must be declared, calculated and paid tax like goods and services used for internal consumption, gifts, donations, or donations. .

Some specific forms of promotion are implemented as follows:

a) For promotional forms of giving sample goods, providing sample services for customers to try without having to pay, giving goods to customers, or providing services without collecting money, the taxable price for sample goods is sample service is defined as 0.

Example 29: Company P produces carbonated soft drinks. In 2014, the company conducted promotions in May 5 and December 2014 in the form of buy 12 products and get 2014 product free. The promotion program in May 10 was carried out in accordance with the correct order and promotion procedures were carried out in accordance with the provisions of commercial law. Accordingly, for the number of complimentary products when purchasing products in May 1, P Company Limited determined the taxable price to be zero (5).

In case the promotion program in December 12 is not carried out in accordance with the correct order and promotion procedures according to the provisions of commercial law, P Company Ltd. must declare and calculate VAT on the number of products. Free gift when purchasing product in December 2014.

b) For the form of selling goods or providing services at prices lower than the previous sales and service prices, the VAT calculation price is the reduced selling price applied during the registered or announced promotion period.

Example 30: Company N operates in the telecommunications field, specializing in selling mobile scratch cards. The Company registers promotions according to the provisions of commercial law in the form of selling goods lower than the previous selling price for the period from April 01, 4 to April 2014, 20, accordingly, The selling price of a scratch card with a face value of 4 VND (VAT included) during the promotion period is sold for 2014 VND.

The VAT calculation price for a scratch card with a face value of 100.000 VND during the promotion period is calculated as follows:

c) For forms of sales promotion or service provision accompanied by purchase vouchers or service vouchers, it is not necessary to declare and calculate VAT on the accompanying purchase vouchers and service vouchers. .

6. For asset leasing activities such as renting houses, offices, workshops, warehouses, wharves, yards, means of transport, machinery and equipment, the rental amount is exclusive of VAT.

In case of leasing in the form of periodic rental payments or prepayment of rent for a rental period, the taxable price is the rental payment each period or prepayment for the rental period excluding VAT.

The property rental price agreed upon by the parties is determined according to the contract. In case the law has regulations on rental price brackets, the rental price is determined within the prescribed price bracket.

7. For goods sold by installment or deferred payment, the price is calculated according to the one-time selling price excluding VAT of that goods, excluding installment interest and deferred payment interest.

Example 31: A motorbike trading company sells 100cc motorbike 25,5 million VND), the VAT calculation price is 25 million VND.

8. For goods processing, the processing price according to the processing contract does not include VAT, including wages, fuel costs, power costs, auxiliary materials and other costs serving the processing. goods.

9. For construction and installation, it is the value of the project, project item or part of the work to be handed over without VAT.

a) In case of construction and installation including raw materials, the construction and installation price includes the value of raw materials excluding VAT.

Example 32: Construction company B receives a construction contract including the value of raw materials, the total payment value without VAT is 1.500 million VND, of which the value of construction materials is without VAT. is 1.000 million VND, the VAT calculation price is 1.500 million VND.

b) In case of construction and installation excluding raw materials, machinery and equipment, the taxable price is the construction and installation value excluding the value of raw materials and machinery and equipment without tax. VAT.

Example 33: Construction company B receives a construction contract that does not include the value of construction materials, the total value of the project without VAT is 1.500 million VND, the value of raw materials and construction supplies is paid by the owner. Investment A provides 1.000 million VND without VAT, the VAT calculation price in this case is 500 million VND (1.500 million VND - 1.000 million VND).

c) In case of construction and installation, payment is made according to the work item or the value of the completed construction and installation volume and handover is the price calculated according to the value of the work item or the value of the completed work volume. The handover date does not include VAT.

Example 34: Textile company

The total value of the project without VAT is 200 billion VND, of which:

– Construction value: 80 billion VND

– Value of equipment provided and installed by Party B: 120 billion VND

– VAT 10%: 20 billion VND {= (80 + 120) x 10%}

– The total amount Party A must pay is: 220 billion VND

- A side:

+ Receiving factory handover, accounting for increase in fixed asset value to calculate depreciation of 200 billion VND (value without VAT)

+ VAT amount of 20 billion VND is declared, deducted from the output tax of goods sold or tax refund requested according to regulations.

In case Party A accepts, hands over and accepts payment to Party B for each project item (assuming the construction value of VND 80 billion is accepted, handed over and accepted for payment in advance), the calculated price will be VAT is 80 billion VND.

10. For real estate transfer activities, value-added tax calculation prices comply with the provisions of Clause 1, Article 1 of Decree No. 49/2022/ND-CP dated July 29, 7 of the Government.

11. For agency and brokerage activities of buying and selling goods and services, import and export entrustment to receive wages or commissions, the taxable price is the wages and commissions earned from these activities. There is VAT.

12. For goods and services, payment documents are used to record the payment price as the price including VAT, such as stamps, freight tickets, and lottery tickets.... The price without tax is determined as follows:

13. Taxable prices for electricity production activities of Vietnam Electricity Group comply with the provisions of Clause 1, Article 1 of Decree No. 49/2022/ND-CP dated July 29, 7 of the Government.

14. For casino services, electronic games with prizes, entertainment businesses with bets, the amount of money collected from these activities includes special consumption tax minus the amount of money paid to customers.

Taxable price is calculated according to the following formula:

Example 41: A casino service business in the tax period has the following data:

– The amount of money collected from exchanging for customers before playing at the money exchange counter is: 43 billion VND.

– The amount of money returned to customers after playing is: 10 billion VND.

Amount of money the business actually collects: 43 billion VND - 10 billion VND = 33 billion VND

The amount of 33 billion VND is the business establishment's revenue, including VAT and special consumption tax.

The VAT price is calculated as follows:

15. For transportation, loading and unloading, it is the price of transportation and loading without VAT, regardless of whether the facility directly transports, loads or subcontracts it.

16. For travel services in the form of travel, contracts signed with customers for package prices (meals, accommodation, travel), the package price is determined to be the price including VAT.

Taxable price is determined according to the following formula:

In case the package price includes expenses for air tickets transporting tourists from abroad to Vietnam, from Vietnam to abroad, expenses for meals, accommodation, sightseeing and some expenses abroad Otherwise (if there are legal documents), the customer's revenues to pay for the above items will be calculated as a deduction in the price (revenue) to calculate VAT. Input VAT for package tourism activities is declared and fully deducted according to regulations.

Example 42: Ho Chi Minh City Tourism Company implements a travel contract with Thailand in the form of a package for 50 tourists in 05 days in Vietnam with a total payment of 32.000 USD. The Vietnamese side must pay for all airfare, meals, accommodation, and sightseeing expenses according to the agreed program; Of which, the airfare from Thailand to Vietnam and vice versa costs 10.000 USD. Exchange rate 1USD = 20.000 Vietnamese Dong.

The VAT calculation price under this contract is determined as follows:

+ Revenue subject to VAT is:

(32.000 USD – 10.000 USD) x 20.000 VND = 440.000.000 VND

+ VAT calculation price is:

Ho Chi Minh City Tourism Company is allowed to declare and deduct all input VAT for VAT-subject tourism activities.

Example 43: Hanoi Tourism Company performs a contract to take tourists from Vietnam to China, collecting a package price of 400 USD/person for five days. Hanoi Tourism Company must pay the Company Chinese travel company 300 USD/person, the taxable price (revenue) of Hanoi Travel Company is 100 USD/person (400 USD - 300 USD).

17. For pawnshop services, the amount receivable from this service includes interest receivable from pawn lending and other revenues arising from the sale of pawn goods (if any) which are determined as the predetermined price. There is VAT.

Taxable price is determined according to the following formula:

Example 44: A pawnshop business in the tax period has a pawnshop revenue of 110 million VND.

The VAT calculation price is determined by:

18. For books subject to VAT sold at the issue price (cover price) according to the provisions of the Publishing Law, that selling price is determined to be the VAT-inclusive price to calculate VAT and the establishment's revenue. In cases of selling not at cover price, VAT is calculated on the selling price.

19. For printing activities, the taxable price is the printing fee. In case the printing facility performs printing contracts, the payment price includes both printing labor and printed paper money, then the taxable price includes paper money.

20. For the services of appraisal agents, compensation agents, third party reimbursement agents, 100% compensation agents receiving wages or commissions, the VAT calculation price is the wages. or commissions (not deducting any expenses) earned by the insurance enterprise, excluding VAT.

21. For the case of purchasing services specified in Clause 5, Article 3 of this Circular, the tax price is the payment price stated in the service purchase contract without value added tax.

22. Taxable prices for goods and services specified in Clauses 1 to 21 of this Article include surcharges and additional fees in addition to the prices of goods and services that business establishments are entitled to.

In case a business establishment applies a commercial discount to customers (if any), the VAT calculation price is the commercially discounted selling price for customers. In case the commercial discount is based on the quantity and sales of goods or services, the discount amount of the sold goods is calculated and adjusted on the sales invoice of the goods or services of the last purchase or period. next. In case the discount amount is established at the end of the sales discount program (period), an adjusted invoice will be issued with a list of invoice numbers to be adjusted, amount, and adjusted tax amount. Based on the adjusted invoice, the seller and the buyer declare adjustments to purchase and sale revenue, output and input taxes.

Taxable price is determined in Vietnamese Dong. … (repealed)

Article 8. Time of VAT determination

1. For the sale of goods, it is the time when the ownership or the right to use the goods is transferred to the buyer, regardless of whether the money has been collected or not.

2. For service provision, it is the time of completing the service provision or the time of issuing the service provision invoice, regardless of whether money has been collected or not.

For telecommunications services, it is the time to complete the comparison of data on telecommunications connection service charges according to economic contracts between telecommunications service businesses, but no later than 2 months from the month of issuance. generate fees for telecommunications connection services.

3. For electricity and clean water supply activities, the date on which the electricity and water consumption index is recorded on the meter to record on the bill.

4. For real estate business, infrastructure construction, house construction for sale, transfer or lease, the time of payment is collected according to the project implementation progress or the payment schedule stated in the contract. copper. Based on the amount collected, the business establishment declares output VAT arising during the period.

5. For construction and installation, including shipbuilding, it is the time of acceptance and handover of the project, project items, completed construction and installation volume, regardless of whether money has been collected or not. money has not been collected.

6. For imported goods, it is the time of customs declaration registration.

Article 9. Tax rate 0%

1. Tax rate of 0%: applied to exported goods and services; Construction and installation activities abroad and in non-tariff zones; international transport; Goods and services are not subject to VAT when exported, except for cases where the 0% tax rate guided in Clause 3 of this Article does not apply.

Exported goods and services are goods and services sold and supplied to organizations and individuals abroad and consumed outside Vietnam; selling and supplying to organizations and individuals in the non-tariff zone; goods and services provided to foreign customers according to the provisions of law.

a) Exported goods include:

- Goods exported abroad, including export entrustment;

- Goods sold into non-tariff zones according to regulations of the Prime Minister; goods sold to duty-free shops;

- Goods sold where the delivery or receipt point is outside Vietnam;

– Spare parts and replacement materials to repair and maintain vehicles, machinery and equipment for foreign parties and for consumption outside of Vietnam;

– Cases considered to be exported according to the provisions of law:

+ Forwarded processed goods according to the provisions of commercial law on international goods purchase and sale activities and goods purchase, sale and processing agency activities with foreign countries.

+ Goods exported on the spot according to the provisions of law.

+ Exported goods for sale at fairs and exhibitions abroad.

b) Export services include services provided directly to organizations and individuals abroad and consumed outside of Vietnam; direct supply to organizations and individuals in non-tariff zones and consumption in non-tariff zones.

Overseas individuals are foreigners who do not reside in Vietnam, Vietnamese people residing abroad and outside Vietnam during the time the service is provided. Organizations and individuals in the non-tariff zone are organizations and individuals with business registration and other cases as prescribed by the Prime Minister.

In case of providing services where the provision takes place both in Vietnam and outside Vietnam but the service contract is signed between two taxpayers in Vietnam or with permanent establishments in Vietnam The 0% tax rate only applies to the value of services performed outside of Vietnam, except in the case of providing insurance services for imported goods, where the 0% tax rate applies to the entire contract value. . In case the contract does not separately specify the value of services performed in Vietnam, the taxable price is determined according to the ratio (%) of costs incurred in Vietnam to the total cost.

