Circular No. 05/2012/TT-BTC guiding the implementation of Decree No. 26/2009/NĐ-CP dated March 16, 2009, and Decree No. 113/2011/NĐ-CP dated December 8, 2011 of the Government amending and supplementing some articles of Decree No. 26/2009/NĐ-CP dated March 16, 2009 on detailed regulations for the implementation of certain provisions of the Special Consumption Tax Law.

CIRCULAR

Implementing Directive of Government Decree No. 26/2009/NĐ-CP dated March 16, 2009 and Government Decree No. 113/2011/NĐ-CP dated December 8, 2011

amending and supplementing certain Articles of Government Decree No. 26/2009/NĐ-CP dated March 16, 2009 detailing the implementation of certain provisions of the Special Consumption Tax Law

 of the Government amending and supplementing certain provisions of Government Decree No.

 26/2009/NĐ-CP dated March 16, 2009 detailing the implementation of certain provisions of the Special Consumption Tax Law

___________________

Pursuant to the Law on Special Consumption Tax No. 27/2008/QH12 dated November 14, 2008;

Pursuant to the Law on Tax Administration No. 78/2006/QH11 dated November 29, 2006;

Pursuant to Government Decree No. 26/2009/NĐ-CP dated March 16, 2009 of the Government detailing the implementation of certain provisions of the Special Consumption Tax Law and Government Decree No. 113/2011/NĐ-CP dated December 8, 2011 of the Government amending and supplementing certain provisions of Government Decree No. 26/2009/NĐ-CP dated March 16, 2009 detailing the implementation of certain provisions of the Special Consumption Tax Law;

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

The Ministry of Finance hereby issues this Circular to implement Government Decree No. 26/2009/NĐ-CP dated March 16, 2009 and Government Decree No. 113/2011/NĐ-CP dated December 8, 2011 of the Government amending and supplementing certain provisions of Government Decree No. 26/2009/NĐ-CP dated March 16, 2009 detailing the implementation of certain provisions of the Special Consumption Tax Law.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular implements Government Decree No. 26/2009/NĐ-CP dated March 16, 2009 and Government Decree No. 113/2011/NĐ-CP dated December 8, 2011 of the Government amending and supplementing certain provisions of Government Decree No. 26/2009/NĐ-CP dated March 16, 2009 detailing the implementation of certain provisions of the Special Consumption Tax Law.

Article 2. Taxable Objects

The objects subject to special consumption tax (SCT) shall be implemented in accordance with Article 2 of the Special Consumption Tax Law No. 27/2008/QH12, Article 2 of Government Decree No. 26/2009/NĐ-CP dated March 16, 2009 of the Government, Clause 1 of Article 1 of Government Decree No. 113/2011/NĐ-CP dated December 8, 2011 of the Government.

For air conditioning units with a capacity of up to 90,000 BTU falling within the scope of SCT objects: In cases where production facilities sell or import separately each component part being the indoor unit or outdoor unit, the goods sold or imported (indoor unit, outdoor unit) still fall within the scope of SCT objects like complete products (complete air conditioning units).

1. For imported goods exempt from special consumption tax as specified in Point a, Clause 2, Article 3 of the Special Consumption Tax Law, including:

Goods specified in Article 2 of this Circular are not subject to special consumption tax in the following cases:

1. Goods produced or processed directly for export or sold, entrusted to other trading enterprises for export include:

1.1. Goods directly exported abroad by production or processing facilities including goods sold or processed for export processing enterprises, except passenger cars under 24 seats sold to export processing enterprises.

Production facilities having goods that are not subject to SCT as stipulated herein must have documentation proving that the goods have actually been exported, specifically as follows:

- Sales contract or contract for processing for foreign countries.

- Export sales invoice or payment receipt, settlement of processing fees.

- Export declaration form.

- Bank payment voucher.

Bank payment is the transfer of money from the importer's account to the exporter's account opened at the bank according to appropriate payment methods agreed upon in the contract and bank regulations. Payment vouchers are bank statements indicating the amount received from the importer's account. In case of delayed payment, there must be an agreement recorded in the export contract, and at the time of payment, the enterprise must provide bank payment vouchers. In case of entrusted export, the entrusted export enterprise must settle payments overseas through a bank.

1.2. Production facilities producing goods subject to SCT if temporarily exported and re-imported under temporary export and re-import permits, during the period exempt from export duties and import duties according to the prescribed regime, when re-imported, they are not required to pay SCT, but when the production facility sells these goods, it must pay SCT.

