Decree No. 10/2017/ND-CP promulgates the Financial Management Regulation of Vietnam Electricity Corporation and amends and supplements Clause 4, Article 4 of Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of certain provisions of the Law on Value Added Tax.

DECREE

ISSUING REGULATIONS ON FINANCIAL MANAGEMENT OF VIETNAM ELECTRICITY CORPORATION AND AMENDING AND COMPLEMENTING CLAUSE 4, ARTICLE 4 OF THE DECREE NO. 209/2013/NĐ-CPDATED DECEMBER 18, 2013 OF THE GOVERNMENT PROVIDING GUIDELINES FOR IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LAW ON VALUE ADDED TAXguidelines for implementing certain Articles of the Value Added Tax Law

^_________

BASED ON THE GOVERNMENT ORGANIZATION LAW DATED JUNE 19, 2015;

BASED ON THE ELECTRICITY LAW DATED DECEMBER 3, 2004 AND THE LAW AMENDING AND COMPLEMENTING CERTAIN PROVISIONS OF THE ELECTRICITY LAW DATED NOVEMBER 20, 2012;

BASED ON THE ENTERPRISE LAW DATED NOVEMBER 26, 2014;

BASED ON THE INVESTMENT LAW DATED NOVEMBER 28, 2014;

BASED ON THE PUBLIC INVESTMENT MANAGEMENT LAW DATED JUNE 18, 2014;

BASED ON THE LAW ON MANAGEMENT AND USE OF STATE CAPITAL FOR BUSINESS AND OPERATIONS AT ENTERPRISES DATED NOVEMBER 26, 2014;

BASED ON THE VALUE ADDED TAX LAW DATED JUNE 3, 2008 AND THE LAW AMENDING AND COMPLEMENTING CERTAIN PROVISIONS OF THE VALUE ADDED TAX LAW DATED JUNE 19, 2013;;

BASED ON THE LAW AMENDING AND COMPLEMENTING CERTAIN PROVISIONS OF THE VALUE ADDED TAX LAW, THE SPECIAL CONSUMPTION TAX LAW, AND THE TAX ADMINISTRATION LAW DATED APRIL 6, 2016;

BASED ON THE BIDDING LAW DATED NOVEMBER 26, 2013;

FOLLOWING THE PROPOSAL OF THE MINISTER OF FINANCE;

THE GOVERNMENT ISSUES THE DECREE ON REGULATIONS ON FINANCIAL MANAGEMENT OF VIETNAM ELECTRICITY CORPORATION AND AMENDING AND COMPLEMENTING CLAUSE 4, ARTICLE 4 OF THE DECREE NO. 209/2013/NĐ-CP DATED DECEMBER 18, 2013 OF THE GOVERNMENT PROVIDING GUIDELINES FOR IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LAW ON VALUE ADDED TAX.

Article 1. ATTACHED TO THIS DECREE ARE THE REGULATIONS ON FINANCIAL MANAGEMENT OF VIETNAM ELECTRICITY CORPORATION.

Article 2. AMENDING AND COMPLEMENTING CLAUSE 4, ARTICLE 4 OF THE DECREE NO. 209/2013/NĐ-CP DATED DECEMBER 18, 2013 OF THE GOVERNMENT PROVIDING GUIDELINES FOR IMPLEMENTATION OF CERTAIN PROVISIONS OF THE LAW ON VALUE ADDED TAX AS FOLLOWS:

"4. DECLARATION, CALCULATION, AND PAYMENT OF VALUE ADDED TAX BY VIETNAM ELECTRICITY CORPORATION:
a) VIETNAM ELECTRICITY CORPORATION AND ITS SUBSIDIARIES SHALL DECLARE AND PAY TAXES IN ACCORDANCE WITH LAWS ON TAXES.
b) THE DECLARATION AND PAYMENT OF VALUE ADDED TAX BY ELECTRICITY GENERATING COMPANIES UNDER VIETNAM ELECTRICITY CORPORATION AND UNDER THE POWER GENERATION TOTAL COMPANIES BELONGING TO VIETNAM ELECTRICITY CORPORATION SHALL BE CARRIED OUT AS FOLLOWS:

- ELECTRICITY GENERATING COMPANIES UNDER VIETNAM ELECTRICITY CORPORATION AND UNDER THE POWER GENERATION TOTAL COMPANIES SHALL DECLARE AND PAY VALUE ADDED TAX USING THE DEDUCTIBLE METHOD FOR ELECTRICITY PRODUCTION ACTIVITIES IN THE LOCALITY WHERE THE COMPANY'S HEADQUARTERS IS LOCATED.

