Circular No. 100/1998/TT-BTC guides accounting for value-added tax (VAT) and corporate income tax (CIT).

CIRCULAR

Guidelines for accounting value-added tax (VAT) and corporate income tax (CIT)

Pursuant to the Law on Value-Added Tax (VAT) No. 02/1997/QH9 dated May 10, 1997;

Pursuant to the Law on Corporate Income Tax (CIT) No. 03/1997/QH9 dated May 10, 1997;

Pursuant to Decree No. 28/1998/NĐ-CP dated May 11, 1998 of the Government detailing the implementation of the Law on VAT;

Pursuant to Decree No. 30/1998/NĐ-CP dated May 13, 1998 of the Government detailing the implementation of the Law on CIT;

Pursuant to Circular No. 89/1998/TT-BTC dated June 27, 1998 and Circular No. 99/1998/TT-BTC dated July 14, 1998 of the Ministry of Finance guiding the implementation of Decree No. 28/1998/NĐ-CP and Decree No. 30/1998/NĐ-CP;

The Ministry of Finance issues guidelines for accounting VAT and CIT as follows:

A. GUIDELINES FOR ACCOUNTING VAT

2. Individuals who have registered as the principal investigator of a Research Project or Pilot Production Project and those participating in its implementation shall not participate in the Evaluation and Selection Council for that Research Project or Pilot Production Project (hereinafter referred to as the Council). In necessary cases, members of the Council may be staff members of the organization registering as the principal investigator of the Research Project or Pilot Production Project, but not more than one person and they cannot serve as Chairperson, Vice-Chairperson, or reviewing member.

1. Business entities must organize VAT accounting in accordance with the current accounting regulations and the provisions of this Circular.

2. Business entities implementing the VAT Law, sales revenue, financial activity income, extraordinary income, and the value of materials, goods, fixed assets, and purchased services shall be accounted for as follows:

a) Sales revenue, financial activity income, extraordinary income:

For business entities subject to VAT under the tax deduction method:

Sales revenue from selling goods and providing services is the total amount received from selling goods and providing services (excluding VAT) including additional charges and fees collected outside the selling price (if any) that the business entity receives.

Financial activity income and extraordinary income is the total income (excluding VAT).

For business entities subject to VAT under the direct payment method on VAT, and for goods and services not subject to VAT:

Sales revenue from selling goods and providing services is the total amount received from selling goods and providing services, including additional charges and fees collected outside the selling price (if any) that the business entity receives (Total payment amount - including VAT).

Financial activity income and extraordinary income is the total income (total payment amount).

b) Value of materials, goods, fixed assets, and purchased services:

For business entities subject to VAT under the tax deduction method, the value of materials, goods, fixed assets, and purchased services is the actual purchase price excluding input VAT.

For business entities subject to VAT under the direct payment method on VAT and business entities not subject to VAT, the value of materials, goods, fixed assets, and purchased services is the total payment amount (including input VAT).

Business entities subject to VAT must accurately and truthfully account for the following indicators:

- Output VAT generated;

- Input VAT deductible, deducted, and still deductible;

- VAT payable, paid, and still payable;

- VAT refundable;

- VAT reduced.

II. INVOICES AND DOCUMENTS

Business entities must comply with the invoice and document system currently regulated by the Ministry of Finance. Below are some invoices and documents related to VAT accounting:

1. VAT Invoice

Business entities subject to VAT under the tax deduction method when selling goods and providing services must use the "VAT Invoice" issued by the Ministry of Finance (except in cases where they use documents recording the payment amount inclusive of VAT). When issuing invoices for selling goods and providing services, business entities must record all required elements and clearly indicate:

- Selling price (excluding VAT);

- Additional charges and fees calculated outside the selling price (if any);

- VAT;

- Total payment amount (inclusive of VAT).

2. Sales Invoice

Business entities subject to VAT under the direct payment method when selling goods and providing services must use the "Sales Invoice" issued by the Ministry of Finance. When issuing invoices for selling goods and providing services, business entities must record all required elements and clearly indicate:

- Selling price;

- Additional charges and fees calculated outside the selling price (if any);

- Total payment amount (inclusive of VAT).

3. Self-printed Invoices and Special Documents

Business entities using invoices and documents different from the standard model (including self-issued invoices) must register with the Ministry of Finance (General Department of Taxation) and can only use them after receiving written approval. Self-printed invoices must ensure full reflection of the information content according to the invoice and document regulations (VAT invoice, sales invoice).

Special documents such as postal stamps, airline tickets, lottery tickets, prices recorded on tickets include VAT.

4. Retail Sales List

In cases where business entities directly sell retail goods and provide services to consumers without having to issue sales invoices, they must prepare a "Retail Sales List" according to Model No. 05/GTGT issued along with Circular No. 89/1998/TT-BTC dated June 27, 1998 of the Ministry of Finance "Guidelines for Implementing Decree No. 28/1998/NĐ-CP dated May 11, 1998 of the Government detailing the implementation of the Law on VAT."

5. Purchase List of Agricultural, Forestry, and Fishery Products from Direct Producers

Production and processing units purchasing agricultural, forestry, and fishery products not processed directly from producers without invoices according to the prescribed regulations must prepare a "Purchase List of Agricultural, Forestry, and Fishery Products from Direct Producers" according to Model No. 04/GTGT issued along with Circular No. 89/1998/TT-BTC dated June 27, 1998 of the Ministry of Finance.

III. ACCOUNTING ACCOUNTS

To account for VAT, supplement the accounting accounts system issued according to the current accounting regulations with Account 133 "Deductible VAT" and change the name and content of Account 3331 as follows:

1. Supplement Account 133 - Deductible VAT

Account 133 is used to reflect the amount of input VAT deductible, deducted, and still deductible.

a) Accounting for Account 133 according to the following regulations

Account 133 applies only to business entities subject to VAT under the tax deduction method, and does not apply to business entities subject to VAT under the direct payment method and business entities not subject to VAT.