1.3. Goods produced and sold or entrusted to trading enterprises for export under economic contracts for export.

Production facilities having goods that are not subject to SCT as stipulated herein must have documentation proving that the goods have actually been exported as follows:

- Sales contract for export or entrustment export contract between the production facility and the export trading enterprise.

- Sales invoice, consignment export delivery note.

- Liquidation record (full or partial liquidation) of the sales contract for export or consignment export contract clearly stating the following contents:

Name, quantity, type, item, selling price of the goods actually exported; payment method; amount and number, date of payment voucher for exported goods from the foreign buyer to the exporting enterprise; amount and number, date of payment voucher between the production facility and the exporting enterprise or the consignment export enterprise; number, date of the export contract, copy of the customs declaration for exported goods.

For goods exported by the exporting enterprise purchased or consigned for export but not exported and consumed domestically, the exporting enterprise must declare and pay SCT on these goods when they are sold domestically.

1.4. Goods taken out of the country for sale at overseas trade fairs.

Enterprises having goods taken out of the country for sale at overseas trade fairs must have the following procedures:

- Invitation letter or registration form for participation in overseas trade fairs.

- Export declaration form confirmed by the Customs authority regarding the exported goods.

- List of goods sold at the trade fair.

- Payment vouchers for goods sold at the trade fair, in cases of cash sales exceeding the specified value, they must declare to the Customs authority and provide proof of depositing money into the bank according to current regulations.

2. Goods imported in the following cases:

2.1. Humanitarian aid, non-repayable aid; gifts, presents including:

a) Humanitarian aid and non-repayable aid, including goods imported using non-repayable aid sources approved by competent authorities; humanitarian assistance and emergency relief aimed at mitigating the consequences of war, natural disasters, and epidemics.

b) Gifts from organizations and individuals abroad to state agencies, political organizations, socio-political organizations, socio-professional organizations, social organizations, socio-professional organizations, and people's armed units.

a) Goods transported from the exporting country to the importing country through Vietnamese ports without undergoing import procedures in Vietnam and without undergoing export procedures out of Vietnam;

2.2. Goods in transit or passing through Vietnam’s border gates, goods for transshipment, including:

a) Goods transported from the exporting country to the importing country through a Vietnamese border gate without undergoing import procedures in Vietnam and without undergoing export procedures out of Vietnam.

b) Goods transported from the exporting country to the importing country through a Vietnamese border gate and placed in a bonded warehouse without undergoing import procedures in Vietnam and without undergoing export procedures out of Vietnam.

c) Goods in transit or passing through Vietnam’s border gates based on agreements signed between the Government of Vietnam and foreign governments or between authorized agencies or representatives appointed by the Governments of Vietnam and foreign countries.

4. For automobiles specified in Clause 4, Article 3 of the Special Consumption Tax Law, these are types designed by manufacturers for use as ambulances, prisoner transport vehicles, funeral cars; vehicles designed to accommodate both seating and standing passengers up to 24 persons; automobiles running in amusement parks, sports venues without registration and participation in traffic, and specialized vehicles, unregistered and non-participating in traffic vehicles, which are specifically defined by the Ministry of Finance in coordination with relevant ministries and agencies.

2.3. Temporarily imported goods for re-export, if actually re-exported within the period exempt from import duties under the laws on export and import taxes, shall not be subject to special consumption tax corresponding to the quantity of goods actually re-exported.

Temporarily exported goods for re-import, if actually re-imported within the period exempt from export duties under the laws on export and import taxes, shall not be subject to special consumption tax corresponding to the quantity of goods actually re-imported.

2.4. Temporarily imported goods for trade fairs or exhibitions, if actually re-exported within the period exempt from import duties according to the prescribed regulations.

If the organization or individual does not re-export temporarily imported goods after the end of the trade fair or exhibition, they must declare and pay the special consumption tax; if they fail to declare and are discovered during inspection, in addition to being required to pay back the special consumption tax, they will also be subject to penalties as stipulated by law.

2.5. Equipment and personal items of foreign organizations and individuals according to diplomatic immunity standards as provided for in the laws on diplomatic immunity.

2.6. Goods carried by individuals when entering or leaving Vietnam through border gates within the duty-free allowance for personal luggage.