- THE AMOUNT OF VALUE ADDED TAX TO BE PAID FOR ELECTRICITY PRODUCTION ACTIVITIES IS DETERMINED AS FOLLOWS:

THE AMOUNT OF VALUE ADDED TAX TO BE PAID FOR ELECTRICITY PRODUCTION ACTIVITIES = OUTPUT VALUE ADDED TAX - INPUT VALUE ADDED TAX ELIGIBLE FOR DEDUCTION

- THE OUTPUT VALUE ADDED TAX IS DETERMINED AS FOLLOWS:

OUTPUT VALUE ADDED TAX = ELECTRICITY OUTPUT x TAXABLE PRICE x VALUE ADDED TAX RATE (10%)

WHEREIN: ELECTRICITY OUTPUT IS THE QUANTITY OF ELECTRICITY DELIVERED AND RECEIVED AS RECORDED BY THE ELECTRICITY METER AND CONFIRMED BETWEEN THE ELECTRICITY GENERATING COMPANY AND THE TRANSMISSION COMPANY AND THE ELECTRICITY PURCHASING COMPANY.

THE TAXABLE PRICE FOR VALUE ADDED TAX ON ELECTRICITY OF ELECTRICITY GENERATING COMPANIES UNDER VIETNAM ELECTRICITY CORPORATION AND UNDER THE POWER GENERATION TOTAL COMPANIES IS THE SALES PRICE TO CUSTOMERS AS STATED ON THE INVOICE ACCORDING TO THE ELECTRICITY PURCHASE AND SALE CONTRACT. IF THE ELECTRICITY GENERATING COMPANIES UNDER VIETNAM ELECTRICITY CORPORATION AND UNDER THE POWER GENERATION TOTAL COMPANIES DO NOT DIRECTLY SELL ELECTRICITY TO CUSTOMERS, THE TAXABLE PRICE FOR VALUE ADDED TAX IS DETERMINED AS FOLLOWS:

THE TAXABLE PRICE FOR VALUE ADDED TAX ON HYDROPOWER COMPANIES UNDER VIETNAM ELECTRICITY CORPORATION IS THE SALES PRICE TO THE PARENT COMPANY ANNOUNCED BY VIETNAM ELECTRICITY CORPORATION BEFORE MARCH 31 EACH YEAR FOR UNIFORM APPLICATION BUT NOT LOWER THAN THE AVERAGE COST OF HYDROPOWER PLANTS UNDER VIETNAM ELECTRICITY CORPORATION AND UNDER THE POWER GENERATION TOTAL COMPANIES IN THE PREVIOUS YEAR (EXCLUDING INTEREST EXPENSES AND FOREIGN EXCHANGE DIFFERENCES).

THE TAXABLE PRICE FOR VALUE ADDED TAX ON THERMAL POWER COMPANIES IS THE SALES PRICE TO THE PARENT COMPANY ANNOUNCED BY VIETNAM ELECTRICITY CORPORATION BEFORE MARCH 31 EACH YEAR FOR UNIFORM APPLICATION BUT NOT LOWER THAN THE AVERAGE PURCHASE PRICE OF ELECTRICITY FROM VIETNAM ELECTRICITY CORPORATION IN THE PREVIOUS YEAR.

- THE INPUT VALUE ADDED TAX ELIGIBLE FOR DEDUCTION IS THE TOTAL VALUE ADDED TAX LISTED ON THE INVOICE FOR GOODS AND SERVICES THAT MEET THE CONDITIONS FOR DEDUCTION AS PROVIDED FOR IN THE LAW ON VALUE ADDED TAX."

Article 3. THIS DECREE SHALL TAKE EFFECT FROM APRIL 1, 2017. THE REGULATIONS ON FINANCIAL MANAGEMENT OF VIETNAM ELECTRICITY CORPORATION ISSUED BY DECREE NO. 82/2014/NĐ-CP DATED AUGUST 25, 2014 OF THE GOVERNMENT ARE ABOLISHED.

Article 4. MINISTERS, HEADS OF GOVERNMENT-LEVEL MINISTRIES, HEADS OF GOVERNMENT-LEVEL AGENCIES, CHAIRMEN OF PROVINCE PEOPLE'S COMMITTEES AND CITY PEOPLE'S COMMITTEES UNDER THE CENTRAL GOVERNMENT, BOARD OF DIRECTORS, GENERAL MANAGERS OF VIETNAM ELECTRICITY CORPORATION ARE RESPONSIBLE FOR ENFORCING THIS DECREE./.