Circular No. 06/2012/TT-BTC guides the implementation of certain provisions of the Value Added Tax Law, and guides the implementation of Decree No. 123/2008/NĐ-CP dated December 8, 2008, and Decree No. 121/2011/NĐ-CP dated December 27, 2011 of the Government.

CIRCULAR

Guidelines for implementing certain provisions of the Value Added Tax Law, guidelines for implementing Decree

No. 123/2008/ND-CP dated December 8, 2008 and Decree No. 121/2011/ND-CP dated December 27, 2011 of the Government

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Pursuant to the Law on Value Added Tax No. 13/2008/QH12 dated June 3, 2008;

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

Pursuant to Decree No. 123/2008/NĐ-CP dated December 8, 2008 of the Government detailing and guiding the implementation of certain provisions of the Law on Value Added Tax;

Pursuant to Decree No. 121/2011/ND-CP dated December 27, 2011 of the Government amending and supplementing certain provisions of Decree No. 123/2008/ND-CP dated December 8, 2008 of the Government detailing and guiding the implementation of certain provisions of the Value Added Tax Law;

is a medicine production facility certified by the competent authority of a country participating in the EMA or ICH or PIC/s to meet EU-GMP or PIC/s-GMP standards or equivalent, and announced by the Ministry of Health (Drug Administration Department) on the Drug Administration Department's electronic information website.

The Ministry of Finance issues guidelines on value added tax as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular stipulates the taxable objects, non-taxable objects, taxpayers, tax bases and methods of calculation, deduction and refund of value added tax.

Article 2. Taxable Objects

The taxable object of value added tax (VAT) is goods and services used for production, business, and consumption in Vietnam (including goods and services purchased from organizations and individuals abroad), except for non-taxable VAT objects as provided for in Article 4 of this Circular.

Article 3. Taxpayers

The taxpayer of VAT is an organization or individual producing, trading in taxable goods and services in Vietnam, regardless of industry, form, business entity (hereinafter referred to as business entity) and an organization or individual importing goods, purchasing services from abroad subject to VAT (hereinafter referred to as importer), including:

1. Business entities established and registered for business under the Enterprise Law, State Enterprise Law (now the Enterprise Law), Cooperative Law;

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

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

4. Individuals, households, independent traders, and other entities engaged in production and business activities, importation;

5. Organizations and individuals conducting production and business activities in Vietnam purchasing services (including cases where services are attached to goods) from foreign organizations without a permanent establishment in Vietnam, and individuals outside Vietnam who are non-residents, the organization or individual purchasing the service is the taxpayer.

Regulations on permanent establishments and non-residents shall be implemented in accordance with the laws on corporate income tax and personal income tax.

Article 4. Non-taxable VAT Objects

1. Agricultural products (including forest products), livestock, aquaculture, marine products, and fisheries products that have not been processed into other products or only undergone simple processing by organizations and individuals self-produced and sold, and at the import stage.

Products newly subjected to simple processing are new products that have been cleaned, dried, peeled, shelled, cut, salted, frozen, and other common preservation methods.

Example 1: Drying, drying, peeling, shelling, cutting agricultural products; cleaning, drying, salting, freezing aquatic products, aquaculture, and fishing products.

2. Products are animal breeding seeds, plant breeding seeds, including breeding eggs, breeding animals, plant seedlings, seeds, branches, roots, semen, embryos, genetic materials at the stages of cultivation, importation, and commercial trade. Animal breeding seeds and plant breeding seeds are non-taxable VAT objects if they are produced by entities importing, trading in commercial breeding seeds with a business registration certificate issued by the competent state management agency. For products that are animal breeding seeds and plant breeding seeds subject to national standards and quality requirements, they must meet the conditions prescribed by the state.

3. Irrigation, drainage; plowing, harrowing land; dredging canals, ditches within fields serving agricultural production; harvesting agricultural products services.

4. Salt products produced from seawater, natural rock salt, refined salt, iodized salt, whose main component has the chemical formula NaCl.

5. Housing owned by the state sold by the state to tenants.

6. Transfer of land use rights.

7. Insurance includes: life insurance; health insurance, accident insurance, student insurance, and related human insurance services; pet insurance, crop insurance, and other agricultural insurance services; Reinsurance.

8. Financial activities:

a) Credit services provided by credit institutions include the following forms:

- Lending;

- Discounting, rediscounting transferable instruments and other securities;

- Bank guarantee;

- Financial leasing;

- Issuing credit cards;

- Domestic factoring; international factoring for banks permitted to conduct international transactions;

- Other credit forms as prescribed by law.

Assets used to secure loans of VAT taxpayers or transferred ownership to the lender upon sale must be subject to VAT, except for goods exempted from VAT as provided for in Article 4 of this Circular.

Example 2: In the case where Company A Limited Liability uses its assembly lines, machinery, and equipment as collateral to borrow funds from Bank B. Upon expiration of the loan agreement, Company A is unable to repay the debt, Bank B sells the secured assets (including those already transferred or not yet transferred to Bank B) to recover the debt, these assets are subject to VAT.

b) Securities trading includes: securities brokerage, proprietary trading, underwriting securities issuance, securities investment advisory, securities custody, securities investment fund management, securities investment company management, securities portfolio management, market organization services of stock exchanges or securities trading centers, services related to securities listed and custodied at the Vietnam Securities Depository, lending money to customers for margin trading, advance payment for selling securities, and other services as prescribed by the Ministry of Finance.

Provision of information services, organizing auction sales of shares by issuers, technical support for online securities trading of the Stock Exchange.

c) Capital transfer includes transferring part or all of the invested capital, including selling a business to another business for production and business purposes, transferring securities, and other forms of capital transfer as prescribed by law.

d) Sale of debts.

d) Foreign currency trading.

e) Derivative financial services including interest rate swaps, forward contracts, futures contracts, options to buy or sell foreign currencies, and other derivative financial services as prescribed by law.

9. Medical services, veterinary services, including medical examination, treatment, disease prevention for people and pets, family planning services, health rehabilitation services, functional recovery services for patients.

Medical services include patient transportation, rental of hospital rooms and beds from healthcare facilities; testing, imaging, blood and blood products for patients.

In cases where the package of medical treatment services (as prescribed by the Ministry of Health) includes the use of medicine, revenue from medicine within the medical treatment service package also falls under the category exempt from VAT.

10. Postal and public telecommunications services and universal internet access programs as per the government's program; postal and telecommunications services from abroad to Vietnam (incoming direction).

11. Public services related to sanitation, street drainage, and residential area drainage; maintenance of zoos, flower gardens, parks, street trees, public lighting; funeral services. The services mentioned herein are not distinguished by funding sources. Specifically:

a) Public services related to sanitation, street drainage, and residential area drainage provided to organizations and individuals include activities such as waste collection, cleaning, transportation, and processing; drainage and wastewater treatment; pumping, transporting, and processing of septic tank sludge; unblocking sanitary facilities and drainage systems; cleaning of public restrooms; maintaining cleanliness at mobile restrooms and collecting and processing other types of waste.

In cases where businesses provide services such as office cleaning and house cleaning, these services fall under the category subject to VAT.

Example 3: Company C provides office cleaning services to Unit C, and corridor and staircase cleaning services for Apartment H, these services fall under the category subject to VAT.

b) Maintenance of zoos, flower gardens, parks, and street trees includes management, planting, caring for plants, protecting birds and animals in parks, zoos, public areas, national forests, and national parks.

c) Public lighting includes street lighting, alley and village lighting in residential areas, flower gardens, and parks.

d) Funeral services provided by establishments with the function of providing funeral services include renting funeral houses, cars for funeral services, burial, cremation, and reburial.

12. Maintenance, repair, and construction using people's contributions and humanitarian aid funds for cultural and artistic works, public service facilities, infrastructure, and housing for social policy beneficiaries.

If other funds besides people's contributions (including contributions and sponsorships from organizations and individuals) and humanitarian aid funds do not exceed 50% of the total funds used for the project, the entire value of the project falls under the category exempt from tax.

Social policy beneficiaries include: persons with meritorious service as prescribed by laws on persons with meritorious service; social assistance recipients receiving subsidies from the state budget; poor households, near-poor households, and other cases as prescribed by law.

13. Teaching and vocational training as prescribed by law, including language and computer teaching; dance, singing, painting, music, drama, circus, physical education, and sports teaching; child care and other vocational training aimed at enhancing cultural literacy and professional knowledge.

In cases where educational institutions from kindergarten to high school collect fees for student meals, transportation, and other charges in the form of agency collections and payments, these fees and charges also fall under the category exempt from VAT.

Revenue from accommodation services for students, trainees, and learners; training activities (including organizing exams and issuing certificates during the training process) provided by training institutions fall under the category exempt from VAT. In cases where exam and certificate issuance services are provided without being part of a training program, they fall under the category subject to VAT.

14. Broadcasting radio and television using state budget funds.

15. Publishing, importing, and distributing newspapers, magazines, specialized newsletters, political books, textbooks, teaching materials, legal texts, scientific and technical books, books printed in ethnic minority scripts, and propaganda posters, including in tape or disc formats containing audio, video, or electronic data; printing money.

Newspapers, magazines, and specialized newsletters include the activity of transmitting pages of newspapers, magazines, and specialized newsletters.

Political books are books promoting the political policies of the Party and State serving political tasks according to specific themes, commemorating important days and traditional events of various organizations, levels, sectors, and localities; statistical books, books promoting good deeds and exemplary individuals; books containing speeches and theoretical research by Party and State leaders.

Textbooks are books used for teaching and learning from kindergarten through high school (including reference books suitable for teachers and students based on the educational curriculum).

Coursebooks are books used for teaching and learning in universities, colleges, vocational high schools, and vocational training institutions.

Legal texts are books containing legal normative documents of the State.

Scientific and technical books are books introducing and guiding scientific and technical knowledge directly related to production and various scientific and technical fields.

Books printed in ethnic minority scripts include bilingual books in both common script and ethnic minority script.

Propaganda and mobilization posters are paintings, photographs, posters, leaflets, and brochures serving the purpose of propaganda and mobilization, slogans, portraits of leaders, flags of the Party, State, Youth League, and Young Pioneers.

16. Public passenger transport by bus and electric vehicle within the province, city, and nearby provincial routes as specified by the Ministry of Transport.

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

a) Machinery, equipment, and materials imported for direct use in scientific research and technological development activities;

b) Machinery, equipment, spare parts, specialized transportation means, and materials required to be imported for conducting exploration, exploitation activities of oil and gas fields;

c) Aircraft (including aircraft engines), drilling platforms, watercraft of types not yet produced domestically, imported to form fixed assets of enterprises, leased from foreign countries for production and business purposes, including cases of importation and subsequent leasing.

To determine goods subject to exemption from VAT at the import stage as stipulated in this clause, the importer must present to the customs authority documents according to the guidelines of the Ministry of Finance on customs procedures; customs inspection and supervision; export tax, import tax, and tax management for exported and imported goods.

The list of machinery, equipment, and materials that have been domestically produced to serve as a basis for distinguishing from those not yet domestically produced and need to be imported for direct use in scientific research and technological development activities; the list of machinery, equipment, spare parts, specialized transportation means, and materials that have been domestically produced to serve as a basis for distinguishing from those not yet domestically produced and need to be imported for conducting exploration, exploitation activities of oil and gas fields; the list of aircraft, drilling platforms, watercraft of types not yet domestically produced to serve as a basis for distinguishing from those not yet domestically produced and need to be imported to form fixed assets of enterprises, leased from foreign countries for production and business purposes and for leasing, issued by the Ministry of Planning and Investment.

18. Specialized weapons and equipment serving national defense and security.

a) Specialized weapons and equipment serving national defense and security according to the List of specialized weapons and equipment serving national defense and security unified by the Ministry of Finance with the Ministry of National Defense and the Ministry of Public Security.

Specialized weapons and equipment serving national defense and security subject to exemption from VAT must be complete and integrated products or dedicated components, spare parts, packaging specifically used for assembly and preservation of complete products. In cases where specialized weapons and equipment serving national defense and security require repair, repair services provided by enterprises under the Ministry of National Defense and the Ministry of Public Security fall within the scope exempted from VAT.

b) Specialized weapons and equipment (including materials, machinery, equipment, spare parts) serving national defense and security imported under the provisions of the Law on Export Tax and Import Tax or imported annually within quotas approved by the Prime Minister.

Documents and procedures for importing specialized weapons and equipment exempted from VAT at the import stage shall be guided by the Ministry of Finance's guidelines on customs procedures; customs inspection and supervision; export tax, import tax, and tax management for exported and imported goods.

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

a) Imported goods in cases of humanitarian aid and non-reimbursable assistance and must be confirmed by the Ministry of Finance;

b) Gifts given to state agencies, political organizations, socio-political organizations, socio-professional organizations, social organizations, social-professional organizations, and people's armed forces in accordance with the laws on gifts and presents;

c) Gifts and presents given to individuals in Vietnam in accordance with the laws on gifts and presents;

d) Personal items of foreign organizations and individuals according to diplomatic immunity regulations as stipulated by the laws on diplomatic immunity; goods are personal items of Vietnamese citizens residing abroad when returning to Vietnam;

đ) Goods carried by individuals within the tax-free baggage allowance;

The amount of imported goods subject to exemption from VAT at the import stage shall be based on the tax-free import quota specified in the Law on Export Tax and Import Tax and related implementing documents.

Imported goods of organizations and individuals entitled to diplomatic immunity under the Decree on Diplomatic Immunity are exempt from VAT. In cases where organizations and individuals entitled to diplomatic immunity purchase goods and services in Vietnam subject to VAT, they fall under the refundable tax case as guided in Clause 7, Article 18 of this Circular.

The subjects, goods, and procedures for documents to enjoy VAT exemption benefits are implemented according to the guidelines of the Ministry of Finance on VAT refunds for diplomatic missions, consular offices, and international organization representative offices in Vietnam.

e) Goods and services sold to foreign organizations and international organizations for humanitarian aid and non-reimbursable assistance to Vietnam.

Procedures for international organizations and foreigners purchasing goods and services in Vietnam for humanitarian aid and non-reimbursable assistance to Vietnam exempt from VAT: international organizations and foreigners must submit a letter to the selling entity, clearly stating the name of the international organization or individual purchasing goods and services for humanitarian aid and non-reimbursable assistance to Vietnam, the quantity or value of the purchased goods; confirmation by the Ministry of Finance regarding this aid.