Business establishments providing services that are taxpayers in Vietnam must have documents proving services performed outside Vietnam.

Example 45: Company B signs a contract with Company C to provide consulting, survey, and design services for Company C's investment project in Cambodia (Company B and Company C). C is Vietnamese enterprises). If the contract includes services performed in Vietnam and services performed in Cambodia, the value of the services performed in Cambodia will be subject to a 0% VAT rate; For the revenue from services performed in Vietnam, Company B must declare and calculate VAT according to regulations.

Example 46: Company D provides consulting services, surveys, and prepares feasibility reports for investment projects in Laos for Company X. The contract value received by Company D is 5 billion VND including including VAT for services performed in Vietnam. The contract between the two businesses does not determine the revenue made in Vietnam and the revenue made in Laos. Company D calculated the costs of implementation in Laos (survey and exploration costs) to be 2 billion VND and the costs of implementation in Vietnam (summary and reporting) to be 1,5 billion VND. .

Revenue for services performed in Vietnam including VAT is determined as follows:

In case Company D has documents proving that the Company sent officers to Laos to conduct surveys and explorations and has documents proving that the Company purchased some goods to serve surveys and explorations in Laos, the revenue For services performed in Laos, a tax rate of 0% is applied and is determined at 1,875 billion VND (5 - 3,125 = 1,875 billion VND).

c) International transport specified in this Clause includes transport of passengers, luggage and goods on international routes from Vietnam to foreign countries or from foreign countries to Vietnam, or both departure and arrival points abroad, regardless of whether there is a direct means of transport or not. In case an international transport contract includes domestic transport, international transport includes domestic transport.

Example 47: Transport company X in Vietnam has an international transport ship, the company transports goods from Singapore to Korea. Revenue earned from transporting goods from Singapore to Korea is revenue from international transportation activities.

d) Aviation and maritime services provided directly to organizations abroad or through agents, including:

Aviation industry services apply 0% tax rate: Aviation catering services; aircraft takeoff and landing services; aircraft parking services; aircraft security services; Security screening of passengers, luggage and cargo; baggage carousel service at the station; ground commercial technical services; aircraft security services; aircraft push and pull services; aircraft guiding services; bridge rental service to take passengers on and off the plane; departure and arrival flight operations services; transportation service for flight crew, flight attendants and passengers in the aircraft parking area; stacking and counting goods; Services for passengers taking international flights from Vietnamese airports (passenger service charges).

Maritime industry services apply 0% tax rate: Ship towing services; maritime pilot; maritime rescue; wharves and buoys; Loading; tie and untie; opening and closing the cargo hatch cover; ship hold cleaning; counting, delivering and receiving; registry.

d) Other goods and services:

- Construction and installation activities abroad or in non-tariff zones;

– Goods and services are not subject to VAT when exported, except for cases where the 0% tax rate guided in Clause 3 of this Article does not apply;

– Aircraft and ship repair services provided to foreign organizations and individuals.

2. Conditions for applying 0% tax rate:

a) For exported goods:

– Have a contract to sell or process exported goods; entrusted export contract;

– Have proof of payment for exported goods via bank and other documents as prescribed by law;

– Have a customs declaration as prescribed in Clause 2, Article 16 of this Circular.

Particularly in the case of goods sold where the delivery and receipt point is outside Vietnam, the business establishment (seller) must have documents proving the delivery and receipt of goods outside Vietnam such as: purchase contract. signed with the seller of goods abroad; goods sales contract signed with the buyer; Documents proving that goods were delivered or received outside Vietnam such as: commercial invoice according to international practices, bill of lading, packing slip, certificate of origin...; Bank payment documents include: bank documents of the business establishment making payment to the seller of goods abroad; Payment documents via bank from the buyer of goods to pay the business establishment.

Example 48: Company A and Company B (Vietnamese enterprises) sign a contract to buy and sell lubricants. Company A buys lubricants from companies in Singapore, then sells them to Company B at Singapore seaport. In case Company A has: Lubricant purchase contracts signed with companies in Singapore, sales contracts between Company A and Company B; Documents proving that the goods were delivered to Company B at Singapore seaport, documents of payment via bank transferred by Company A to companies selling lubricants in Singapore, documents If payment is made via bank by Company B to Company A, the revenue received by Company A from selling lubricants to Company B will be subject to a VAT rate of 0%.

b) For exported services:

- Having a service supply contract with an organization or individual abroad or in a non-tariff zone;

- Having documents of payment for export services via banks and other documents as prescribed by law;

Particularly for aircraft and ship repair services provided to foreign organizations and individuals, the 0% tax rate will apply, in addition to the contract conditions and payment documents mentioned above. Ships brought into Vietnam must go through import procedures. Once repaired, they must go through export procedures.

c) For international transportation:

– There is a contract to transport passengers, luggage, and goods between the carrier and the charterer on an international route from Vietnam to a foreign country or from a foreign country to Vietnam or both a departure point and a destination abroad. in forms consistent with the provisions of law. For passenger transportation, the contract of carriage is the ticket. International transport business establishments comply with the provisions of law on transport.

– Having documents of payment via bank or other forms of payment is considered payment via bank. In case of transporting individual passengers, there is a direct payment document.

d) For aviation and maritime services:

d.1) Aviation industry services applying the 0% tax rate are performed in international airports, airports, and international air cargo terminals and meet the following conditions:

– There is a service supply contract with a foreign organization or foreign airline or a request to provide services from a foreign organization or foreign airline;

– Have documents to pay for services via banks or other forms of payment that are considered payments via banks. In case the services provided to foreign organizations or foreign airlines arise irregularly, not according to schedule and without a contract, there must be direct payment documents from the foreign organization or airline. not foreign.

The above contract conditions and payment documents do not apply to passenger service charges on international flights from Vietnamese airports (passenger service charges).

d.2) Maritime industry services applying 0% tax rate are performed in port areas and meet the following conditions:

– There is a service supply contract with an overseas organization, a shipping agent, or a request to provide services from a foreign organization or a shipping agent;

– Have proof of payment for services via a bank from an organization abroad or have proof of payment for services through a bank from a shipping agent to a service provider or other forms of payment considered is payment via bank.

3. Cases where the 0% tax rate does not apply include:

– Reinsurance abroad; technology transfer, transfer of intellectual property rights abroad; transferring capital, granting credit, investing in securities abroad; derivative financial services; Postal and telecommunications services going abroad (including postal and telecommunications services provided to organizations and individuals in non-tariff zones; providing mobile phone scratch cards with codes and numbers price sent abroad or brought into a non-tariff zone); exported products are natural resources and minerals guided in Clause 23, Article 4 of this Circular; cigarettes, alcohol, and beer imported and then exported; goods and services provided to individuals not registered for business in the non-tariff zone, except in other cases as prescribed by the Prime Minister.

Cigarettes, alcohol, and beer that are imported and then exported do not have to calculate output VAT when exported, but cannot deduct input VAT.

– Gasoline and oil sold for cars of business establishments in the non-tariff zone purchased domestically;

– Cars sold to organizations and individuals in the non-tariff zone;

– Services provided by business establishments to organizations and individuals in the non-tariff zone include: renting houses, halls, offices, hotels, warehouses; transportation services to pick up and drop off workers; Catering services (except for industrial catering services and catering services in non-tariff areas);

– The following services provided in Vietnam to organizations and individuals abroad are not subject to the 0% tax rate, including:

+ Sports competitions, performing arts, culture, entertainment, conferences, hotels, training, advertising, travel and tourism;

+ Online payment service;

+ Services provided associated with the sale, distribution, and consumption of products and goods in Vietnam.

Article 10. Tax rate 5%

1. Clean water for production and daily life, excluding bottled water and other beverages subject to the 10% tax rate.

2. Ore for fertilizer production; Pesticides and growth stimulants for animals and plants include:

a) Ores for fertilizer production are ores used as raw materials for fertilizer production such as Apatite ore used to produce phosphate fertilizer, mud soil used for microbial fertilizer;

b) Pest control drugs include plant protection drugs according to the List of plant protection drugs issued by the Ministry of Agriculture and Rural Development and other types of pesticides;

c) Growth stimulants for animals and plants.

3. (repealed)

4. Excavation and dredging services of canals, ditches, ponds and lakes for agricultural production; cultivating, caring for, and preventing pests and diseases of plants; preliminary processing and preservation of agricultural products (except dredging and dredging in-field canals as prescribed in Clause 3, Article 4 of this Circular).

Services for preliminary processing and preservation of agricultural products include drying, peeling, seeding, cutting, milling, cold storage, salting and other common forms of preservation according to the instructions in Clause 1 of Article 4 This Circular.

5. Cultivation, livestock, aquaculture and seafood products that have not been processed or have only been pre-processed and preserved (form of pre-processing and preservation according to instructions in Clause 1, Article 4 of this Circular) at the business stage. commercial business, except for the cases guided in Clause 5, Article 5 of this Circular.

Unprocessed crop products guided in this Clause include paddy, rice, corn, potatoes, cassava, and wheat.

6. Preliminarily processed rubber latex such as flag latex, sheet latex, vermicelli latex, and rice latex; Pre-processed resin; nets, ropes and yarns for weaving fishing nets include all types of fishing nets, yarns and ropes specifically used for weaving fishing nets, regardless of production materials.

7. Fresh food at the commercial business stage; Unprocessed forest products at the commercial stage, except wood, bamboo shoots and products specified in Clause 1, Article 4 of this Circular.

Fresh foods include foods that have not been cooked or processed into other products, only processed in the form of cleaning, peeling, cutting, freezing, drying, but after preliminary processing they are still fresh foods. such as cattle, poultry, shrimp, crab, fish and other aquatic products. In case the food has been marinated with spices, a tax rate of 10% applies.

Unprocessed forest products include products from natural forests exploited in the following groups: rattan, bamboo, bamboo, bamboo, mushroom, wood ear; roots, leaves, flowers, medicinal plants, resins and other forest products.

Example 49: Company A produces fresh seasoned crawfish according to the process: Freshly caught crawfish are cut into fillets, then marinated with sugar, salt, solpitol, packaged, then frozen. Spiced fresh beef fish products are not subject to the 5% tax rate but are subject to the 10% VAT rate.

8. Sugar; by-products of sugar production, including molasses, bagasse, and sludge.

9. Products made of jute, sedge, bamboo, rattan, rattan, cork, bamboo, bamboo, leaves, straw, coconut shells, coconut skulls, water hyacinth and other handicraft products made with salvaged materials from Agricultural products are products produced and processed from the main raw materials of jute, sedge, bamboo, rattan, rattan, cork, cork, bamboo, and leaves such as: jute mats, jute fibers, jute bags, primary carpets. coconut, mats produced from jute and sedge; brooms, ropes, and ties made of bamboo and coconut fiber; Curtains, blinds made of bamboo, bamboo, bamboo brooms, conical hats; bamboo chopsticks, bamboo chopsticks; pre-processed cotton; newsprint.

10. (repealed)

11. Medical equipment and tools include medical machinery and tools: scanners, projectors, and cameras used for medical examination and treatment; specialized equipment and tools for surgery and wound treatment, ambulance cars; Blood pressure, heart, pulse measuring instruments, blood transfusion instruments; needles; contraceptive devices; Medical instruments and equipment with an Import License or Certificate of Circulation Registration or Receipt of standard declaration dossier according to health law or according to the List of medical equipment subject to Specialized management of the Ministry of Health is determined to determine commodity codes according to the List of Vietnam's export and import goods issued together with Circular No. 14/2018/TT-BYT dated May 15, 5 of the Minister Ministry of Health and amended and supplemented documents (if any).

Cotton, bandages, medical gauze and medical sanitary napkins; Preventive and curative drugs include finished drugs and medicinal ingredients, excluding functional foods; Vaccine; Medical biological products, distilled water for preparing injections and infusions; hats, clothes, masks, surgical gloves, gloves, lower limb covers, shoe covers, towels, specialized medical gloves, breast implants and skin fillers (excluding cosmetics); chemical testing and disinfectant supplies for medical use.

12. Teaching tools used for teaching and learning include models, drawings, boards, chalk, rulers, compasses and other types of equipment and tools specifically used for teaching, research and experimentation. science.

