Circular No. 121/2007/TT-BTC Amending and Supplementing Circular No. 32/2006/TT-BTC dated April 10, 2006 of the Ministry of Finance on guiding accounting for tax and other revenue transactions related to exported and imported goods.

CIRCULAR

Amending and supplementing Circular No. 32/2006/TT-BTC dated April 10, 2006 of the Ministry of Finance on guiding accounting for tax transactions and other revenues related to exported and imported goods

__________________________

Pursuant to the Accounting Law dated June 17, 2003 and Decree No. 128/2004/NĐ-CP dated May 31, 2004 of the Government detailing and guiding the implementation of certain provisions of the Accounting Law applicable in the field of state accounting;

Pursuant to the Export Tax, Import Tax Law dated June 14, 2005; the Value Added Tax Law dated May 21, 1997, amended and supplemented on June 17, 2003; the Special Consumption Tax Law dated May 31, 1998, supplemented and amended on June 17, 2003; and guiding documents for these laws;

Pursuant to the Customs Law dated July 12, 2001 and the Law Supplementing Certain Provisions of the Customs Law dated June 24, 2005;

Pursuant to the Tax Management Law No. 78/2006/QH 11 dated November 29, 2006;

Pursuant to Decree No. 185/2004/NĐ-CP dated November 4, 2004 of the Government on handling administrative violations in the field of Accounting; and Decree No. 100/2004/NĐ-CP dated February 25, 2004 of the Government on handling administrative violations in the field of Tax; Decree No. 97/2007/NĐ-CP dated June 7, 2007 of the Government on handling administrative violations in the field of Customs and supplementary and amended decrees relating to the above decrees;

Pursuant to Decree No. 85/2007/NĐ-CP dated May 25, 2007 of the Government detailing the implementation of the Tax Management Law; and Decree No. 98/2007/NĐ-CP dated June 7, 2007 of the Government on handling violations of tax laws and enforcing administrative decisions on taxes;

The Ministry of Finance guides the amendment and supplementation of some contents in Circular No. 32/2006/TT-BTC dated April 10, 2006 of the Ministry of Finance (hereinafter referred to as Circular No. 32/2006/TT-BTC) guiding accounting for tax transactions and other revenues related to exported and imported goods, as follows:

I. Abolishing, amending, and supplementing some provisions on accounting vouchers in Clause 2,  Section A Part II of Circular No. 32/2006/TT-BTC dated October 4, 2006 as follows:

1. Abolishing the accounting voucher "Decision on Adjusting Tax" (Form C5-HQ) and replacing it with the accounting voucher "Decision on Determining Tax for Exported and Imported Goods" (Form C29-HQ).

2. List of amended and supplemented accounting vouchers:

The format and content of the amended and supplemented accounting vouchers are specified in Appendix No. 01 of this Circular.

II. Amending and supplementing the content and accounting methods of some accounts in Circular No. 32/2006/TT-BTC

1. Amending Point 3 of the General Provisions of Account 314 - Settlement with Tax Payers, as follows:

"The amounts of export and import taxes reflected in Account 314 are those of entities permitted to export and import goods and pay taxes according to the prescribed deadlines. Amounts of export and import taxes from non-trade goods and export and import taxes of residents in border areas shall not be reflected in this account."

2. Removing detailed accounts: 3182, 3184, 7182, 7184 as stipulated in Point 2.1, Section B  Part II Circular No. 32/2006/TT-BTC.

3. Supplement Paragraph  3.1.10 to Point 3.1, Clause 3, Section B, Part II of Circular No. 32/2006/TT-BTC  on guiding "Accounting for Deduction of Non-Tariff Tax" as follows:

3.1. When the Customs Authority has a decision to refund the amount of non-tariff tax paid by the payer, based on actual data reflecting the amount of non-tariff tax to be refunded, record:

Debit Account 716 - Revenue from Tax Collection (corresponding Tax Account)

Credit Account 336 - Refundable Tax and Other Revenues (corresponding Tax Account).

3.2. When there is a decision to deduct non-tariff tax, record:

Debit Account 336 - Refundable Tax and Other Revenues (corresponding Tax Account)

Credit Account 716 - Revenue from Tax Collection (corresponding Tax Account).

Accounting Chart No. 3.1.10 "Accounting for Deduction of Non-Tariff Tax" (Annex No. 02).

4. Supplement Paragraph 3.1.11 to Point 3.1, Clause 3, Section B, Part II of Circular No. 32/2006/TT-BTC  on guiding "Accounting for Transfer of Deduction Between Customs Branches within the Customs Department" as follows:

4.1. At the transferring Customs Branch, when there is a decision to transfer deduction to another branch within the Customs Department, record:

Debit Account 336 - Refundable Tax and Other Revenues (corresponding Tax Account)

Credit Account 716 - Revenue from Tax Collection (corresponding Tax Account).

4.2. At the receiving Customs Branch, based on the deduction decision, record:

Debit Account 716 - Revenue from Tax Collection (corresponding Tax Account).

Credit Account 314 - Settlement with Tax Payers

Accounting Chart No. 3.1.11 "Accounting for Transfer of Deduction Between Customs Branches within the Customs Department" (Annex No. 02)

5. Supplement Paragraph 3.1.12 to Point 3.1, Clause 3, Section B, Part II of Circular No. 32/2006/TT-BTC  regarding guiding "Accounting for Deduction of Export, Import, and Special Consumption Taxes" as follows:

5.1. When the Customs Authority prepares the Ledger Entry based on the Customs Declaration, based on actual data, record:

Debit Account 314 - Settlement with Tax Payers (corresponding Tax Account)

Credit Account 716 - Revenue from Tax Collection (corresponding Tax Account).