When selling goods, businesses must issue invoices in accordance with the law on invoices, indicating that the goods are sold to foreign organizations and international organizations for non-reimbursable humanitarian aid without VAT, and retain the letter from the international organization or the Vietnamese representative office as a basis for tax declaration. In cases where foreign organizations and international organizations purchase goods and services in Vietnam for non-reimbursable humanitarian aid with VAT, they fall under the refundable tax case as guided in Clause 6, Article 18 of this Circular.

20. Goods in transit through the territory of Vietnam; temporarily imported goods for re-export; temporarily exported goods for re-import; raw materials imported for production and processing of export goods under export production and processing contracts signed with foreign parties;

Goods and services traded between foreign countries and free zones, and among free zones themselves.

Free zones include export processing zones, export-oriented enterprises, bonded warehouses, bonded areas, outer warehouses, special economic trade zones, industrial-commercial zones, and other economic zones established and enjoying tax incentives equivalent to those of free zones pursuant to the Prime Minister's Decision. The trading relationship between these zones and external parties is considered an import-export relationship.

Documentation and procedures for determining and handling non-payment of VAT in these cases shall be carried out in accordance with the Ministry of Finance's guidelines on customs procedures; customs inspection and supervision; export duties and import duties; and tax management for exported and imported goods.

21. Technology transfer as prescribed by the Law on Technology Transfer; transfer of intellectual property rights as prescribed by the Intellectual Property Law. In cases where technology transfer contracts or intellectual property rights transfer contracts include the transfer of machinery and equipment, the object not subject to VAT shall be calculated based on the value of the transferred technology and intellectual property rights; if it is not possible to separate them, VAT shall be calculated on both the value of the transferred technology and intellectual property rights and the machinery and equipment.

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

22. Gold imported in bar, ingot form, and various types of gold that have not been crafted into jewelry, decorative items, or other products.

Gold in bar, ingot form, and various types of unprocessed gold shall be determined according to the regulations on gold management and trading.

23. Unprocessed natural resources and minerals that are exported as raw materials.

Unprocessed natural resources and minerals are those that have not been processed into other products, including minerals that have undergone screening, washing, grinding, crushing, concentration, or natural resources that have undergone cutting and splitting processes.

Example 4: Business entity A exports natural stone products in block and slab form; the exported natural stone products fall within the category not subject to VAT.

Example 5: Business entity B exports white limestone in granular and powdered forms; the exported white limestone in granular and powdered forms fall within the category not subject to VAT. If the business entity exports ultrafine limestone powder (according to the standards of the competent authority) or ultrafine limestone powder coated with acid, these products are considered processed products and thus do not fall within the category not subject to VAT when exported.

24. Artificial products designed to replace body parts of patients, including products implanted permanently in the human body; crutches, wheelchairs, and other specialized devices for people with disabilities.

25. Goods and services of individuals engaged in business with average monthly income lower than the national minimum wage applicable to organizations and enterprises in Vietnam as stipulated by the Government regarding the regional minimum wage for workers employed by companies, enterprises, cooperatives, production cooperatives, farms, households, individuals, and other organizations in Vietnam that hire labor.

26. The following goods and services:

a) Goods sold duty-free at duty-free shops as prescribed by the Prime Minister.

b) National reserve goods sold by national reserve agencies.

c) Activities involving fees and charges collected by the State as prescribed by laws on fees and charges.

d) Demining and explosive ordnance disposal activities conducted by defense units for projects funded by state budget funds.

Goods subject to exemption from VAT at the import stage under this Article, if their intended use changes, must be declared and subject to payment of VAT at the import stage according to the regulations with the customs office where the customs declaration was registered. Organizations and individuals selling such goods to the domestic market must declare and pay VAT according to the regulations with the directly managing tax authority.

Article 5. Cases Not Required to Declare and Pay Value-Added Tax (VAT)

1. Goods and services provided by taxpayers outside Vietnam, except for international transportation activities where both the departure point and destination are abroad.

In cases where a business provides services (excluding export services) that occur both within and outside Vietnam, VAT shall be paid on the portion of the contract value performed within Vietnam, except for insurance services provided for imported goods.

Example 6: Company A and Company B (both Vietnamese enterprises) signed a lubricant purchase and sale contract. If Company A buys lubricants from companies in Singapore and sells them to Company B at the Singapore port, then Company A does not need to declare and pay VAT on the revenue from selling the lubricants.

Example 7: Company D signed a contract to organize artistic performances in the Netherlands with Unit X, a state management agency of Vietnam. Company D does not need to declare and pay VAT on the revenue received from organizing the artistic performance contract mentioned above.

Example 8: Company B signed a contract with Company C to provide consulting, surveying, and design services for a project in Cambodia for Company C (both Company B and Company C are Vietnamese enterprises). If the contract involves services performed both in Vietnam and in Cambodia, then Company B does not need to declare and pay VAT on the portion of services performed in Cambodia; however, for the portion of service revenue performed in Vietnam, Company B must declare and pay VAT according to regulations.

Example 9: Insurance Company Y (a Vietnamese enterprise) signed a contract to provide insurance services for imported goods of Joint Stock Company X from France to the warehouse of Joint Stock Company X in Vietnam. Insurance Company Y does not need to declare and pay VAT on the revenue from the insurance contract for imported goods signed with Joint Stock Company X.

2. Income from compensation, bonuses, received support payments, transfer of emission rights, and other financial income, excluding interest income from loans received by enterprises that are not credit institutions.

When businesses receive income from compensation, bonuses, received support payments, transfer of emission rights, and other financial income, they must issue receipts in accordance with regulations. For the payer, based on the purpose of payment, they must issue payment vouchers.

In cases where compensation is given in the form of goods or services, the compensating entity must issue invoices as if selling goods or services; the receiving entity must declare and deduct according to regulations.

Example 10: Joint Stock Company VC signed a loan agreement with Enterprise T for a period of six months and received interest income. Joint Stock Company VC must declare and pay VAT on the interest income from the loan agreement mentioned above.

Example 11: Limited Liability Company P&C received interest income from purchasing bonds and dividends from purchasing shares of other enterprises. Limited Liability Company P&C does not need to declare and pay VAT on the interest income from purchasing bonds and dividends received.

Example 12: Enterprise A received a compensation payment of 50 million VND from Enterprise B due to contract cancellation. Enterprise A must issue a receipt and does not need to declare and pay VAT on this amount.

Example 13: Enterprise X purchased goods from Enterprise Y and prepaid a certain amount to Enterprise Y, which then paid interest on the advance payment. Enterprise X does not need to declare and pay VAT on the interest received.

Example 14: Enterprise X sold goods to Enterprise Z for a total payment of 440 million VND. According to the contract, Enterprise Z will make delayed payments over three months with a late payment interest rate of 1% per month on the total contract price. After three months, Enterprise X received the total contract payment of 440 million VND and the late payment interest of 13.2 million VND (440 million VND x 1% x 3 months), and Enterprise X does not need to declare and pay VAT on this interest amount.

3. Organizations and individuals producing and trading in Vietnam purchasing services from foreign organizations without a permanent establishment in Vietnam or foreign individuals who are non-residents, such as: repair of transport vehicles, machinery, equipment (including spare parts and replacement components); advertising, marketing; investment and trade promotion; brokerage of goods sales and service provision; training; international postal and telecommunications service fees between Vietnam and other countries, provided that these services are performed outside Vietnam.

4. Organizations and individuals not engaged in business and not being VAT taxpayers do not need to declare and pay VAT when selling assets, including cases where assets currently used as collateral for loans at banks and credit institutions are sold.

Example 15: Mr. A, a non-business individual, sold a four-seat car to Mr. B for 600 million VND. Mr. A does not need to declare and pay VAT on the revenue from selling the car.

Example 16: Mr. E, a non-business individual, mortgaged a four-seat car to Bank VC to obtain a loan. Upon reaching the repayment deadline stipulated in the contract, Mr. E was unable to repay Bank VC, so the mortgaged asset (the car) was auctioned off to recover the debt. The proceeds from the auction of the mortgaged car do not need to be declared and taxed for VAT.

5. Fixed assets in use that have already been depreciated, when transferred at book value between a business and its subsidiaries wholly owned by the business, or among subsidiaries wholly owned by the business, for the purpose of production and trading of taxable goods and services, do not require issuance of invoices and declaration and payment of VAT. The transferring business must have a Decision or Order of asset transfer accompanied by a file of asset origin documentation.

In case the assets have been re-evaluated for their value or transferred to production and business units not subject to VAT, a VAT invoice must be issued, declared, and VAT paid according to regulations.

6. Other cases:

Business entities are not required to declare and pay tax in the following cases:

a) Contributing assets to establish a business. The contributed assets must include: minutes on business capital contribution, joint venture contracts, joint operation contracts; valuation records of the asset valuation council of the contributing parties (or valuation documents of organizations with valuation functions as prescribed by law), accompanied by a dossier on the origin of the assets.

b) Transferring assets between dependent accounting units within a business; transferring assets when dividing, splitting, merging, consolidating, or changing the form of a business. Assets transferred between member units of dependent accounting within a business entity; assets transferred when dividing, splitting, merging, consolidating, or changing the form of a business must have a transfer order accompanied by a dossier on the origin of the assets and no VAT invoice is required.

In the case of transferring assets between independent accounting units or between fully legal person member units within the same business entity, the business entity transferring the assets must issue a VAT invoice and declare and pay VAT according to regulations, except for the guidance provided in Clause 5 of this Article.

c) Collecting from third parties in insurance activities.

d) Collection services unrelated to the sale of goods or provision of services by the business entity.

đ) Revenue from goods and services sold on commission and commission revenue from commission activities selling at the regulated price of the entrusting party for postal, telecommunications, lottery ticket sales, airline tickets, automobiles, trains, ships; international transportation agency; agency services of the aviation and maritime industries that apply a VAT rate of 0%; insurance sales agency.

e) Revenue from goods and services and commission revenue from commission activities selling goods and services exempt from VAT.

Chapter II

BASIS AND METHOD OF CALCULATING TAX

Section 1

BASIS FOR TAXATION

Article 6. Basis for calculating tax

The basis for calculating VAT is the taxable price and tax rate.

Article 7. Taxable Value

1. For goods and services sold by production and business entities, it is the selling price excluding VAT. For goods and services subject to special consumption tax, it is the selling price including special consumption tax but excluding VAT.

For goods subject to environmental protection tax, it is the selling price including environmental protection tax but excluding VAT; for goods subject to both special consumption tax and environmental protection tax, it is the selling price including special consumption tax and environmental protection tax but excluding VAT.

2. For imported goods, it is the import price at the customs port plus (if applicable) import tax, plus (if applicable) special consumption tax, plus (if applicable) environmental protection tax. The import price at the customs port is determined according to the regulations on taxable value for imported goods.

In the case of imported goods exempted or reduced from import tax, the taxable VAT value is the import price plus (if applicable) import tax calculated at the rate that would be payable after exemption or reduction.

3. For products, goods, and services (including those purchased externally or produced by the business entity itself) used for exchange, gift, donation, or payment in lieu of wages, it is the taxable VAT value of similar goods or services at the same time these activities occur.

Example 17: Unit A produces electric fans, using 50 fan products to exchange with Unit B for steel, the selling price (excluding tax) is 400,000 VND per unit. The taxable VAT value is 50 x 400,000 VND = 20,000,000 VND.

Specifically, for gifts such as invitations (clearly marked on the invitation as no charge) for artistic performances, fashion shows, beauty and modeling contests, and sports competitions permitted by authorized state agencies according to regulations, the taxable value is zero (0).

The organization hosting the artistic performance must determine and take responsibility for the number of invitations and the list of organizations and individuals to whom they give invitations before the event takes place. If the organization still charges money for the invitations, it will be handled according to the law on tax management.

Example 18: Joint Stock Company X was authorized by the competent authority to organize the "Vietnam Beauty Contest 20xx", in addition to printed tickets sold to audiences, the company also printed some invitations given away without charge to invite certain representatives to attend and support the contest, with a list of organizations and individuals receiving them. When declaring VAT, the taxable value of the invitations given away is zero (0). If the tax authority discovers that Joint Stock Company X still charges money for the invitations, then the company will be handled according to the law on tax management.

4. Taxable value for products, goods, and services consumed internally

For products, goods, and services provided by a business entity for internal consumption serving business operations (internal consumption), it is the taxable VAT value of similar or equivalent products, goods, and services at the time of consumption. The business entity can declare and deduct VAT for invoices for internal consumption used for producing and selling goods and services subject to VAT.

Internal inventory transfers such as transferring goods to internal warehouses, transferring raw materials, semi-finished products for continued production within a single production and business entity are not subject to VAT calculation and payment.

Example 19: Unit A produces electric fans, using 50 fan products installed in various production workshops, the selling price (excluding VAT) of this type of fan is 1,000,000 VND per unit, the VAT rate is 10%.

The taxable VAT value is 1,000,000 x 50 = 50,000,000 VND.

Unit A issues a VAT invoice recording the taxable VAT value as 50,000,000 VND, VAT as 5,000,000 VND. Unit A can declare and deduct tax for the invoice for internal consumption.

Example 20: Production base B for ready-made garments has a yarn workshop and a sewing workshop. If production base B sells finished yarn from the yarn workshop to the sewing workshop for continued production, then production base B does not need to calculate and pay VAT on the yarn sold to the sewing workshop.

For businesses using goods and services for internal consumption that serve production and business activities such as transportation, aviation, railways, postal and telecommunications services, which are exempt from output VAT, the business must have a document clearly defining the objects and levels of internal goods and service usage according to the authority's regulations.

5. In the case of leasing assets such as renting houses, offices, workshops, warehouses, docks, parking lots, means of transport, machinery, and equipment, it is the rental amount excluding VAT.

In cases where rental payments are made periodically or paid in advance for a lease period, the taxable value is the rental payment made periodically or in advance for the lease period excluding VAT.

In cases where machinery and equipment, means of transport are leased from abroad, which are not yet produced domestically, and then subleased, the taxable value can be reduced by the rental payment made to the foreign party.

The rental price agreed upon by both parties is determined according to the contract. Where the law specifies a range for rental prices, the rental price must be within the specified range.

6. For goods sold under installment or deferred payment terms, the taxable value is the sale price for a lump sum payment excluding VAT, and does not include the installment or deferred interest.

Example 21: A motorcycle trading company sells type X motorcycles with a 100cc engine, the installment sale price excluding VAT is 25.5 million VND per unit (including the motorcycle price of 25 million VND and installment interest of 0.5 million VND), then the taxable VAT value is 25 million VND.