2.7. Imported goods sold duty-free at tax-free shops as provided for by law.

3. Goods imported from abroad into non-tariff zones, goods from domestic areas sold into non-tariff zones and only used within such zones, goods traded between non-tariff zones, except for passenger cars with fewer than 24 seats.

The documentation, procedures, and authority for handling cases of exemption from special consumption tax as provided for in Clause 2 and Clause 3 of this Article shall be implemented in accordance with the provisions on handling exemptions and reductions in import duties as stipulated by the laws on export and import taxes.

Importers of goods that are exempt from special consumption tax upon importation as provided for in Clause 2 and Clause 3 of this Article, if used for other purposes, must declare and pay the import special consumption tax to the customs authorities in accordance with the guidelines issued by the Ministry of Finance regarding customs procedures; customs supervision; export and import taxes; and management of taxes on export and import goods.

4. Aircraft and cruise ships used for commercial transportation of goods and passengers and for tourism business.

In cases where aircraft and cruise ships are exempt from special consumption tax but are subsequently not used for commercial transportation of goods and passengers or for tourism business, they must be subject to special consumption tax.

Businesses importing aircraft and cruise ships that change their purpose as mentioned above must declare and pay the special consumption tax to the customs authorities in accordance with the guidelines issued by the Ministry of Finance regarding customs procedures; customs supervision; export and import taxes; and management of taxes on export and import goods.

Businesses producing aircraft and cruise ships that change their purpose as mentioned above must declare and pay the special consumption tax based on the residual value after deducting depreciation as stipulated to the directly managing tax authority.

5. For vehicles specified in Clause 4 of Article 3 of the Special Consumption Tax Law, these include vehicles designed by manufacturers for use as ambulances, prisoner transport vehicles, funeral vehicles; frequency monitoring vehicles; armored vehicles with ladders; mobile television vehicles; vehicles designed to carry both seated and standing passengers up to 24 people; vehicles operating in amusement parks, entertainment, and sports areas without registration and participation in traffic; and specialized vehicles, unregistered and non-participating in traffic vehicles, which are specifically guided by the Ministry of Finance in coordination with relevant ministries and agencies.

Businesses importing vehicles designed solely for operation in amusement parks, entertainment, and sports areas without registration and participation in traffic, as exempt from special consumption tax as provided for in Clause 5 of this Article, must present to the customs authority where the import declaration is opened the following documents and procedures:

- A copy of the Business Registration Certificate proving the importer has the function of operating amusement parks, entertainment, and sports areas (signed and stamped by the importer).

- The business importing must clearly indicate on the Import Declaration Form the content: "vehicles designed and manufactured solely for operation in amusement parks, entertainment, and sports areas without registration and participation in traffic." The importer bears responsibility for the accuracy of the import documents.

The customs authority where the business importing registers to open the Import Declaration Form shall inspect the goods and not collect the special consumption tax on the aforementioned goods, and shall not issue a Declaration Form confirming the origin of imported vehicles to the business importing.

In the case where automobiles designed solely for use in amusement parks, entertainment areas, or sports venues are not registered for circulation and do not participate in traffic, they are exempt from excise tax. If the importing entity has completed import procedures as guided by Clause 5 of this Article with the Customs Authority, and if the purpose of use changes from that at the time of importation, and the vehicle is used outside amusement parks, entertainment areas, or sports venues and falls within the scope of taxable excise tax, then the importing entity must declare and pay the excise tax to the Customs Authority according to the guidelines issued by the Ministry of Finance on customs procedures; customs inspection and supervision; export duties, import duties, and tax management for imported and exported goods. If the importing entity does not report to the Customs Authority handling the import procedures to pay the excise tax due to a change in the intended use from the time of importation, the importing entity will be subject to penalties under the Law on Tax Administration and its implementing regulations.

6. Naptha (naphtha), condensate, reformate component, and other products used as raw materials for production (excluding gasoline production) directly imported by the product manufacturing entity.

Naptha (naphtha), condensate, reformate component, and other products directly sold by the entity producing naptha (naphtha), condensate, reformate component, and other products to another manufacturing entity for use as raw materials for production (excluding gasoline production).

Goods falling under the category of being exempt from excise tax as stipulated herein must meet the required documentation and procedures.

a) For cases where the product manufacturing entity directly imports, the entity must present to the Customs Authority the documents as guided by the Ministry of Finance regarding customs procedures; customs inspection and supervision; export duties, import duties, and tax management for imported and exported goods (in the case of consigned import, there must also be a consignment import contract); a copy of the Business Registration Certificate (signed and stamped by the importing manufacturing entity) and a commitment statement from the legal representative of the importing manufacturing entity regarding the types of goods, namely naptha (naphtha), condensate, reformate component, and other products, which are imported and used as raw materials for production (excluding gasoline production).

