Circular No. 13/2009/TT-BTC guides the implementation of value-added tax reduction for certain goods and services sold by businesses facing difficulties.

CIRCULAR

Guidelines for Implementing Reductions in Value Added Tax on Certain Goods and Services by Enterprises Experiencing Difficulties

matter of businesses encountering difficulties in operation

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

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

Pursuant to Resolution No. 21/2008/QH12 of the National Assembly, Session XII, on the State Budget for 2009;

Pursuant to Decree No. 118/2008/NĐ-CP dated November 27, 2008 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Finance;

Pursuant to Decision No. 16/2009/QĐ-TTg dated January 21, 2009 of the Prime Minister promulgating certain tax measures aimed at implementing policies to stimulate investment and consumption, prevent economic downturns, and address difficulties faced by enterprises;

The Ministry of Finance hereby provides guidelines for implementing reductions in VAT as follows:

Article 1. Reduce the VAT rate by 50% for certain goods and services subject to a 10% rate as specified in Point 3, Section II, Part B of Circular No. 129/2008/TT-BTC dated December 26, 2008, as follows:

1. Coal, coal briquettes, coke, mud coal, and lump coal;

2. Basic chemicals listed in the Chemicals List (Annex attached hereto);

3. Machinery and equipment for production (excluding consumer products), including:

a) Various types of machines and equipment such as internal combustion engines, milling machines, lathes, planers, rolling mills, drawing machines, forging machines, punching machines, welding machines, measuring instruments, transformers over 50 KVA, water meters, bridge structures, warehouse frames, metal structures, transportation vehicles, and metal parts, semi-finished products of the aforementioned products;

b) Small production tools such as pliers, hammers, saws, drills, shovels, spades, sickles, sets of tools, and nails;

c) Steel fences from B27 to B41, barbed wire, metal roofing sheets, metal cables, and metal conveyor belts;

d) Medium and high voltage switchgear, protection cabinets, control cabinets, medium and high voltage metering cabinets, transformer substations, medium and high voltage kiosk substations, medium and high voltage disconnect switches, cable terminations, and cable joints for medium and high voltage underground cables, circuit breakers (12KV, 24KV, 36KV from 6A and above);

4. All types of automobiles;

5. Automotive spare parts including engines, gearboxes, clutches, and components thereof;

6. Ships and boats;

7. Various types of molds used as tools to produce goods;

8. Explosives including gunpowder, slow-burning fuses, detonators, and specialized explosive products without changing their functional properties;

9. Grinding wheels;

10. Artificial wood panels made from materials such as bamboo, wood pulp, wood chips, wood fibers, sugarcane residue, rice husks, pressed into sheets, excluding glued natural wood panels and natural wood veneer panels;

11. Prefabricated concrete products including prestressed concrete beams, concrete columns, prefabricated concrete structures, concrete utility poles, concrete pipes, concrete boxes, concrete panels, and non-standard reinforced concrete components (excluding concrete blocks), ready-mixed concrete (mortar);

12. Tires and tire assemblies with sizes from 900-20 and above;

13. Neutral glass tubes (including syringe tubes and test tubes);

14. Products of black metals, colored metals, and precious metals smelting, rolling, and drawing, excluding imported gold;

Smelting, rolling, and drawing products of black metals, colored metals, and precious metals include primary products or items in the form of ingots, bars, sheets, and wires;

Products that have been processed into other items will be taxed according to the specific item;

15. Automatic data processing machines and parts thereof (including all types of computers and computer parts, dedicated printers), except storage devices;

16. Loading and unloading; dredging of channels, canals, river ports, sea ports; salvage and rescue operations;

17. Transportation (excluding international transportation) including cargo, luggage, passenger transportation, tour transportation by air, road, rail, and waterways, excluding brokerage and agency activities that only earn commissions and regardless of whether the transport is direct or subcontracted;

18. Hotel business; packaged tour services;

19. Printing, excluding printing money;

Article 2. Issuing invoices for goods and services subject to reduced VAT

When issuing invoices for goods and services subject to reduced VAT rates as guided in Article 1 of this Circular, in the VAT rate column, record "10% x 50%"; VAT amount; total payment amount due from the buyer.

Example:

Company A sold 60 sets of computers to Company B under a contract signed between both parties, the selling price excluding VAT being 5,200,000 VND/set. Computers fall within the category eligible for a 50% reduction in the VAT rate. Therefore, when issuing the VAT invoice to Company B, Company A records as follows:

In the "Goods, Services" column, record: "Computer"

Selling price recorded: 5,200,000 VND x 60 units = 312,000,000 VND

VAT rate: "10% x 50%"

VAT amount: 15,600,000 VND

Total payment amount: 327,600,000 VND.

Based on the VAT invoice, Company A declares output VAT, and Company B claims deductions for VAT based on the reduced amount recorded on the invoice, which is 15,600,000 VND.

Article 3. Implementation Organization and Effectiveness

1. This Circular takes effect 45 days from the date of issuance and applies to the goods and services listed in Article 1 of this Circular from February 1, 2009 to December 31, 2009.

2. During implementation, if there are difficulties or obstacles, units and business establishments are requested to promptly report to the Ministry of Finance for timely resolution./.