Circular No. 06/2001/TT-BTC guiding the implementation of Decree No. 78/2000/NĐ-CP dated December 26, 2000 of the Government on petroleum product fees.

CIRCULAR

Guidelines for Implementing Decree No. 78/2000/NĐ-CP dated December 26, 2000

on Fuel Oil Fees

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Pursuant to Decree No. 78/2000/NĐ-CP dated December 26, 2000 of the Government on Fuel Oil Fees;

The Ministry of Finance hereby provides guidance as follows:

I- SCOPE OF APPLICATION

1. Objects subject to fuel oil fees:

In accordance with Article 1 of Decree No. 78/2000/NĐ-CP dated December 26, 2000 of the Government, objects subject to fuel oil fees are gasoline, diesel oil, lubricating oil (collectively referred to as fuel oil) exported, sold in Vietnam, including:

a) Gasoline, including automobile gasoline, solvent gasoline (industrial gasoline), aviation gasoline, and other types of gasoline.

b) Diesel oil, including diesel fuel, kerosene, mazut, lubricating oil, and other types of oil (excluding edible oils).

c) Lubricating oil.

2. Entities responsible for paying fuel oil fees are organizations and individuals importing (including agency imports), producing, and processing fuel oil as defined in point 1 of this section, exporting, selling fuel oil in Vietnam, including:

a) Organizations directly importing fuel oil.

b) Organizations receiving agency imports of fuel oil, regardless of the form of agency importation and export delivery to the entrusting organization or receiving agency imports while also receiving agency sales, are direct entities required to declare and pay fuel oil fees.

c) Organizations and individuals producing and undertaking processing while also receiving agency sales of fuel oil, processing fuel oil. In cases where organizations and individuals undertake processing but do not receive agency sales, the entrusting organization or individual is the entity responsible for paying fuel oil fees when exporting and selling fuel oil in Vietnam.

3. Objects exempt from fuel oil fees are fuel oil exported, including:

a) Exported fuel oil, including exports to foreign countries, export to export processing zones and export processing enterprises. Organizations and individuals exporting fuel oil as specified in this point must have the following documents and certificates proving actual export of fuel oil:

- Export contract for fuel oil. In cases of agency export, there must also be an agency export contract for fuel oil.

- Sales invoice issued to foreign countries, export processing zones, and export processing enterprises.

- Customs declaration for exported goods, with payment clearance and confirmation of actual export quantity and type of goods by the customs authority.

b) Temporary imported-reexported fuel oil; temporary exported-reimported fuel oil. Organizations and individuals trading in fuel oil under the forms specified in this point must have the following documents and certificates:

- Export and import quotas issued by the Ministry of Trade (or authorized agencies), clearly stating temporary imported-reexported goods and temporary exported-reimported goods.

- Customs declarations for imported and exported goods, with payment clearance and confirmation of actual import and export quantity and type of goods by the customs authority.

- Foreign trade purchase and sale contracts signed with the seller and buyer.

For cases involving agency imports and exports, there must also be agency export and import contracts (if the goods are agency-imported or agency-exported). In such cases, if consumed in Vietnam, organizations and individuals must register, declare, and pay fuel oil fees to the local Tax Bureau where their headquarters is located.

II- AMOUNT OF COLLECTION AND BASIS FOR FUEL OIL FEES:

1. Fuel oil fees are collected only once when exporting and selling imported fuel oil (including agency-imported fuel oil), produced, processed (including internal consumption, exchange for other products, return of agency-imported goods, sales to other organizations and individuals), at the rates specified as follows:

a) All types of gasoline, including automobile gasoline, aviation gasoline, industrial gasoline, and other types of gasoline: 500 dong/liter (five hundred dong/liter).

b) Diesel fuel: 300 dong/liter (three hundred dong/liter).

c) Kerosene, mazut, lubricating oil, and other types of oil (excluding gasoline and diesel fuel specified in points a and b above) are not yet subject to collection.

2. The basis for collecting fuel oil fees is the quantity of fuel oil exported and sold in Vietnam, calculated according to the following formula:

If the quantity of fuel oil exported and sold is measured in units other than liters, it must be converted to liters.

III- ORGANIZATION OF FUEL OIL FEE COLLECTION AND PAYMENT:

1. Organizations and individuals falling within the category of entities required to pay fuel oil fees as stipulated in point 2 of Section I of this Circular (referred to collectively as fee-paying entities) shall be responsible for:

a) Registering and declaring the collection and payment of fuel oil fees into the state budget with the Provincial Tax Bureau where the entity's main office is located.

b) When exporting and selling fuel oil, they must:

- Calculate the fuel oil fee according to the rates specified in point 1, Section II of this Circular.

- Issue a sales invoice for fuel oil to the purchasing entity.

To ensure that consumers are not subject to VAT on the amount of fuel oil fees and to prevent disruption to accounting records of fuel oil trading entities, when issuing sales invoices (including wholesale and retail sales), fuel oil trading entities must record the fuel oil fee as a separate line on the invoice, specifically indicating in the total lines of the invoice: pre-VAT selling price (excluding fuel oil fees), VAT, fuel oil fees, final payment amount.