For cases where domestic manufacturing entities directly sell to other entities for use as raw materials for production (excluding gasoline production), the following documents are required: Sales contract; a copy of the Business Registration Certificate of the purchasing entity (signed and stamped by the purchasing entity) and a commitment statement from the legal representative of the purchasing entity regarding the goods, namely naptha (naphtha), condensate, reformate component, and other products, which are purchased and used as raw materials for production (excluding gasoline production).

b) Bank payment vouchers.

Manufacturing entities importing goods exempt from excise tax as stipulated in Clause 6 of this Article, if used for other purposes, must declare and pay the excise tax at the import stage to the Customs Authority according to the guidelines issued by the Ministry of Finance on customs procedures; customs inspection and supervision; export duties, import duties, and tax management for imported and exported goods.

When domestic manufacturing entities producing naptha (naphtha), condensate, reformate component, and other products directly sell to other entities for use as raw materials for production (excluding gasoline production), the invoice must clearly state that the goods fall under the category of being exempt from excise tax.

Manufacturing entities purchasing goods directly from entities producing naptha (naphtha), condensate, reformate component, and other products, which are exempt from excise tax as stipulated in Clause 6 of this Article, if these goods are consumed (sold) domestically or used for other purposes, the purchasing entity must declare and pay the excise tax on these goods when they are consumed (sold) domestically or used for other purposes.

Specifically, for cases where manufacturing entities import or purchase directly from domestic producers naptha (naphtha), condensate, reformate component, and other products to produce simultaneously gasoline, diesel oil, and certain petrochemical solvents, the manufacturing entities producing gasoline and diesel oil shall pay the excise tax when purchasing raw materials. The amount of excise tax paid or refunded by the manufacturing entity can be deducted according to the guidance provided in Article 8 of this Circular.

Example 1: Joint Stock Company A for Oil Refining and Petrochemicals imports condensate as raw material for producing gasoline, diesel oil, and certain petrochemical solvents. Company A pays the excise tax upon importing condensate. The amount of excise tax paid by Company A for this raw material can be deducted according to the guidance provided in Article 8 of this Circular.

Example 2: Joint Stock Company B purchases condensate directly from Joint Stock Company C, which produces condensate as raw material for producing gasoline, diesel oil, and certain petrochemical solvents. Company B pays Company C based on a price inclusive of excise tax. The amount of excise tax paid by Company B to Company C can be deducted by Company B according to the guidance provided in Article 8 of this Circular.

7. Air conditioners with a capacity of up to 90,000 BTU, as designed by the manufacturer, are only installed on transportation vehicles, including automobiles, railway cars, ships, boats, and aircraft.

In the case where a business entity imports or consigns the import of central air conditioning systems exceeding 90,000 BTU, or a business entity enters into a contract with a domestic contractor for the installation of central air conditioning systems exceeding 90,000 BTU, and delivery depends on the progress of construction (the system is imported in multiple shipments) to avoid paying excise tax for each import shipment, the documents to be presented to the Customs Authority include:

- An import contract (in the case of entrusted import, there must be an additional entrusted import contract) or a sales contract (original or certified copy with the stamp of the importing enterprise) for a central air conditioning system with a domestic construction contractor; the contract must specify that this is a complete set equipment with a capacity over 90,000 BTU imported as a whole according to the manufacturer's standards, accompanied by a list of quantities of imported equipment components.

- A connection diagram of the central air conditioning system confirmed by the importing unit and the construction contractor (if there is a construction contractor).

- An appraisal certificate regarding the capacity and completeness of the imported equipment, including separate parts (condenser, evaporator) or groups of separate parts of the equipment that cannot operate independently issued by a competent appraisal agency as prescribed by law.

In cases where individual separate parts or some separate parts are assembled into a complete air conditioner with a capacity of up to 90,000 BTU operating independently without connecting to the system, each part still has to bear the special consumption tax.

- A commitment from the business entity importing goods to use the imported goods for their intended purpose and to be responsible under the law for their own commitments.

Based on the documents presented by the business entity, the customs authority shall establish a tracking form as Appendix No. 1 attached to this Circular to monitor and manage.