For goods and services purchased for simultaneous use in producing and trading taxable goods and services subject to VAT and non-taxable goods and services, the business entity must separately account for deductible input VAT and non-deductible input VAT.

In cases where separate accounting is not possible, the amount of deductible input VAT shall be recorded in Account 133. At the end of the period, the accountant must determine the deductible VAT amount according to the ratio (%) between taxable revenue and total sales revenue. The non-deductible input VAT amount shall be included in the cost of goods sold during the period.

If the non-deductible VAT amount is large, it shall be included in the cost of goods sold corresponding to the revenue of the current period, with the remainder being included in the cost of goods sold of the subsequent accounting period.

In cases where the business entity purchases goods and services for use in activities involving production and trading of goods and services that are exempt from VAT or subject to VAT under the direct method, or for use in public service activities, projects, cultural, welfare activities funded by other sources, the non-deductible input VAT amount shall not be accounted for in Account 133. The non-deductible input VAT amount shall be included in the value of materials, goods, fixed assets, and purchased services.

In cases where purchased goods and services are invoiced using special invoices (such as postal stamps, transport tickets, etc.) indicating the payment price including VAT, the business entity may base on the purchase price including VAT to determine the price excluding VAT and the deductible input VAT according to the calculation method prescribed in Point 10, Section I, Part B of Circular No. 89/1998/TT-BTC dated June 27, 1998 issued by the Ministry of Finance.

In cases where production and processing entities purchase raw agricultural, forestry, and aquatic products directly sold by producers without invoices, the input VAT amount deductible shall be calculated based on the purchase invoice for agricultural, forestry, and aquatic products according to the percentage (%) specified in the VAT regime on the value of purchased goods.

Input VAT arising in a month shall be declared for deduction when determining the VAT payable for that month. If the deductible input VAT amount exceeds the output VAT amount, only the deductible input VAT equal to the output VAT amount of that month shall be deducted, and the remaining deductible input VAT amount shall be carried forward to the next tax period or considered for refund according to the prescribed regulations.

b) Structure and content reflected in Account 133

Debit Side: Deductible input VAT.

Credit Side:

Amount of input VAT already deducted;

Transfer of undeductible input VAT amount;

Amount of refunded input VAT.

Debit balance: Remaining deductible input VAT amount, refunded input VAT amount but not yet refunded by the State Treasury.

Account 133 has two sub-accounts:

Sub-account 1331 - Deductible VAT of goods and services

Sub-account 1331 is used to reflect the deductible input VAT of materials, goods, and services purchased externally for use in producing and trading taxable goods and services under the VAT deduction method.

Sub-account 1332 - Deductible VAT of fixed assets

Sub-account 1332 is used to reflect the input VAT of the investment and procurement process of fixed assets used in producing and trading taxable goods and services under the VAT deduction method.

c) Accounting methods for some main economic transactions

When purchasing materials, goods, and fixed assets for use in producing and trading taxable goods and services under the VAT deduction method, the accountant reflects the actual value of materials, goods warehoused, including the purchase price excluding input VAT, acquisition costs, transportation, loading and unloading, rental warehouse fees, etc., from the place of purchase to the enterprise, recorded as follows:

Debit Account 152 - Raw Materials, Materials

Debit Account 153 - Tools, Equipment

Debit Account 156 - Goods

Debit: Account 211 - Tangible Fixed Assets

Debit Account 611 - Purchases

Debit Account 133 - Deductible VAT (Input VAT)

.........

Credit Account 111, 112, 331, ... (Total Payment Amount).

When purchasing materials and services for immediate use in producing and trading taxable goods and services under the VAT deduction method, the accountant reflects the actual purchase price excluding VAT, input VAT, and total payment price, recorded as follows:

Debit Account 621, 627, 641, 642, 241, ...

Debit Account 133 - Deductible VAT (Input VAT)

Credit Account 111, 112, 331, ... (Total Payment Amount).

When purchasing goods for immediate sale (subject to VAT under the VAT deduction method) to customers (without warehousing), recorded as follows:

Debit Account 632 - Cost of Goods Sold (Purchase Price Excluding Input VAT)

Debit Account 133 - Deductible VAT

Credit Account 111, 112, 331, ... (Total Payment Price).

When importing goods, the accountant reflects the value of imported materials, goods, and equipment including the total amount payable to the seller, import duties payable, acquisition costs, and transportation costs, recorded as follows:

Debit Account 152 - Raw Materials, Materials

Debit Account 156 - Goods

Debit: Account 211 - Tangible Fixed Assets

Credit Account 3333 - Export, Import Taxes

Credit Account 111, 112, 331, ...

Regarding VAT on imported goods:

If imported goods are used in producing and trading taxable goods and services under the VAT deduction method, the VAT on imported goods will be deductible, recorded as follows:

Debit Account 133 - Deductible VAT

Credit Account 3331 - VAT Payable (Account 33312 - VAT on Imported Goods).

If imported goods are used in producing and trading non-taxable goods and services or subject to VAT under the direct method, or for public service activities, programs, projects, cultural, welfare activities funded by other sources, the VAT payable on imported goods shall be included in the value of purchased goods, recorded as follows:

Debit Account 152 - Raw Materials, Materials

Debit Account 156 - Goods

Debit: Account 211 - Tangible Fixed Assets

.........

Credit Account 3331 - VAT Payable (Account 33312).

When purchasing materials, goods, services, and fixed assets for use in producing and trading non-taxable goods and services or for public service activities, projects, cultural, welfare activities funded by other sources, the accountant reflects the value of purchased materials, goods, and services including the total amount payable to the seller (including input VAT) and acquisition costs, transportation costs:

Debit Account 152 - Raw Materials, Materials (Price Including VAT)

Debit Account 153 - Tools, Equipment (Price Including VAT)

Debit Account 211 - Tangible Fixed Assets (Price Including VAT)

.........