13. Cultural activities, exhibitions, physical training and sports; performing Arts; make a film; import, distribute and screen films.

a) Cultural activities, exhibitions and physical training and sports, except for revenues such as: selling goods, renting yards and booths at fairs and exhibitions.

b) Performing arts activities such as: opera, cheo, cai luong, singing, dancing, music, theater, circus; Other artistic performance activities and art performance organization services of theaters or opera, cheo, cai luong, singing, dancing, music, drama, and circus troupes with operating licenses issued by competent State agencies granting authority.

c) Film production; import, distribute and screen movies, except for products mentioned in Clause 15, Article 4 of this Circular.

14. Toys for children; Books of all kinds, except books not subject to VAT as guided in Clause 15, Article 4 of this Circular.

15. Science and technology services are service activities and technical support for scientific research and technological development; activities related to intellectual property; technology transfer, standards, technical regulations, measurement, product and goods quality, radiation, nuclear and atomic energy safety; Information, consulting, training, fostering, dissemination and application of scientific and technological achievements in socio-economic fields according to science and technology service contracts specified in the Law Science and technology, excluding online games and Internet entertainment services.

16. Sell, rent, lease purchase social housing according to the provisions of the Housing Law. Social housing is housing invested and built by the State or organizations and individuals of all economic sectors and meets the criteria for housing, house selling price, rental price, and rental price. purchase, subjects, and conditions for purchasing, renting, and lease-purchasing social housing according to the provisions of housing law.

Article 11. Tax rate 10%

The 10% tax rate applies to goods and services not specified in Articles 4, 9 and 10 of this Circular.

The VAT rates stated in Articles 10 and 11 are applied uniformly to each type of goods and services at the stages of import, production, processing or commercial business.

Example 50: For garments with a tax rate of 10%, this item is subject to a tax rate of 10% at the import, production, processing or trading stage.

Scrap and waste products are recovered for recycling and reuse when sold, the VAT rate will be applied according to the tax rate of the scrap and waste products sold.

Business establishments that sell many types of goods and services with different VAT rates must declare VAT according to each tax rate prescribed for each type of goods and services; If the business establishment does not determine each tax rate, it must calculate and pay tax according to the highest tax rate of the goods and services that the establishment produces and sells.

During implementation, if there is a case where the value-added tax rate in the VAT Rate Schedule according to the List of Preferential Import Tariffs is not consistent with the instructions in this Circular, then follow the instructions in the Circular. This. In case the VAT rate applied is inconsistent for the same type of imported and domestically produced goods, the local tax authority and local customs authority shall report to the Ministry of Finance for timely guidance on implementation. currently unified.

Section 2. TAX CALCULATION METHODS

Article 12. Tax deduction method

1. Tax deduction method applicable to business establishments that fully implement the accounting, invoice, and document regimes according to the provisions of law on accounting, invoices, and documents include:

a) Operating business establishments with annual revenue from selling goods and providing services of one billion VND or more and fully implementing accounting, invoice and document regimes as prescribed by law on accounting, invoices, documents, except for business households and individuals that pay taxes according to the direct calculation method guided in Article 13 of this Circular;

b) Business establishments voluntarily register to apply the tax deduction method, except for business households and individuals that pay tax according to the direct calculation method guided in Article 13 of this Circular;

c) Foreign organizations and individuals providing goods and services to conduct search, exploration, development and exploitation of oil and gas pay tax according to the deduction method declared by the Vietnamese party. hand in.

2. Annual revenue of one billion VND or more as a basis for determining whether a business establishment pays value-added tax according to the deduction method according to the instructions in Point a, Clause 1 of this Article is the revenue from selling goods and supplies. Providing services subject to VAT and determined as follows:

a) Annual revenue is determined by the business establishment based on the total target "Total revenue of HHDV sold subject to VAT" on the monthly VAT declaration of the tax period from November of the previous year to the end of the year. October tax period of the current year before the year of determining the VAT calculation method or on the quarterly VAT declaration of the tax period from the 11th quarter of the previous year to the end of the 10rd quarter of the current year before the year of determining the calculation method VAT. The period of stable application of the tax calculation method is 4 consecutive years.

Example 51: Enterprise A was established in 2011 and is operating in 2013. To determine the VAT calculation method for 2014 and 2015, enterprise A determines the revenue level as follows:

Add the target "Total revenue of HHDV sold subject to VAT" on the monthly VAT declaration for 12 months (from the tax period November 11 to the end of the tax period October 2012).

In case the total revenue as determined above is 1 billion VND or more, enterprise A applies the tax deduction method for 2 years (2014 and 2015).

In case the total revenue as determined above is less than 1 billion VND, enterprise A switches to applying the direct calculation method as prescribed in Article 13 of this Circular for 2 years (2014 and 2015), except for cases where In case enterprise A voluntarily registers to apply the tax deduction method specified in Clause 3 of this Article.

b) In case a newly established enterprise in 2013 has less than 2013 months of production and business activities in 12, determine the estimated revenue of the year as follows: Total target "Total revenue of HHDV sold under VAT” on the VAT declaration of the tax period of the months of production and business activities divided by (:) the number of months of production and business activities and multiplied by (x) 12 months. In case, according to the above determination, the estimated revenue is 1 billion VND or more, the enterprise applies the tax deduction method. In case the estimated revenue according to the above determination is less than 1 billion VND, the enterprise applies the direct calculation method for two years, unless the enterprise voluntarily registers to apply the tax deduction method.

Example 52: Enterprise B was established and operated since March 3. To determine the tax calculation method for 2013 and 2014, business B calculates estimated revenue as follows: Take the target of total revenue of HHDV sold subject to VAT on the VAT declaration of the tax period of each month. 2015, 3, 4, 5, 6, 7, 8, 9, 10 divide (:) 11 months, then multiply by (x) 9 months.

In case the result is determined to be 1 billion VND or more, company B applies the tax deduction method. In case the estimated revenue according to the above determination is less than 1 billion VND, enterprise B applies the direct calculation method in 2014 and 2015, unless enterprise B voluntarily registers to apply the deduction method. tax.

c) In case the enterprise declares tax quarterly from July 7, the way to determine the year's revenue is as follows: Total target "Total revenue of HHDV sold subject to VAT" on the VAT declaration of the company. tax periods of October, November, December 2013, the first 10 months of 11 and on the VAT declaration of the third quarter of 12. In cases where, according to the above determination, revenue is 2012 billion VND or more Enterprises apply the tax deduction method. In case the revenue as determined above is less than 6 billion VND, the enterprise applies the direct calculation method for two years, unless the enterprise voluntarily registers to apply the tax deduction method.

d) For business establishments temporarily closed for the entire year, it is determined according to the revenue of the year before the year of temporary business shutdown.

For business establishments that temporarily suspend business for a period of time during the year, determine revenue based on the number of months and quarters of actual business according to the instructions in Point b of this Clause.

In case the year before the year of temporary business shutdown, the business establishment did not operate for 12 months, then determine revenue according to the number of months and quarters of actual business according to the instructions in Point b of this Clause.

3. Business establishments voluntarily register to apply the tax deduction method, including:

a) Operating enterprises and cooperatives with annual revenue from the sale of goods and provision of services subject to VAT under one billion dong have fully implemented the accounting, bookkeeping, invoice and voucher regimes. according to the provisions of law on accounting, invoices and vouchers.

b) New enterprises established from investment projects of existing business establishments pay value added tax by the credit method.

Newly established enterprises that make investments under investment projects approved by competent authorities are subject to voluntary registration to apply the tax credit method.

Newly established enterprises and cooperatives whose investment projects are not subject to approval by competent authorities in accordance with the law on investment but whose investment plans are decided by competent persons of the enterprise. approved investment decision subject to registration for application of the tax credit method.

c) Newly established enterprises or cooperatives that invest, purchase, receive capital contributions with fixed assets, machinery, equipment, tools, instruments or have a contract to rent a business location.

d) Foreign organizations and foreign individuals doing business in Vietnam under contractor contracts and subcontractor contracts.

dd) Other economic organizations that can account input and output VAT, excluding enterprises and cooperatives.

The tax calculation method of a business establishment is determined according to the Value Added Tax Declaration dossier guided in Article 11 of Circular No. 156/2013/TT-BTC dated November 06, 11 of the Ministry of Finance (amended). , supplemented in Article 2013 of Circular No. 1/119/TT-BTC 

dated August 25, 8 and Article 2014 of Circular No. 2/26/TT-BTC dated February 2015, 27 of the Ministry of Finance).

4. Other cases:

a) In case a business establishment has activities of buying, selling and processing gold, silver and gems, the business establishment must separately account this activity to pay tax according to the method of direct calculation on added value towards the end of the year. referred to in Article 13 of this Circular.

b) For businesses that are paying VAT using the deduction method and have established branches (including branches established from investment projects of the business), if the branch is subject to separate VAT declaration according to According to the provisions of law on tax administration, the Branch's tax calculation method is determined according to the tax calculation method of the operating enterprise. In case the branch does not directly sell goods, does not generate revenue, or the branch is in the same province or city where the enterprise is headquartered but does not make separate declarations, tax declaration will be done centrally at the head office. main office of the enterprise.

c) For other newly established enterprises and cooperatives that do not fall into the cases guided in Clause 3 of this Article, the direct calculation method shall apply as guided in Article 13 of this Circular.

d) (repealed)

5. Determine the amount of VAT payable:

In which:

a) The output value-added tax amount is equal to the total value-added tax amount of sold goods and services recorded on the value-added invoice.

Value-added tax recorded on the value-added invoice is equal to the taxable price of taxable goods and services sold multiplied by (x) the value-added tax rate of those goods and services.

In case a document recording the payment price is the price that includes VAT, the output VAT is determined by the payment price minus (-) the tax calculation price specified in Clause 12, Article 7 of this Circular.

Business establishments subject to tax calculation using the tax deduction method when selling goods and services must calculate and pay VAT on the goods and services sold. When making an invoice for the sale of goods or services, a business establishment must clearly state the selling price without tax, VAT and the total amount the buyer must pay. In case the invoice only records the payment price (except in cases where special documents are allowed), and does not record the price without tax and VAT, the VAT on the goods and services sold must be calculated on the payment price stated on the invoice. receipts.

Example 54: An enterprise sells iron and steel, the selling price without VAT for F6 iron is: 11.000.000 VND/ton; 10% VAT is equal to 1.100.000 VND/ton, but when selling, there are some business invoices that only record the selling price as 12.100.000 VND/ton, then the VAT calculated on sales is determined by: 12.100.000 VND /ton x 10% = 1.210.000 VND/ton instead of calculating the tax-free price of 11.000.000 VND/ton.

Business establishments must comply with accounting, books, invoices and documents according to the provisions of law on accounting, invoices and documents. In case the invoice states the wrong value-added tax rate and the business establishment has not adjusted it itself, the tax authority checks and discovers it and will handle it as follows:

For business establishments selling goods and services: If the VAT rate recorded on the invoice is higher than the tax rate specified in legal documents on VAT, then VAT must be declared and paid according to the law. Tax rate stated on invoice; If the VAT rate stated on the invoice is lower than the tax rate specified in the legal documents on VAT, then you must declare and pay VAT according to the VAT rate specified in the legal documents. VAT law.

b) Input VAT is equal to (=) the total VAT amount recorded on VAT invoices for purchases of goods and services (including fixed assets) used for the production and trading of goods and services subject to VAT, VAT amount recorded on tax payment documents for imported goods or VAT payment documents on behalf of foreign parties according to the guidance of the Ministry of Finance applicable to foreign organizations without Vietnamese legal status and Foreign individuals doing business or having income arising in Vietnam.

In case the purchased goods or services are the type that use special documents to record the payment price as the price including VAT, the basis is based on the price including tax and the calculation method guided in Clause 12, Article 7 of the Circular. This investment is to determine the price without tax and input VAT.

The amount of input VAT to be deducted is determined according to the principles and conditions for VAT deduction specified in Article 14, Article 15, Article 16 and Article 17 of this Circular.

Example 55: During the period, Company A pays for deductible input services of a specific type:

Total payment price is 110 million VND (price includes VAT), this service is taxable at 10%, the deductible input VAT amount is calculated as follows:

The price without tax is 100 million VND, VAT is 10 million VND.

