Decree No. 14/2019/ND-CP amends and supplements some articles of Decree No. 108/2015/ND-CP dated October 28, 2015, of the Government detailing and guiding the implementation of certain provisions of the Special Consumption Tax Law and the Law Amending and Supplementing Certain Provisions of the Special Consumption Tax Law.

DECREE

Amending and supplementing some articles of Decree No. 108/2015/NĐ-CP
dated October 28, 2015 of the Government detailing
and guiding the implementation of certain provisions of the Special Consumption Tax Law
and the Law amending and supplementing certain provisions of the Special Consumption Tax Law

          Pursuant to the Government Organization Law dated June 19, 2015;

          Pursuant to the Special Consumption Tax Law dated November 14, 2008; the Law amending and supplementing certain provisions of the Special Consumption Tax Law dated November 26, 2014;

          Pursuant to the Tax Administration Law dated November 29, 2006 and the Law amending and supplementing certain provisions of the Tax Administration Law dated November 20, 2012;

          Pursuant to the Law amending and supplementing certain provisions of the Value Added Tax Law, the Special Consumption Tax Law, and the Tax Administration Law dated April 6, 2016;

          Pursuant to the proposal of the Minister of Finance;

          The Government issues this Decree amending and supplementing some articles of Decree No. 108/2015/NĐ-CP dated October 28, 2015 of the Government detailing and guiding the implementation of certain provisions of the Special Consumption Tax Law and the Law amending and supplementing certain provisions of the Special Consumption Tax Law.

          Article 1. Amending and supplementing some articles of Decree No. 108/2015/NĐ-CP dated October 28, 2015 of the Government:

          1. Clause 3 of Article 3 is amended and supplemented as follows:

          "3. Aircrafts and yachts used for commercial transportation of goods and passengers, tourist passengers; aircrafts used for purposes such as spraying pesticides, firefighting, filming, photography, surveying maps, security, national defense.

          In cases where aircrafts and yachts are not used for commercial transportation of goods and passengers, tourism business; aircrafts are not used for purposes such as spraying pesticides, firefighting, filming, photography, surveying maps, security, national defense, they shall be subject to special consumption tax according to the provisions of the Special Consumption Tax Law and the guidance of the Ministry of Finance."

         2. Clause 3 of Article 6 is amended and supplemented as follows: .

          "3. Procedures, documents, procedures, and authority for refunding special consumption tax:

          a) Procedures, documents, procedures, and authority for refunding special consumption tax on temporarily imported goods for re-exported goods as stipulated in Clause 1 of this Article shall be implemented as provided for in the refund of import tax under Article 34 of Decree No. 134/2016/NĐ-CP dated September 1, 2016 of the Government detailing certain provisions and measures to implement the Law on Export Duties and Import Duties and related amendments (if any).

          b) Procedures, documents, procedures, and authority for refunding special consumption tax on imported raw materials for production and processing of export goods as stipulated in Clause 2 of this Article shall be implemented as provided for in the refund of import tax under Article 36 of Decree No. 134/2016/NĐ-CP dated September 1, 2016 of the Government detailing certain provisions and measures to implement the Law on Export Duties and Import Duties and related amendments (if any).

          In case the import declaration includes a request for refund of import tax and special consumption tax, the import tax refund documents shall also serve as the special consumption tax refund documents."
          3. Article 7 is amended and supplemented as follows:
          "Article 7. Tax Deduction

          1. The taxpayer producing goods subject to special consumption tax using raw materials also subject to special consumption tax shall be entitled to deduct from their special consumption tax payable the special consumption tax already paid on imported raw materials (including the special consumption tax paid according to the Decision on Determination of Tax by the customs authority, except in cases where the customs authority penalizes for fraud or tax evasion) or paid for raw materials purchased directly from domestic production units when determining the special consumption tax payable. The amount of special consumption tax deductible corresponds to the special consumption tax of the raw materials used to produce goods subject to special consumption tax sold out.

          For biofuel ethanol: the amount of special consumption tax deductible for the tax declaration period is based on the special consumption tax paid or paid per unit of raw material purchased in the immediately preceding tax declaration period for mineral gasoline used to produce biofuel ethanol.