Credit Account 111, 112, 331, ...

At the end of the period, the accountant determines the amount of VAT input tax to be deducted and the amount of VAT payable for the period, recorded as follows:

Debit Account 3331 - VAT Due for Payment

Credit: Account 133 - VAT Deductible.

When paying VAT to the State Budget:

Debit Account 3331 - VAT Due for Payment

Credit Accounts 111, 112, ...

If the amount of VAT input tax deductible exceeds the amount of VAT output tax generated during the period, only the amount of VAT input tax equal to the VAT output tax can be deducted. The remaining VAT input tax can be deducted in the subsequent tax period or considered for refund.

For businesses selling goods and services subject to VAT under the deduction method, if they frequently have a larger amount of VAT input tax than VAT output tax, the competent authority allows them to be refunded VAT according to the tax regulations. Upon receiving payment from the State Budget for the refunded VAT input tax, record: Debit Account 111, 112

Credit: Account 133 - VAT Deductible.

For materials and goods purchased for simultaneous production and business activities subject to VAT and not subject to VAT but cannot be separated, record:

Debit Accounts 152, 153, 156, 211, etc. (Purchase price excluding VAT)

Debit Account 133 - Deductible VAT (Input VAT)

Credit Account 111, 112, 331, ...

At the end of the accounting period, calculate and determine the deductible VAT input tax and non-deductible VAT input tax based on revenue allocation. The deductible VAT input tax is calculated according to the ratio (%) between taxable revenue and total revenue for the period, recorded as follows:

The amount of VAT input tax deductible in the period:

Debit Account 3331 - VAT Due for Payment

Credit: Account 133 - VAT Deductible.

The amount of VAT input tax not deductible in the period:

The amount of VAT input tax not deductible included in the cost of goods sold in the period, recorded as follows:

Debit Account 632 - Cost of Goods Sold

Credit Account 133 - Deductible VAT

The amount of VAT input tax not deductible in the period included in the cost of goods sold in the next accounting period, recorded as follows:

Debit Account 142 - Prepaid expenses

Credit Account 133 - Deductible VAT

When calculating the amount of VAT input tax not deductible included in the cost of goods sold in the next accounting period, record: Debit Account 632 - Cost of Goods Sold

Credit Account 142 - Prepaid Expenses

2. Rename Account 3331 "Tax on Revenue" to Account 3331 "VAT Payable"

Account 3331 is used to reflect the amount of VAT output tax, the amount of VAT payable, the amount of VAT paid, and the amount still payable to the State Budget.

This account applies uniformly to taxpayers subject to VAT under the deduction method and taxpayers subject to VAT under the direct payment method.

a. Structure and content reflected in Account 3331

Debit Side:

Amount of VAT input tax already deducted

Amount of VAT reduced from the amount of VAT payable

Amount of VAT paid to the State Budget

Amount of VAT output tax of returned goods

Credit Side:

Amount of VAT output tax payable for goods and services consumed; - Amount of VAT output tax payable for goods and services used for exchange, gifts, internal use;

Amount of VAT payable from financial income and extraordinary income;

Amount of VAT payable for imported goods

Credit balance: Amount of VAT still payable at the end of the period

Debit balance: Amount of excess VAT paid to the State Budget

Account 3331 has two third-level accounts:

Account 33311 - VAT output tax: Used to reflect the amount of VAT output tax, the amount of VAT payable, paid, and still payable for goods, products, and services consumed.

Account 33312 - VAT on imported goods: Used to reflect the amount of VAT payable, paid, and still payable for imported goods.

b) Accounting methods for some main economic transactions

b1) For businesses subject to VAT under the deduction method

When selling goods and services subject to VAT under the deduction method, the accountant must write the sales invoice clearly indicating the price excluding VAT, additional charges and fees outside the price (if any), VAT payable, and the total payment amount, and reflect sales revenue as the total sales amount (excluding VAT), recorded as follows:

Debit Accounts 111, 112, 131, ... (Total payment amount)

Credit Account 3331 - VAT Payable (Account 33311 - VAT output tax)

Credit Account 511 - Sales Revenue (Price excluding VAT),

or Credit Account 512 - Internal Sales Revenue (Price excluding VAT).

When selling goods and services not subject to VAT, or subject to VAT under the direct payment method, the accountant reflects sales revenue as the total payment amount (including VAT), recorded as follows:

Debit Accounts 111, 112, 131, ...

Credit Account 511 - Sales Revenue (Total payment amount)

Credit Account 512 - Internal Sales Revenue (Total payment amount).

When income from financial activities and extraordinary income subject to VAT under the deduction method occurs (such as: rental income, proceeds from liquidation, sale of fixed assets,...), record:

Debit Account 111, 112, 138, ... (Total payment amount)

Credit Account 3331 - VAT Payable (Account 33311)

Credit Account 711 - Financial Income (Price excluding VAT)

Credit Account 721 - Extraordinary Income (Price excluding VAT) - In the case of leasing assets on a periodic payment basis or prepayment for a lease term, the accountant determines sales revenue as the rental price excluding VAT and VAT, recorded as follows:

Debit Account 111, 112 (Total advance payment received)

Credit Account 3331 - VAT Payable

Credit Account 511 - Sales Revenue

In the case of selling goods on credit terms (goods subject to VAT under the deduction method), the accountant determines sales revenue as the one-time selling price excluding VAT and VAT, recorded as follows:

Debit Accounts 111, 112, 131, ...

