Special Consumption Tax Law No. 270B-NQ/HĐNN8

LAW

SPECIAL CONSUMPTION TAX

To guide production, social consumption, reasonably regulate consumer income for the state budget, and strengthen management of production and business operations for certain products;

Pursuant to Article 80 and Article 83 of the Constitution of the Socialist Republic of Vietnam;

This Law stipulates special consumption tax.

PART I

GENERAL PROVISIONS

Article 1

Organizations and individuals belonging to various economic sectors producing goods specified in Article 9 of this Law must pay special consumption tax.

Article 2

Each item subject to special consumption tax shall only be taxed once.

Production units selling goods subject to special consumption tax shall only pay special consumption tax without paying turnover tax.

Goods subject to special consumption tax may deduct previously paid special consumption tax at the production or processing stage if they have valid documentation.

Goods subject to special consumption tax intended for export shall not be subject to special consumption tax.

Article 3

Production units producing goods subject to special consumption tax are obligated to declare and fully pay taxes according to the Special Consumption Tax Law regulations.

Article 4

Strictly prohibit all acts of tax evasion, delaying tax payment, and other violations of this Law's provisions.

Article 5

State agencies, social organizations, military units, and all citizens are responsible for assisting tax authorities and tax officials in performing their duties.

PART II

BASIS FOR CALCULATING TAX AND SPECIAL CONSUMPTION TAX SCHEDULE

Article 6

The basis for calculating special consumption tax on taxable goods is the quantity of goods consumed, the unit price of taxable goods, and the tax rate.

, Clause 1, Clause 2 Article 7a of this Regulation.

The taxable value of goods subject to special consumption tax is the selling price set by the production unit.

Article 8

In cases where goods are exchanged or provided internally for consumption needs or given as gifts to others, these goods must be valued at market prices at the time of occurrence to serve as the basis for calculating special consumption tax.

Article 9

Goods subject to special consumption tax and tax rates are defined in the following tax table:

In case of necessity, the State Council may decide to amend or supplement certain items and tax rates specified in the special consumption tax table and must report to the National Assembly for approval at the nearest session.

CHAPTER III

REGISTRATION, DECLARATION AND PAYMENT OF TAX AND TRANSPORTATION OF GOODS

Article 10

Production units producing goods subject to special consumption tax are responsible for:

1- Declaring and registering with the tax authority regarding capital, labor, product types, business locations no later than five days before commencing operations or merging, splitting, changing locations; in cases of dissolution or change in business activities, declaration must be made no later than five days before dissolution or change in business activities;

2- Strictly adhering to accounting records, vouchers, invoices as prescribed by the State for each type of entity;

3- Filing relevant forms related to special consumption tax according to the regime prescribed by the Ministry of Finance;

4- Providing necessary documents upon request by the tax authority for checking accounting records, vouchers, invoices, raw material warehouses, goods, production workshops, processing plants, retail stores;

5- Paying taxes fully and on time.

Article 11

Production units producing goods subject to special consumption tax are obligated to:

- Submit the previous month's special consumption tax declaration form to the tax authority within five days of the start of the next month, including cases where there is no special consumption tax liability;

- Pay the full amount of special consumption tax after deducting temporarily paid amounts in the month and any previously paid special consumption tax, according to the deadline set by the tax authority. This deadline must not exceed the fifteenth day of the following month.

Article 12

Production units producing goods subject to special consumption tax that use trademarks must declare trademark samples to the direct tax collection agency. When changing trademarks, declarations must be resubmitted. The declaration deadline must not be later than five days before using or changing the trademark.

Article 13

Production units producing goods subject to special consumption tax that cease operations for one month or more must declare the cessation of operations and inventory levels to the direct tax collection agency; when resuming operations, declarations must be resubmitted. The declaration deadline must not be later than five days before ceasing or resuming operations.

Article 14

For industrial goods subject to special consumption tax, the special consumption tax is paid by the production unit when selling goods or returning processed goods.

For leaf tobacco and rolled tobacco, the special consumption tax is paid by the purchaser at the purchasing location before transporting the goods.

Article 15

Payment of special consumption tax is regulated as follows:

1- Small units are allocated quantities of goods consumed and pay taxes periodically monthly on the tenth, twentieth, and last day of the month;

2- Large units pay taxes each time they sell goods or return processed goods. Tax authorities assign staff to monitor these units regularly.