- Pay the fuel oil fee simultaneously with the payment for the sale of fuel oil.

- Maintain separate accounting books to track and update the amount of fuel oil fees incurred for payment to the state budget. For fuel oil trading entities that do not directly declare and pay fuel oil fees, the fuel oil fee is not considered revenue from fuel oil trading activities and should not be recorded as revenue of the entity.

c) On a periodic basis of every 15 days, the entity bases its calculation and provisional payment of the fuel oil fee into the state budget on the actual quantity of fuel oil exported and sold during the period (for internal use; exchanged for other products; returned for agency-imported goods; sold to other organizations and individuals, regardless of whether payment has been received or not).

Monthly, based on the quantity of gasoline and diesel fuel sold in that month, the unit shall calculate and prepare the declaration form for gasoline and diesel fuel fees according to the prescribed format and submit it to the local Tax Authority where the unit's main office is located within the first ten days of the following month. The Tax Authority shall inspect and notify the unit of the remaining amount of gasoline and diesel fuel fees to be paid and the deadline for payment into the State Treasury. Based on the notification from the Tax Authority, the unit shall complete the procedures to fully pay the gasoline and diesel fuel fees into the State Treasury by no later than the 25th day of the following month.

The amount of gasoline and diesel fuel fees paid into the State Treasury shall be recorded under the corresponding chapter, type, clause, item, and sub-item 032.01 of the current State Budget Ledger and transferred in full to the central budget.

d) The annual settlement of gasoline and diesel fuel fees payable with the Tax Authority must be completed within sixty days from the end of the year. The unit must submit the annual settlement report on gasoline and diesel fuel fees to the Tax Authority and pay any outstanding fees into the State Treasury within ten days from the date of submitting the settlement report. If there is an overpayment, it may be offset against the amount of gasoline and diesel fuel fees due in the subsequent period.

2. The local Tax Authority where the unit subject to gasoline and diesel fuel fees has its main office shall be responsible for:

a) Inspecting, urging, and guiding organizations and individuals subject to gasoline and diesel fuel fees to comply with the regulations for paying such fees as stipulated in this Circular, ensuring that no revenue sources or taxable entities are overlooked.

b) Regularly coordinating with Customs Authorities and the management bodies of local units engaged in the production, processing, and trading of gasoline and diesel fuel to promptly obtain information on the actual quantities of imported, produced, and processed gasoline and diesel fuel, comparing them with the actual quantities sold and stored, including any losses (up to the maximum allowable loss rate set by the State), to accurately calculate and collect the gasoline and diesel fuel fees and prevent revenue losses to the State Treasury.

c) Inspecting declarations of gasoline and diesel fuel fee collection and payment, calculating, and notifying organizations and individuals engaged in the trading of gasoline and diesel fuel about the monthly amount of fees payable to the State Treasury according to the regulations. Regularly urging units to fully and timely pay the gasoline and diesel fuel fees. Completing the annual settlement of gasoline and diesel fuel fees payable with the fee-paying entities according to the prescribed procedures.

In cases where violations of the management system for gasoline and diesel fuel fees are detected, and when necessary, conducting inspections and audits of the collection and payment of such fees as decided by the competent authority, the Tax Authority has the right to request fee-paying entities to provide accounting books, vouchers, and other relevant documents related to the calculation and payment of gasoline and diesel fuel fees to ensure accurate and complete payment of fees to the State Treasury.

d) Administering administrative penalties for violations concerning gasoline and diesel fuel fees according to the authority specified in Article 21 of Decree No. 04/1999/NĐ-CP dated January 30, 1999, of the Government on fees and charges included in the State budget, and the guidance provided at Point 6, Section V of Circular No. 54/1999/TT-BTC dated May 10, 1999, of the Ministry of Finance implementing the aforementioned Decree.

4. Organizations and individuals purchasing gasoline and diesel fuel from units that have already calculated the gasoline and diesel fuel fees and have recorded these fees on purchase invoices may include the gasoline and diesel fuel fees in their cost of goods sold and circulation expenses to determine reasonable costs when calculating corporate income tax (for organizations and individuals engaged in business activities) or to determine reasonable costs when settling state budget funds (if the activity is administrative or public service funded by state budget allocations).

4. Organizations and individuals subject to gasoline and diesel fuel fees who violate the provisions of Decree No. 78/2000/NĐ-CP dated December 26, 2000, of the Government and the guidance provided in this Circular shall be subject to penalties as stipulated in Article 18 and Article 20 of Decree No. 04/1999/NĐ-CP dated January 30, 1999, of the Government and the guidance provided at Points 3 and 5, Section V of Circular No. 54/1999/TT-BTC dated May 10, 1999, of the Ministry of Finance.

IV- IMPLEMENTATION

1. This Circular takes effect from January 1, 2001; and revokes all guiding documents implementing Decree No. 186/CP dated December 7, 1994, of the Government regarding the collection of traffic fee through gasoline and diesel fuel prices.

2. Organizations and individuals importing, producing, and processing gasoline and diesel fuel shall be responsible for declaring and paying gasoline and diesel fuel fees according to this Circular to the Tax Authority where their main office is located for the actual quantities sold to other organizations and individuals from January 1, 2001.