Article 4. Taxpayers

1. The taxpayer of the special consumption tax is an organization or individual engaged in production, importation of goods and provision of services subject to the special consumption tax, including:

1.1. Business organizations established and registered for business in accordance with the Enterprise Law, State Enterprise Law (now the Enterprise Law), and Cooperative Law.

1.2. Economic organizations of political organizations, political-social organizations, social organizations, social-professional organizations, political-social-professional organizations, people's armed forces units, public service organizations, and other organizations.

1.3. Foreign-invested enterprises and foreign parties participating in joint business operations under the Law on Investment by Foreign Investors (now the Investment Law); foreign organizations and individuals conducting business activities in Vietnam but not establishing a legal entity in Vietnam.

1.4. Individuals, households, independent traders, and other entities engaged in production, business, and importation.

2. When a business entity exporting purchases goods subject to the special consumption tax from a production entity but does not export them but instead sells them domestically, the exporting business entity is the taxpayer of the special consumption tax. When selling goods, the exporting business entity must declare and pay the full amount of the special consumption tax.

Chapter II

BASIS FOR TAXATION

Article 5. Tax Base for Special Consumption Tax

The tax base for the special consumption tax on goods and services is the selling price of goods and the supply price of services of the production and business entity before adding the special consumption tax, environmental protection tax (if applicable), and value-added tax, specifically determined as follows:

1. For domestically produced goods, the tax base for the special consumption tax is determined as follows:

Where the selling price excluding VAT is determined in accordance with the provisions of the Law on Value-Added Tax and the Environmental Protection Tax Law.

a) In the case where a production entity subject to the special consumption tax sells its products through subordinate units under dependent accounting, the basis for determining the tax base for the special consumption tax is the selling price excluding VAT and environmental protection tax (if applicable) of the subordinate unit under dependent accounting. If the production entity sells through a distributor at the price specified by the entity and only receives commission, the basis for determining the tax base for the special consumption tax is the selling price excluding VAT and environmental protection tax (if applicable) specified by the production entity before deducting the commission.

b) In the case where a production entity subject to the special consumption tax sells its products through commercial trading entities, the basis for calculating the special consumption tax is the selling price excluding VAT and environmental protection tax (if applicable) of the production entity but it must not be lower than 10% compared to the average selling price of the commercial trading entity. For motor vehicles, the average selling price of the commercial trading entity for comparison purposes is the selling price of motor vehicles according to the product quality standards announced by the manufacturer for each type of vehicle, excluding additional equipment and spare parts installed by the commercial trading entity based on customer requirements.

If the selling price of the production entity is lower than 10% of the selling price of the commercial trading entity, the tax base for the special consumption tax is the price determined by the tax authority in accordance with the Law on Tax Administration and guiding documents.

2. For imported goods: The tax base for imported goods is determined as follows:

Tax base for special consumption tax = Tax base for import tax + Import tax.

The tax base for import tax is determined in accordance with the provisions of the Law on Export Tax and Import Tax. In cases where imported goods are exempted or reduced from import tax, the tax base does not include the amount of import tax exempted or reduced.

3. For goods subject to the special consumption tax, the tax base for the special consumption tax is the price excluding VAT, environmental protection tax (if applicable), and special consumption tax, and does not exclude packaging costs.

For bottled beer, if there is a deposit on the bottle, quarterly, the production entity and the customer settle the deposit on the bottle, the corresponding amount of the deposit for unrecovered bottles must be included in the revenue for the special consumption tax.

Example 3: For canned beer, in 2012, the selling price of 1 liter of canned beer excluding VAT was 20,000 VND, the special consumption tax rate for beer (from January 1, 2010 to December 31, 2012) was 45%, then the tax base for the special consumption tax is determined as follows:

Example 4: In Q2/2012, the selling price of a crate of Hanoi bottled beer excluding VAT was 120,000 VND/crate, then the tax base for the special consumption tax is determined as follows:

Example 5: In Q3/2012, Company A sold 1,000 bottles of beer to Customer B and collected a deposit of 1,200 VND per bottle, totaling 1,200,000 VND. At the end of the quarter, Companies A and B settled accounts: 800 bottles were recovered, and 200 bottles were unrecovered. Based on the number of recovered bottles, Company A returned 960,000 VND to Customer B, and the unrecovered deposit amounting to 240,000 VND (200 bottles x 1,200 VND/bottle) must be included in Company A's revenue for special consumption tax calculation.