In case the invoice shows the wrong value-added tax rate and the business establishment has not adjusted it themselves, the tax authority checks and detects it and will handle it as follows:

For business establishments purchasing goods and services: If the VAT rate recorded on the purchase invoice is higher than the tax rate specified in legal documents on VAT, input tax deduction shall be made according to Tax rates specified in legal documents on VAT. In case it is determined that the seller has declared and paid tax according to the tax rate stated on the invoice, the input tax will be deducted according to the tax rate stated on the invoice but must have confirmation from the tax agency directly managing the seller. ; If the VAT rate stated on the invoice is lower than the tax rate specified in legal documents on VAT, input tax deduction shall be made according to the tax rate stated on the invoice.

For business establishments selling goods and services: In case the business establishment when importing goods has declared and paid VAT at the import stage, when selling to consumers, it has issued an invoice stating the VAT rate. on the VAT invoice sold is exactly equal to the declared VAT rate, tax payment at the import stage but the declared VAT rate (at the import stage and domestic sales stage) is lower than the prescribed tax rate. stipulated in legal documents on VAT and the business establishment cannot collect additional money from customers, the amount collected from customers according to the VAT invoice is determined to be the price that includes VAT at the tax rate. has been stipulated in legal documents on VAT as a basis for determining the correct amount of VAT payable and determining revenue subject to corporate income tax.

Example 56: In March 3, business establishment A (who pays VAT according to the deduction method) imported a product named "CHAIR MM" and declared and paid VAT at the import stage with The tax rate is 2014%. In May 5, business establishment A sold 5 product "CHAIR MM" to customer B, the price without VAT was 2014 million VND. Because when importing, a VAT rate of 01% is applied, business establishment A issues a VAT invoice to customer B stating: taxable price is 100 million VND; VAT rate is 5% and VAT is 100 million VND, total payment price with VAT is 5 million VND. Customer B has paid 5 million VND in full.

In 2015, the tax authority inspected and discovered that business establishment A applied the wrong VAT rate to the product "CHAIR MM" sold to customer B (the correct VAT rate should be 10%). Because the transaction between business establishment A and customer B has ended, business establishment A has no basis to collect additional money from customer B (customer B does not accept additional payment of increased tax). . The tax authority re-determines the VAT amount that business establishment A must pay and determines the revenue subject to corporate income tax as follows:

The total price paid by customer B of 105 million VND is determined to be the price including VAT at the tax rate of 10%, the correct amount of VAT payable is determined as follows:

The additional VAT amount that business establishment A must pay is:

9,545 million – 5 million = 4 million VND.

Revenue subject to corporate income tax of the item "CHAIR MM" sold to customer B is determined as:

105 million – 9,545 million = 95 million VND.

Article 13. Direct calculation method based on added value

1. The amount of VAT payable according to the method of calculating directly on VAT is equal to the added value multiplied by the value added tax rate applicable to activities of buying, selling, and processing gold, silver, and gemstones.

The added value of gold, silver and gems is determined by the payment price of the sold gold, silver and gems minus (-) the payment price of the purchased gold, silver and gems respectively.

The payment price of sold gold, silver, and gems is the actual selling price stated on the sale invoice of gold, silver and gems, including the processing fee (if any), value-added tax and additional charges. additional fees and charges that the seller is entitled to.

The payment price of purchased gold, silver and gems is determined by the value of purchased or imported gold, silver, and gems, inclusive of VAT, used for trading and processing gold, silver, and gems for sale in the near future. response.

In case a negative (-) added value of gold, silver, or gemstones arises during the tax period, it will be offset against the positive (+) added value of gold, silver, and gemstones. In case there is no positive added value (+) or the positive added value (+) is not enough to offset the negative added value (-), it will be carried forward to subtract from the added value of the next period in year. At the end of the calendar year, negative (-) added value cannot be carried forward to the next year.

2. The amount of value-added tax payable according to the method of calculating directly on the added value is equal to the percentage multiplied by the applicable revenue as follows:

a) Subjects of application:

– Operating enterprises and cooperatives with annual revenue below the revenue threshold of one billion VND, except for cases of voluntary registration to apply the tax deduction method specified in Clause 3, Article 12 of this Circular;

- Newly established enterprises and cooperatives, except for voluntary registration according to the instructions in Clause 3, Article 12 of this Circular;

– Business households and individuals;

– Foreign organizations and individuals doing business in Vietnam not according to the Investment Law and other organizations that do not implement or do not fully implement accounting, invoices and documents according to the provisions of law, except Foreign organizations and individuals provide goods and services to conduct oil and gas search, exploration, development and exploitation activities.

– Other economic organizations that are not businesses or cooperatives, unless registered to pay tax by the deduction method.

b) The percentage to calculate VAT on revenue is specified for each activity as follows:

– Distribution and supply of goods: 1%;

– Services and construction excluding raw materials: 5%;

– Production, transportation, services associated with goods, construction with raw materials: 3%;

– Other business activities: 2%.

c) Revenue to calculate VAT is the total amount of actual sales of goods and services recorded on the sales invoice for goods and services subject to VAT, including surcharges and additional fees collected by the business establishment. business benefits.

In case a business establishment has revenue from selling goods and providing services that are not subject to VAT and revenue from exported goods and services, the rate (%) on revenue will not be applied to the revenue. This.

Example 57: Company A is an enterprise that declares and pays VAT using the direct method. Company A has revenue arising from the sale of computer software and business establishment consulting services, so Company A does not have to pay VAT at the rate (%) on the revenue from partial sales activities. computer software (because computer software is not subject to VAT) and must declare and pay VAT at the rate of 5% on revenue from business establishment consulting services.

Business establishments with many industries with different rates must declare VAT according to each industry group corresponding to the prescribed rates; In case the taxpayer cannot determine revenue by each industry group or in a comprehensive business contract that includes activities in many different rate groups that cannot be separated, the highest rate will be applied. of the industry group in which the establishment produces and does business.

3. For business households and individuals that pay VAT according to the flat method, the tax authority determines the revenue and VAT payable according to the percentage of the flat household's revenue according to the instructions in Clause 2 of this Article based on the instructions in Clause XNUMX of this Article. on documents, tax declaration data of contracted households, the database of tax authorities, results of actual revenue surveys and opinions of commune and ward Tax Advisory Councils.

In cases where households or individuals pay taxes using the contracting method for many business lines, the tax authority determines the tax amount payable according to the ratio of the main business activity.

4. The list of industries that calculate VAT according to the percentage of revenue guided in Clauses 2 and 3 of this Article is issued together with this Circular.

Chapter III

DEDUCTION, TAX REFUND

Section 1. TAX DEDUCTION

Article 14. Principles of input value added tax deduction

1. Input VAT on goods and services used for production and trading of VAT-liable goods and services is fully deductible, including non-compensated input VAT on VAT-liable goods that are subject to VAT. damage.

Cases of uncompensated losses that are deductible from input VAT include: natural disasters, fires, cases of losses not compensated by insurance, goods that have lost quality or are past their expiration date and must be destroyed. Business establishments must have complete records and documents proving uncompensated losses for tax deduction.

In case the goods have natural loss due to physical and chemical properties during transportation, pumping, such as gasoline, oil, etc., the input VAT amount on the actual amount of natural loss of goods can be declared and deducted. Do not exceed the prescribed loss limit. The amount of input VAT on the quantity of goods lost exceeds the limit and cannot be deducted or refunded.

Input VAT on goods and services that form fixed assets are shift cafeterias, mid-shift motels, changing rooms, garages, toilets, and water tanks serving workers in the area. Production, business and housing, medical stations for workers working in industrial parks are fully deductible.

In case housing for workers working in industrial parks is rented by business establishments in accordance with the law on design standards and housing rental prices for industrial park workers, then VAT on The rent in this case is deducted according to regulations. In case a business establishment builds or buys housing outside an industrial park to serve workers working in industrial parks, the construction or purchasing house must comply with the provisions of law on housing design standards. For industrial park workers, the VAT of builders and houses purchased to serve workers is fully deductible.

In case a business establishment has foreign experts coming to Vietnam to work, hold management positions in Vietnam, and receive salaries in Vietnam according to the labor contract signed with the business establishment in Vietnam, the establishment shall Businesses are not allowed to deduct VAT on house rent for these foreign experts.

In cases where foreign experts are still employees of overseas enterprises, are subject to the transfer of foreign enterprises, are paid salaries by foreign enterprises and enjoy the regimes of foreign enterprises during their tenure. During a business trip to Vietnam, there is a written contract between the overseas enterprise and the business establishment in Vietnam stating that the enterprise in Vietnam must bear the accommodation costs for foreign experts during the period. While working in Vietnam, VAT on house rent for foreign experts working in Vietnam paid by business establishments in Vietnam is deductible.

2. Input VAT on goods and services (including fixed assets) used simultaneously for the production and trading of taxable and non-VAT taxable goods and services, only the input VAT amount can be deducted. of goods and services used for the production and sale of goods and services subject to VAT. Business establishments must separately account for deductible and non-deductible input VAT; In cases where separate accounting is not possible, input tax is deducted based on the ratio (%) between VAT-liable revenue, revenue that does not have to be declared and paid VAT, and total revenue of goods and services. Sales include revenue that is not required to be declared or taxed and cannot be accounted for separately.

Establishments that sell taxable and non-VAT taxable goods and services monthly/quarterly temporarily allocate the VAT amount of purchased goods, services, and fixed assets to be deducted in the month/quarter, at the end of the year. The business establishment calculates the allocation of the year's deductible input VAT to declare and adjust the input VAT that has been temporarily allocated for monthly/quarterly deduction.

3. Input VAT on fixed assets, machinery and equipment, including input VAT on rental activities of these assets, machinery and equipment and other input VAT related to assets , machinery and equipment such as warranty and repair in the following cases are not deductible but are included in the original price of fixed assets or deductible expenses according to the provisions of the Corporate Income Tax Law and other documents: Implementation guide: Fixed assets specifically used for the production of weapons and equipment for national defense and security; Fixed assets, machinery and equipment of credit institutions, reinsurance businesses, life insurance businesses, securities businesses, medical examination and treatment facilities, and training facilities; Civil aircraft and yachts are not used for the purpose of transporting goods, passengers, tourism or hotels.

Fixed assets are passenger cars with 9 seats or less (except cars used for transporting goods, passengers, tourism and hotel businesses; cars used for modeling and test driving for customers). automobile business) with a value exceeding 1,6 billion VND (price excluding VAT), the input VAT amount corresponding to the value exceeding 1,6 billion VND is not deductible.

4. VAT deduction in some specific cases as follows:

a) For production and business establishments with closed production organizations and centralized accounting that use products that are not subject to VAT through all stages to produce VAT-liable goods, the initial VAT amount input at all stages is fully deductible.

Example 58: Enterprise X invests in building a raw material area and factory to produce and process pangasius fillets, basa fish, and frozen shrimp for export. Enterprises organize closed production from the farming stage, including cases of outsourcing farming in which the enterprise invests all seeds, ponds, lakes, fences, irrigation systems, boats and raw materials. Other inputs such as animal feed, veterinary medicine, veterinary services, to the processing of shrimp and fish for export. Enterprise X is entitled to deduct all input VAT on fixed assets and on purchased goods and services that do not form fixed assets at all stages of production and processing.

Example No. 58a: Enterprise A invests in building a raw material area and factory for closed production from the farming stage (including outsourcing farming in which enterprise A invests in all varieties, ponds, lakes, etc.) fences, irrigation systems, boats and other input materials such as animal feed, veterinary medicine, veterinary services...), to the processing of frozen pangasius fillets for export and sell in country. During the production process, enterprise A purchased additional pangasius from other enterprises or farmer households. Pangasius purchased from outside before being brought into the factory is concentrated in the ponds and lakes of company A along with pangasius raised by company A itself. Pangasius fish raised by the enterprise itself and pangasius purchased from outside are brought into the factory to be processed into pangasius fillet products (fish fillets) through the following stages and processes: Raw fish - cleaning - head cutting, peeling skin – remove internal organs – fillet – salt – freeze – sell. Enterprise A is allowed to declare VAT deduction as follows:

– Enterprise A is entitled to deduct all input VAT on fixed assets and on purchased goods and services that do not form fixed assets at the factory serving the preliminary processing of pangasius fillets according to the process. as above.

– Pangasius fillets originating from enterprise A itself for export are subject to a tax rate of 0% and the enterprise is entitled to deduct all input VAT related to pangasius fillet export activities. . In case an enterprise raises pangasius and then processes it into pangasius fillets for both export and domestic sale, input VAT is allocated according to the ratio of export revenue/Total revenue (export revenue). exports and domestic sales).