7. For processing goods, the taxable value is the processing fee according to the processing contract excluding VAT, including labor costs, fuel, power, auxiliary materials, and other expenses serving the processing of goods.

8. For construction and installation, the taxable value is the value of the project, project component, or portion of work handed over excluding VAT.

a) In cases where construction and installation includes the cost of raw materials, the taxable value includes the construction and installation cost including the value of raw materials excluding VAT.

Example 22: Construction Company B undertakes a construction project including the cost of raw materials, the total settlement amount excluding VAT is 1.5 billion VND, of which the value of construction materials excluding VAT is 1 billion VND, then the taxable VAT value is 1.5 billion VND.

b) In cases where construction and installation do not include the cost of raw materials and machinery, the taxable value is the construction and installation cost excluding the value of raw materials and machinery excluding VAT.

Example 23: Construction Company B undertakes a construction project without including the cost of construction materials, the total project value excluding VAT is 1.5 billion VND, the value of raw materials and construction materials provided by Investor A excluding VAT is 1 billion VND, then the taxable VAT value in this case is 500 million VND (1.5 billion VND - 1 billion VND).

c) In cases where construction and installation are settled based on project components or completed construction and installation volume, the taxable value is calculated based on the value of project components or completed work volume excluding VAT.

Example 24: Textile Company X (referred to as Party A) hires Construction Company Y (referred to as Party B) to expand its production workshop.

The total project value excluding VAT is 2 trillion VND, of which:

- Construction and installation value: 80 billion VND.

- Value of equipment supplied and installed by Party B: 120 billion VND.

- VAT at 10%: (80 billion + 120 billion) x 10% = 20 billion VND.

- The total amount Party A needs to pay is: 220 billion VND.

- Party A:

+ Accepts delivery of factory buildings, records an increase in fixed assets for depreciation calculation at 200 billion VND (value excluding VAT).

+ VAT of 20 billion VND is declared and deducted from the output VAT of goods sold or claimed for refund according to regulations.

In cases where Party A accepts and pays Party B for each project component (assuming the construction and installation value of 80 billion VND is accepted, delivered, and paid first), the taxable VAT value is 80 billion VND.

9. For real estate business activities, the taxable value is the transfer price of real estate minus the deductible land value for VAT calculation.

a) The deductible land value for VAT calculation is defined specifically as follows:

a.1) In cases where the State grants land for investment in infrastructure construction of houses for sale, the deductible land value for VAT calculation includes the land use fee payable to the state budget (excluding exempted and reduced land use fees) and compensation and land clearance costs as prescribed by law;

Example 25: In 2011, Real Estate Trading Company A was granted land by the State for investment in infrastructure construction of houses for sale. The land use fee payable (excluding exempted and reduced land use fees, excluding approved compensation and land clearance costs) is 30 billion VND. The project is eligible for a 20% reduction in the land use fee payable.

The approved compensation and land clearance costs are 15 billion VND.

The total deductible land value is determined as follows:

- Exempted land use fee is: 30 billion x 20% = 6 billion VND;

- Land use fee payable to the state budget (excluding exempted and reduced land use fees) is: 30 billion - 6 billion - 15 billion = 9 billion VND;

- Total deductible land value for VAT calculation, including the land use fee payable to the state budget (excluding exempted and reduced land use fees) and compensation and land clearance costs is: 9 billion + 15 billion = 24 billion VND. The total deductible land value is allocated to the area of land permitted for business.

a.2) In cases of auctioning land use rights from the State, the deductible land value for VAT calculation is the winning bid price.

a.2) In the case of auctioning the right to use state-owned land, the land price subject to value-added tax calculation is the successful auction price.

a.3) In the case of leasing land for infrastructure construction or building houses for sale, the amount of land price to be deducted for calculating VAT is the land lease payment due to the state budget (excluding exempted or reduced land lease payments) and compensation costs for land clearance and resettlement in accordance with the law.

a.4) In the case where a business entity receives the transfer of land use rights from organizations or individuals, the land price to be deducted for calculating VAT is the land price at the time of receiving the transfer of land use rights, including the value of infrastructure (if any); the business entity shall not declare and deduct input VAT on the infrastructure included in the land use right value that is exempt from VAT. If the land price at the time of receiving the transfer cannot be determined, the land price to be deducted for calculating VAT is the land price prescribed by the People's Committee of the province or centrally governed city at the time of signing the contract to receive the transfer.

Example 26: In July 2011, Company A received the transfer of 200 square meters of land from individual B for 6 billion VND, with a land use right transfer contract certified in accordance with the law on land, and proof of payment to individual B for 6 billion VND. Company A did not invest in constructing anything on this land. In September 2012, Company A transferred the land use rights acquired from individual B for 9 billion VND, the land price to be deducted for calculating VAT is the price at the time of receiving the transfer (6 billion VND).

Example 27: In November 2011, Joint Stock Company A received the transfer of 300 square meters of land along with a factory from individual B for 10 billion VND without sufficient documentation to determine the land price at the time of receiving the transfer. In April 2012, Joint Stock Company A transferred this land for 14 billion VND, the land price to be deducted for calculating VAT is the land price prescribed by the People's Committee of the province or centrally governed city at the time of receiving the transfer (November 2011).

Example 28:

In September 2011, Company B purchased 2,000 square meters of land with part of the infrastructure from Real Estate Business Company A for a total payment of 62 billion VND (of which the land price exempt from VAT was 40 billion VND, 20 million VND per square meter).

On the invoice, Company A recorded:

- Transfer price excluding VAT: 60 billion VND

- Land price exempt from VAT: 40 billion VND

- VAT on infrastructure: 2 billion VND

- Total payment: 62 billion VND

Company A must declare the VAT payable as follows:

VAT payable = Output VAT - Input VAT deductible

Assuming the input VAT for constructing infrastructure by Company A is 1.5 billion VND meeting the conditions for deduction, then:

VAT payable = 2 billion VND - 1.5 billion VND = 0.5 billion VND

Company B continues to construct infrastructure and builds 10 villas (each villa has a floor area of 200 square meters) for sale. The total input VAT for constructing the villas is 3 billion VND.

On April 1, 2012, Company B signed a contract to sell one villa to customer C, the transfer price of one villa excluding VAT is 10 billion VND, the land price to be deducted when determining the taxable price for one villa sold:

- The value of land use rights (excluding the value of infrastructure) at the time of transferring from Company A for one villa is: (20 million VND x 200 square meters = 4 billion VND)

- The value of infrastructure allocated to one villa is:

(20 billion VND / 2,000 square meters) x 200 square meters = 2 billion VND

- The value of land use rights (including the value of infrastructure) at the time of transferring from Company A to be deducted when determining the taxable price for one villa sold is: 6 billion VND.

On the invoice, Company B recorded:

- Transfer price of one villa: 10 billion VND

- Land price exempt from VAT: 6 billion VND

- VAT: 0.4 billion VND [(10 billion VND - 6 billion VND) x 10%]

- Total payment: 10.4 billion VND

Assuming that Company B sold all 10 villas in the month. When Company B declares and pays VAT, the VAT payable = output VAT - input VAT deductible = 0.4 billion VND x 10 villas - 3 billion VND = 1 billion VND.

The VAT on the value of infrastructure recorded on the invoice from Company A for 10 villas is 2 billion VND and is not declared or deducted.

a.5) In the case where a real estate business entity implements a build-transfer (BT) model to exchange projects for land, the land price to be deducted for calculating VAT is the price at the time of signing the BT contract in accordance with the law.

b) In the case of constructing and operating infrastructure, building houses for sale, transferring or leasing, the tax base for VAT is the amount received according to the project progress or the payment schedule stipulated in the contract.

10. For agency, brokerage activities in buying and selling goods and services, or entrusting import and export operations earning commission or brokerage fees, the tax base for VAT is the commission or brokerage fee earned from these activities excluding VAT.

11. For goods and services using payment vouchers indicating the payment price inclusive of VAT such as stamps, transport tickets, lottery tickets... the price excluding VAT is determined as follows:

 

 

12. For electricity generated by hydroelectric power plants under the accounting system of Vietnam Electricity Corporation, the tax base for VAT to determine the local VAT payable is calculated as 60% of the average retail electricity price of the previous year, excluding VAT. If the average retail electricity price of the previous year cannot be determined, it will be based on the provisional price announced by the Corporation but not lower than the average retail electricity price of the immediately preceding year. Once the average retail electricity price of the previous year is determined, the adjustment difference will be declared in the declaration period of the month when the official price is available. The determination of the average retail electricity price of the previous year must be completed no later than March 31 of the following year.

13. For casino services, electronic games with prizes, and entertainment activities with bets, the tax base is the amount collected from these activities including special consumption tax minus the amount paid out as prizes to customers.

The tax base is calculated using the following formula:

 

 

Example 29: During the tax period, the service provider has the following data:

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

- The amount refunded to customers after playing is: 10 billion VND.

The actual revenue of the business: 43 billion VND - 10 billion VND = 33 billion VND

The amount of 33 billion VND is the business revenue including VAT and excise tax.

The taxable price for VAT is calculated as follows:

 

 

14. For transportation and loading/unloading services, the price is the freight rate and loading/unloading fee excluding VAT, regardless of whether the service is provided directly or subcontracted.

15. For tourism services under travel contracts with customers on a package basis (food, accommodation, transportation), the package price is considered to include VAT.

The taxable price is determined according to the following formula:

 

 

If the package price includes airfare for transporting tourists from abroad to Vietnam and vice versa, food, lodging, sightseeing expenses, and other expenses incurred overseas (if supported by valid documentation), then these customer payments for such expenses are deducted from the taxable income (revenue) for VAT calculation.

Example 30: Ho Chi Minh City Tourism Company implements a tour contract with Thailand on a full-package basis for 50 tourists over five days in Vietnam, with a total payment of 32,000 USD. Vietnam must cover all airfare, food, accommodation, and sightseeing costs as agreed; among which, the round-trip airfare from Thailand to Vietnam costs 10,000 USD. Exchange rate: 1 USD = 20,000 VND.

The taxable price for VAT under this contract is calculated as follows:

+ VAT taxable revenue is:

(32,000 USD - 10,000 USD) x 20,000 VND = 440,000,000 VND

- The taxable price is:

 

 

Example 31: Hanoi Tourism Company implements a contract to bring tourists from Vietnam to China on a full-package basis at 400 USD per person for five days. Hanoi Tourism Company pays 300 USD per person to the Chinese Tourism Company; thus, the taxable revenue of Hanoi Tourism Company is 100 USD per person (400 USD - 300 USD).

16. For pawnshop services, the amount to be collected from such services includes interest from lending and additional income from selling pawned items (if applicable) and is considered to include VAT.

The taxable price is determined according to the following formula:

 

 

Example 32: A pawnshop company has a turnover of 110 million VND during the tax period.

The taxable price for VAT is determined as follows:

 

 

17. For books subject to VAT sold at the published price (cover price) as stipulated by the Law on Publishing, that sale price is considered to include VAT for VAT calculation and revenue of the business. In cases where sales are not made at the cover price, VAT is calculated based on the actual selling price.

18. For printing activities, the taxable price is the printing fee. When a printing company enters into printing contracts where the payment includes both the printing fee and paper cost, the taxable price includes the paper cost.

19. For agency appraisal, agency compensation assessment, agency third-party compensation recovery, and agency compensation processing services where the service provider receives only commission or fees, the taxable price for VAT is the commission or fee received (without any deductions) by the insurance company, excluding VAT.

20. For services provided partly in Vietnam and partly abroad, the taxable price is the value of the service performed in Vietnam as specified in the service provision contract. If the contract does not specify separately the value of the service performed in Vietnam, the taxable price is determined based on the ratio of costs incurred in Vietnam to the total costs.

Example 33: Joint Stock Company B provides seminar and survey services to Center X, consisting of two parts: organizing seminars in Vietnam and conducting study tours in Thailand. The total package price according to the signed contract is 500 million VND; of which, the seminar organization in Vietnam is valued at 150 million VND; the total cost of air tickets from Thailand to Vietnam (and vice versa), food, lodging, and study tour expenses in Thailand is 350 million VND.

The taxable price for VAT is determined as the value of the service conducted in Vietnam, already inclusive of VAT, divided by (1 + VAT rate). Specifically, the taxable price for VAT is determined as:

 

 

Example 34: Company D provides consulting, surveying, and feasibility report preparation services for a Laos investment project for Company X. The total revenue without VAT received by Company D is 5 billion VND. The contract between the two companies does not specify the revenue generated in Vietnam and Laos. Company D calculates that the costs incurred in Laos (surveying and exploration costs) are 1.5 billion VND, and the costs incurred in Vietnam (compilation and report preparation) are 2.5 billion VND.

 

 

21. For the case of purchasing services as stipulated in Clause 5, Article 3 of this Circular, the taxable price is the purchase price recorded in the service procurement contract excluding VAT.

22. The taxable price for goods and services specified from Clause 1 to Clause 21 of this Article includes additional surcharges and fees outside the price of goods and services that the business enjoys.

If the business applies a discount or trade discount for customers (if any), the taxable price for VAT is the discounted or trade-discounted price. If the discount or trade discount is based on quantity or sales volume, the discount or trade discount amount for sold goods is adjusted on the sales invoice of the last purchase or subsequent period. If the discount or trade discount amount is established at the end of the discount or trade discount program, an adjustment invoice accompanied by a list of invoices to be adjusted, amounts, and tax adjustments is issued. Based on the adjustment invoice, the seller and buyer declare adjustments to sales and purchases, output tax, and input tax.

The tax calculation price is determined in Vietnamese Dong. In cases where the taxpayer has revenue in foreign currency, it must be converted to Vietnamese Dong based on the average transaction rate in the inter-bank foreign exchange market published by the State Bank at the time the revenue is generated to determine the tax calculation price.

Article 8. Time for Determining VAT

1. For the sale of goods, it is the moment when the ownership or right to use the goods is transferred to the buyer, regardless of whether payment has been received or not.

2. For the provision of services, it is the moment when the provision of services is completed or the invoice for the provision of services is issued, regardless of whether payment has been received or not.

3. For the supply of electricity and clean water, it is the day the meter readings for consumption are recorded on the bill.

4. For real estate business activities, infrastructure construction, building houses for sale, transfer, or lease, it is the moment when money is collected according to the project implementation progress or the collection progress recorded in the contract. Based on the amount of money collected, the business entity shall declare the output VAT arising during the period.

5. For construction and installation works, it is the moment when the project, component, or volume of construction and installation work is accepted and handed over, regardless of whether payment has been received or not.