4. For processed goods, the taxable price is the selling price of the goods sold by the entity that has contracted for processing or the selling price of similar products at the same time without value-added tax, environmental protection tax (if applicable), and without special consumption tax.

5. For goods produced under a joint business arrangement between a production entity and a brand or trademark owner (technology producer), the taxable price for special consumption tax is the selling price before value-added tax and environmental protection tax (if applicable) of the entity using or owning the brand or technology. If the production entity sells goods under a licensing agreement to a branch or representative office of a foreign company in Vietnam for sale, the taxable price for special consumption tax is the selling price of the branch or representative office.

6. For goods sold on installment or deferred payment terms, the taxable price for special consumption tax is the selling price before value-added tax, environmental protection tax (if applicable), and without special consumption tax for goods sold with full payment upfront, excluding interest on installments or deferred payments.

7. For goods or services exchanged, consumed internally, given as gifts, donations, or promotional items, the taxable price for special consumption tax is the selling price of similar goods or services at the time these activities occur.

8. For businesses exporting goods subject to special consumption tax purchased from a production entity but not exported but instead sold domestically, the taxable price in this case is the domestic selling price without special consumption tax, environmental protection tax (if applicable), and without value-added tax, determined as follows:

If the exporting business declares a selling price (including value-added tax, environmental protection tax (if applicable), and special consumption tax) lower than 10% compared to the market selling price, the taxable price for special consumption tax is set by the tax authority according to the Tax Administration Law and implementing regulations.

9. For services, the taxable price for special consumption tax is the service provision price of the business without value-added tax and without special consumption tax, determined as follows:

The service price without value-added tax serves as the basis for determining the taxable price for special consumption tax for certain services as follows:

a) For golf course operations (including golf practice facilities), it is the revenue without value-added tax from selling membership cards, golf play tickets, including ticket sales for golf practice, greenkeeping fees, rental car (buggy) and caddy services during play, deposits (if any), and other revenues related to golf paid by players or members to the golf business. If the deposit is refunded to the depositor, the business will be entitled to a refund of the tax paid by offsetting against the next period's tax liability, or if not offset, the refund will be made according to the regulations. If the golf business also operates other goods or services not subject to special consumption tax such as hotels, restaurants, retail sales, or games, those goods or services are exempt from special consumption tax.

Example 6: If a golf business organizes hotel, restaurant, retail sales, or game operations not subject to special consumption tax, those goods or services are exempt from special consumption tax.

b) For casino and electronic gaming operations, the basis for determining the taxable price for special consumption tax is the revenue from casino and electronic gaming operations after deducting winnings paid to customers, i.e., the amount received (without value-added tax) from exchanging money at the counter or table before playing, minus the amount exchanged back to customers.

c) For betting operations, the basis for determining the taxable price for special consumption tax is the revenue from selling betting tickets minus (minus) winnings paid to customers (price without value-added tax), excluding ticket sales for events linked to betting activities.

d) For nightclub, massage, and karaoke operations, the basis for determining the taxable price for special consumption tax is the revenue without value-added tax from activities in nightclubs, massage establishments, and karaoke venues, including revenue from food and beverage services and accompanying services (such as bathing and steam rooms in massage establishments).

Example 7: The revenue without value-added tax from nightclub operations (including food and beverage revenue) of Business A in the tax period is 100,000,000 VND.

d) For lottery operations, the basis for determining the taxable price for special consumption tax is the revenue from selling lottery tickets permitted by law (revenue without value-added tax).

10. The taxable price for goods and services specified in Clauses 1 to 9 of this Article includes additional charges outside the selling price of goods or service provision price (if any) that the production or business entity enjoys.

The taxable price is calculated in Vietnamese Dong. If the taxpayer has revenue in foreign currency, it must convert the foreign currency to Vietnamese Dong based on the average inter-bank foreign exchange rate published by the State Bank of Vietnam at the time of revenue generation to determine the taxable price.

For imported goods: The conversion rate between Vietnamese Dong and foreign currency used to determine the taxable value is carried out according to the laws on export and import taxes.

11. In case a production or business establishment fails to comply with or complies inadequately with the invoice and recordkeeping system, the tax authority shall determine the revenue based on the actual production and business operations in accordance with the Law on Tax Administration and ascertain the amount of special consumption tax payable.