Article 16

Goods subject to special consumption tax during transportation must have valid documentation attached. Documentation for special consumption tax includes:

1- Tax payment receipts:

a) Revenue receipt or tax payment voucher issued by the tax authority;

b) Transport permit issued by the tax authority or invoice from a state-owned enterprise registered with the tax collection agency;

2- Warehouse transfer certificate for goods not yet subject to special consumption tax is a document issued by the direct tax collection agency for goods transferred to another location.

Article 17

The tax authority shall have the following duties and powers:

1- Guide, assist, and urge businesses to strictly adhere to accounting records, vouchers, invoices, and procedures for declaring and paying special consumption tax;

2- Inspect accounting records, vouchers, invoices, raw material warehouses, goods, production workshops, processing plants, retail stores, and transportation vehicles related to special consumption tax;

3- In cases of necessity, require all organizations and individuals to provide relevant documents concerning the calculation and payment of special consumption tax.

4- Calculate tax, establish tax records, approve tax records, and notify the amount of special consumption tax to be paid to the State Treasury; issue transport permits for goods when collecting taxes, the tax collection agency must issue tax receipts issued by the Ministry of Finance;

5- Prepare administrative penalty decisions within their authority or propose criminal prosecution against violations of the Special Consumption Tax Law;

6- Examine and resolve complaints and denunciations regarding special consumption tax;

Article 18

The tax authority has the right to determine the quantity of taxable goods, the unit price for taxation for production units in the following cases:

1- Not registering with the tax authority or incorrectly declaring information related to determining the quantity of taxable goods and the unit price for taxation;

2- Not submitting declaration forms or submitting them late regarding the monthly quantity of taxable goods and the selling price of goods;

3- Not strictly adhering to accounting recordkeeping systems, vouchers, and invoices;

4- Refusing to present accounting records, vouchers, and invoices upon request of the tax authority or failing to provide necessary documentation related to determining the quantity of taxable goods and the unit price for taxation.

The tax authority bases its determination of the tax payable on investigative materials.

In case the production unit disagrees with the determined tax amount, it may appeal to the higher-level tax authority that made the determination. During the appeal process, the appellant must still pay the determined tax amount.

PART IV

REDUCTION AND EXEMPTION OF SPECIAL CONSUMPTION TAX

Article 19

Production units subject to special consumption tax facing difficulties due to natural disasters, enemy activities, or unexpected accidents may have their tax reduced or exempted based on the extent of damage suffered.

The Minister of Finance decides on the reduction or exemption of tax for each specific case.

CHAPTER V

SANCTIONS AND REWARDS

Article 20

1- Handling violations of the Special Consumption Tax Law is regulated as follows:

a) Organizations and individuals who fail to comply with registration, declaration, accounting recordkeeping, and voucher retention requirements as stipulated in Articles 10, 11, and 12 of this Law shall be warned or fined up to five hundred thousand dong depending on the severity of the violation;

b) Organizations and individuals producing, processing, purchasing, or trading in goods evading taxes, transporting goods without valid accompanying documents, in addition to paying the full special consumption tax as prescribed by this Law, shall also be fined from one to three times the amount of tax fraud:

- For the first offense: a fine of one time the amount of evaded tax;

- For the second offense: a fine of two times the amount of evaded tax;

- For third or subsequent violations: fined three times;

In cases where the violation involves serious circumstances, even the first violation may be fined from two to three times the amount of tax fraud;

c) Organizations and individuals who delay payment of taxes or fines as stated in the tax collection order or penalty decision, in addition to paying the full tax or fine as prescribed by this Law, shall be fined at a rate of 0.5% (five thousandths) per day of delay on the overdue amount;

d) Organizations and individuals who delay payment of taxes or fines shall be dealt with as follows:

- Funds held in banks by the entity can be deducted to pay taxes or fines. Banks are responsible for prioritizing the deduction of funds deposited by the entity to pay taxes or fines into the state budget according to the tax collection orders and decisions of the tax authority;

- Temporary detention of goods and evidence to ensure the full collection of taxes and fines;

- Seizure of assets in accordance with the law to secure outstanding taxes and fines.

2- Individuals evading large amounts of tax, or those who have been administratively punished under points a, b, c, and d of Clause 1, Article 20 of this Law and continue to evade large amounts of tax or commit crimes in other serious cases, shall be criminally prosecuted according to Article 169 of the Penal Code;

Article 21

The authority to handle violations mentioned in Clause 1, Article 20 of this Law is regulated as follows:

1- For violations mentioned in point a:

a) The head of the tax station may impose a fine up to fifty thousand dong;

b) The head of the district, city, town, or provincial city tax office may impose a fine up to five hundred thousand dong.