Credit Account 3331 - VAT Payable

Credit Account 511 - Sales Revenue

Credit Account 711 - Financial Income (Deferred sales profit)

In the case of selling goods through barter transactions:

If selling goods (subject to VAT under the deduction method) in exchange for goods for use in producing and trading goods and services subject to VAT under the deduction method, record:

Sales revenue from barter transactions:

Debit Account 152 - Raw Materials, Materials

Debit Account 153 - Tools, Equipment

Debit Account 156 - Goods

Debit account 131 - Receivables from customers

Credit Account 511 - Sales Revenue (Excluding VAT)

VAT payable on goods exchanged (deductible):

Debit Account 133 - Deductible VAT

Credit Account 3331 - VAT Payable

If selling goods (subject to VAT under the deduction method) in exchange for goods for use in producing and trading goods and services not subject to VAT or subject to VAT under the direct payment method, record:

Debit Account 152 - Raw Materials, Materials (Including VAT)

Debit Account 153 - Tools, Equipment (Including VAT)

Debit Account 156 - Goods (Including VAT)

Credit Account 3331 - VAT Payable

Credit Account No. 511 - Revenue from Sales (At the selling price excluding VAT)

When using goods and services for gifts or donations, based on relevant documents, the accountant records sales revenue and VAT payable for the goods and services used for gifts or donations.

A business subject to VAT under the deduction method uses goods and services for gifts or donations, records sales revenue and VAT payable for the goods and services given as gifts or donations as follows:

Sales revenue:

Debit Account 641, 642 (Price excluding VAT)

Credit Account 511 - Sales Revenue (Price excluding VAT)

Value Added Tax (VAT) to be paid (after deduction):

Debit Account 133 - Deductible VAT

Credit Account 3331 - VAT Payable

For units paying VAT directly using goods and services for gifts or donations, the VAT payable on such goods and services shall be included in business activity expenses or funded from operating funds, recorded as follows:

Debit Account 641, 642 (Price including VAT)

Debit Account 431 - Reward and Welfare Fund (Price including VAT)

Debit Account 161 - Operating Expenses (Price including VAT)

.........

Credit Account 3331 - VAT Payable

Credit Account 511 - Sales Revenue (Price excluding VAT).

In case of paying wages to workers and employees with products or goods, record as follows:

Debit Account 334 - Wages Payable (Price including VAT)

Credit Account 3331 - VAT Payable

Credit Account 512 - Internal Sales Revenue.

For products, goods, and services used internally, based on relevant documents, accounting reflects revenue, VAT payable on internal use products:

If products, goods, and services (subject to VAT under the deduction method) used internally are used for production and business activities subject to VAT under the deduction method, the VAT payable on such internal use products, goods, and services can be deducted, recorded as follows:

Sales revenue:

Debit Account 627, 641, 642

Credit Account 512 - Internal Sales Revenue.

Value Added Tax (VAT) to be paid (after deduction):

Debit Account 133 - Deductible VAT

Credit Account 3331 - VAT Payable

If products, goods, and services (subject to VAT under the deduction method) used internally are used for production and business activities not subject to VAT or subject to VAT under the direct payment method, the VAT payable on such internal use products, goods, and services shall be included in production and business costs or funded from operating funds, recorded as follows:

Debit Account 641, 642 (Production cost plus (+) VAT payable)

Debit Account 431 - Reward and Welfare Fund

Debit Account 161 - Operating Expenses

.........

Credit Account 3331 - VAT Payable

Credit Account 512 - Internal Sales Revenue (production cost)

When importing materials, equipment, and goods, accounting records the import tax payable, total amount to be paid, and the value of imported materials, equipment, and goods (excluding VAT), recorded as follows:

Debit Account 152 - Raw Materials, Materials

Debit Account 156 - Goods

Debit: Account 211 - Tangible Fixed Assets

..............

Credit Account 3333 - Export, Import Taxes

Credit Account 111, 112, 331, ...

At the same time, reflect the VAT payable on imported goods:

In case of importing goods for production and business activities subject to VAT under the deduction method, the VAT on imported goods can be deducted, recorded as follows:

Debit Account 133 - Deductible VAT

Credit Account 3331 - VAT Payable (Account 33312).

In case of importing goods for production and business activities not subject to VAT or subject to VAT under the direct payment method or for public service programs, cultural, welfare activities, the VAT on imported goods cannot be deducted, recorded as follows:

Debit Account 152 - Raw Materials, Materials

Debit Account 156 - Goods

Debit: Account 211 - Tangible Fixed Assets

.........

Credit Account 3331 - VAT Payable (Account 33312 - VAT on Imported Goods).

When paying VAT on imported goods to the State Budget, record as follows:

Debit Account 3331 - VAT Payable (Account 33312)

Credit Accounts 111, 112.

At the end of the period, accounting calculates and determines the deductible VAT and VAT payable for the period.

Deductible VAT for the period, recorded as follows:

Debit Account 3331 - VAT Due for Payment

Credit: Account 133 - VAT Deductible.

When paying VAT to the State Budget within the period, record as follows:

Debit Account 3331 - VAT Due for Payment

Credit Accounts 111, 112, ...

In case the unit is allowed by the competent authority to refund input VAT, when receiving the refunded money from the State Budget, record as follows:

Debit Accounts 111, 112

Credit Account 133 - Deductible VAT

In case the unit is granted a reduction in VAT:

If the reduced VAT is deducted from the VAT payable, record as follows:

Debit Account 3331 - VAT Due for Payment

Credit Account 721 - Unusual Income Items.

If the reduced VAT is refunded in cash by the State Budget, when receiving the money, record as follows:

Debit Accounts 111, 112

Credit Account 721 - Unusual Income Items.

For returned goods (subject to VAT under the deduction method), accounting records as follows:

Reflect sales revenue of returned goods.

Debit Account 531 - Returned Goods (selling price excluding VAT)

Credit Account 111, 112, 131, ...

Reflect the VAT refund to the buyer for returned goods, recorded as follows:

Debit Account 3331 - VAT Due for Payment

Credit Accounts 111, 112.