6. For imported goods, it is the moment when the customs declaration form is registered.

Article 9. Zero Tax Rate

1. Zero tax rate applies to exported goods and services; construction and installation works for export processing enterprises; international transportation; goods and services exempt from VAT when exported, except for cases not applying the zero tax rate as specified in Clause 3 of this Article.

a) Exported goods include:

- Goods exported abroad, including entrusted exports;

- Goods sold to non-tariff zones as prescribed by the Prime Minister; goods sold to duty-free shops;

- Cases considered as exports under the provisions of the law:

+ Goods processed for re-export under the provisions of the law on international trade activities and agency purchase, sale, and processing of goods with foreign countries.

+ Goods exported in place as prescribed by the law.

+ Goods exported for sale at overseas exhibitions.

b) Exported services include services directly provided to organizations and individuals outside the country or within non-tariff zones.

An organization outside the country is a foreign organization without a permanent establishment in Vietnam and not a VAT taxpayer in Vietnam.

Foreign individuals are foreigners who do not reside in Vietnam, Vietnamese citizens residing abroad, and those outside Vietnam during the period of service provision.

Organizations and individuals within non-tariff zones are organizations and individuals registered for business and other cases as prescribed by the Prime Minister.

c) International transportation as stipulated herein includes passenger, luggage, and cargo transportation along international routes from Vietnam to another country or from another country to Vietnam, or both departure and arrival points being outside the country, regardless of whether there is direct transport means or not. If an international transportation contract includes domestic transportation legs, international transportation includes the domestic leg.

Example 35: Company X in Vietnam has an international shipping vessel that transports goods from Singapore to South Korea. Revenue from transporting goods from Singapore to South Korea is revenue from international transportation activities.

d) Services of the aviation and maritime industries directly provided to foreign organizations or through agents include:

Aviation industry services subject to a zero tax rate: Provision of airline catering services; aircraft takeoff and landing services; aircraft parking services; aircraft security and protection services; passenger, baggage, and cargo security screening; baggage conveyor belt services at the terminal; ground commercial technical support services; aircraft security services; aircraft towing and pushback services; aircraft guidance services; boarding bridge rental services; flight operation services; crew and passenger transportation services within the airport apron area; cargo loading and counting services; Passenger Service Charges for international flights departing from Vietnamese airports.

Maritime industry services subject to a zero tax rate: Ship towing services; marine pilots; marine rescue services; wharf and buoy services; cargo handling; mooring and unmooring; hatch opening and closing; ship hold cleaning; cargo counting and delivery; ship inspection.

e) Other goods and services:

- Construction and installation works for export processing enterprises.

- Goods and services exempt from VAT when exported, except for cases not applying the zero tax rate as specified in Clause 3 of this Article;

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

2. Conditions for Applying the Zero Tax Rate:

a) For export goods:

- Having a sales contract for exported goods, a processing contract for exported goods, or a contract for entrusted exports;

- Having payment receipts for exported goods through banks and other documents as prescribed by law;

- Having a customs declaration form as prescribed in Clause 2 of Article 16 of this Circular.

b) For exported services:

- Having a service provision contract with organizations and individuals outside the country or within non-tariff zones;

- Having payment receipts for exported services through banks and other documents as prescribed by law;

- Having commitments from foreign organizations without a permanent establishment in Vietnam and not being VAT taxpayers in Vietnam; Commitments from foreign individuals who are foreigners not residing in Vietnam, Vietnamese citizens residing abroad, and outside Vietnam during the service provision period.

Specifically, for aircraft and ship repair services provided to foreign organizations and individuals, in addition to the conditions regarding contracts and payment receipts mentioned above, the aircraft and ships brought into Vietnam must go through import procedures, and upon completion of repairs, they must go through export procedures to apply the zero tax rate.

c) For international transportation:

- There is a passenger transport, luggage, and cargo transportation contract between the carrier and the charterer for international routes from Vietnam to abroad or from abroad to Vietnam or both departure and destination points outside Vietnam, in forms consistent with the provisions of the law. For passenger transport, the transportation contract is a ticket. International transportation businesses operate in accordance with the provisions of the law on transportation.

- There is a bank payment document or other payment methods considered as bank payments. In the case of individual passenger transport, there is a direct payment document.

d) For air and maritime services:

d.1) Air services subject to a tax rate of 0% are carried out within the international airport port area, airport, international air cargo terminal, and meet the following conditions:

- There is a service supply contract with an organization abroad, foreign airline, or a request for service supply from an organization abroad or foreign airline;

- There is a bank payment document for the service or other payment methods considered as bank payments. In cases where services provided to foreign organizations or foreign airlines occur infrequently, without a schedule, and without a contract, there must be a direct payment document from the foreign organization or foreign airline.

The conditions regarding contracts and bank payment documents mentioned above do not apply to services serving passengers on international flights departing from Vietnamese airports (passenger service charges).

d.2) Maritime services subject to a tax rate of 0% are carried out within the port area and meet the following conditions:

- There is a service supply contract with an organization abroad, ship agent, or a request for service supply from an organization abroad or ship agent;

- There is a bank payment document for the service from the foreign organization or a bank payment document for the service from the ship agent to the service supplier or other payment methods considered as bank payments.

3. Cases not applying the 0% tax rate include:

- Reinsurance abroad; transfer of technology, transfer of intellectual property rights abroad; capital transfer, credit provision, securities investment abroad; derivative financial services; outbound postal and telecommunications services (including postal and telecommunications services provided to organizations and individuals in the duty-free zone; providing prepaid mobile phone scratch cards with serial numbers and denominations taken abroad or brought into the duty-free zone); unprocessed natural resources and minerals exported as products; goods and services supplied to individuals not registered for business in the duty-free zone, except for other cases as prescribed by the Prime Minister;

- Gasoline and diesel sold to businesses in the duty-free zone purchased domestically;

- Cars sold to organizations and individuals in the duty-free zone.

- Services provided by businesses to organizations and individuals in the duty-free zone including: renting houses, workshops, conference halls, offices, hotels, warehouses; labor transportation services; catering services (excluding industrial meal provision services, catering services in the duty-free zone);

- The following services provided in Vietnam to organizations and individuals abroad are not eligible for the 0% tax rate:

+ Sports competitions, artistic performances, cultural events, entertainment, conferences, hotel services, training, advertising, travel agency services;

+ Online payment services, digital services.

Cases not applying the 0% tax rate as stipulated in this clause shall be subject to the corresponding tax rates applicable to goods and services when sold or supplied domestically.

Article 10. Tax rate of 5%

1. Clean water for production and daily use, excluding bottled drinking water and other beverage types subject to a tax rate of 10%.

2. Fertilizers; ores for fertilizer production; pesticides and growth stimulants for livestock and crops.

a) Fertilizers include organic and inorganic fertilizers such as phosphorus fertilizers, nitrogen fertilizers (urea), NPK fertilizers, mixed nitrogen fertilizers, phosphate fertilizers, gypsum; microbial fertilizers and other types of fertilizers.

b) Ores for fertilizer production include raw materials for fertilizer production such as apatite ore for phosphorus fertilizers and mud for microbial fertilizers.

c) Pesticides and growth stimulants for livestock and crops.

3. Livestock and poultry feed, and other animal feeds, including processed or unprocessed types such as bran, oil cakes, fish meal, bone meal, shrimp meal, and other types of feed for livestock, poultry, and animals.

4. Services for digging, dredging canals, ditches, ponds, lakes for agricultural production; cultivation, care, pest control for crops; preliminary processing and preservation of agricultural products (excluding canal and ditch dredging within fields as specified in Clause 3, Article 4 of this Circular).

Preliminary processing and preservation of agricultural products include drying, sun-drying, peeling, de-husking, cutting, grinding, cold storage, salting, and other common preservation methods.

5. Agricultural, livestock, aquaculture, and seafood products that have not been processed or only undergone preliminary cleaning, drying, peeling, de-husking, cutting, salting, cold storage, and other common preservation methods at the commercial trading stage.

Unprocessed crop products referred to herein include rice, corn, potatoes, cassava, wheat.

6. Raw latex such as coagulated latex, sheet latex, bun latex, young latex; raw pine resin; fishing nets, ropes, and threads for weaving fishing nets including specialized fishing nets and threads regardless of production material.

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

Fresh food includes various types of food that have not been cooked or transformed into other products, only preliminarily processed in forms such as cleaning, peeling, cutting, freezing, drying, still remaining as fresh food like fresh meat, poultry, shrimp, crab, fish, and other aquatic products. In cases where food has been seasoned with spices, the tax rate of 10% applies.

Unprocessed forest products include products from natural forests harvested in groups such as teak, rattan, bamboo, reed, mushroom, wood ear fungus; roots, leaves, flowers, medicinal plants, tree sap, and other forest products.

Example 36: Company A produces fresh tuna seasoned according to the process: fresh tuna caught is filleted, then seasoned with sugar, salt, solpitol, packaged, frozen. The fresh tuna seasoned product does not fall under the application of the 5% tax rate but falls under the application of the 10% VAT tax rate.

8. Sugar; by-products in sugar production, including sugar sludge, sugarcane residue, mud residue.

9. Products made from rush, straw, bamboo, teak, rattan, bamboo shoot, palm leaf, rice straw, coconut shell, coconut husk, duckweed, and other handicrafts produced using agricultural waste materials as main raw materials such as rush, straw, bamboo, teak, rattan, bamboo shoot, including: rush mats, rush fibers, rush bags, coconut fiber mats, rush and straw woven mats; brooms made from bamboo, coconut fiber ropes, bamboo and rattan curtains, bamboo brooms, bamboo hats; bamboo chopsticks, bamboo shoot chopsticks; raw cotton; printing paper.

10. Specialized machinery and equipment for agricultural production, including plows, harrows, transplanters, seed drills, rice threshers, harvesters, combine harvesters, agricultural product harvesters, machines or sprayers for pesticide application.

11. Medical equipment and devices including specialized machines and tools for medical purposes such as X-ray, imaging, and diagnostic equipment; surgical and wound treatment equipment, ambulances; blood pressure, heart, and pulse measuring devices, blood transfusion devices; syringes; contraceptive devices, and other specialized medical devices.

Medical cotton, bandages, gauze, and sanitary napkins; disease prevention and treatment drugs including finished drugs, drug ingredients, except health supplements; vaccines; medical products, distilled water for preparing injectable and infusion drugs; chemical testing and disinfection supplies for medical use; medical masks, clothing, gloves, surgical gowns, shoe covers, towels, and specialized gloves.

12. Teaching and learning aids including models, drawings, boards, chalk, rulers, compasses, and specialized equipment and tools for teaching, research, and scientific experiments.

13. Cultural activities, exhibitions, physical education, sports; artistic performances; film production; importation, distribution, and screening of films.

a) Cultural activities, exhibitions, and physical education and sports, excluding revenues from sales of goods, renting of venues, booths at fairs and exhibitions.

b) Artistic performance activities such as traditional opera, cheo, cải lương, singing, dancing, music, drama, circus; other artistic performance activities and services organizing artistic performances by theaters or troupes of traditional opera, cheo, cải lương, singing, dancing, music, drama, circus with permits issued by competent state authorities.

c) Film production; importation, distribution, and screening of films, excluding products specified in Clause 15, Article 4 of this Circular.

14. Children's toys; various types of books, except books exempt from VAT as specified in Clause 15, Article 4 of this Circular.

15. Scientific and technological services are activities serving scientific research and technological development; intellectual property-related activities; information dissemination, application of scientific and technological knowledge and practical experience under scientific and technological service contracts as stipulated in the Law on Science and Technology, excluding online games and internet entertainment services.

Article 11. Tax rate of 10%

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

The rates of VAT specified in Articles 10 and 11 shall be uniformly applied to each type of goods and services at the importation, production, processing, or commercial trading stages.

Example 37: Goods such as ready-made garments subject to a tax rate of 10% shall be taxed at a rate of 10% at the importation, production, processing, or commercial trading stages.

Waste materials recovered for recycling and reuse when sold shall be subject to the VAT rate applicable to that product.

Example 38: Fish waste recovered from the production process of fish sauce shall be subject to the VAT rate applicable to fish waste. In cases where fish waste is used as animal feed or raw material for fertilizer production, it shall be subject to a VAT rate of 5% when sold.

Businesses dealing with multiple types of goods and services with different VAT rates must declare VAT according to the prescribed rates for each type of goods and service; if the business does not declare according to each rate, they must calculate and pay VAT at the highest rate applicable to the goods and services produced or traded by the business.

During implementation, if there are cases where the VAT rate in the VAT Rate Table under the Import Tariff Schedule does not align with the guidance provided in this Circular, the guidance in this Circular shall be followed. If the VAT rate applied is inconsistent for the same type of imported goods and domestically produced goods, local tax authorities and customs offices shall report to the Ministry of Finance for timely unified guidance.

Section 2

METHODS OF CALCULATING TAX

Article 12. Method of Tax Deduction

1. The method of tax deduction applies to businesses that fully comply with accounting records, invoices, and receipts as stipulated by laws on accounting, invoices, and receipts, and have registered to pay taxes using the tax deduction method; except for entities applying the direct calculation method based on VAT as guided in Article 13 of this Circular.

2. Determining the amount of VAT payable:

 

 

Where:

a) The output VAT amount equals the total VAT amount of goods and services sold recorded on the VAT invoice.

The VAT amount recorded on the VAT invoice is calculated by multiplying the taxable price of the goods and services sold by the applicable VAT rate.

In cases where payment is made based on an invoice showing the price inclusive of VAT, the output VAT amount is determined by subtracting the taxable price as specified in Clause 11, Article 7 of this Circular from the payment price.

Businesses subject to the tax deduction method when selling goods and services must calculate and pay VAT on the goods and services sold. When issuing sales invoices, businesses must clearly record the sale price excluding VAT, the VAT amount, and the total amount payable by the buyer. In cases where the invoice only shows the payment price (except for special cases permitted), without recording the price excluding VAT and the VAT amount, the VAT on the goods and services sold must be calculated based on the payment price recorded on the invoice or receipt.

Example 39: A company sells steel, with the sale price excluding VAT for steel F6 being 11,000,000 VND per ton; the VAT amount is 1,100,000 VND per ton. However, when selling, some invoices only record the sale price as 12,100,000 VND per ton, then the VAT amount on the sales revenue is calculated as follows: 12,100,000 VND per ton x 10% = 1,210,000 VND per ton instead of calculating based on the price excluding VAT of 11,000,000 VND per ton.