Example 59: Enterprise Y invests in building a raw material area and factory to produce and process fresh milk products (pasteurized fresh milk, yogurt, cheese, etc.). Enterprises organize closed production from the livestock raising stage, including cases of outsourcing livestock production in which the enterprise invests in all breeds (cows, goats), barns, farms, fences, milking equipment, cleaning system of cages, farms and other input materials such as animal feed, veterinary medicine, veterinary services, to processing into dairy products. Enterprise Y is entitled to deduct all input VAT on fixed assets and on purchased goods and services that do not form fixed assets at all stages of production and processing.

b) For production and business establishments with investment projects that carry out investment in many stages, including newly established production and business establishments with production and business plans and production organization closed, centralized accounting and using products not subject to VAT to produce goods subject to VAT but during the capital construction investment phase, providing goods and services not subject to VAT The input VAT amount during the investment phase to form fixed assets is fully deductible. Business establishments must separately account for unused input VAT for investment in fixed assets serving production and business activities of goods and services not subject to VAT to declare proportional deductions ( %) between VAT taxable sales compared to total sales of goods and services sold.

For business establishments that have investment projects to continue production and processing and have a written commitment to continue producing products subject to VAT, VAT can be declared and deducted right from the construction investment stage. basic construction. For input VAT arising during the capital construction investment phase, the enterprise has declared, deducted, and refunded tax but then determined that it is not eligible for tax deduction or refund, the enterprise must declare and adjust. Return the deducted VAT and refund the tax. In case the enterprise does not make adjustments and is discovered through inspection and examination by the tax authority, the tax authority will collect, refund and fine according to regulations. Enterprises must be fully responsible before the law for the reported content and commit to explain to tax authorities related to tax deduction and refund.

In case an establishment sells goods that are unprocessed or newly processed agricultural, forestry, and aquatic products that are normally not subject to VAT, the VAT amount on the purchased goods and services is calculated. Deduct according to the ratio (%) of sales of goods and services subject to VAT compared to the total sales of goods and services sold.

Example 60: Enterprise A has a rubber garden investment project, incurs input VAT on goods and services at the capital construction investment stage, the enterprise does not have products as raw materials to continue producing. exports and processes products subject to VAT (including unprocessed products for export or processed products subject to VAT) but has a project to build a rubber latex processing factory (belongs to subjects subject to VAT) and commit to continue processing crop products into products subject to VAT, the Company will be able to deduct all input VAT.

In case an enterprise sells rubber latex of the entire project that is not subject to VAT, the enterprise is not entitled to tax deduction.

In case an enterprise uses part of the rubber latex exploited from the project to produce products subject to VAT, and part of it is sold, the input VAT deduction shall be made as follows:

– Input VAT on fixed assets (rubber gardens, processing factories...): enterprises are fully deductible (including VAT incurred during the capital construction investment phase).

– Input VAT on goods and services: deducted according to the ratio (%) of sales of goods and services subject to VAT compared to the total sales of goods and services sold.

c) For production and business establishments with investment projects, including newly established production and business establishments that have just invested in the production and trading of goods and services not subject to VAT, and have just invested in the production and trading of goods and services not subject to VAT. Investing in the production and trading of goods and services subject to VAT, the input VAT amount of fixed assets during the capital construction investment phase is temporarily deducted according to the ratio (%) between the revenue of the goods , services subject to VAT compared to the total revenue of goods and services sold according to the business establishment's production and business plan. The amount of temporarily withheld tax is adjusted according to the ratio (%) between the revenue of goods and services subject to VAT compared to the total revenue of goods and services sold in three years from the first year of revenue. .

Example 61: Enterprise Z was newly established from an investment project in the transportation sector. Production and business plan according to the investment project of the enterprise with revenue from public passenger transportation by bus and non-bus, from advertising sales and vehicle repair and maintenance services; In which revenue from public passenger transport by bus accounts for 30% of total revenue from goods and services sold. The investment phase of basic construction of vehicle procurement, construction of waiting stations and factories lasted for 02 years from June 6 to May 2014. During this 5-year period, the input value-added tax amount of fixed assets in the capital construction investment phase and of purchased goods and services to serve the establishment of the business (establishment costs) establishment of a business) is temporarily deducted at the rate of 2016% and tax refunded according to regulations (VAT on fixed assets that are cars registered for use as public buses is not deductible). The business went into operation with revenue from June 02. By the end of May 70, the proportion of revenue from public passenger transport by bus over a period of 6 years from June 2016 accounts for 5% of total revenue of sold goods and services, the enterprise declares. , adjust and reduce the value-added tax amount of fixed assets that has been deducted and refund the tax corresponding to the rate of 2019% (= 03% - 6%) and calculate and pay this adjusted deduction and tax refund. into the VAT number of the May 2016 tax declaration period. Enterprises will not be fined for late payment and will not be charged late payment interest for the amount of value added tax on deductible fixed assets that must be adjusted downward.

5. Input VAT on goods (including goods purchased from outside or goods produced by the enterprise) that the enterprise uses to give away, donate, promote, and advertise in various forms and services For production and trading of goods and services subject to VAT, they are deductible.

6. The VAT amount paid according to the tax assessment decision of the customs authority is fully deductible, except in cases where the customs authority imposes penalties for tax fraud or evasion.

7. Input VAT on goods and services used for production and trading of goods and services not subject to VAT guided in Article 4 of this Circular is not deductible, except in the following cases:

a) VAT on goods and services purchased by business establishments to produce and trade goods and services provided to foreign organizations and individuals, international organizations for humanitarian aid and aid Non-refundable instructions in Clause 19, Article 4 of this Circular are fully deductible;

b) Input VAT on goods and services used for search, exploration, and development of oil and gas fields up to the first exploitation date or first production date is fully deductible.

8. Input VAT arising in any period is declared and deducted when determining the tax payable for that period, regardless of whether it has been issued for use or is still in warehouse.

In case a business establishment discovers that the input VAT amount when declaring and deducting is incorrect, it may declare and deduct additional information before the tax authority or competent authority announces the tax inspection decision. Tax inspection at the taxpayer's headquarters.

9. The input VAT amount is not deductible, business establishments can account it as expenses to calculate corporate income tax or calculate it into the original price of fixed assets, minus the VAT amount of goods and services. Each purchase worth twenty million VND or more without non-cash payment documents.

10. Corporation offices and corporations do not directly operate business activities and affiliated administrative and non-business units such as: Hospitals, Clinics, Nursing Homes, Institutes, Training Schools... are not people. If you pay VAT, you will not be able to deduct or refund input VAT on goods and services purchased to serve the operations of these units.

In case these units have business activities of goods and services subject to VAT, they must register, declare and pay VAT separately for these activities.

Example 62: The Office of Corporation A does not directly produce or do business, and uses funds contributed by affiliated establishments to operate, but the Office of the Corporation does not rent out the house (office) part. When used up, the Corporation Office must separately account, declare and pay taxes for office rental activities. Input VAT on goods and services serving the Corporation's Office operations is not deductible or refundable.

11. Input VAT on goods and services used for activities providing goods and services that are not declared, calculated and paid VAT guided in Article 5 of this Circular (except for Clause 2 and Clause 3, Article 5 ) is fully deductible.

12. Business establishments are allowed to declare and deduct VAT on goods and services purchased under authorization for another organization or individual and the invoice bears the name of the authorized organization or individual and includes the following information: following cases:

a) The insurance enterprise authorizes the insurance participant to repair the property; The cost of repairing the property along with materials and replacement parts has a VAT invoice stating the name of the insured, the insurance enterprise shall pay the insured the corresponding insurance fee according to the insurance contract. Insurance companies are allowed to declare and deduct VAT corresponding to the insurance compensation paid according to the VAT invoice in the name of the insurance participant; In case the insurance compensation paid by the insurance company to the insured is worth 20 million VND or more, payment must be made via bank.

b) Before establishing a business, the founders have a written authorization for organizations and individuals to pay for some expenses related to establishing the business, purchasing goods and supplies. Enterprises are allowed to declare and deduct input VAT according to VAT invoices in the name of authorized organizations and individuals and must make payments to authorized organizations and individuals via banks for invoices with value of twenty million dong or more.

13. In case an individual or non-business organization contributes capital with assets to a limited liability company or joint stock company, the documents for the contributed assets are the capital contribution certificate and delivery minutes. receive property. In case the contributed capital assets are newly purchased, unused assets with a legal invoice accepted by the capital contribution delivery council, the value of the contributed capital is determined according to the value recorded on the invoice including VAT. ; The party receiving capital contribution can declare and deduct VAT recorded on the asset purchase invoice of the party contributing capital.

14. Business establishments that pay value-added tax according to the direct calculation method on added value when switching to paying tax according to the tax deduction method are entitled to deduct value-added tax on purchased goods and services. arising from the first period of tax declaration and payment according to the tax deduction method.

Business establishments that pay value-added tax according to the tax deduction method when switching to paying tax according to the direct calculation method on added value will be able to calculate the value-added tax amount of purchased goods and services arising. During the tax payment period using the tax deduction method, if the deductible expenses have not been fully deducted when determining income subject to corporate income tax, minus the value-added tax amount of purchased goods and services incurred. During the tax payment period using the tax deduction method, the tax will be refunded according to the instructions in Article 18 of this Circular and according to the provisions of legal documents in effect before the effective date of this Circular.

Example 63: Company A is applying the tax deduction method in 2014 and 2015 and is not eligible to apply the tax deduction method from January 01, 01. Company A has submitted a tax refund request to the tax authority from the tax period of November 2016 to the end of the tax period of October 11 (the end of the time of determining revenue to determine the tax calculation method of the company). 2014 and 10), the tax amount requested for refund is 2015 million VND and on the VAT declaration of the tax period November 2016, Company A has an undeducted input tax amount of 2017 million VND. Company A is considered and processed by the tax authority for tax refund according to regulations for the tax refund request submitted to the tax authority (the tax amount requested for refund is 350 million VND); The amount of input tax that has not been deducted on the VAT declaration of the November 11 tax period is 2015 million VND and will continue to be carried forward to the December 50 tax period. In case in the VAT declaration of the December 350 tax period, the Company still has input VAT that has not been deducted, it will be included in deductible expenses when determining income subject to corporate income tax.

14st. Input value-added tax amounts on goods, services, and fixed assets serving production: fertilizers, machinery, specialized equipment serving agricultural production, offshore fishing vessels, food Eating livestock, poultry, aquatic products and other pet food for domestic consumption is not declared or deducted but is included in deductible expenses when determining income subject to corporate income tax, minus the price tax amount. The added value of purchased goods, services, and fixed assets shown on value-added invoices and VAT payment documents at the import stage arising before January 01, 01 meets the deduction conditions. tax refund and subject to tax refund as prescribed in Article 2015 of Circular No. 18/219/TT-BTC dated December 2013, 31 and this Circular.

15. Business establishments are not allowed to deduct input VAT in the following cases:

– VAT invoices are not used in accordance with the law, such as: VAT invoices do not record VAT (except for special cases where VAT invoices are used to record the payment price as including VAT);

– The invoice does not record or does not correctly record one of the indicators such as the seller's name, address, tax code, so the seller cannot be identified;

– The invoice does not record or incorrectly records one of the criteria such as the buyer's name, address, tax code, so the buyer cannot be identified (except for the instructions in Clause 12 of this Article);

– Fake VAT invoices and payment documents, erased invoices, false invoices (no goods or services attached);

– Invoices record values ​​that do not match the actual value of goods or services purchased, sold or exchanged.

16. Other special cases shall comply with separate instructions of the Ministry of Finance.

Article 15. Conditions for input value added tax deduction

1. Have a legal value-added invoice of purchased goods or services or a document of payment of value-added tax at the import stage or a document of payment of VAT on behalf of the foreign party according to the guidance of the Ministry of Finance applicable Applicable to foreign organizations without Vietnamese legal status and foreign individuals doing business or having income arising in Vietnam.

2. Have non-cash payment documents for purchased goods and services (including imported goods) of twenty million VND or more, except for cases where the value of imported goods and services is each time is worth less than twenty million VND, goods and services purchased each time according to invoices are less than twenty million VND at the price including VAT and in case the business establishment imports goods as gifts or gifts. gifts from organizations and individuals abroad.