12. The time for determining the special consumption tax is as follows:

- For goods: the time when revenue from goods arises is the time when ownership or usage rights over the goods are transferred to the buyer, regardless of whether payment has been received or not;

- For services: the time when revenue arises is the time when the service provision is completed or the time when the invoice for service provision is issued, regardless of whether payment has been received or not.

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

13. Production establishments, importers of goods, and service providers subject to special consumption tax must strictly adhere to accounting, invoicing, and recordkeeping systems when purchasing, selling goods, providing services, and transporting goods in accordance with the provisions of the law.

When a production establishment sells goods or delivers them to branches, dependent units, or agents, invoices must be used. If branches or stores located in the same province or city as the production establishment or goods dispatched from warehouses are involved, internal dispatch orders and internal warehouse delivery slips may be used.

A production establishment that uses brand labels for goods subject to special consumption tax must register the brand label design according to the regulations.

Article 6. Special Consumption Tax Rate

1. Implemented in accordance with Article 7 of the Special Consumption Tax Law No. 27/2008/QH12, Clause 5 of Decree No. 26/2009/NĐ-CP dated March 16, 2009 of the Government, and Clause 4 of Article 1 of Decree No. 113/2011/NĐ-CP dated December 8, 2011 of the Government.

2. In cases where a production establishment produces multiple types of goods and provides multiple types of services subject to special consumption tax at different rates, it must declare and pay the special consumption tax separately for each type of goods and service at the specified rates; if the production establishment cannot determine the tax rate for each type of goods and service, it must calculate and pay the tax at the highest rate applicable to the goods and services produced and provided.

Chapter III

REFUND, DEDUCTION, AND REDUCTION OF SPECIAL CONSUMPTION TAX

Article 7. Refund of Tax

The taxpayer of special consumption tax is entitled to a refund of taxes paid in the following cases:

Temporary imports and re-exports include:

a) Goods imported and taxed with special consumption tax but still stored in warehouses or bonded areas at the port under the supervision of customs authorities and subsequently re-exported abroad.

b) Goods imported and taxed with special consumption tax intended for sale or transfer to foreign entities through domestic agents; goods imported for sale to foreign carriers on international routes via Vietnamese ports and Vietnamese carriers on international routes as prescribed by the Government.

c) Goods temporarily imported for re-export under the temporary import-re-export trade method, upon re-export, the corresponding special consumption tax paid will be refunded.

d) Goods imported and taxed with special consumption tax but subsequently re-exported abroad will have the paid special consumption tax refunded for the quantity of goods re-exported.

đ) Goods temporarily imported for exhibition, display, product introduction, or other purposes within a specified period, which have been taxed with special consumption tax, will be eligible for a refund upon re-export.

e) Goods imported and declared for special consumption tax, but the actual import quantity is less than the declared quantity; goods imported during the import process suffer damage or loss due to justifiable reasons and have already been taxed with special consumption tax.

g) For goods imported that do not meet the quality or type requirements stipulated in the contract or import permit (due to errors by the foreign shipper), with certification from the competent authority and confirmation from the foreign shipper allowing importation, the customs authority will verify and confirm the special consumption tax payable. If there is an excess payment, it will be refunded; if there is a shortfall, the difference must be paid.

In cases where export back to the foreign country is permitted, the special consumption tax paid for the quantity of goods exported back will be refunded.

In cases where goods are returned to the foreign party within the period exempt from import tax according to the prescribed regime, the customs authority will check the procedures and implement the non-collection of special consumption tax in accordance with the quantity of goods returned to the foreign country.

2. Raw materials imported for the production and processing of export goods will be refunded the special consumption tax paid corresponding to the quantity of raw materials actually used for the production of exported goods.

The refund of special consumption tax as stipulated in Clause 1 and Clause 2 of this Article shall only apply to actually exported goods, and the procedures, documents, sequence, and authority for handling refunds of special consumption tax for imported goods shall be carried out in accordance with the regulations governing the handling of import tax refunds as prescribed by the laws on export tax and import tax.

3. In cases where a production or business establishment consolidates, splits, merges, dissolves, goes bankrupt, changes ownership form, transfers, sells, leases state-owned enterprises and has an excess of special consumption tax paid, the establishment has the right to request the tax authority to refund the excess special consumption tax paid.