Reflect the cost of returned goods re-entered into inventory, recorded as follows:

Debit Account 155 - Finished Products

Debit Account 156 - Goods

Credit Account 632 - Cost of Goods Sold

b2) For businesses applying the direct method of VAT calculation and those not subject to VAT

When purchasing goods and services for production and business operations, accounting records the value of purchased goods and services as the total payment (including input VAT). If the unit uses double-entry bookkeeping, when purchasing goods and services for immediate entry into inventory or use in production and business operations, record as follows:

Debit Account 152, 156, 211, 627, 641, 642, ... (Including input VAT)

Credit Account 111, 112, 331, ... (Total amount payable to the seller)

When selling goods and services, accounting records sales revenue as the total payment (including VAT), recorded as follows:

Debit Account 111, 112, 131 (Total amount receivable from the buyer)

Credit Account 511 - Sales Revenue

Credit Account 512 - Internal Sales Revenue.

When generating financial income and other unusual income (such as rental income, proceeds from asset liquidation, sale of fixed assets, etc.), record as follows:

Debit Account 111, 112, ...

Credit Account 711 - Financial Income

Credit Account 721 - Unusual Income Items.

At the end of the period, accounting calculates and determines the VAT payable under the direct method, recorded as follows:

For production and business operations, record as follows:

Debit Account 642 - Business Management Costs (6425)

Credit Account 3331 - VAT Payable

For other activities (financial, unusual), record as follows:

Debit Account 811 - Financial Activity Expenses

Debit Account 821 - Unusual Expenses

Credit Account 3331 - VAT Payable

When paying VAT to the State Budget, record as follows:

Debit Account 3331 - VAT Due for Payment

Credit Accounts 111, 112, ...

When purchasing imported materials and goods, accounting records as follows:

Debit Account 152, 153, 156, 211, ...

Credit Account 3331 - VAT Payable (Account 33312)

Credit Account 3333 - Export, Import Taxes

Credit Account 111, 112, 331, ...

When paying import duties and VAT on imported goods, record as follows:

- When paying export tax on temporarily exported goods for re-import, it is recorded as:

Debit Account 3331 - VAT Payable (Account 33312)

Debit Account 3333 - Export and Import Taxes

When VAT is reduced, accounting records as follows:

If the reduced VAT is deducted from the VAT payable for the period, record as follows:

Debit Account 3331 - VAT Due for Payment

Credit Account 721 - Unusual Income Items

If the reduced VAT is refunded in cash by the State Budget, record as follows:

Debit Accounts 111, 112

Credit Account 721 - Unusual Income Items.

For goods and services subject to special consumption tax or export tax:

When selling goods and services, record sales revenue as the total payment (including special consumption tax, export tax), recorded as follows:

Debit Account 111, 112, 131

Credit Account 511 - Sales Revenue

Credit Account 512 - Internal Sales Revenue.

Reflect the special consumption tax or export tax payable, recorded as follows:

Debit Account 511, 512

Credit Account 3332 - Special Consumption Tax

- Export tax payable on temporarily exported goods for re-import (of raw materials and goods for processing), it is recorded as:

When paying special consumption tax or export tax to the State Budget, record as follows:

Debit Account 3332 - Special Consumption Tax

- When paying export tax on temporarily exported goods for re-import, it is recorded as:

Credit: Accounts 111, 112

IV. FINANCIAL REPORTS

The financial reporting system applies to enterprises in various industries and economic sectors, implemented according to the financial reporting regulations issued by Decision No. 1141 TC/QĐ/CĐKT dated November 1, 1995 and Circular No. 10 TC/CĐKT dated March 20, 1997 of the Minister of Finance, and subsequent amendments and supplements as stipulated in this Circular as follows:

1. Balance Sheet (Model B 01 - Enterprise)

The Balance Sheet (Model B 01 - Enterprise) has been supplemented with Item Code 133 (Deductible VAT).

The indicator "VAT to be deducted" (Code 133) is used to reflect the amount of VAT still eligible for deduction and the amount of VAT accepted by the competent authority for refund but not yet refunded by the end of the accounting period for the State Budget.

The data recorded in this indicator is based on the debit balance of Account 133 "VAT to be deducted" in the General Ledger at the end of the accounting period.

2. Business operation results report (Form B 02 - Enterprise)

The business operation results report consists of three parts:

Part I - Profit/Loss: Reflects the business operation results of the enterprise, including business activities and other activities.

Part II - Implementation of obligations to the State: Reflects the implementation of obligations to the State by the enterprise regarding taxes and other payments due.

Part III - VAT to be deducted, VAT refunded, and VAT exempted/reduced: Reflects the amount of VAT to be deducted, already deducted, and still deductible at the end of the period; the amount of VAT refunded, already refunded, and still refundable; the amount of VAT exempted/reduced, already exempted/reduced, and still exempted/reduced at the end of the period.

a) Content and method of preparing Part I - Profit/Loss

The content and method of preparing the indicators recorded in column 5 "Cumulative from the beginning of the year" are based on the figures recorded in column 5 "Cumulative from the beginning of the year" of the previous report, added to the figures recorded in column 4 "This period" of the current report, with the result recorded in column 5 corresponding to each indicator.

The content and method of preparing the indicators recorded in column 4 "This period" are as follows:

Below is guidance on the content and method of preparing the indicators that have changed, while indicators that have not changed are prepared according to the Accounting Regulations for Enterprises issued by Decision No. 1141 TC/QĐ/CĐKT dated November 1, 1995 and Circular No. 10 TC/CĐKT dated March 20, 1997 of the Minister of Finance.

Indicator "Special Consumption Tax, Export Tax" (Code 07)

This indicator reflects the special consumption tax and export tax payable during the reporting period.