Non-cash payment documents include bank payment documents and other non-cash payment documents guided in Clauses 3 and 4 of this Article.

3. Bank payment documents are understood as documents proving the transfer of money from the buyer's account to the seller's account opened at payment service providers according to appropriate payment methods. in accordance with current legal regulations such as checks, payment orders or payment orders, collection orders, collections, bank cards, credit cards, phone sims (e-wallets) and other forms of payment according to regulations. regulations (including the case where the buyer pays from the buyer's account to the seller's account named after the owner of a private enterprise or the buyer pays from the buyer's account named after the owner of a private enterprise to an account seller account).

a) Documents of the buyer paying cash to the seller's account or documents of payment in forms inconsistent with current law are not eligible for VAT deduction or refund for VAT. Goods and services purchased from twenty million VND or more.

b) Goods and services purchased each time according to invoices of twenty million VND or more at prices including VAT, if there is no proof of payment via bank, will not be deducted.

c) For goods and services purchased on deferred payment or installments with a value of twenty million VND or more, business establishments shall base on the written contract to purchase goods and services. , value-added invoices and bank payment documents of goods and services purchased on deferred payment or installment payments to declare and deduct input value-added tax. In case there is no proof of payment via bank due to the time of payment according to the contract, the business establishment can still declare and deduct input value added tax.

In case when making payment, the business establishment does not have payment documents via bank, the business establishment must declare and adjust the amount of VAT that has been deducted for the value of goods and services without payment. Payment documents via bank in the tax period in which cash payments arise (including in cases where tax authorities and functional agencies have decided to inspect and examine the tax period in which tax arises). VAT declared and deducted).

4. Other non-cash payment cases to deduct input VAT include:

a) In case of goods and services purchased by clearing payment method between the value of goods and services purchased and the value of goods and services sold, or borrowing goods, this payment method is regulated. Specifically defined in the contract, there must be a record of data comparison and confirmation between the two parties regarding the clearing between purchased goods and services with sold goods and services, or borrowed goods. In case of offsetting debts through a third party, there must be a debt offsetting record of three (3) parties as a basis for tax deduction.

b) In case of goods and services purchased by debt offsetting method such as borrowing or borrowing money; To offset debts through a third party, if this payment method is specifically stipulated in the contract, there must be a loan contract in the form of a previously made document and a document of money transfer from the customer's account. the lender to the borrower's account for a loan in money, including the case of offsetting the value of purchased goods and services with the amount of money the seller supports the buyer, or asking the buyer to pay household.

c) In case the purchased goods or services are authorized to be paid through a third party via bank (including cases where the seller requests the buyer to pay via bank to a third party by the seller). designated) then payment under authorization or payment to a third party as designated by the seller must be specifically stipulated in the contract in written form and the third party must be an active legal or natural person. act according to the provisions of law.

In case after making the above payment methods, the remaining value is paid in money with a value of 20 million VND or more, then tax will be deducted only in cases where there are payment documents via bank. row.

d) In case purchased goods and services are paid via bank to a third party account opened at the State Treasury to carry out enforcement by collecting money and assets from other organizations and individuals. currently held (according to the decision of a competent state agency), they are also entitled to deduct input VAT.

Example 68:

Company A buys goods from Company B and Company A still owes money for the goods from Company B. However, Company B still owes taxes to the state budget. Pursuant to the Law on Tax Administration, the tax authority collects money and assets of Company B held by Company A to implement tax administrative decisions, then when Company A transfers money to the budget collection account, it also is considered payment via bank, the input VAT amount corresponding to the sales of purchased goods is declared and deducted.

Example 69:

Company C signed an economic contract with Company D on the supply of goods and Company D still owes money for the goods from Company C.

Implement the decision of the competent state agency on requesting to collect the entire amount of money that Company D still owes to Company C to transfer to the account of the competent state agency opened at the State Treasury. to resolve "Goods purchase contract dispute" between Company C and its partner.

When Company D transfers the money back to the account of a competent state agency (this transfer is not specifically stipulated in the sales contract between Company C and Company D), this case is also allowed. Considered payment via bank, the input VAT amount corresponding to the sales of purchased goods is declared and deducted.

5. In case of purchasing goods or services from a supplier with a value of less than twenty million VND but purchasing multiple times in the same day with a total value of twenty million VND or more, tax deduction is only allowed for In case there are payment documents via bank. The supplier is a taxpayer with a tax code and directly declares and pays VAT.

In case the taxpayer is a business establishment with stores that are dependent units using the same tax code and invoice form of the business establishment, the invoice has the title "Store number" to differentiate. the business establishment's stores and each store's stamp is stamped, each store is a supplier.

Article 16. Conditions for input tax deduction and refund of exported goods and services

Exported goods and services (except for cases guided by Article 17 of this Circular) to be eligible for tax deduction and input VAT refund must meet the conditions and procedures stated in Clause 2, Article 9 and Clause 1, Article 15. XNUMX This Circular, specifically as follows:

1. Contracts for selling goods, processing goods (in case of processing goods), providing services to foreign organizations and individuals. In the case of export entrustment, it is the export entrustment contract and the record of liquidation of the export entrustment contract (in case the contract has ended) or the record of periodic debt reconciliation between the export entruster. and the export entrusted party must clearly state: quantity, product type, value of entrusted goods exported; number and date of the export contract signed by the export entrusted party with the foreign country; number, date, and amount recorded on payment documents via banks with foreign countries of the export entrusted party; number, date, and amount recorded on the payment documents of the export entrusted party making payment to the export entrusting party; number and date of the export goods customs declaration of the export entrusted party.

2. Customs declaration for exported goods that have completed customs procedures according to the Ministry of Finance's instructions on customs procedures; customs inspection and supervision; export tax, import tax and tax administration for exported and imported goods.

For business establishments that export software products in the form of hard-packaged documents, records, and databases to be deducted and refunded for input VAT, the business establishment must ensure compliance procedures. Customs declaration as for normal goods.

The following cases do not require a customs declaration:

– For business establishments exporting services and software via electronic means, a customs declaration is not required. Business establishments must fully comply with regulations on procedures to confirm that the buyer has received exported services and software via electronic means in accordance with the law on e-commerce.

- Construction and installation activities abroad or in non-tariff zones.

– Business establishments providing electricity, water, stationery and goods serving daily activities of export processing enterprises including: food, consumer goods (including labor protection: pants, coat, hat, shoes, boots, gloves).

3. Exported goods and services must be paid through banks

a) Payment via bank is the transfer of money from the importer's account to an account in the exporter's name opened at a bank according to payment methods consistent with the agreement in the contract and the bank's regulations. . Payment voucher is a credit note from the exporter's bank about the amount received from the importer's bank account. In case of late payment, there must be an agreement recorded in the export contract. By the payment deadline, the business establishment must have payment documents via bank. In case of export entrustment, there must be payment documents via the foreign bank to the entrusted party and the entrusted party must pay the exported goods through the bank to the entrusting party. In case the foreign party pays directly to the export entrusting party, the entrusting party must have payment documents via bank and the above payment must be stipulated in the contract.

b) The following payment cases are also considered payments via banks:

b.1) In case exported goods and services are paid off against foreign loans, the business establishment must meet the following conditions, procedures and documents:

– Loan contract (for financial loans with a term of less than 01 year); or loan registration confirmation from the State Bank of Vietnam (for loans over 01 year).

– Documents for foreign money transfer to Vietnam via bank.

The payment method for exported goods and services offset against foreign loan debt must be specified in the export contract.

– Foreign party's confirmation of loan debt offset.

– In case there is a difference after deducting the value of exported goods and services from the foreign loan debt, the difference must be paid via bank. Bank payment documents according to instructions at this point.

b.2) In case an export business establishment uses money to pay for exported goods and services to contribute capital to an import establishment abroad, the business establishment must have sufficient procedures and documents. as follows:

– Capital contribution contract.

– The use of money to pay for exported goods and services to contribute capital to import facilities abroad must be stipulated in the export contract.

– In case the capital contribution amount is less than the revenue from exported goods, the difference must be paid via bank according to the instructions at this point.

b.3) In case the foreign party authorizes a third party that is an organization or individual in a foreign country to make payment, the authorized payment must be stipulated in the export contract (contract appendix or contract adjustment document - if any).

b.4) In case the foreign party requests a third party that is an organization in Vietnam to clear the debt with the foreign party by making payment via bank for the amount of money the foreign party must pay to the business establishment. export business and the request for clearing debts mentioned above are stipulated in the export contract (contract appendix or contract adjustment document - if any) and have payment documents such as credit notes of the exporter's bank about the amount received from the third party's account, and at the same time the exporter must present a debt reconciliation certified by the foreign party and the third party.

b.5) ​​In case the foreign party (importing party) authorizes a third party that is an organization or individual abroad to make payment; The third party requests an organization in Vietnam (the fourth party) to clear the debt with the third party by making payment via bank for the amount the importer must pay to the exporting Vietnamese business establishment. Export business establishments must meet the following conditions and documents:

– The export contract (contract appendix or contract adjustment document - if any) stipulates authorization of payment and debt clearing between the parties.

– Payment voucher is a bank's credit notice of the amount of money the exporting Vietnamese business establishment receives from a fourth party's account.

– Debt reconciliation certified by related parties (between the export business establishment and the importer, between a third party abroad and a fourth party that is an organization in Vietnam).

b.6) In case the foreign party authorizes the Representative Office in Vietnam to make payment to the exporter's account and the above payment authorization is specified in the export contract (appendix to the contract). contract or contract adjustment document - if any).

b.7) In case the foreign party (except in cases where the foreign party is an individual) makes a payment from the foreign party's current deposit account opened at a credit institution in Vietnam, this payment must be stipulated in the export contract (contract appendix or contract adjustment document - if any). Payment documents are a credit note from the exporter's bank regarding the amount received from the current account of the foreign buyer who signed the contract.

In case of export to a foreign buyer who is a private enterprise and payment is made through the current account of the private enterprise owner opened at a credit institution in Vietnam and specified in the export contract ( Contract appendix or contract adjustment document - if any) is determined to be payment via bank.

When checking tax deduction and refund for exported goods paid via current account, tax authorities need to coordinate with the credit institution where the foreign buyer opens an account to ensure payment. Money transfer is carried out for the right purpose and in accordance with the provisions of law. People entering the country and bringing money across the border must clearly declare the amount of money they bring as specific payment for each goods purchase contract and goods export declaration; At the same time, present the goods purchase contract and export declaration for customs officials to check and compare. In case the person entering the country is not a representative of a foreign enterprise directly signing a sales contract with a Vietnamese enterprise, a power of attorney (Vietnamese or English translation, along with the original in the language of the host country) is required. contiguous border gate) of the foreign organization or individual that has signed the above sales contract. This authorization letter only applies to one time bringing money into Vietnam and must clearly state the amount of money brought in according to the specific sales contract.

b.8) In case the foreign party pays via bank but the payment amount on the documents does not match the payment amount as agreed in the contract or contract appendix:

– If the payment amount on the bank payment voucher is worth less than the amount to be paid as agreed in the contract or contract appendix, the business establishment must clearly explain the reason such as: fees. Bank money transfer, price reduction adjustment due to poor quality or shortage of goods (in this case, there must be a written price reduction agreement between the buyer and seller)...;

– If the payment amount on the bank payment voucher is worth more than the amount to be paid as agreed in the contract or contract appendix, the business establishment must clearly explain the reason such as: payment. One-time payment for many contracts, advance payments...