2- For violations mentioned in point b:

a) The head of the district tax office or equivalent may impose a fine equal to one time the amount of tax fraud;

b) The head of the provincial tax office or equivalent may impose a fine up to three times the amount of tax fraud.

3- The head of the tax office directly managing the production unit subject to special consumption tax may impose penalties for delayed payments and apply measures as stipulated in points c and d of Article 20 of this Law.

Article 22

Individuals obstructing or inciting others to obstruct the implementation of the Special Consumption Tax Law or obstructing investigations and handling of violations of this Law shall be administratively punished or criminally prosecuted according to the law, depending on the severity of the offense.

Article 23

Tax officials or other individuals abusing their positions or powers to misappropriate or embezzle special consumption tax must compensate the State for the entire amount of tax misappropriated or embezzled and will be disciplined, administratively punished, or criminally prosecuted according to the law, depending on the severity of the violation.

Tax officials or other individuals abusing their positions or powers to shield violators of the Special Consumption Tax Law; intentionally violating this Law's provisions, or being negligent in implementing this Law shall be disciplined, administratively punished, or criminally prosecuted according to the law, depending on the severity of the violation.

Tax officials causing losses to taxpayers or those being processed due to lack of responsibility or intentional errors must compensate the affected party.

"d) Within no more than one working day from the date of receiving the dossier submitted for administrative procedures by the specialized agency assigned by the Provincial People's Committee, the Chairman of the Provincial People's Committee shall issue a notification of the result of the inspection of plant-based food exports or a certificate at the request of the importing country."

The Council of Ministers regulates reward systems for:

1- Tax agencies and tax officials who successfully complete assigned tasks;

2- Individuals who contribute to detecting violations of the Special Consumption Tax Law.

Chapter VI

APPEALS AND STATUTE OF LIMITATIONS

Article 25

The complaint must be sent to the tax authority issuing the tax collection order or decision within thirty days from the date of receipt of the order or decision. While waiting for resolution, the complainant must pay the full amount of taxes or fines as notified within the prescribed time limit. The authority receiving the complaint must examine and resolve the matter within fifteen days from the date of receipt of the complaint. For complex cases requiring more time for investigation and verification, the parties concerned must be informed, and the resolution period shall not exceed thirty days from the date of receipt of the complaint.

Complaints must be submitted to the tax authority issuing the tax collection order or decision within thirty days from receipt of the order or decision.

While waiting for resolution, the complainant must pay the full amount of tax and fines as notified within the specified period.

The agency receiving the complaint must examine and resolve it within fifteen days from receipt of the complaint. For complex cases, the deadline may be extended but not exceed thirty days from receipt of the complaint.

Article 26

If the complainant disagrees with the decision of the agency receiving the complaint or has not been resolved within the above time limit, the complainant has the right to appeal to the higher tax authority directly overseeing the agency that received the complaint.

Article 27

The tax authority must refund the incorrect collected tax and penalties, and pay compensation if applicable, within fifteen days from the date of receipt of the superior's decision on handling.

Article 28

If fraud, tax evasion, or tax errors are discovered and concluded, the tax authority shall be responsible for recovering or refunding taxes within three years from the date of fraud, tax evasion, or tax error.

Chapter VII

IMPLEMENTATION

Article 29

The Council of Ministers leads the organization and implementation of special consumption tax work nationwide.

Article 30.

The Minister of Finance is responsible for organizing and implementing, and inspecting special consumption tax work nationwide; resolving complaints and suggestions regarding special consumption tax within their jurisdiction.

Article 31

The Chairman of the People's Committees at all levels directs the implementation and inspection of the Special Consumption Tax Law in their respective localities.

Chapter VIII

FINAL PROVISIONS

Article 32

For goods permitted for non-commercial export and import exceeding the previous tax-free standards which are now subject to goods tax, they will now be applied according to the list of taxable goods groups and items and tax rates in the tariff accompanying the Law on Export Duties and Import Duties on Commercial Goods.

The Council of Ministers stipulates the taxable value, tax-free standards for non-commercial exports and imports, and sets the tax rate for non-commercial re-imported goods.

Article 33

When market prices fluctuate by 20% or more, the Council of Ministers may adjust monetary quotas established in this Law to reflect current market prices.

Article 34

The Special Consumption Tax Law takes effect from October 1, 1990.

All previous provisions that are contrary to this Law are hereby abolished.

This Law was passed by the National Assembly of the Socialist Republic of Vietnam, Eighth Session, Seventh Meeting on June 30, 1990.