          For enterprises permitted to produce and blend biofuel ethanol, the declaration and payment of tax, and the deduction of special consumption tax shall be carried out at the local tax authority where the enterprise's main office is located. Any un-deducted special consumption tax of mineral raw materials used for the production and blending of biofuel ethanol (including any un-deducted special consumption tax arising from the tax declaration month January 2016 onwards) can be offset against the special consumption tax payable for other goods and services generated during the period. In case there remains un-deducted special consumption tax of mineral raw materials used for the production and blending of biofuel ethanol after offsetting, it may be deducted in the following period or refunded.

          The documents, procedures, and authority to process the refund of special consumption tax are as follows:

- Enterprises producing and blending biofuel ethanol shall prepare a request for refund of state budget revenue and offset with other payable taxes (if any) - Form 0la/ĐNHT attached hereto.

- Enterprises producing and blending biofuel ethanol shall submit the application for refund of un-deducted special consumption tax to the local tax authority where the enterprise's main office is located to have it processed according to regulations.

- The responsibility of the tax management agency in processing the refund of special consumption tax according to this clause shall be implemented as prescribed in Article 60 of the Law on Tax Administration and the Law Amending and Supplementing Certain Provisions of the Law on Tax Administration and related supplementary documents (if any).

- Based on the Order for Refund of State Budget Revenue issued by the Tax Authority, the State Treasury shall implement the refund of special consumption tax of mineral raw materials used for the production and blending of biofuel ethanol. The source of the refund of special consumption tax shall be derived from the central government's revenue from special consumption tax.

2. The taxpayer subject to special consumption tax on imported goods subject to special consumption tax shall be entitled to deduct the special consumption tax already paid at the import stage including the special consumption tax paid according to the Decision on Determination of Tax by the customs authority, except in cases where the customs authority penalizes for fraud or tax evasion when determining the special consumption tax payable for goods sold domestically. The amount of special consumption tax deductible corresponds to the special consumption tax of imported goods subject to special consumption tax sold domestically and is limited to the maximum corresponding amount of special consumption tax calculated at the domestic sales stage. The difference between the special consumption tax paid at the import stage and the special consumption tax sold domestically that cannot be deducted shall be recorded as an expense for calculating corporate income tax.

3. The conditions for deducting special consumption tax are stipulated as follows:

          a) For the case of importing raw materials subject to special consumption tax for the production of goods subject to special consumption tax and for the case of importing goods subject to special consumption tax, the documents serving as the basis for deducting special consumption tax are the documents evidencing the payment of special consumption tax at the import stage.

b) For the case of purchasing raw materials directly from domestic producers:

- Sales contract, which must include content indicating that the goods are produced directly by the selling entity; a copy of the Business Registration Certificate of the selling entity (signed and stamped by the selling entity).

- Bank payment vouchers.

- The documents serving as the basis for deducting special consumption tax are value-added tax invoices when purchasing goods, the amount of special consumption tax paid by the purchasing entity when buying raw materials is determined = purchase price without VAT * special consumption tax rate; wherein:

The deduction of special consumption tax shall be carried out when declaring special consumption tax and the amount of special consumption tax payable shall be determined according to the following formula:

If the exact amount of special consumption tax paid (or paid) for the corresponding raw materials relative to the products consumed during the period cannot be accurately determined, it may be based on the data from the previous period to calculate the deductible special consumption tax, and will be adjusted according to actual figures at the end of the quarter or year. In all cases, the maximum allowable deduction of special consumption tax shall not exceed the special consumption tax calculated for the raw materials according to the economic and technical standards of the product.

         4. The special consumption tax payer shall submit the Special Consumption Tax Declaration Form according to Form No. 01/TTĐB and the Special Consumption Tax Deduction Determination Table (if applicable) according to Form No. 01-1/TTĐB issued together with this Decree. "

          Article 2. Effectiveness and responsibility for implementation:

         1.  This Decree takes effect from March 20, 2019. Ministers,

        2. Heads of ministerial-level agencies, Heads of government-attached agencies, Chairpersons of provincial people's committees under central city administrations, and related organizations and individuals are responsible for implementing this Decree./.