Business establishments must commit to being responsible before the law for reasons explained to tax authorities and adjustment documents (if any).

b.9) In case the foreign party pays via bank but the bank payment documents do not match the name of the bank to pay as agreed in the contract, if the content of the document clearly shows the name of the payer, Beneficiary name, export contract number, payment value consistent with the signed export contract will be accepted as valid payment documents.

b.10) In case a business establishment exports goods and services to a foreign party (second party) and simultaneously imports goods and services with another foreign party or purchases goods with an organization or individual in Vietnam (third party); If the business establishment has an agreement with the second party and the third party that the second party makes payment via bank to the third party for the amount that the business establishment still has to pay to the third party, then compensation shall be made. Payment deductions between the parties must be specified in the export contract, import contract or purchase contract (contract appendix or contract adjustment document - if any) and the business establishment must present a copy of the contract. Compare debts with confirmation from related parties (between business establishments and second parties, between business establishments and third parties).

b.11) In case the goods are exported to a foreign country but for objective reasons the foreign side refuses to accept the goods and the business establishment finds a new customer in the same country as the customer who signed the original sales contract. To sell the above batch of goods, the tax refund dossier includes all export documents related to the export contract signed with the original customer (contract, customs declaration for exported goods, invoice). , a written explanation from the business establishment on the reason for the discrepancy in the customer's name (in which the business establishment commits to take responsibility for the accuracy of the information, ensuring there is no fraud), all set of export documents related to export contracts signed with new customers (contracts, sales invoices, bank payment documents according to regulations and other documents - if any).

c) Other payment cases for exported goods and services according to Government regulations:

c.1) In case of labor export where the labor export business collects money directly from the worker, there must be proof of payment from the worker.

c.2) In case a business establishment exports goods for sale at fairs or exhibitions abroad, if it is collected and remitted back home in foreign currency in the country where the trade fair or exhibition is held, the establishment Businesses must have documents to declare to the Customs authority the foreign currency earned from selling goods transferred back to the country and documents to pay money to banks in Vietnam.

c.3) In case of exporting goods and services to pay foreign debt to the Government, there must be confirmation from the foreign trade bank that the exported goods have been accepted by the foreign side to deduct debt or confirmation of the set of documents. Words have been sent to foreign parties to offset debt; Payment documents shall comply with the instructions of the Ministry of Finance.

c.4) In case of exported goods and services paid for in goods, this is the case of exporting goods (including processing of exported goods) and services to foreign organizations and individuals (referred to as the foreign party). foreign countries), but the payment between Vietnamese enterprises and foreign parties is in the form of offsetting the value of exported goods and services, and wages for processing exported goods with the value of goods and services purchased from foreign countries. foreign side.

Exported goods and services paid for in goods must have additional documentation procedures as follows:

– Payment method for exported goods in goods must be specified in the export contract.

– Contract to purchase goods and services from foreign parties.

– Customs declaration of imported goods cleared with exported goods and services.

– Document confirming with the foreign party the clearing amount between exported goods and services and imported goods and services purchased from the foreign party.

– In case there is a difference after clearing between the value of exported goods and services and the value of imported goods and services, the difference must be paid through the Bank. Payment documents via Bank according to the instructions in this Clause.

c.5) In case of exporting goods to bordering countries according to the Prime Minister's regulations on the management of border trade activities with bordering countries, follow the guidance of the Ministry of Finance. Government and the State Bank.

c.6) Some cases of exported goods and services have other forms of payment according to relevant laws.

d) Cases of export without bank payment documents are eligible for tax deduction and refund:

d.1) In case the foreign party becomes insolvent, the exporter must have a written explanation explaining the reason and may use one of the following documents to replace payment documents. Payment via bank:

– Customs declaration of goods imported from Vietnam registered with the customs authority in the importing country (01 copy); or

– Petition to the court or competent authority in the country where the buyer resides, accompanied by a notice or documents confirming this agency's acceptance of the petition (01 copy); or

– Winning judgment of a foreign court for a business establishment (01 copy); or

– Documents from a foreign competent organization confirming (or notifying) the foreign buyer's bankruptcy or insolvency (01 copy).

d.2) In cases where exported goods do not meet quality standards and must be destroyed, the exporting facility must have a written explanation explaining the reason and be able to use the destruction record (or confirmation documents). destruction) of goods abroad by the agency carrying out the destruction (01 copy), accompanied by proof of payment via bank for destruction costs that are the responsibility of the goods exporting facility or enclosed Documents proving destruction costs are the responsibility of the buyer or a third party (01 copy).

In case the importer of goods must carry out destruction procedures abroad, the destruction record (or documents confirming the destruction) must record the name of the importer of the goods.

d.3) In case the exported goods are damaged, the exporting facility must have a written explanation clearly explaining the reason and may use one of the following documents to replace payment documents. via the bank:

– Certificate of loss outside Vietnam's borders from the relevant competent authority (01 copy); or

– Minutes of determining loss of goods during transportation beyond Vietnam's borders clearly stating the cause of loss (01 copy).

If the export facility has received compensation for exported goods lost outside Vietnam's borders, it must attach a bank payment document for the amount received (01 copy).

Copies of the documents guided at Points d.1, d.2 and d.3 of this Clause, copies certified as true copies by the exporting facility. In case the language used in documents and third party confirmation documents replacing bank payment documents is not English or does not have English, a notarized translation must be attached. In case related parties issue, use and store documents in electronic form, there must be paper copies.

Goods export establishments are fully responsible for the accuracy of documents replacing bank payment documents for the above cases.

4. Commercial invoice. The date of determining export revenue for tax calculation is the date of confirmation of completion of customs procedures on the customs declaration.

Article 17. Conditions for deduction and refund of input VAT for some cases where goods are considered exported

1. Forwarded processed goods according to the provisions of commercial law on international goods purchase and sale activities and goods purchase, sale and processing agency activities with foreign countries:

a) Export processing contract and contract accessories (if any) signed with foreign countries, clearly stating the goods receiving facility in Vietnam.

b) The VAT invoice clearly states the processing price and quantity of processed goods paid to the foreign country (according to the price specified in the contract signed with the foreign country) and the name of the facility receiving the goods as designated by the foreign party.

c) The transfer note of transitional processed products (referred to as Transition Note) has sufficient confirmation from the deliverer, the recipient of transitional processed products and confirmation from the Customs in charge of the transferor's processing contract. , the receiving party.

d) Goods processed for foreign countries must be paid through the Bank according to the instructions in Article 16 of this Circular.

Regarding procedures for delivery and receipt of transitional processed products and transition slips, follow the instructions of the General Department of Customs.

Example 70: Company A signs a processing contract with a foreign country for 200.000 pairs of shoe soles for export. Processing price is 800 million VND. The contract clearly states that shoe soles will be delivered to Company B in Vietnam to produce complete shoes.

In this case, Company A is subject to processing transitional export goods. When preparing a document to transfer shoe sole products to Company B, Company A clearly states the quantity, type, and specifications of the products delivered, and the entire shoe sole processing revenue of 800 million VND received for VAT calculation is 0%.

2. Goods exported on the spot according to the provisions of law:

a) Goods purchase contract or processing contract specifying delivery in Vietnam;

b) Customs declaration of exported and imported goods on the spot with customs procedures completed;

c) Value-added invoice or export invoice clearly stating the name of the foreign buyer, the name of the receiving enterprise and the delivery location in Vietnam;

d) Goods sold to foreign traders but delivered in Vietnam must be paid via bank in freely convertible foreign currency. Payment documents via bank according to the instructions in Clause 3, Article 16 of this Circular. In case the on-site importer is authorized by the foreign party to make payment to the on-site exporter, the payment currency shall comply with the provisions of foreign exchange law.

d) On-site export goods of foreign-invested enterprises must comply with the provisions of the investment license.

3. For goods and materials exported by Vietnamese enterprises to carry out construction works abroad, the documentation procedures for Vietnamese enterprises to carry out construction works abroad are eligible for VAT deduction or refund. The input must meet the following conditions:

a) Customs declaration as prescribed in Clause 2, Article 16 of this Circular.

b) Exported goods and materials must conform to the List of exported goods to carry out construction works abroad approved by the Director of the Vietnamese enterprise carrying out construction works abroad.

c) Export entrustment contract (in case of export entrustment).

4. For goods and materials sold by domestic business establishments to Vietnamese enterprises to carry out construction projects abroad and deliver goods abroad according to the signed contract, the documentation procedures are to be followed. Domestic business establishments selling goods that deduct or refund input VAT on exported goods must meet the following conditions:

a) Customs declaration as prescribed in Clause 2, Article 16 of this Circular.

b) Exported goods and materials must conform to the List of goods exported for construction projects abroad approved by the Director of the Vietnamese enterprise carrying out construction projects abroad.

c) Sales contract signed between a domestic business establishment and a Vietnamese enterprise carrying out construction projects abroad, clearly stating the delivery conditions, quantity, type and value of goods .

d) Entrustment contract (in case of export entrustment).

d) Payment documents via bank.

e) VAT invoice for sales of goods.

Cases where a business establishment has exported goods or goods considered to be exported are guided in Article 16 and Article 17 of this Circular if there is confirmation from the Customs authority (for exported goods) but If there are not enough other procedures and documents for each specific case, output VAT will not be calculated but input VAT will not be deducted. Particularly in the case of transitional processed goods and on-site exported goods, if one of the prescribed procedures and documents is not available, VAT must be calculated and paid as for domestically consumed goods. For business establishments with export services that do not meet the conditions for payment via bank or are considered to be payment via bank, the 0% VAT rate will not be applied, and input VAT will not be calculated. output but no input tax deduction.

Section 2. TAX REFUND

Article 18. Subjects and cases eligible for VAT refund

1. Business establishments pay VAT according to the tax deduction method if there is input VAT that has not been fully deducted in the month (in case of monthly declaration) or in the quarter (in case of monthly declaration). quarter) is deducted in the next period.

In case a business establishment has VAT that has not been fully deducted before the tax period of July 7 (in case of monthly declaration) or before the tax period of quarter 2016/3 (in case of monthly declaration). declared quarterly) are eligible for VAT refund according to the instructions in Clause 2016, Article 1 of Circular No. 18/219/TT-BTC, the tax authority will resolve the tax refund according to the provisions of law.

For example: Company A declares VAT quarterly. In the tax period of quarter 3/2016, if the VAT amount that has not been fully deducted is 80 million, company A will be deducted in the tax period of quarter 4/2016. In case the tax periods of quarter 4/2016, quarter 1/2017 and quarter 2/2017 still have the VAT amount that has not been fully deducted, enterprise A will transfer the VAT amount that has not been fully deducted to continue deduction in the period. Tax calculation for the third quarter of 3 and subsequent tax periods.

2. Business establishments are entitled to value added tax refund for investment projects according to the provisions of Clause 3, Article 1 of Decree No. 49/2022/ND-CP dated July 29, 7 of the Government.

3. (replaced)

4. Tax refund for exported goods and services

a) Business establishments in the month (in case of monthly declaration), quarter (in case of quarterly declaration) have exported goods and services, including the case of: Subsequent imported goods export to non-tariff zones; Imported goods then exported abroad, with an undeducted input value-added tax amount of 300 million VND or more, will receive a monthly or quarterly value-added tax refund; In case in a month or quarter, the amount of input value added tax that has not been deducted is less than 300 million VND, it will be deducted in the next month or quarter.

If a business establishment has both exported goods and services and domestically consumed goods and services in the month/quarter, the business establishment must separately account the input VAT used for production and business. exported goods and services. In cases where separate accounting is not possible, the input value-added tax amount of exported goods and services is determined according to the ratio of revenue of exported goods and services to total revenue of goods and services. of value-added tax declaration periods from the tax declaration period following the previous tax refund period to the current tax refund request period.

The input VAT amount of exported goods and services (including the input VAT amount that can be accounted separately and the input VAT amount allocated according to the ratio above) if after offsetting with the VAT amount must be of the remaining domestically consumed goods and services of 300 million VND or more, the business establishment will receive a tax refund for exported goods and services. The refundable VAT amount of exported goods and services must not exceed the revenue of exported goods and services multiplied by (x) 10%.

Subjects eligible for tax refund in some export cases are as follows: For cases of entrusted export, are establishments that have goods entrusted for export; For transitional processing, it is the basis for signing export processing contracts with foreign parties; For goods exported to carry out construction works abroad, it is an enterprise that has goods and materials exported to carry out construction works abroad; For on-site exported goods, it is a business establishment that has on-site exported goods.

b) Business establishments are not entitled to a value-added tax refund in the case of: Goods imported and then exported but those exported goods are not exported in the customs operating area according to the provisions of customs laws; Exported goods are not exported in customs operating areas according to the provisions of customs law.

c) Tax authorities shall refund taxes first and check later for taxpayers producing exported goods that are not handled for acts of smuggling, illegal transportation of goods across borders, tax evasion, or fraud. Tax fraud and commercial fraud for two consecutive years; Taxpayers are not subject to high risk according to the provisions of the Law on Tax Administration and its guiding documents.