The data recorded in this indicator is based on the credit entries of Account 3332 (Special Consumption Tax) and Account 3333 (Export, Import Tax), detailing the export tax portion.

Indicator: "Corporate Income Tax Payable" (Code 70)

This indicator reflects the corporate income tax payable during the reporting period.

The data recorded in this indicator is based on the credit entries of Account 3334 "Corporate Income Tax" during the reporting period.

b) Content and method of preparing Part II "Implementation of obligations to the State"

The content and method of preparing the indicators recorded in columns 6 and 7 "Amount Due, Cumulative Amount Paid from the Beginning of the Year" are based on the figures recorded in columns 6 or 7 of the previous report, added to the figures recorded in columns 4 or 5 of the current report, with the result recorded in columns 6 or 7 corresponding to each indicator.

The content and method of preparing the indicators recorded in columns 4 and 5 are as follows:

Below is guidance on the content and method of preparing the indicators that have changed, while indicators that have not changed are prepared according to the Accounting Regulations for Enterprises issued by Decision No. 1141/TC-QĐ-CĐKT dated November 1, 1995 and Circular No. 10 TC/CĐKT dated March 20, 1997 of the Minister of Finance.

Indicator "VAT Payable" (Code 11)

This indicator is used to reflect VAT payable, paid, and still payable at the end of the reporting period, including VAT on production and business activities, goods, services, financial activities, and extraordinary income, and VAT on imported goods.

The data recorded in this indicator is based on the debit and credit entries of Account 3331 "VAT Payable" during the reporting period. + Indicator "VAT on Imported Goods" (Code 12)

This indicator is used to reflect VAT on imported goods payable, paid, and still payable at the end of the reporting period.

The data recorded in this indicator is based on the debit and credit entries of Account 33312 "VAT on Imported Goods" during the reporting period.

Indicator "Corporate Income Tax" (Code 15)

This indicator reflects corporate income tax payable, paid, and still payable at the end of the reporting period.

The data recorded in this indicator is based on the debit entries of Account 3334 (Corporate Income Tax) to record in column 5 and the credit entries of Account 3334 (Corporate Income Tax) to record in column 4.

c) Content and method of preparing Part III "VAT to be deducted, VAT refunded, VAT exempted/reduced"

The content of the indicators in this part is used to reflect the amount of VAT to be deducted, already deducted, and still deductible; the amount of VAT refunded, already refunded, and still refundable; the amount of VAT exempted/reduced, already exempted/reduced, and still exempted/reduced.

The content and method of preparing the indicators recorded in column 4 "Cumulative from the beginning of the year" are based on the figures recorded in column 4 "Cumulative from the beginning of the year" of the previous report, added to the figures recorded in column 3 "This period" of the current report, with the result recorded in column 4 corresponding to each indicator.

The content and method of preparing the indicators recorded in column 3 "This period" are as follows:

Section I - Value Added Tax (VAT) to be Deducted

1. The amount of VAT still deductible, refundable at the beginning of the period (Code 10)

This indicator reflects the amount of VAT input still deductible and refundable from the previous period carried over.

The data recorded in this indicator is based on the debit balance at the beginning of the period of Account 133 "VAT to be Deducted" or based on the data recorded in Indicator 4 of Section I (Code 16) of this report in the previous period.

2. The amount of VAT deducted arising during the period (Code 11)

This indicator is used to reflect the amount of VAT input deducted when purchasing goods, services, fixed assets arising during the reporting period (including the amount of VAT input not deductible but cannot be accounted for separately).

The data recorded in this indicator is based on the debit entries of Account 133 "VAT to be Deducted" during the reporting period.

3. The amount of VAT deducted, refunded during the period (Code 12)

This indicator reflects the amount of VAT input (including the amount of VAT carried over from the previous period and the amount of VAT arising in this period) deducted against the VAT output in the reporting period, refunded in cash and non-deductible VAT.

The data recorded in this indicator is based on the credit entries of Account 133 "VAT to be Deducted" during the reporting period.

Code 12 = Code 13 + Code 14 + Code 15.

3a - The amount of VAT deducted (Code 13)

This indicator reflects the amount of VAT input deducted during the reporting period.

The data recorded in this indicator is based on the credit entries of Account 133 "VAT to be Deducted" corresponding to the debit entries of Account 3331 "VAT Due" during the reporting period (33311).

3b. The amount of VAT refunded (Code 14)

This indicator reflects the amount of VAT input refunded in cash during the reporting period.

The data recorded in this indicator is based on the detailed tax accounting book of VAT refunds or based on the detailed account 133, detailed VAT refund section, credit entries of Account 133 corresponding to the debit entries of Accounts 111 and 112.

3c. The amount of VAT not deductible (Code 15)

This indicator reflects the amount of VAT input when purchasing materials, goods, services used simultaneously for taxable production and business activities and non-taxable VAT but not eligible for deduction and allocated to non-taxable VAT production and business activities during the reporting period.

The data recorded in this indicator is based on the credit entries of Account 133 corresponding to the debit entries of Accounts 142 and 632 during the reporting period.

4. The amount of VAT still deductible, refundable at the end of the period (Code 16)

This indicator reflects the VAT input still deductible, the amount of VAT reported for refund but not yet refunded by the State Treasury at the end of the reporting period.

The data recorded in this indicator is based on the debit balance of Account 133 "VAT to be Deducted" at the end of the reporting period.

Code 16 = Code 10 + Code 11 - Code 12.

Section II - VAT Refundable

1. The amount of VAT refundable at the beginning of the period (Code 20)

This indicator reflects the amount of VAT input reported for refund by the tax authority but not yet refunded by the State Treasury at the end of the previous period.

The data recorded in this indicator is based on the detailed tax accounting book of VAT refunds (Form S 02 - DN) or based on the data recorded in Indicator with Code 23 of this report in the previous period.