Businesses must comply with accounting records, invoices, and receipts as stipulated by laws on accounting, invoices, and receipts. In cases where the VAT rate recorded on the invoice is incorrect and the business has not self-corrected, and the tax authority discovers this during inspection, the following measures will be taken:

For businesses selling goods and services: If the VAT rate recorded on the invoice is higher than the rate prescribed in legal documents on VAT, the business must declare and pay VAT according to the rate recorded on the invoice; if the VAT rate recorded on the invoice is lower than the rate prescribed in legal documents on VAT, the business must declare and pay VAT according to the VAT rate prescribed in legal documents on VAT.

b) Input VAT equals the total VAT amount recorded on VAT invoices for goods and services purchased (including fixed assets) used for producing and trading goods and services subject to VAT, the VAT amount recorded on tax payment receipts for imported goods, or tax payment receipts issued by foreign organizations or individuals operating or generating income in Vietnam as guided by the Ministry of Finance.

In cases where goods and services purchased are of a type that can use special invoices showing the payment price inclusive of VAT, the business may base the determination of the price excluding VAT and input VAT on the price inclusive of VAT and the calculation method specified in Clause 11, Article 7 of this Circular.

The amount of input VAT deductible is determined according to the principles of VAT deduction stipulated in Articles 14, 15, 16, and 17 of this Circular.

Example 40: During the period, Company A paid for a special type of input service:

Total payment price 110 million VND (inclusive of VAT), this service is subject to a 10% tax rate, the input VAT deductible amount is calculated as follows:

 

 

Price excluding VAT is 100 million VND, VAT amount is 10 million VND.

In cases where the VAT rate recorded on the invoice is incorrect and the businesses have not self-corrected, and the tax authority discovers this during inspection, the following measures will be taken:

For businesses purchasing goods and services: If the VAT rate stated on the purchase invoice is higher than the rate prescribed in the legal documents on VAT, the input tax shall be deducted at the rate prescribed in the legal documents on VAT; In case it can be determined that the seller has declared and paid taxes according to the correct rate stated on the invoice, the input tax may be deducted at the rate stated on the invoice but must have confirmation from the tax authority directly managing the seller; If the VAT rate stated on the invoice is lower than the rate prescribed in the legal documents on VAT, the input tax shall be deducted at the rate stated on the invoice.

Article 13. Direct Method of Calculating Value Added Tax

1. The direct method of calculating value added tax shall apply to the following subjects:

a) Individuals and households conducting business without implementing or not fully implementing accounting systems, invoices, and supporting documents as prescribed by law.

b) Foreign organizations and individuals conducting business not in accordance with the Investment Law and other organizations (including economic organizations of political organizations, political-social organizations, social organizations, social-professional organizations, people's armed forces units, public service organizations, and other organizations) without implementing or not fully implementing accounting systems, invoices, and supporting documents as prescribed by law, except for foreign organizations and individuals providing goods and services for oil and gas exploration, development, and exploitation activities.

For foreign organizations and individuals providing goods and services for oil and gas exploration, development, and exploitation activities, the Vietnamese party shall be responsible for withholding and paying on behalf of them at the rate prescribed by the Ministry of Finance. In cases where foreign organizations and individuals declare and pay taxes according to the deduction method, the amount of tax paid at the rate prescribed by the Ministry of Finance shall be deducted from the tax payable.

c) Business activities involving the purchase and sale of gold, silver, and precious stones.

In cases where a business entity engages in both the purchase and sale of gold, silver, and precious stones and the production of gold, silver, and precious stone products, the direct method of calculating value added tax shall be applied to these activities.

2. Determining the Amount of VAT Due

The amount of VAT due under the direct method of calculating value added tax is calculated by multiplying the value added of taxable goods and services sold by the applicable VAT rate.

a) Value-added of goods and services is determined by subtracting the purchase price from the sales price of goods and services;

The payment price of goods and services sold is the actual selling price recorded on the sales invoice, including VAT and additional charges and fees that the seller receives, regardless of whether the money has been collected or not.

The purchase price of goods and services is determined by the value of purchased or imported goods and services used for producing and trading taxable goods and services.

The value added is determined for certain business activities as follows:

- For production and trading activities, it is the difference between sales revenue and the cost of materials, goods, and services purchased for production and trading. In cases where a business entity cannot account for the cost of materials, goods, and services purchased corresponding to sales revenue, it is determined as follows:

The cost of goods sold equals the beginning period inventory plus purchases during the period minus the ending period inventory.

Example 41: A wooden product manufacturing entity A sold 150 products in a month, with total sales revenue of 25 million VND.

The cost of external materials and raw materials purchased to produce 150 products is 19 million VND, including:

+ Main raw material (wood): 14 million VND.

+ Other materials and external services: 5 million VND.

The VAT rate is 10%, the VAT that entity A must pay is calculated as follows:

+ Value added of products sold: 25 million VND - 19 million VND = 6 million VND.

+ VAT payable: 6 million VND x 10% = 0.6 million VND.

- For construction and installation activities, it is the difference between income from construction and installation work and the cost of materials, raw materials, power, transportation, and other external services used for construction and installation work.

- For transportation activities, it is the difference between transportation and loading/unloading income and the costs of fuel, spare parts, and other expenses purchased externally for transportation activities.

- For catering activities, it is the difference between income from selling food and beverage and other revenues and the cost of external goods and services used for catering activities.

- For gold, silver, and precious stone trading activities, the value added is the difference between sales revenue from gold, silver, and precious stones and their cost.

- For business entities subject to VAT calculation using the deduction method and engaging in gold, silver, and precious stone trading, the direct method of calculating value added tax shall be applied. The entity must separately account for input VAT to declare the VAT payable for goods and services according to each business activity and separate tax calculation methods.

In cases where separate accounting is not possible, the input VAT deductible can be allocated according to the ratio of sales revenue of goods and services subject to VAT calculated under the deduction method to the total sales revenue generated in the period, wherein the sales revenue of goods and services subject to VAT includes all sales revenue of goods and services subject to VAT submitted under the deduction method; the total sales revenue of goods and services sold in the period includes: Sales revenue of goods and services subject to VAT; sales revenue of goods and services not subject to VAT and the difference between selling price and purchase price of gold, silver, and precious stone trading activities (excluding negative differences).

- For other business activities, it is the difference between income from business activities and the cost of external goods and services used for those activities.

- Business entities subject to VAT calculation using the direct method of calculating value added tax shall not include the cost of externally purchased assets, investments, and constructions as fixed assets in the purchase cost of goods and services to calculate value added.

- In cases where negative value-added (-) of gold, silver, precious stones occurs during the tax period, it shall be offset against positive value-added (+) of gold, silver, precious stones. If there is no positive value-added (+) or if the positive value-added (+) is insufficient to offset the negative value-added (-), the excess negative value-added may be carried forward to offset against the value-added in subsequent periods within the same year. At the end of the calendar year, any remaining negative value-added (-) cannot be carried forward to the next year. Businesses filing VAT returns shall declare according to Form 03/GTGT issued together with this Circular.

b) For businesses (excluding enterprises applying the tax deduction method, households, and individual businesses) selling goods and services with full invoices for sales in accordance with prescribed regulations or having sufficient conditions to accurately determine sales revenue from goods and services such as contracts and payment receipts but lacking invoices for purchased goods and services, the VAT shall be determined by multiplying the sales revenue by the percentage rate of VAT on sales revenue.

The percentage rate of value-added tax calculated on sales revenue as the basis for determining the value-added tax is specified as follows:

- Commerce (distribution, supply of goods): 10%.

- Services, construction (excluding construction that includes provision of raw materials): 50%.

- Production, transportation, services attached to goods, construction including provision of raw materials: 30%.

c) Business operations; households and individual businesses not implementing or not fully implementing accounting records, invoices, and documents as required by law shall pay taxes at the VAT rate specified by the Ministry of Finance.

Chapter III

DEDUCTION AND REFUND OF TAX

Section 1

TAX DEDUCTION

Article 14. Principles of Tax Deduction for Input VAT

1. Input VAT on goods and services used for producing and trading taxable goods and services shall be fully deductible, including input VAT on goods subject to VAT that have been lost.

In cases where goods suffer natural losses due to their physical and chemical properties during transportation, pumping, such as gasoline, diesel... the input VAT on the actual quantity of naturally lost goods not exceeding the allowable loss rate shall be declared and deducted. Input VAT on the quantity of goods naturally lost not exceeding the allowable loss rate shall be declared and deducted. Input VAT on the quantity of goods lost exceeding the allowable loss rate shall not be deductible or refundable.

2. Input VAT on goods and services used simultaneously for producing and trading taxable and non-taxable goods and services shall only be deductible for the portion used for producing and trading taxable goods and services. Businesses must separately account for deductible input VAT and non-deductible input VAT; if separate accounting is not possible, the deductible input VAT shall be calculated based on the ratio between the turnover subject to VAT and the total turnover of sold goods and services. Businesses trading taxable and non-taxable goods and services shall temporarily allocate the deductible input VAT of purchased goods and services monthly, and at the end of the year, they shall calculate and adjust the deductible input VAT declared for the year to correct the monthly temporary allocation.

3. Input VAT on fixed assets used simultaneously for producing and trading taxable goods and services shall be fully deductible.

Input VAT on fixed assets in the following cases shall not be deductible but included in the original cost of the fixed asset: specialized fixed assets for producing weapons, equipment serving national defense and security; fixed assets, machinery, and equipment of credit organizations, reinsurance companies, life insurance companies, securities trading companies, hospitals, schools; civil aircraft, yachts not used for commercial cargo and passenger transport, tourism, and hotel business.

Input VAT on goods and services forming fixed assets for enterprises such as cafeterias, rest houses, free housing, changing rooms, parking lots, toilets, water tanks serving workers in production and business areas and residential areas, medical stations for workers in industrial zones shall be fully deductible.

Fixed assets being passenger cars with up to 9 seats (excluding those used for commercial cargo and passenger transport, tourism, and hotel business) valued over VND 16 billion (excluding VAT) shall have the corresponding input VAT on the value exceeding VND 16 billion not deductible.

4. Agricultural, forestry, aquaculture, and fishery production bases with organized closed-loop production and centralized accounting of production and business results using agricultural and forestry products; aquaculture and fishing products as raw materials to continue producing and processing taxable goods (including unprocessed agricultural, forestry, and aquatic products for export or processed products subject to VAT) shall declare and deduct input VAT for all stages of basic construction investment, production, and processing. In cases where businesses have projects for continued production and processing or have written commitments to continue producing taxable goods, they can declare and deduct input VAT from the initial stage of basic construction investment. For input VAT arising during the initial stage of basic construction investment, if the enterprise has declared and deducted or refunded the tax but later determines that it does not meet the conditions for deduction or refund, the enterprise must declare and adjust the repayment of the deducted or refunded VAT. If the enterprise fails to make adjustments and is discovered through inspection and audit by the tax authority, the tax authority will recover and impose penalties as stipulated. The enterprise shall bear full responsibility under the law for the contents reported, committed, and explained to the relevant tax authority regarding deductions and refunds.

In the case where the business sells goods that are agricultural, forestry, aquatic, or marine products not yet processed or only minimally processed and are exempt from VAT, the input VAT on purchased goods and services shall be deductible at a rate corresponding to the percentage of taxable sales revenue compared to the total sales revenue.

Example 42: Business A has a project to establish a rubber plantation and incurs input VAT on goods and services during the investment construction phase. The business does not have raw materials to continue producing taxable goods but plans to build a rubber processing factory (which is subject to VAT) and commits to further process planted products into taxable goods. The company can deduct the entire input VAT.

If a business sells natural rubber exempt from VAT, the business cannot deduct VAT.

In the case where a business uses part of the natural rubber extracted for production of taxable goods and sells the rest, the deduction of input VAT shall be carried out as follows:

- Input VAT on fixed assets (rubber plantations, processing plants, etc.): the business can deduct the entire amount (including VAT incurred during the investment construction phase).

- Input VAT on goods and services: the deduction shall be made according to the ratio of taxable sales revenue compared to the total sales revenue.

5. Input VAT on goods (including externally purchased goods or goods produced by the business itself) used for giving, presenting, promoting, advertising, or serving the production and business operations of taxable goods and services may be deducted.

6. Input VAT on goods and services used for the production and business operations of goods and services exempt from VAT as specified in Article 4 of this Circular shall be included in the original cost of fixed assets, material value, or business expenses, except for the following cases:

a) Input VAT on goods and services purchased by businesses for the production and business operations of goods and services provided to foreign organizations and individuals or international organizations for humanitarian aid or non-repayable assistance as stipulated in Clause 19 of Article 4 of this Circular shall be fully deductible;

b) Input VAT on goods and services used for oil and gas exploration activities until the first day of exploitation or production shall be fully deductible.

7. Input VAT arising in any month shall be declared and deducted when determining the tax payable for that month, regardless of whether it has been used or remains in stock.

a) In the event that a business discovers omitted VAT input invoices when declaring and deducting, they may declare and deduct the supplementary invoices; the maximum time limit for supplementary declaration and deduction is six months from the month the invoice was omitted, except for the cases specified in point b of this clause.

Example 43: Business A issued a VAT invoice for purchases dated March 10, 2012. During the tax declaration period for March 2012, the accountant of the business failed to declare this invoice. Therefore, Business A can declare and deduct the supplementary invoice up to the tax declaration period for August 2012.

b) In the event that a business omits to declare VAT paid at the import stage (including VAT paid at the import stage with payment vouchers before March 1, 2012) and the input VAT is still in the investment phase and has not commenced operations, the business may declare and deduct the supplementary input VAT according to the regulations of the tax management laws.

Example 44: Business B paid VAT at the import stage based on a payment voucher dated March 1, 2012. Due to a mistake, the accountant of the business did not declare this voucher in subsequent tax declarations. Therefore, Business B can declare and deduct the supplementary VAT paid at the import stage (based on the payment voucher) according to the regulations of the tax management laws.

Example 45: Business Y paid VAT at the import stage based on a payment voucher before March 1, 2012. Due to a mistake, the accountant of the business did not declare this voucher. On March 1, 2012, the accountant discovered the omission. Therefore, Business Y can declare and deduct the supplementary VAT paid at the import stage (based on the payment voucher) according to the regulations of the tax management laws.

c) In the event that a business issues a VAT invoice for goods and services but later discovers errors regarding VAT, and must issue a corrected invoice, the deadline for declaring and deducting supplementary VAT for the purchase of goods and services shall be calculated from the date of issuing the corrected invoice.