5.2. Upon receipt of confirmation from the Treasury about the payment of taxes directly collected at the Customs:

a. Based on actual data, record:

Debit Account 333 - Settlement with the State Budget (corresponding Tax Account)

Credit Account 314 - Settlement with Tax Payers (corresponding Tax Account).

b. Simultaneously adjust the amount already paid to the budget according to the Treasury's confirmation, record:

Debit Account 716 - Revenue from Tax Collection (corresponding Tax Account)

Credit Account 333 - Settlement with the State Budget (corresponding Tax Account).

5.3. Adjust the reduction in tax revenue to be recorded red journal entry:

Debit Account 314 - Settlement with Tax Payers (corresponding Tax Account)

Credit Account 716 - Revenue from Tax Collection (corresponding Tax Account).

5.4. In case of a refund decision, the accountant records simultaneously:

a. Reflecting the tax amount to be refunded according to the refund decision, record:

Debit Account 716 - Revenue from Tax Collection (corresponding Tax Account)

Credit Account 336 - Refundable Tax and Other Revenues Already Collected.

b. Adjust the reduction decision according to the refund decision, the accountant records a red journal entry:

Debit Account 716 - Revenue from Tax Collection (corresponding Tax Account)

Credit Account 314 - Settlement with Tax Payers (corresponding Tax Account).

5.5. When the Customs consolidates the declaration of other specialized tax revenues allowed to be deducted from the already paid specialized tax, based on actual data, record:

Debit Account 314 - Settlement with Tax Payers (corresponding Tax Account)

Credit Account 716 - Revenue from Tax Collection (corresponding Tax Account)

5.6. Simultaneously reduce the amount already paid to the budget of the deducted specialized tax, the accountant records a red journal entry:

a. The amount already paid to the budget, record:

Debit Account 333 - Settlement with the State Budget (corresponding Tax Account)

Credit Account 314 - Settlement with Tax Payers (corresponding Tax Account).

b. The amount already transferred according to the confirmation, record:

Debit Account 716 - Revenue from Tax Collection (corresponding Tax Account)

Credit Account 333 - Settlement with the State Budget (corresponding Tax Account).

5.7. Simultaneously increase the specialized tax revenue allowed to be deducted from other specialized tax revenues already paid to the budget:

a. The amount already paid to the budget, record:

Debit Account 333 - Settlement with the State Budget (corresponding Tax Account)           

Credit Account 314 - Settlement with Tax Payers (corresponding Tax Account)

b. Transfer the amount already paid, record:

Debit Account 716 - Revenue from Tax Collection (corresponding Tax Account)

Credit Account 333 - Settlement with the State Budget (corresponding Tax Account).

5.8. Transfer the refunded tax to offset the tax payable of the taxpayer, record:

Debit Account 336 - Refundable Tax and Other Revenues Already Collected

Credit Account 314 - Settlement with Tax Payers (corresponding Tax Account)

Accounting Chart No. 3.1.12 "Accounting for Deduction Between Various Types of Export, Import, and Special Consumption Taxes" (Annex No. 02)

6. Supplement Paragraph 3.5.8 to Point 3.5, Clause 3, Section B, Part II of Circular No. 32/2006/TT-BTC  regarding guiding "Accounting for Collecting Taxes and Other Fees on Behalf of Another Customs Authority" as follows:

6.1. In cases where the Customs Authority collects money on behalf of another Customs Authority due to a mistake by the enterprise in paying taxes or other fees, or if the enterprise mistakenly pays into the wrong account, record:

Debit Account 111 - Cash (In case the enterprise pays cash at the Customs Authority)

Debit Account 112 - Bank Deposit (In case the enterprise mistakenly pays into the wrong account)

Credit Account 338 - Other Payables (3389).

6.2. When the Customs Authority deposits the collected funds into the account of another Customs Authority or transfers it back, record:

Debit Account 338 - Other Payables (3389)

Credit Account 111- Cash (In case the enterprise pays cash at the Customs Authority)

Credit Account 112- Bank Deposit (In case the enterprise mistakenly pays into the wrong account).  Accounting Chart No. 3.5.8 "Accounting for Collecting Taxes and Other Fees on Behalf of Another Customs Authority" (Annex No. 02)

The accounting entries for adjusting tax decisions (Form C5-HQ) stipulated in Circular No. 32/2006/TT-BTC shall be carried out based on the tax assessment decision for exported and imported goods (Form C29-HQ) stipulated in this Circular.

III. Amend some provisions regarding reporting on export and import tax operations at Clause 2, Section D, Part II "System of Reporting on Export and Import Tax Operations" of Circular No. 32/2006/TT-BTC dated October 4, 2006 as follows:

7. List of amended reporting on export and import tax operations:

NAME OF REPORT

Quick Report on Tax Revenue and Other Revenues

1. This Circular takes effect 15 days after its publication in the Official Gazette. 2. The Director General of the General Department of Customs is responsible for implementing the accounting of export and import taxes in the Customs sector in accordance with the provisions of this Circular. amend and clarify the method for preparing the business accounting report prescribed in Appendix 03 of this Circular

IV. Implementation Organization

1. This Circular takes effect fifteen days after its publication in the Official Gazette.

2. The Director of the General Department of Customs shall be responsible for implementing tax accounting work for exports and imports within the Customs sector in accordance with the provisions of this Circular.

During implementation, if any difficulties arise, they are requested to be reported promptly to the Ministry of Finance for study and resolution./.