2. The amount of VAT refundable (Code 21)

This indicator reflects the amount of VAT reported for refund by the tax authority arising during the reporting period.

The data recorded in this indicator is based on the refund notification during the period, or based on the detailed tax accounting book of VAT refunds (Form S 02 - DN).

3. The amount of VAT refunded (Code 22)

This indicator reflects the amount of VAT input refunded in cash during the reporting period.

The data recorded in this indicator is based on the detailed account 133 "VAT to be Deducted", detailed VAT refund section, credit entries of Account 133 corresponding to the debit entries of Accounts 111 and 112 or based on the detailed tax accounting book of VAT refunds (Form S 02 - DN).

4. The amount of VAT refundable at the end of the period (Code 23)

This indicator reflects the amount of VAT input reported for refund but not yet refunded by the State Treasury at the end of the reporting period.

The data recorded in this indicator is based on the detailed tax accounting book of VAT refunds (Form S 02 - DN), or calculated as follows:

Code 23 = Code 20 + Code 21 - Code 22

Section III - Value Added Tax (VAT) Exemptions and Reductions

1. VAT Exemptions and Reductions at the Beginning of the Period (Code 30)

This indicator reflects the amount of VAT that has been examined for exemption or reduction by the tax authority and notified for exemption or reduction but not yet processed by the end of the previous period.

The data to be recorded in this indicator is based on the detailed VAT exemption and reduction accounting ledger (Form S 03 - DN) (Beginning Balance) or based on the data recorded in the indicator with code 33 of this report in the previous period.

2. VAT Exemptions and Reductions (Code 31)

This indicator reflects the amount of VAT that has been examined for exemption or reduction by the tax authority and notified for exemption or reduction during the reporting period.

The data to be recorded in this indicator is based on the detailed VAT exemption and reduction accounting ledger (Form S 03 - DN).

3. VAT Exemptions and Reductions Already Processed (Code 32)

This indicator reflects the amount of VAT that has been processed for exemption or reduction during the reporting period, including the amount of VAT that has been refunded by the State Treasury in cash (if VAT was paid to the State Treasury) or deducted from the amount of VAT payable.

The data to be recorded in this indicator is based on the detailed VAT exemption and reduction accounting ledger (Form S 03 - DN) or based on the debit entries in Account 3331 "VAT Payable" corresponding to the credit entries in Account 721 "Unusual Income Items" (if the VAT exemption or reduction is deducted from the VAT payable in the period) or the debit entries in Accounts 111, 112 corresponding to the credit entries in Account 721 (if the VAT exemption or reduction is refunded in cash by the State Treasury), part of the VAT exemption or reduction in cash.

4. VAT Exemptions and Reductions Remaining at the End of the Period (Code 33)

This indicator reflects the amount of VAT that has been notified for exemption or reduction by the tax authority but not yet processed by the end of the reporting period.

The data to be recorded in this indicator is based on the detailed VAT exemption and reduction accounting ledger (Form S 03 - DN).

Code 33 = Code 30 + Code 31 + Code 32.

V. ACCOUNTING LEDGERS

1. Supplementing Accounting Ledgers

The accounting system applicable to enterprises is implemented according to the Enterprise Accounting System issued by Decision No. 1141 TC/QĐ/CĐKT dated November 1, 1995 of the Minister of Finance, and supplemented with three additional forms specified in this Circular as follows:

VAT Tracking Ledger (Form S 01 - DN)

Detailed VAT Refund Ledger (Form S 02 - DN)

Detailed VAT Exemption and Reduction Ledger (Form S 03 - DN).

For enterprises applying the Journal Entry Bookkeeping method, Account 133 "Deductible VAT" and Account 3331 "VAT Payable" shall be tracked and reflected in Journal Entry Book 10.

For enterprises applying the Journal and Ledger method, the Journal and Ledger shall have four additional columns to reflect Accounts 133 and 3331.

For enterprises applying the General Journal or Bookkeeping Entry method, Account 133 "Deductible VAT" and Account 3331 "VAT Payable" shall be tracked and reflected in the Ledger opened for each account.

2. Explanation of Content and Recording Methods for Detailed Accounting Ledgers

a) VAT Tracking Ledger (Form S 01 - DN)

Purpose and Scope of Application:

This ledger is only applicable to production and business establishments subject to direct calculation of VAT payable and using the "Single Entry" bookkeeping method.

This ledger is used to record the amount of VAT payable, already paid, and still payable.

Content and Method of Recording:

This ledger is opened monthly and recorded according to each VAT invoice (each invoice recorded in one line). Specifically, for VAT payable, it may not be recorded according to each invoice, and can be recorded once at the end of the month.

Column 1, 2: Record the number and date of the voucher.

Column 3: Record the explanation of the economic transaction.

Column 4: Record the amount of VAT paid during the period according to each voucher.

Column 5: Record the beginning balance of VAT payable, the amount of VAT payable arising during the period according to each voucher, and the ending balance of VAT payable.

At the end of the period, the accountant will close the ledger, sum up the VAT payable and paid during the period, and calculate the ending balance of VAT payable.

After closing the ledger, the person recording the ledger and the head of the household or director of the production and business establishment must sign and write their names.

b) Detailed VAT Refund Ledger (Form S 02 - DN)

Purpose and Scope of Application:

This book applies to production and business establishments subject to taxation under the tax deduction method.

This book is used to record and reflect the amount of VAT refundable, refunded, and still refundable at the end of the reporting period.

Content and Method of Recording:

This book is opened quarterly and recorded according to each VAT refund voucher issued during the reporting period.

Columns 1 and 2: Record the date and number of the voucher.

Column 3: Record the explanation of the economic transaction content according to each voucher.

Column 4: Record the amount of VAT still refundable at the beginning of the period, the VAT refundable during the period, and the VAT still refundable at the end of the reporting period.