8. Input VAT that is not deductible shall be recorded as an expense for calculating corporate income tax or included in the original cost of fixed assets according to the provisions of the law.

9. The offices of General Corporations and Groups that do not directly engage in business activities and administrative units such as hospitals, health stations, convalescent homes, institutes, training schools, etc., which are not VAT taxpayers, shall not be entitled to deduct or refund input VAT on goods and services purchased for their operations.

If these units engage in business activities subject to VAT, they must register and declare payment of VAT separately for these activities.

Example 46: The office of Corporation A does not directly produce or operate, using funds contributed by its affiliated units for its activities. However, if the office rents out unused space, it must separately account for and declare VAT for the rental activity. Input VAT on goods and services for the office's operations cannot be deducted or refunded.

10. The input VAT on goods and services used for activities providing goods and services that are not declared and subject to VAT as stipulated in Article 5 of this Circular shall be fully deducted.

Example 47: Joint Stock Construction Company X undertakes construction projects in Laos. In addition to raw materials and supplies exported to Laos for the construction project, Joint Stock Construction Company X incurs some expenses in Vietnam to support the construction activities in Laos such as management costs, which are supported by VAT invoices (for VAT invoices with a value of 20 million dong or more, bank transfers must be used for payment). Therefore, Joint Stock Construction Company X can declare and fully deduct the input VAT on these expenses.

11. Businesses are allowed to declare and deduct VAT on purchased goods and services under the form of entrusting organizations or individuals to handle them, where the invoices bear the name of the entrusted organization or individual, including the following cases:

a) Insurance companies entrust policyholders to repair assets; if the repair costs and replacement parts have VAT invoices bearing the name of the policyholder, and the insurance company pays the corresponding insurance premiums to the policyholder according to the insurance contract, then the insurance company can declare and deduct the VAT corresponding to the insurance compensation paid according to the VAT invoice bearing the name of the policyholder; in cases where the insurance compensation paid to the policyholder has a value of 20 million dong or more, bank transfers must be used for payment.

b) Before establishing a business, founders issue authorization letters for organizations or individuals to pay on their behalf certain expenses related to the establishment of the business and the purchase of goods and supplies. The business can declare and deduct the input VAT according to the VAT invoices bearing the name of the authorized organization or individual, and must make payments to the authorized organization or individual through banks for invoices with a value of twenty million dong or more.

12. In cases where individuals or non-business entities contribute assets to limited liability companies or joint stock companies, the documentation for contributed assets is the certificate of capital contribution and the receipt and delivery record of assets. If the contributed assets are newly purchased and unused items with valid invoices recognized by the capital contribution acceptance council, the contribution value is determined based on the value stated on the invoice including VAT; the recipient of the capital contribution can declare and deduct the VAT recorded on the purchase invoice of the contributing party.

13. For households paying VAT directly on turnover who switch to the deduction method, they can deduct VAT on purchased goods and services incurred from the month they apply the deduction method; for goods and services purchased before the application of the deduction method, input VAT cannot be deducted.

14. Businesses are not allowed to deduct input VAT in the following cases:

- VAT invoices are used in violation of legal regulations, such as VAT invoices not recording VAT (except in special cases where VAT invoices recording the transaction amount inclusive of VAT are used);

- Invoices do not record or incorrectly record one of the following details: the name, address, tax code of the seller, making it impossible to identify the seller;

- Invoices do not record or incorrectly record one of the following details: the name, address, tax code of the buyer, making it impossible to identify the buyer (except as provided for in Clause 11 of this Article);

- Fake VAT invoices or supporting documents, altered invoices, blank invoices (without accompanying goods or services);

- Invoices recording values that do not match the actual values of purchased or sold goods or services.

Article 15. Conditions for Deducting Input Value-Added Tax

1. Having a valid value-added tax invoice for purchased goods or services, or a payment receipt for import value-added tax, or a payment receipt on behalf of foreign parties according to the guidelines of the Ministry of Finance applicable to foreign organizations without Vietnamese legal status and foreign individuals conducting business or generating income in Vietnam.

2. Having a bank payment voucher for goods or services purchased (including imported goods) from twenty million dong or more, except where the total value of goods or services purchased per invoice under twenty million dong including value-added tax.

a) The term "bank payment voucher" means having a voucher proving the transfer of funds from the buyer's account to the seller's account opened at service providers in accordance with current laws such as checks, payment orders, collection orders, bank cards, mobile phone SIMs (electronic wallets), and other forms of payment as prescribed (including cases where the buyer pays from their personal account to the seller's account named after the individual business owner, or the buyer pays from their personal account named after the individual business owner to the seller's account if this account has been registered for transactions with the tax authority).

Payment vouchers submitted by the buyer depositing cash into the seller's account or payment vouchers made through forms not in compliance with current laws are insufficient conditions to deduct or refund value-added tax for goods or services purchased from twenty million dong or more.

b) Goods or services purchased per invoice from twenty million dong or more including value-added tax, if there is no bank payment voucher, shall not be deductible. For these invoices, businesses declare them under the section of goods or services that do not meet the deduction conditions in the declaration form for purchase invoices and vouchers.

c) For goods or services purchased on deferred or installment payments with a value of twenty million dong or more, businesses base their declarations and deductions of input value-added tax on written purchase contracts, value-added tax invoices, and bank payment vouchers for deferred or installment purchases, while clearly noting the payment deadline in the remarks section of the declaration form for purchase invoices and vouchers. In cases where there is no bank payment voucher due to the non-arrival of the payment period stipulated in the contract, businesses can still declare and deduct input value-added tax.

Upon reaching the payment deadline stipulated in the contract, if there is no bank payment voucher, input value-added tax cannot be deducted, and the business must declare and adjust the reduction of the previously deducted input value-added tax corresponding to the value of goods without a bank payment voucher. After the business has adjusted the reduction of the input value-added tax corresponding to the value of goods or services without a bank payment voucher, if the business subsequently obtains a bank payment voucher proving the transaction, the business may declare the supplementary deduction.

If the payment is overdue beyond the stipulated time in the contract and the business does not make the required adjustment but before the tax authority announces the inspection decision, if the business provides sufficient proof of bank payment, and the failure to adjust does not result in underpayment of taxes owed or over-refund of taxes, the business will be subject to administrative penalties for tax procedures. If the failure to adjust results in underpayment of taxes owed or over-refund of taxes, the business will be subject to tax recovery and administrative penalties as prescribed by the Law on Tax Administration.

Example 48: In March 2012, Company A purchased a batch of goods from Company B for production purposes, with a total contract value of 330 million dong (tax-inclusive price of 300 million dong, value-added tax at a rate of 10% being 30 million dong). According to the agreement in the contract, Company A would pay the amount in July 2012.

In this case, Company A declares the input value-added tax of 30 million dong in the declaration period of March 2012. By the payment deadline in July 2012, Company A must provide a bank payment voucher worth 330 million dong. If Company A cannot provide a bank payment voucher, it must declare an adjustment to reduce the previously deducted value-added tax of 30 million dong.

If by the payment deadline in July 2012, Company A provides a bank payment voucher but the amount recorded on the voucher is 275 million dong (corresponding to a pre-tax value of 250 million dong, value-added tax at a rate of 10% being 25 million dong), then Company A is only allowed to deduct value-added tax of 25 million dong (corresponding to the payment amount of 275 million dong) and must adjust the reduction of the declared value-added tax of 5 million dong (30 million - 25 million) in the declaration period of March 2012.

By November 2012, if Company A provides a bank payment voucher for a payment amount of 55 million dong (corresponding to a pre-tax value of 50 million dong, value-added tax being 5 million dong), then Company A can declare the supplementary deduction for the value-added tax of 5 million dong corresponding to the bank payment amount of 50 million dong.

Example 49: In November 2012, the tax authority issued a Decision to inspect Value Added Tax (VAT) at Company Limited Z for the period of 2011 and five months of 2012. At the time of inspection, Company Limited Z could not present bank payment vouchers for some deferred payment contracts that had reached their due date in 2011 and in five months of 2012, therefore the tax authority did not approve Company Limited Z's declaration of VAT deduction for invoices without bank payment vouchers. However, in November 2012 and December 2012, Company Limited Z obtained bank payment vouchers for invoices previously inspected and not approved for VAT deduction, thus Company Limited Z was still able to declare supplementary VAT deduction for these invoices with bank payment vouchers on the VAT Declaration Forms for November and December 2012.

d) The cases considered as bank payment for VAT input tax deduction include:

d.1) In the case of goods and services purchased under a payment offset method between the value of goods and services purchased and the value of goods and services sold, or loaned goods, where this payment method is specifically stipulated in the contract, there must be a reconciliation statement and confirmation between both parties regarding the offset of goods and services purchased against goods and services sold, or loaned goods. For offsetting debts through a third party, there must be a debt offset statement from all three parties as the basis for tax deduction.

d.2) In the case of goods and services purchased under a debt offset method such as borrowing or lending money, or offsetting debts through a third party, where this payment method is specifically stipulated in the contract, there must be a pre-existing written loan or borrowing agreement and a bank transfer voucher from the lender's account to the borrower's account for the loan amount including the case of offsetting the value of goods and services purchased against the amount of money supported by the seller to the buyer, or paid on behalf of the buyer.

d.3) In the case of goods and services purchased being paid through a third-party authorization payment via bank (including the case where the seller requests the buyer to pay the money through a bank account designated by the seller), the payment according to authorization or payment to the third party as directed by the seller must be specifically stipulated in the contract in writing and the third party must be a legal entity or individual operating in accordance with the law.

In the case where the remaining value is paid in cash after implementing the above payment methods and the cash amount is twenty million dong or more, tax deduction can only be claimed if there is a bank payment voucher. When declaring input VAT invoices, the business entity must clearly record the specific payment method stipulated in the contract in the remarks section of the invoice and receipt list for goods and services purchased.

đ) In the case of purchasing goods and services from a supplier with a value less than twenty million dong but made multiple times on the same day with a total value of twenty million dong or more, tax deduction can only be claimed if there is a bank payment voucher. The supplier must be a taxpayer with a tax code, directly declaring and paying VAT.

Article 16. Conditions for Deducting and Refunding Input VAT on Exported Goods and Services

Exported goods and services (except for cases specified in Article 17 of this Circular) to be eligible for VAT deduction and refund must meet the conditions and procedures set forth in Clause 2 of Article 9 and Clause 1 of Article 15 of this Circular, specifically as follows:

1. Sales contracts for goods, processing contracts for goods (in the case of processing goods), service supply contracts for foreign organizations and individuals. In the case of entrusted export, it includes the entrusted export contract and the settlement record of the entrusted export contract (if the contract has been concluded) or the periodic account reconciliation statement between the entrusting party and the entrusted party, clearly stating: quantity, type of products, value of entrusted goods exported; number, date of the export contract signed by the entrusted party with foreign parties; number, date, amount recorded on the bank payment document of the entrusted party with foreign parties; number, date, amount recorded on the payment document of the entrusted party paying to the entrusting party; number, date of the customs declaration form for exported goods submitted by the entrusted party.

2. Customs declaration forms for exported goods that have completed customs procedures according to the guidelines issued by the Ministry of Finance regarding customs procedures; customs inspection and supervision; export tax, import tax, and tax management for exported and imported goods.

For businesses exporting software products in the form of documentation, files, packaged databases to be eligible for VAT deduction and refund, the business must ensure the customs declaration procedures as required for general goods.

However, in the following cases, there is no need for a customs declaration form:

- For businesses exporting services and software through electronic means, there is no need for a customs declaration form. The business must fully comply with regulations concerning the confirmation procedure that the buyer has received the exported services and software through electronic means, in accordance with the laws on e-commerce.

- Construction and installation works for export processing enterprises.

- Businesses providing electricity, water, office supplies, and daily necessities for enterprises in export processing zones, including foodstuffs, consumables (including labor protection items such as shirts, pants, hats, shoes, boots, gloves).

3. Exported goods and services must be settled through banks

a) Bank settlement involves transferring funds from the importer's account to the exporter's account opened at a bank according to the payment methods agreed upon in the contract and bank regulations. Payment documents include the bank's credit notification to the exporter about the amount received from the importer's account. In the case of delayed payment, there must be an agreement recorded in the export contract, and at the time of payment, the business must provide bank payment documents. In the case of entrusted export, there must be bank payment documents from the foreign side to the entrusted party, and the entrusted party must settle the export goods payment through a bank to the entrusting party.

b) The following cases are also considered as bank settlements:

b.1) In the case where exported goods and services are settled by offsetting against foreign debt, the business must meet the following conditions, procedures, and documents:

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

- Foreign transfer documents into Vietnam via a bank.

The method of settling exported goods and services by offsetting against foreign debt must be stipulated in the export contract.

- Export contracts containing clauses specifying that export goods and services will be paid for by offsetting against foreign debt.

- If there is a difference after offsetting the value of exported goods and services against foreign debt, the difference must be settled through a bank according to the guidance provided herein.

b.2) In the case where a business uses the proceeds from the sale of exported goods and services to invest in a foreign importing entity, the business must meet the following conditions, procedures, and documents:

- Investment contract.

- The use of proceeds from the sale of exported goods and services for investment in a foreign importing entity must be stipulated in the export contract.

- If the investment amount is less than the revenue from exported goods, the difference must be settled through a bank according to the guidance provided herein.

b.3) In the case where the foreign side authorizes a third party abroad to make payments, the payment under authorization must be stipulated in the export contract (as an annex to the contract or an amendment to the contract if applicable).

b.4) In the case where the foreign side requests a third party in Vietnam to offset debts with the foreign side by making bank payments for the amount the foreign side owes the exporting business, and such a request is stipulated in the export contract (as an annex to the contract or an amendment to the contract if applicable) and accompanied by a payment document, which is the bank's credit notification to the exporting business about the amount received from the third party, while the exporting business must present a debt reconciliation statement confirmed by both the foreign side and the third party.

b.5) In the case where the foreign side (the importer) authorizes a third party abroad to make payments, and the third party requests a Vietnamese organization (a fourth party) to offset debts with the third party by making bank payments for the amount the importer owes the Vietnamese exporting business, the exporting business must meet the following conditions and documents:

- Export contract (as an annex to the contract or an amendment to the contract if applicable) specifying the authorization for payment and debt offset among the parties.

- Payment documents are the bank's credit notifications to the Vietnamese exporting business about the amount received from the fourth party.

