CIRCULAR

Guidelines for managing tax collection on firework production and business activities

Pursuant to the Special Consumption Tax Law;

To effectively implement the management of firework production and business activities, strengthen inspection to prevent tax evasion on special consumption tax for fireworks as per the Prime Minister's Decision at Office Circular No. 47/KTTH dated January 5, 1994 of the Government Office;

The Ministry of Finance hereby provides specific guidelines regarding the management and tax collection for firework production and business activities as follows:

1. Organize comprehensive inspections and controls over all organizations and individuals engaged in firework production and business activities within the local area.

Tax authorities at all levels shall cooperate with market management forces and police to conduct thorough inspections of all organizations and individuals involved in firework production and business activities, linking registration for production and business with tax collection inspections:

a) For establishments currently operating in firework production and business without a production or business permit, such activities will be considered illegal and must be halted, with confiscated fireworks and equipment used for illegal production or transportation, fined at the highest rate for tax evasion and administrative violations; no measures allowing continued production or business operations shall be applied. In cases of serious violations, files should be prepared to request legal authorities to pursue criminal responsibility.

b) For establishments that have been granted permits for firework production and business, inspections must be conducted to examine:

+ Compliance with safety regulations for firework production and business;

+ Registration and declaration of tax payments, and the use of sales invoices.

Establishments failing to fully comply with registration and declaration requirements for tax payments and the use of sales invoices shall be subject to fines for tax evasion and administrative violations based on the nature and severity of the violation. Those lacking safety conditions and failing to comply with tax payment regulations shall face severe penalties and may have their production and business permits revoked.

2. Strengthen and improve the work of inspecting and collecting special consumption taxes and other types of taxes in accordance with the law for firework production and business establishments.

- Require establishments with permits for firework production and business to fully comply with registration and declaration requirements for tax payments and to specifically register the name, brand, and label of fireworks produced with the tax authority and market management agency.

- All firework production and business establishments must use sales invoices when buying and selling fireworks as required, and declare and pay taxes accurately according to the quantity and type of fireworks produced and sold, and in accordance with the special consumption tax rates set by the tax authority.

The tax authority must regularly and strictly inspect the purchase and sale of fireworks and the declaration and payment of taxes, not applying tax quotas to firework production and business establishments, and firmly penalizing those engaging in business transactions without invoices and those violating tax laws.

3. Regarding the tax calculation price for firework production.

Based on the Special Consumption Tax Law and the need to manage tax collection for fireworks to limit their use, the Ministry of Finance has determined the tax calculation prices for certain domestically produced firework types as follows:

- Firecrackers (180-200 pieces of medium size without whistling firecrackers), tax calculation price 3000 VND per piece, special consumption tax 3000 VND per piece.

- Small firecrackers (teep) 20 cm long, tax calculation price 1000 VND per piece, special consumption tax 1000 VND per piece.

- Firework strings (non-explosive light-emitting strings) 20-25 cm long, tax calculation price 2000 VND per 100 strings, special consumption tax 2000 VND per 100 strings.

- Firework flowers and trees combining various types of fireworks and multiple pieces, tax calculation price 2000 VND per 100 pieces, special consumption tax 2000 VND per 100 pieces.

Based on the tax calculation prices for these types of fireworks, the Tax Departments shall determine and announce specific tax calculation prices and special consumption tax amounts payable for locally produced fireworks, with the minimum tax calculation price being three times the local selling price. The tax calculation prices specified in this Circular shall serve as the basis for tax recovery and tax penalties.

4. For confiscated fireworks, they shall be managed and disposed of by the local market management agency according to the decision of the People's Committee of the locality. For unsafe fireworks, they should be destroyed; for usable fireworks, specific prices should be determined and handed over to state-owned trading organizations for sale, with proceeds paid into the State budget.

5. Tax officials and personnel participating in the management and prevention of illegal firework production and business activities shall be eligible for commendation based on their achievements. The source of rewards and the percentage of rewards shall be implemented according to current regulations. Tax officials who commit violations during the performance of their duties shall be disciplined.

6. The Tax Department is responsible for reporting to the Provincial People's Committee to take specific measures, organizing tax department staff to cooperate with relevant departments to conduct comprehensive and continuous inspections of local firework production and business activities, focusing on thorough inspections from now until Tet (Lunar New Year) according to the above requirements and measures, and handling violations resolutely.

7. This Circular takes effect from the date of signature.

Any difficulties encountered during implementation should be reported to the Ministry of Finance for supplementary guidance./.