5. Business establishments that pay value-added tax using the tax credit method are entitled to a refund of value-added tax when converting ownership, converting businesses, merging, consolidating, dividing, separating, dissolving, or dissolving assets, termination of operations with overpaid value-added tax or input value-added tax that has not been fully deducted.

Business establishments in the investment phase have not yet entered production and business activities but must be dissolved, go bankrupt or terminate operations without incurring output value-added tax of the main business activities according to the investment project. There is no need to adjust the declared, deducted or refunded value-added tax amount. Business establishments must notify the directly managing tax authority of dissolution, bankruptcy, or termination of operations according to regulations.

In case the business establishment completes all procedures according to the provisions of the law on dissolution and bankruptcy, the refunded VAT amount shall comply with the provisions of the law on dissolution, bankruptcy and management. tax management; For VAT amounts that have not been refunded, tax refunds will not be processed.

In case a business establishment terminates operations and does not incur output VAT from its main business activities, the refunded tax amount must be returned to the state budget. In case there is a sale of assets subject to VAT, there is no need to adjust the corresponding input VAT amount of the assets sold.

For example: In 2015, enterprise A was in the investment phase and had not yet entered production and business activities. Enterprise A incurred input VAT from the investment phase that was refunded by the tax authority in August. 8 is 2015 million VND. Due to difficulties, in February 700, enterprise A decided to dissolve and sent a document to the tax authority about the dissolution, but during the period when enterprise A had not completed the legal procedures for dissolution, the tax authority had not yet completed the dissolution process. Recover refunded VAT. Twenty days before enterprise A has enough legal procedures to officially dissolve in October 02, if the enterprise sells one (2016) invested asset, enterprise A does not have to readjust the tax amount. Corresponding input VAT of the sold assets (tax amount refunded by the tax authority). For unsold assets, business A must declare adjustments to repay the refunded VAT amount.

6. VAT refund for programs and projects using non-refundable official development assistance (ODA) capital or non-refundable aid or humanitarian aid.

a) For projects using non-refundable ODA capital: the program or project owner or main contractor or organization designated by the foreign sponsor to manage the program or project will be refunded the VAT amount paid for goods and services purchased in Vietnam for use in programs and projects.

b) Organizations in Vietnam use humanitarian aid money from foreign organizations and individuals to purchase goods and services to serve non-refundable aid and humanitarian aid programs and projects in Vietnam will be refunded the VAT paid on those goods and services.

For example, the Red Cross received 200 million VND from the International Organization to purchase humanitarian aid for people in provinces affected by natural disasters. The value of purchased goods without tax is 200 million VND, VAT is 20 million VND. The Red Cross will receive a tax refund of 20 million VND according to regulations.

Refund of VAT paid for programs and projects using non-refundable official development assistance (ODA) capital is carried out according to the guidance of the Ministry of Finance.

7. Subjects entitled to diplomatic immunities and privileges according to the provisions of law on diplomatic immunities and privileges that purchase goods and services in Vietnam for use will receive a refund of the value added tax paid above. The value-added invoice or payment document states that the payment price includes value-added tax.

8. Foreigners and Vietnamese residing abroad holding passports or entry documents issued by foreign competent authorities are entitled to tax refunds on goods purchased in Vietnam and brought with them when leaving the country. VAT refund is carried out in accordance with the Ministry of Finance's instructions on VAT refund for goods purchased in Vietnam by foreigners and Vietnamese residing abroad when they leave the country.

9. The business establishment has a decision on tax refund processing from a competent authority in accordance with the provisions of law and in the case of value-added tax refund according to international treaties to which the Socialist Republic of Vietnam is a member. pellets.

Article 19. Conditions and procedures for VAT refund

1. Business establishments and organizations eligible for VAT refund according to the instructions in Points 1, 2, 3, 4, 5, Article 18 of this Circular must be business establishments that pay tax using the deduction method. has been granted a business registration certificate or investment license (practice license) or establishment decision from a competent authority, has a seal in accordance with the provisions of law, prepares and maintains accounting books. accounting and accounting documents according to the provisions of law on accounting; Have a deposit account at a bank according to the business establishment's tax code.

2. In cases where business establishments have declared and requested a tax refund on the VAT declaration, they are not allowed to transfer the input tax amount requested for tax refund into the deductible tax amount of the following month.

3. VAT refund procedures are carried out in accordance with the provisions of the Law on Tax Administration and guiding documents.

Article 20. Place of tax payment

1. Taxpayers declare and pay VAT in the locality where they produce and do business.

2. Taxpayers who declare and pay VAT using the deduction method and have a dependent accounting production facility located in a province or centrally run city other than the province or city where their head office is located must Pay VAT in the locality where the production facility is located and the locality where the head office is located.

3. In case an enterprise or cooperative applying the direct method has a production facility in a province or city other than where its headquarters is located or has temporary sales activities outside the province, the enterprise or cooperative shall carry out Currently declare and pay VAT according to the percentage of revenue for revenue generated outside the province in the locality where the production facility is located and where temporary sales are located. Enterprises and cooperatives do not have to pay VAT according to the percentage of revenue at the head office for revenue generated outside the province that has been declared and paid tax.

4. In case a telecommunications service business establishment provides postpaid telecommunications services in a province or centrally run city different from the province or city where its head office is located and its branch is established. Dependent accounting and payment of VAT according to the deduction method and participating in the business of postpaid telecommunications services in that locality, the telecommunications service business establishment shall declare and pay VAT on telecommunications services. Postpaid fees are as follows:

– Declare VAT on revenue from postpaid telecommunications services of all business establishments with the tax authority directly managing the head office.

– Pay VAT in the locality where the head office is located and in the locality where the dependent accounting branch is located.

The amount of VAT payable in the locality where the dependent accounting branch is located is determined at the rate of 2% (for postpaid telecommunications services subject to VAT at a tax rate of 10%) on revenue (no tax). VAT) postpaid telecommunications services in the locality where the dependent accounting branch is located.

5. Tax declaration and payment of VAT are carried out in accordance with the provisions of the Law on Tax Administration and documents guiding the implementation of the Law on Tax Administration.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 21. Enforcement

1. This Circular takes effect from January 01, 01, replacing Circular No. 2014/06/TT-BTC dated January 2012, 11 and Circular No. 01/2012/TT-BTC dated January 65, 2013. May 17 of the Ministry of Finance.

2. For cases where from July 1, 7, business establishments declare VAT quarterly, it must be before the tax period of January 2013 (in case of monthly declaration) or before the tax period. In the first quarter of 1 (in case of quarterly declaration), business establishments will receive a VAT refund if in 2014 consecutive tax periods there is input VAT that has not been fully deducted.

Example 85: Enterprise A in May 5, June 2013 declares taxes monthly, and in the third quarter of 6 declares taxes quarterly, then if May 2013, June 3 and quarter 2013/5 In case of input VAT that has not been fully deducted, at the end of the third quarter of 2013, company A will receive a VAT refund.

Example 86: Company B in June 6 declares tax monthly, and in the third quarter of 2013 declares quarterly tax, then if June 3, quarter 2013/6 and quarter 2013/3 all incur tax If input VAT has not been fully deducted, at the end of the 2013th quarter of 4, company B will receive a VAT refund.

3. In case before the January 1 tax period (for monthly declaration) or before the first quarter 2014 tax period (for quarterly declaration), eligible businesses If you receive a tax refund according to the instructions in Circular No. 1/2014/TT-BTC dated January 06, 2012, and Circular No. 11/01/TT-BTC dated May 2012, 65 of the Ministry of Finance, you will receive a VAT refund according to guidance of Circular No. 2013/17/TT-BTC and Circular No. 5/2013/TT-BTC mentioned above.

In case the end of the tax period of December 12 (for cases of monthly declaration) or the end of the tax period of quarter 2013/4 (for cases of quarterly declaration), the business establishment has not completed 2013 periods. Continuously calculating tax with input VAT that has not been fully deducted, the input VAT that has not been fully deducted and not refunded in 3 will be carried forward to 2013 to declare deduction and apply tax refund according to the direction referred to in Clause 2014, Article 1 of this Circular.

Example 87: Enterprise A has 3 months (October 10, November 2013, December 11) in which input VAT has not been fully deducted, then enterprise A will receive a VAT refund according to the instructions in Clause 2013. Article 12 Circular No. 2013/1/TT-BTC dated January 18, 06 of the Ministry of Finance.

Example 88: In October 10, Enterprise B incurred VAT payable, but in November 2013 and December 11, it had input VAT that had not been fully deducted until the end of the December tax period. In 2013, enterprise B is not eligible for VAT refund according to the instructions in Circular No. 12/2013/TT-BTC, then the VAT amount that has not been deducted in November and December 12 will be carried forward to 2013 for refund consideration. VAT according to the instructions in Clause 06, Article 2012 of this Circular.

Example 89: Enterprise C in the 3rd quarter of 2013 incurred tax payable. In the 4th quarter of 2013, the input VAT amount has not been fully deducted, then the undeducted VAT amount of the 4th quarter 2013 will be carried forward. to 2014 to consider VAT refund according to the instructions in Clause 1, Article 18 of this Circular.

4. For VAT invoices for purchases of goods that are fixed assets arising before January 01, 01, business establishments shall make deductions according to the instructions in Circular No. 2014/06/TT-BTC dated January 2012, 11. 1/2012 and Circular No. 65/2013/TT-BTC dated May 17, 5 of the Ministry of Finance; For VAT invoices for purchases of goods that are fixed assets arising from January 2013, 01, business establishments shall make deductions according to the instructions in this Circular.

5. For VAT invoices for purchases of goods that are crop, livestock, and aquatic products that have not been processed into other products or have only undergone normal preliminary processing, arising before January 01, 01, the Tax Department is requested to Require business establishments to declare in the List of purchased goods and services according to the VAT declaration of the December 2014 tax period or the fourth quarter of 12 to submit to the tax authority within the prescribed deadline.

Article 22. Organization of VAT collection

1. The Tax Authority is responsible for organizing and implementing the management of value-added tax collection and VAT refund for business establishments.

2. The Customs agency is responsible for organizing and implementing the management and collection of VAT on imported goods.

During the implementation process, if there are any difficulties or problems, units and business establishments are requested to promptly report them to the Ministry of Finance for timely resolution./.

                           CONSOLIDATED DOCUMENT AUTHORIZATION

                          KT MINISTER

                           DEPUTY

                              Cao Anh Tuan
 

APPENDIX

LIST OF INDUSTRIES THAT CALCULATE VAT AS A % OF REVENUE
(Issued together with Circular No. 219/2013/TT-BTC dated December 31, 12 of the Ministry of Finance)

1) Distribution and supply of goods: rate of 1%

– Wholesale and retail activities of all kinds of goods (except for the value of goods sold by agents at the correct price to earn commission).

2) Services and construction excluding raw materials: rate of 5%

– Accommodation services, hotel, motel, boarding house business;

– House, land, shop, factory rental services, property rental and other personal belongings;

– Warehouse, machinery, and transportation rental services; Loading and unloading of goods and other support service activities related to transportation such as yard business, ticket sales, vehicle keeping;

– Postal services, delivery of letters and parcels;

– Brokerage, auction and agency commission services;

– Legal consulting services, financial consulting, accounting, auditing; tax and customs administrative services;

– Data processing services, information portal rental, information technology and telecommunications equipment;

– Office support services and other business support services;

– Services of sauna, massage, karaoke, discotheque, billiards, internet, games;

– Tailoring and laundry services; Haircut, hairdressing, shampooing;

– Other repair services include: repairing computers and household appliances;

– Consulting services, design, supervision of basic construction;

– Other services;

– Construction and installation do not include raw materials (including installation of machinery and industrial equipment).

3) Production, transportation, services associated with goods, construction with raw materials included: rate of 3%

- Producing, processing and processing products and goods;

- Mining and processing of minerals;

- Transport of goods, transport of passengers;

- Services attached to the sale of goods such as training, maintenance, technology transfer services accompanied by the sale of products;

- Food Service;

– Repair and maintenance services for machinery, equipment, means of transport, cars, motorbikes, motorbikes and other motor vehicles;

– Construction and installation including raw materials (including installation of machinery and industrial equipment).

4) Other business activities: ratio 2%

- Production of products subject to VAT calculation by the credit method with the VAT rate of 5%;

- The provision of services subject to VAT calculation by the credit method with the VAT rate of 5%;

– Other activities not listed in groups 1, 2, 3 above.