- The reconciliation statement of accounts receivable and payable shall be confirmed by the relevant parties (between the exporting business and the importer, between the third party abroad and the fourth party which is an organization in Vietnam).

b.6) In cases where the foreign side authorizes the Representative Office in Vietnam to make payments into the account of the exporter and such authorization for payment is stipulated in the export contract (the contract appendix or the contract amendment document, if any).

b.7) In cases where the foreign side makes payments from the foreigner's current deposit account opened at credit institutions in Vietnam, such payment must be specified in the export contract (the contract appendix or the contract amendment document, if any). The payment document is the bank statement showing the amount received by the exporter's bank from the buyer's foreign current deposit account.

In cases where the exporter sells goods to a private enterprise abroad and the payment is made through the current deposit account of the private enterprise owner opened at a credit institution in Vietnam, and this is stipulated in the export contract (the contract appendix or the contract amendment document, if any), it shall be considered as bank payment.

When inspecting the withholding tax and refund of export goods paid through current deposit accounts, the tax authority needs to coordinate with the credit institution where the foreign buyer has opened the account to ensure that the payment and transfer of funds comply with the intended purpose and the provisions of the law.

b.8) In cases where the foreign side makes payments through a bank but the amount on the payment document does not match the agreed payment amount in the contract or contract appendix, then:

- If the amount on the bank payment document is less than the agreed payment amount in the contract or contract appendix, the exporting business must clearly explain the reasons, such as bank transfer fees, price reduction due to poor quality or shortage (in this case, there must be a price reduction agreement between the buyer and seller);

- If the amount on the bank payment document exceeds the agreed payment amount in the contract or contract appendix, the exporting business must clearly explain the reasons, such as paying for multiple contracts at once, advance payment...

The exporting business must bear legal responsibility for the explanations provided to the tax authority and any contract amendments (if any).

b.9) In cases where the foreign side makes payments through a bank but the payment document does not specify the agreed bank for payment in the contract, if the document clearly shows the payer's name, the beneficiary's name, the export contract number, and the payment amount matches the signed export contract, it will be accepted as a valid payment document.

b.10) In cases where the exporting business exports goods or services to a foreign party (second party) while importing goods or services from another foreign party or purchasing goods from organizations or individuals in Vietnam (third party), if the exporting business agrees with the second and third parties that the second party will make bank payments to the third party for the amounts the exporting business still owes the third party, the offsetting payment among the parties must be specified in the export contract, import contract, or purchase contract (contract appendix or contract amendment document, if any), and the exporting business must present a reconciliation statement of accounts confirmed by the relevant parties (between the exporting business and the second party, between the exporting business and the third party).

b.11) In cases where goods are exported to a foreign country but due to objective reasons, the foreign side refuses to accept the goods, and the exporting business finds a new customer in the same country as the original buyer to sell the goods to, the refund application file includes all export-related documents related to the original export contract (contract, customs declaration for exported goods, invoice), a letter explaining the reason for the discrepancy in the buyer's name (where the exporting business commits to bearing full responsibility for the accuracy of the information and ensuring no fraud), all export-related documents related to the new export contract (contract, sales invoice, bank payment document according to regulations, and other documents, if any).

c) Other payment methods for exported goods and services as prescribed by the Government:

c.1) In cases where labor is exported and the exporting business collects money directly from workers, there must be a receipt for cash collected from the workers.

c.2) In cases where the exporting business exports goods for sale at fairs or exhibitions abroad, if the proceeds are collected and transferred back in foreign currency cash at the location of the fair or exhibition, the exporting business must have a declaration form filed with the Customs Authority regarding the foreign currency proceeds from selling goods transferred back and a receipt for depositing the money into a bank in Vietnam.

c.3) In cases where goods and services are exported to settle foreign debts for the Government, there must be confirmation from the foreign trade bank that the exported goods have been accepted by the foreign side to offset the debt or confirmation that the set of documents has been sent to the foreign side to offset the debt; the payment document shall be carried out in accordance with the guidelines of the Ministry of Finance.

c.4) Exported goods and services paid in kind refer to cases where goods (including processed export goods) and services are exported to foreign organizations or individuals (referred to as the foreign side), and the settlement between Vietnamese enterprises and the foreign side is conducted by offsetting the value of exported goods and services, processing fees for exported goods against the value of goods and services purchased from the foreign side.

Exported goods and services paid in kind must include additional procedures and documents as follows:

- The payment method for goods exported in kind must be stipulated in the export contract.

- Purchase contract for goods and services from foreign parties;

- Customs declaration for imported goods settled through offset with exported goods and services;

- Confirmation document with foreign parties regarding the amount of settlement between exported goods and services and imported goods, purchased services from foreign parties;

- In cases where there is a difference in value between exported goods and services and imported goods and services after offsetting, the difference must be settled through a bank. Payment documents through the bank shall comply with the guidelines set forth in this clause.

c.5) For exports to neighboring countries according to the Prime Minister's regulations on managing border trade activities with neighboring countries, such activities shall be carried out in accordance with the guidance of the Ministry of Finance and the State Bank.

c.6) Certain export goods and services may have other forms of payment as stipulated by relevant laws.

Cases where exports are exempted from bank payment documents for deduction and refund of taxes:

d.1) In cases where the foreign party loses its ability to pay, the exporting entity must provide a detailed explanation in writing and use one of the following documents to replace the bank payment document:

- A copy of the customs declaration for imported goods from Vietnam registered with the customs authority in the importing country (one copy); or

- A lawsuit filing to a court or competent authority in the buyer's country accompanied by a notice or a document from that authority confirming the acceptance of the lawsuit (one copy); or

- A foreign court judgment in favor of the business entity (one copy); or

- A document from an authorized foreign organization confirming (or announcing) the bankruptcy or loss of payment capability of the foreign buyer (one copy).

d.2) In cases where exported goods fail quality standards and must be destroyed, the exporting entity must provide a detailed explanation in writing and use a destruction record (or a document confirming the destruction) issued by the destruction authority in the foreign country (one copy), along with bank payment documents for destruction costs borne by the exporting entity, or proof of destruction costs borne by the buyer or a third party (one copy).

If the importer handles the destruction procedures abroad, the destruction record (or document confirming the destruction) must include the name of the importer.

d.3) In cases where exported goods suffer damage, the exporting entity must provide a detailed explanation in writing and use one of the following documents to replace the bank payment document:

- A confirmation document of damage outside the Vietnamese border issued by an authorized agency (one copy); or

- A damage assessment report during transportation outside the Vietnamese border specifying the cause of damage (one copy);

If the exporting entity has received compensation for damaged exported goods outside the Vietnamese border, it must submit a copy of the bank payment document for the received compensation (one copy).

Copies of documents specified in points d.1, d.2, and d.3 of this clause must be certified true copies by the exporting entity. Where third-party confirmation documents replacing bank payment documents are not in English or do not contain English translations, a notarized English translation must be submitted. In cases where related parties issue, use, and store documents electronically, printed paper copies must be provided.

The exporting entity bears full responsibility for the accuracy of the replacement documents for bank payment documents in the above-mentioned cases.

4. Hóa đơn GTGT bán hàng hóa, dịch vụ hoặc hoá đơn xuất khẩu hoặc hoá đơn đối với tiền gia công của hàng hoá gia công.

Điều 17. Điều kiện khấu trừ, hoàn thuế GTGT đầu vào đối với một số trường hợp hàng hoá được coi như xuất khẩu

1. Hàng hoá gia công chuyển tiếp theo quy định của pháp luật thương mại về hoạt động mua, bán hàng hoá quốc tế và các hoạt động đại lý mua, bán, gia công hàng hoá với nước ngoài:

a) Hợp đồng gia công xuất khẩu và các phụ kiện hợp đồng (nếu có) ký với nước ngoài, trong đó ghi rõ cơ sở nhận hàng tại Việt Nam.

b) Hoá đơn GTGT ghi rõ giá gia công và số lượng hàng gia công trả nước ngoài (theo giá quy định trong hợp đồng ký với nước ngoài) và tên cơ sở nhận hàng theo chỉ định của phía nước ngoài;

c) Phiếu chuyển giao sản phẩm gia công chuyển tiếp (gọi tắt là Phiếu chuyển tiếp) có đủ xác nhận của bên giao, bên nhận sản phẩm gia công chuyển tiếp và xác nhận của Hải quan quản lý hợp đồng gia công của bên giao, bên nhận.

d) Hàng hóa gia công cho nước ngoài phải thanh toán qua Ngân hàng theo hướng dẫn tại Điều 16 Thông tư này.

Về thủ tục giao nhận sản phẩm gia công chuyển tiếp và Phiếu chuyển tiếp thực hiện theo hướng dẫn của Tổng cục Hải quan.

Ví dụ 50: Công ty A ký hợp đồng gia công với nước ngoài 200.000 đôi đế giầy xuất khẩu. Giá gia công là 800 triệu đồng. Hợp đồng ghi rõ giao đế giầy cho Công ty B tại Việt Nam để sản xuất ra giầy hoàn chỉnh.

Trường hợp này Công ty A thuộc đối tượng gia công hàng xuất khẩu chuyển tiếp. Khi lập chứng từ chuyển giao sản phẩm đế giầy cho Công ty B, Công ty A ghi rõ số lượng, chủng loại, quy cách sản phẩm đã giao, toàn bộ doanh thu gia công đế giầy 800 triệu đồng nhận được tính thuế GTGT là 0%.

2. Hàng hoá xuất khẩu tại chỗ theo quy định của pháp luật:

a) Hợp đồng mua bán hàng hoá hoặc hợp đồng gia công có chỉ định giao hàng tại Việt Nam;

b) Tờ khai hải quan hàng hoá xuất khẩu - nhập khẩu tại chỗ đã làm xong thủ tục hải quan;

c) Hoá đơn giá trị gia tăng hoặc hóa đơn xuất khẩu ghi rõ tên người mua phía nước ngoài, tên doanh nghiệp nhận hàng và địa điểm giao hàng tại Việt Nam;

d) Hàng hóa bán cho thương nhân nước ngoài nhưng giao hàng tại Việt Nam phải thanh toán qua ngân hàng bằng ngoại tệ tự do chuyển đổi. Chứng từ thanh toán qua ngân hàng theo hướng dẫn tại khoản 3 Điều 16 Thông tư này. Trường hợp người nhập khẩu tại chỗ được phía nước ngoài uỷ quyền thanh toán cho người xuất khẩu tại chỗ thì đồng tiền thanh toán thực hiện theo quy định của pháp luật về ngoại hối.

đ) Hàng hóa xuất khẩu tại chỗ của doanh nghiệp có vốn đầu tư nước ngoài phải phù hợp với quy định tại giấy phép đầu tư.

3. Hàng hoá, vật tư do doanh nghiệp Việt Nam xuất khẩu để thực hiện công trình xây dựng ở nước ngoài thì thủ tục hồ sơ để doanh nghiệp Việt Nam thực hiện công trình xây dựng tại nước ngoài được khấu trừ hoặc hoàn thuế GTGT đầu vào phải đáp ứng các điều kiện sau:

a) Tờ khai hải quan theo quy định tại khoản 2 Điều 16 Thông tư này.

b) Hàng hoá, vật tư xuất khẩu phải phù hợp với Danh mục hàng hoá xuất khẩu để thực hiện công trình xây dựng ở nước ngoài do Giám đốc doanh nghiệp Việt Nam thực hiện công trình xây dựng ở nước ngoài phê duyệt.

c) Hợp đồng uỷ thác xuất khẩu (trường hợp uỷ thác xuất khẩu).

4. Hàng hoá, vật tư do cơ sở kinh doanh trong nước bán cho doanh nghiệp Việt Nam để thực hiện công trình xây dựng ở nước ngoài và thực hiện giao hàng hoá tại nước ngoài theo Hợp đồng ký kết thì thủ tục hồ sơ để cơ sở kinh doanh trong nước bán hàng thực hiện khấu trừ hoặc hoàn thuế GTGT đầu vào đối với hàng hoá xuất khẩu phải đáp ứng các điều kiện sau:

a) Tờ khai hải quan theo quy định tại khoản 2 Điều 16 Thông tư này.

b) Hàng hoá, vật tư xuất khẩu phải phù hợp với Danh mục hàng hoá xuất khẩu để công trình xây dựng ở nước ngoài do Giám đốc doanh nghiệp Việt Nam thực hiện công trình xây dựng ở nước ngoài phê duyệt.

c) Hợp đồng mua bán ký giữa cơ sở kinh doanh trong nước và doanh nghiệp Việt Nam thực hiện công trình xây dựng ở nước ngoài, trong đó có ghi rõ về điều kiện giao hàng, số lượng, chủng loại và trị giá hàng hoá;

d) Hợp đồng uỷ thác (trường hợp uỷ thác xuất khẩu);

đ) Chứng từ thanh toán qua ngân hàng;

e) Hoá đơn GTGT bán hàng hoá.

Các trường hợp cơ sở kinh doanh có hàng hóa xuất khẩu hoặc hàng hoá được coi như xuất khẩu hướng dẫn tại Điều 16, Điều 17 Thông tư này nếu đã có xác nhận của cơ quan Hải quan (đối với hàng hóa xuất khẩu) nhưng không có đủ các thủ tục, hồ sơ khác đối với từng trường hợp cụ thể thì không phải tính thuế GTGT đầu ra nhưng không được khấu trừ thuế GTGT đầu vào. Riêng đối với trường hợp hàng hoá gia công chuyển tiếp và hàng hoá xuất khẩu tại chỗ, nếu không có đủ một trong các thủ tục, hồ sơ theo quy định thì phải tính và nộp thuế GTGT như hàng hóa tiêu thụ nội địa. Đối với cơ sở kinh doanh có dịch vụ xuất khẩu nếu không đáp ứng điều kiện về thanh toán qua ngân hàng hoặc được coi như thanh toán qua ngân hàng thì không được áp dụng thuế suất thuế GTGT 0%, không phải tính thuế GTGT đầu ra nhưng không được khấu trừ thuế đầu vào.

Mục 2

HOÀN THUẾ

Điều 18. Đối tượng và trường hợp được hoàn thuế GTGT

1. Cơ sở kinh doanh nộp thuế theo phương pháp khấu trừ thuế được hoàn thuế GTGT nếu trong 3 tháng liên tục trở lên có số thuế GTGT đầu vào chưa được khấu trừ hết.

Số thuế được hoàn là số thuế đầu vào chưa được khấu trừ hết của thời gian xin hoàn thuế.