Column 5: Record the amount of VAT refunded during the reporting period.

At the end of the period, the accountant will close the book, sum up the VAT refundable and refunded transactions, and calculate the VAT still refundable at the end of the reporting period.

After closing the book, the person recording the book and the chief accountant must sign and clearly write their full names.

c) Detailed Book on VAT Exemption and Reduction (Form S 03 - DN)

Purpose and Scope of Application:

This book applies to business establishments in various industries and economic sectors.

This book is used to record and reflect the amount of VAT exempted and reduced, already exempted and reduced, and still exempted and reduced at the end of the reporting period.

Content and Method of Recording:

This book is opened quarterly and recorded according to each VAT exemption and reduction voucher issued during the reporting period.

Columns 1 and 2: Record the number and date of the voucher.

Column 3: Record the explanation of the economic transaction content according to each voucher.

Column 4: Record the amount of VAT still exempted and reduced at the beginning of the period, the VAT exempted and reduced during the period, and the VAT still exempted and reduced at the end of the reporting period.

Column 5: Record the amount of VAT exempted and reduced during the reporting period.

At the end of the period, the accountant will close the book, sum up the VAT exempted and reduced transactions, and calculate the VAT still exempted and reduced at the end of the reporting period.

After closing the book, the person recording the book and the chief accountant must sign and clearly write their full names.

B. GUIDELINES FOR ACCOUNTING FOR ENTERPRISE INCOME TAX

1. Business establishments must organize accounting for enterprise income tax in accordance with the current accounting regulations and the provisions of this Circular.

2. Business establishments must account for revenue, income, and reasonable expenses to determine taxable income in accordance with the Law on Enterprise Income Tax.

3. Accounting for enterprise income tax uses the following accounts:

Account 3334 - Enterprise Income Tax (renamed from Account 3334 "Income Tax" to Account 3334 "Enterprise Income Tax").

Account 421 - Undistributed Profit (renamed from Account 421 "Unallocated Profit" to Account 421 "Undistributed Profit").

Account 3334 is used to reflect the amount of enterprise income tax payable and the situation of payment of enterprise income tax to the State Budget.

a) The following provisions must be followed when accounting for Account 3334:

Account 3334 is applicable to all enterprises in all industries and economic sectors.

Enterprises have the responsibility to submit the tax declaration form for enterprise income tax to the tax authority. Quarterly, enterprises must temporarily pay the full amount of tax due for that quarter into the State Budget according to the tax payment notice from the tax authority.

b) Structure and Content Reflected in Account 3334

Debit Side:

Amount of enterprise income tax paid into the State Budget.

Amount of enterprise income tax exempted and reduced deducted from the amount payable.

Difference between the enterprise income tax payable according to the quarterly tax notification from the tax authority and the actual enterprise income tax payable when the annual tax settlement is approved.

Debit Side: Amount of enterprise income tax payable.

Credit Balance: Amount of enterprise income tax still payable and to the State Budget.

Debit Balance: Amount of enterprise income tax paid exceeding the amount payable (overpaid tax).

c. Method of Accounting for Certain Main Economic Activities

Quarterly, based on the tax notification from the tax authority regarding the amount of enterprise income tax payable according to the plan, record:

Debit account 421 - Undistributed profits

Credit Account 3334 - Enterprise Income Tax

When paying enterprise income tax into the State Budget, record:

Debit Account 3334 - Enterprise Income Tax

Credit Accounts 111, 112, ...

At the end of the year, when submitting the approved annual tax settlement report, determine the amount of enterprise income tax payable, record:

In case the actual amount of enterprise income tax payable according to the approved annual tax settlement report exceeds the amount payable according to the quarterly tax notification from the tax authority, the additional amount payable should be recorded:

Debit account 421 - Undistributed profits

Credit Account 3334 - Enterprise Income Tax

In case the amount of enterprise income tax payable according to the quarterly tax notification from the tax authority exceeds the actual amount payable according to the approved annual tax settlement report, the difference should be recorded:

Debit Account 3334 - Enterprise Income Tax

Credit Account 421 - Undistributed Profit

Amount of enterprise income tax exempted and reduced allowed by the competent authority, amount of tax exempted and reduced, record:

Debit Account 3334 - Enterprise Income Tax

Credit Account 421 - Undistributed Profit

C. IMPLEMENTATION

1. This Circular takes effect from January 1, 1999, and all previous documents conflicting with the provisions of this Circular are abolished.

2. By December 31, 1998, if Account 3331 "Revenue Tax" has a credit balance, when opening the accounting books for the year 1999, enterprises must transfer the balance to Account 3331 "VAT Payable" (Detailed section on revenue tax) to continue tracking payments for revenue tax to the State Budget. When enterprises pay revenue tax for the year 1998, the accountant records:

Debit Account 3331 - VAT Payable (Detailed section on revenue tax)

Credit: Accounts 111, 112

By December 31, 1998, if Account 3334 "Income Tax" has a debit balance or a credit balance, when opening the accounting books for the year 1999, enterprises must transfer the balance of Account 3334 "Income Tax" to the detailed section of Account 3334 "Enterprise Income Tax" for the previous year's income tax, when paying income tax to the State Budget, the accountant records:

Debit Account 3334 - Enterprise Income Tax (Detailed section on previous year's income tax)

Credit Accounts 111, 112, ...

3. The Director General of the General Department of Taxation, the Head of the Accounting System Department, the Director General of the State Capital and Asset Management General Department at Enterprises, the Tax Departments, and the State Capital and Asset Management Departments at Enterprises shall coordinate with relevant sectors to assist Provincial People's Committees and City People's Committees in guiding and inspecting the implementation of this Circular in enterprises.

4. During the implementation process, if there are difficulties or obstacles, business establishments, sectors, and localities should promptly reflect them to the Ministry of Finance for research and supplementary guidance./.