4. Refund of special consumption tax in the following cases:

a) Refund of tax pursuant to the decision of the competent authority as prescribed by the law.

b) Refund of tax pursuant to international agreements to which the Socialist Republic of Vietnam is a member.

c) Refund of tax in cases where the amount of special consumption tax paid exceeds the amount of special consumption tax payable as prescribed.

The procedures, documents, sequence, and authority for handling refunds of special consumption tax as stipulated in Clause 3 and Clause 4 of this Article shall be implemented in accordance with the Law on Tax Administration and the guiding documents.

Article 8. Tax Deduction

The taxpayer producing goods subject to special consumption tax using raw materials also subject to special consumption tax shall be entitled to deduct the amount of special consumption tax already paid on imported raw materials or paid for raw materials directly purchased from domestic production units when determining the amount of special consumption tax payable. The amount of special consumption tax deducted corresponds to the special consumption tax of the raw materials used to produce the goods sold.

In cases where the taxpayer simultaneously produces gasoline, diesel fuel, and petrochemical solvents using raw materials subject to special consumption tax, they may deduct the special consumption tax already paid on imported raw materials or paid for raw materials directly purchased from domestic production units when determining the amount of special consumption tax payable. The amount of special consumption tax deducted corresponds to the special consumption tax of the raw materials used to produce the goods sold.

Conditions for deducting special consumption tax are stipulated as follows:

- For cases importing raw materials subject to special consumption tax for the production of goods subject to special consumption tax, the document serving as the basis for deducting special consumption tax is the document evidencing payment of special consumption tax at the import stage.

- In the case of purchasing raw materials directly from domestic manufacturers:

+ Sales contract, which must include content indicating that the goods are produced directly by the selling entity; Copy of the Business Registration Certificate of the selling entity (signed and stamped by the selling entity);

+ Bank payment receipt;

+ The document serving as the basis for deducting special consumption tax is the VAT invoice when purchasing goods. The amount of special consumption tax paid by the purchasing entity when buying raw materials is determined by multiplying the taxable price of the raw materials by the special consumption tax rate; wherein:

The amount of special consumption tax deducted corresponds to the special consumption tax of the raw materials used to produce the goods sold.

The deduction of special consumption tax is carried out during the declaration of special consumption tax, with the special consumption tax payable being calculated according to the following formula:

Example 8:

During the tax declaration period, Entity A generates the following transactions:

+ Imported 10,000 liters of wine, paid 250 million VND in special consumption tax at the import stage (based on the tax payment receipt at the import stage).

+ Withdrawn 8,000 liters for production of 12,000 bottles of wine.

+ Sold 9,000 bottles of wine, generating 350 million VND in special consumption tax at the time of sale.

+ The amount of special consumption tax paid at the import stage allocated to the 9,000 bottles of wine sold is 150 million VND.

The amount of special consumption tax Facility A must pay during the period is:

350 million VND - 150 million VND = 200 million VND.

If the exact amount of special consumption tax paid (or paid) for the raw materials corresponding to the products consumed in the period cannot be accurately determined, it can be based on the data from the previous period to calculate the deductible special consumption tax amount, and will be adjusted according to actual figures at the end of the quarter or year. In all cases, the maximum allowable deduction of special consumption tax does not exceed the amount of special consumption tax calculated for the portion of raw materials according to the economic and technical standards of the product. The production unit must register the economic and technical standards of the product with the direct managing tax authority.

Article 9. Tax Reduction

The reduction of special consumption tax is implemented in accordance with Article 9 of the Special Consumption Tax Law No. 27/2008/QH12.

Procedures and documents for tax reduction are carried out in accordance with the Law on Tax Administration and guiding documents.

Chapter IV

IMPLEMENTING PROVISIONS

Article 10. Effective Date

1. This Circular takes effect from the date the Decree No. 113/2011/NĐ-CP comes into force (February 1, 2012).

2. This Circular replaces Circular No. 64/2009/TT-BTC dated March 27, 2009, issued by the Ministry of Finance guiding the implementation of Decree No. 26/2009/NĐ-CP dated March 16, 2009, detailing the implementation of certain provisions of the Special Consumption Tax Law.

Article 11. Implementation Organization

1. The Tax Authority is responsible for organizing the management of collection of special consumption tax and refund/reduction of special consumption tax for businesses.

2. The Customs Authority is responsible for organizing the management of collection of special consumption tax and refund of special consumption tax for imported goods.

3. During the implementation process, if there are difficulties or obstacles, please report them to the Ministry of Finance for prompt resolution./.