Ví dụ 51: Doanh nghiệp A kê khai thuế GTGT có số thuế GTGT đầu vào, đầu ra như sau:

(Đơn vị tính: triệu đồng)

 

 

Theo ví dụ trên, doanh nghiệp A luỹ kế 3 tháng liên tục có số thuế đầu vào lớn hơn thuế đầu ra. Doanh nghiệp A thuộc đối tượng được hoàn thuế GTGT với số thuế tối đa là 150 triệu đồng.

2. Cơ sở kinh doanh mới thành lập từ dự án đầu tư đã đăng ký kinh doanh, đăng ký nộp thuế GTGT theo phương pháp khấu trừ, hoặc dự án tìm kiếm thăm dò và phát triển mỏ dầu khí đang trong giai đoạn đầu tư, chưa đi vào hoạt động, nếu thời gian đầu tư từ 01 năm trở lên thì được hoàn thuế GTGT của hàng hoá, dịch vụ sử dụng cho đầu tư theo từng năm. Trường hợp, nếu số thuế GTGT luỹ kế của hàng hoá, dịch vụ mua vào sử dụng cho đầu tư từ 200 triệu đồng trở lên thì được hoàn thuế GTGT.

3. Cơ sở kinh doanh đang hoạt động thuộc đối tượng nộp thuế GTGT theo phương pháp khấu trừ có dự án đầu tư mới, đang trong giai đoạn đầu tư thì cơ sở kinh doanh phải kê khai bù trừ số thuế GTGT của hàng hóa, dịch vụ mua vào sử dụng cho dự án đầu tư mới cùng với việc kê khai thuế GTGT của hoạt động sản xuất kinh doanh đang thực hiện.

Sau khi bù trừ nếu có số thuế GTGT của hàng hoá, dịch vụ mua vào sử dụng cho đầu tư mà chưa được khấu trừ hết từ 200 triệu đồng trở lên thì được hoàn thuế GTGT cho dự án đầu tư. Trường hợp số thuế GTGT đầu vào của hoạt động sản xuất kinh doanh và dự án đầu tư dưới 200 triệu đồng và 3 tháng chưa được khấu trừ hết thì cơ sở kinh doanh được hoàn thuế theo hướng dẫn tại khoản 1 Điều này.

Trường hợp cơ sở kinh doanh đang hoạt động thuộc đối tượng nộp thuế GTGT theo phương pháp khấu trừ có dự án đầu tư cơ sở sản xuất mới tại địa bàn tỉnh, thành phố trực thuộc Trung ương khác với tỉnh, thành phố nơi đóng trụ sở chính, đang trong giai đoạn đầu tư chưa đi vào hoạt động, chưa đăng ký kinh doanh, chưa đăng ký thuế, nếu có số thuế GTGT của hàng hoá, dịch vụ mua vào sử dụng cho đầu tư từ 200 triệu đồng trở lên thì được hoàn thuế GTGT cho dự án đầu tư. Cơ sở kinh doanh phải kê khai, lập hồ sơ hoàn thuế riêng đối với trường hợp này. Trường hợp có ban quản lý dự án thì ban quản lý dự án thực hiện đăng ký, kê khai lập hồ sơ hoàn thuế riêng với cơ quan thuế địa phương nơi đăng ký thuế (trừ ban quản lý dự án cùng địa bàn tỉnh, thành phố nơi đóng trụ sở chính do doanh nghiệp trụ sở chính lập hồ sơ hoàn thuế GTGT). Khi dự án đầu tư thành lập doanh nghiệp mới đã hoàn thành và hoàn tất các thủ tục về đăng ký kinh doanh, đăng ký nộp thuế, cơ sở kinh doanh là chủ dự án đầu tư phải tổng hợp số thuế GTGT phát sinh, số thuế GTGT đã hoàn, số thuế GTGT chưa được hoàn của dự án để bàn giao cho doanh nghiệp mới thành lập để doanh nghiệp mới thực hiện kê khai, nộp thuế và đề nghị hoàn thuế GTGT theo quy định với cơ quan thuế quản lý trực tiếp.

4. Cơ sở kinh doanh trong tháng có hàng hoá, dịch vụ xuất khẩu nếu thuế GTGT đầu vào của hàng hóa xuất khẩu phát sinh trong tháng chưa được khấu trừ từ 200 triệu đồng trở lên thì được xét hoàn thuế theo tháng.

Cơ sở kinh doanh trong tháng vừa có hàng hoá, dịch vụ xuất khẩu, vừa có hàng hoá, dịch vụ bán trong nước, có số thuế GTGT đầu vào của hàng hoá, dịch vụ xuất khẩu phát sinh trong tháng chưa được khấu trừ từ 200 triệu đồng trở lên, nhưng sau khi bù trừ với số thuế GTGT đầu ra của hàng hoá, dịch vụ bán trong nước trên tờ khai của tháng phát sinh, nếu số thuế GTGT đầu vào của hàng hóa, dịch vụ xuất khẩu chưa được khấu trừ nhỏ hơn 200 triệu đồng thì cơ sở kinh doanh không được xét hoàn thuế theo tháng, nếu số thuế GTGT đầu vào của hàng hóa, dịch vụ xuất khẩu chưa được khấu trừ từ 200 triệu đồng trở lên thì cơ sở kinh doanh được hoàn thuế GTGT theo tháng đối với hàng hoá, dịch vụ xuất khẩu.

Trường hợp không hạch toán riêng được số thuế GTGT đầu vào của hàng hóa, dịch vụ xuất khẩu thì số thuế GTGT đầu vào của hàng hóa, dịch vụ xuất khẩu được phân bổ theo tỷ lệ (%) giữa doanh thu hàng hoá, dịch vụ xuất khẩu trong kỳ với tổng doanh thu của cơ sở kinh doanh trong kỳ.

Đối tượng được hoàn thuế trong một số trường hợp xuất khẩu như sau: Đối với trường hợp uỷ thác xuất khẩu, là cơ sở có hàng hoá uỷ thác xuất khẩu; đối với gia công chuyển tiếp, là cơ sở ký hợp đồng gia công xuất khẩu với phía nước ngoài; đối với hàng hoá xuất khẩu để thực hiện công trình xây dựng ở nước ngoài, là doanh nghiệp có hàng hoá, vật tư xuất khẩu thực hiện công trình xây dựng ở nước ngoài; đối với hàng hoá xuất khẩu tại chỗ là cơ sở kinh doanh có hàng hoá xuất khẩu tại chỗ.

5. Cơ sở kinh doanh quyết toán thuế khi chia, tách, giải thể, phá sản, chuyển đổi sở hữu; giao, bán, khoán, cho thuê doanh nghiệp Nhà nước có số thuế GTGT đầu vào chưa đuợc khấu trừ hết hoặc có số thuế GTGT nộp thừa.

Trường hợp cơ sở kinh doanh trong giai đoạn đầu tư chưa đi vào hoạt động sản xuất kinh doanh giải thể không phát sinh thuế GTGT đầu ra của hoạt động kinh doanh chính theo dự án đầu tư thì không thuộc đối tượng được hoàn thuế GTGT. Trường hợp cơ sở kinh doanh đã được hoàn thuế cho dự án đầu tư thì phải truy hoàn số thuế đã được hoàn cho ngân sách nhà nước.

6. Hoàn thuế GTGT đối với các chương trình, dự án sử dụng nguồn vốn hỗ trợ phát triển chính thức (ODA) không hoàn lại hoặc viện trợ không hoàn lại, viện trợ nhân đạo:

a) Đối với dự án sử dụng vốn ODA không hoàn lại: chủ chương trình, dự án hoặc nhà thầu chính, tổ chức do phía nhà tài trợ nước ngoài chỉ định việc quản lý chương trình, dự án được hoàn lại số thuế GTGT đã trả đối với hàng hoá, dịch vụ mua ở Việt Nam để sử dụng cho chương trình, dự án.

b) Tổ chức ở Việt Nam sử dụng tiền viện trợ nhân đạo của tổ chức, cá nhân nước ngoài để mua hàng hoá, dịch vụ phục vụ cho chương trình, dự án viện trợ không hoàn lại, viện trợ nhân đạo tại Việt Nam thì được hoàn thuế GTGT đã trả của hàng hoá, dịch vụ đó.

Ví dụ 52: Hội chữ thập đỏ được Tổ chức quốc tế viện trợ tiền để mua hàng viện trợ nhân đạo cho nhân dân các tỉnh bị thiên tai là 200 triệu đồng. Giá trị hàng mua chưa có thuế là 200 triệu đồng, thuế GTGT là 20 triệu đồng. Hội chữ thập đỏ sẽ được hoàn thuế theo quy định là 20 triệu đồng.

Việc hoàn thuế GTGT đã trả đối với các chương trình, dự án sử dụng nguồn vốn hỗ trợ phát triển chính thức (ODA) không hoàn lại thực hiện theo hướng dẫn của Bộ Tài chính.

7. Đối tượng được hưởng ưu đãi miễn trừ ngoại giao theo quy định của Pháp lệnh về Ưu đãi miền trừ ngoại giao mua hàng hoá, dịch vụ tại Việt Nam để sử dụng được hoàn thuế GTGT đã trả ghi trên hoá đơn GTGT hoặc trên chứng từ thanh toán ghi giá thanh toán đã có thuế GTGT.

8. Cơ sở kinh doanh có quyết định xử lý hoàn thuế của cơ quan có thẩm quyền theo quy định của pháp luật.

Điều 19. Điều kiện và thủ tục hoàn thuế GTGT

1. Các cơ sở kinh doanh, tổ chức thuộc đối tượng được hoàn thuế GTGT theo hướng dẫn tại điểm 1, 2, 3, 4, 5, 8 Điều 18 Thông tư này phải là cơ sở kinh doanh nộp thuế theo phương pháp khấu trừ, đã được cấp giấy chứng nhận đăng ký doanh nghiệp hoặc giấy phép đầu tư (giấy phép hành nghề) hoặc quyết định thành lập của cơ quan có thẩm quyền, có con dấu theo đúng quy định của pháp luật, lập và lưu giữ sổ kế toán, chứng từ kế toán theo quy định của pháp luật về kế toán; có tài khoản tiền gửi tại ngân hàng theo mã số thuế của cơ sở kinh doanh.

2. Các trường hợp cơ sở kinh doanh đã kê khai đề nghị hoàn thuế trên Tờ khai thuế GTGT thì không được kết chuyển số thuế đầu vào đã đề nghị hoàn thuế vào số thuế được khấu trừ của tháng tiếp sau.

3. Thủ tục hoàn thuế GTGT thực hiện theo quy định tại Luật Quản lý thuế và các văn bản hướng dẫn thi hành.

Điều 20. Nơi nộp thuế.

1. Người nộp thuế kê khai, nộp thuế GTGT tại địa phương nơi sản xuất, kinh doanh.

2. Người nộp thuế kê khai, nộp thuế GTGT theo phương pháp khấu trừ có cơ sở sản xuất hạch toán phụ thuộc đóng trên địa bàn tỉnh, thành phố trực thuộc Trung ương khác với tỉnh, thành phố nơi đóng trụ sở chính thì phải nộp thuế GTGT tại địa phương nơi có cơ sở sản xuất và địa phương nơi đóng trụ sở chính.

3. Việc khai thuế, nộp thuế GTGT được thực hiện theo quy định tại Luật Quản lý thuế và các văn bản hướng dẫn thi hành Luật Quản lý thuế.

Chương IV

TỔ CHỨC THỰC HIỆN

Điều 21. Hiệu lực thi hành

1. Thông tư này có hiệu lực thi hành từ ngày Nghị định số 121/2011/NĐ-CP ngày 27/12/2011 của Chính phủ có hiệu lực (ngày 01 tháng 3 năm 2012), thay thế Thông tư số 129/2008/TT-BTC ngày 26/12/2008 và Thông tư số 112/2009/TT-BTC ngày 02/6/2009 của Bộ Tài chính.

2. Đối với hợp đồng chuyển nhượng bất động sản ký với khách hàng từ ngày 01/01/2009 đến trước ngày 01/3/2012, thời điểm thu tiền lần đầu từ ngày 01/01/2009 và được thực hiện trước ngày 01/3/2012, nếu số tiền đã thu được không thấp hơn 20% tổng giá thanh toán của hợp đồng chuyển nhượng bất động sản, giá đất được trừ vẫn áp dụng theo Thông tư số 129/2008/TT-BTC ngày 26/12/2008 và các văn bản hướng dẫn của Bộ Tài chính.

Đối với hợp đồng chuyển nhượng bất động sản ký với khách hàng trước ngày 01/3/2012 nhưng thời điểm thu tiền lần đầu sau ngày 01/3/2012 hoặc số tiền thu được trước ngày 01/3/2012 nhỏ hơn 20% tổng giá thanh toán của hợp đồng chuyển nhượng bất động sản, giá đất được trừ áp dụng theo quy định tại Nghị định số 121/2011/NĐ-CP của Chính phủ và hướng dẫn tại Thông tư này.

3. Bãi bỏ nội dung hướng dẫn tạm hoàn 90% thuế GTGT đầu vào đối với hàng hoá xuất khẩu đã làm xong thủ tục hải quan kể từ ngày 01/01/2012, đang trong thời gian chưa được phía nước ngoài thanh toán qua ngân hàng theo hợp đồng xuất khẩu tại Thông tư số 94/2010/TT-BTC ngày 30/6/2010 của Bộ Tài chính hướng dẫn thực hiện hoàn thuế GTGT đối với hàng hoá xuất khẩu.

Việc giải quyết hoàn tiếp 10% thuế GTGT còn lại (của các hồ sơ đã giải quyết tạm hoàn 90% thuế GTGT nêu trên) và các nộp dung khác vẫn thực hiện theo hướng dẫn tại Thông tư số 94/2010/TT-BTC của Bộ Tài chính.

4. Các Thông tư khác còn hiệu lực của Bộ Tài chính hướng dẫn về thuế GTGT vẫn có hiệu lực thi hành.

Điều 22. Tổ chức thu thuế GTGT

1. Cơ quan Thuế chịu trách nhiệm tổ chức thực hiện quản lý thu thuế giá trị gia tăng và hoàn thuế GTGT đối với cơ sở kinh doanh.

2. Cơ quan Hải quan chịu trách nhiệm tổ chức thực hiện quản lý thu thuế GTGT đối với hàng hóa nhập khẩu.

Trong quá trình thực hiện, nếu có khó khăn, vướng mắc, đề nghị các đơn vị, cơ sở kinh doanh phản ánh kịp thời về Bộ Tài chính để được giải quyết kịp thời./.