Circular No. 2819/TC/CST of the Ministry of Finance in 2005 guides VAT for entertainment activities involving stakes, specifying the method to calculate VAT based on the amount received from stakes minus the amount paid out as winnings.
Scope of application
Provincial Tax Departments
Key points
- Entertainment activities with stakes are subject to special consumption tax and VAT according to current regulations (Article 1).
- The taxable base for VAT in this activity is determined by subtracting the amount paid out as winnings from the amount received from stakes, then dividing by 1.10% (Article 2)
- Provincial Tax Departments must implement these guidelines in tax administration.
🌐 Social impact of this document
- To help enterprises engaged in entertainment activities with stakes understand how to calculate VAT, thereby complying with legal provisions on taxation.
- Tax authorities can easily monitor and manage the collection of taxes for business operations involving entertainment with stakes.
❓ Frequently asked questions
What types of taxes do entertainment activities with stakes have to pay?
These activities are subject to special consumption tax and VAT according to current regulations (Article 1).
How is the taxable base for VAT in entertainment activities with stakes determined?
The taxable base for VAT is calculated by subtracting the amount paid out as winnings from the amount received from stakes, then dividing by 1.10% (Article 2).
What responsibilities do Provincial Tax Departments have?
Must implement these guidelines in tax administration.
Full text
DIRECTIVENO. 2819 TC/CST OF MARCH 10, 2005
ISSUED BY THE MINISTRY OF FINANCE
REGARDING GUIDELINES FOR VALUE-ADDED TAX ON GAMBLING ENTERTAINMENT ACTIVITIES
GAMBLING ENTERTAINMENT
RESPECTED: Provincial Tax Departments
In the course of implementing Circular No. 120/2003/TT-BTC dated December 12, 2003 issued by the Ministry of Finance guiding the implementation of Decree No. 158/2003/NĐ-CP dated December 10, 2003 of the Government detailing the implementation of the Law on Value-Added Tax (VAT) and the Law amending and supplementing certain provisions of the VAT Law, the Ministry of Finance has received several letters from sports clubs and businesses asking about the taxable value for calculating VAT on gambling entertainment activities.
Regarding this matter, The Ministry of Finance provides guidance as follows: as follows:
Gambling entertainment business is a type of service subject to special consumption tax and VAT according to the provisions of relevant Tax Laws and current guiding documents. According to
the regulations, the taxable value for calculating VAT on gambling entertainment activities is determined based on the amount received from bets minus (-) the amount awarded as prizes to winning customers, specifically: The taxable value for calculating VAT Amount received from bets
|
Less: Amount awarded as prizes to winning customers |
= | Amounts collected from deposits | - | Amounts paid out to winning customers |
|
|
| 1+10% | ||
The Ministry of Finance provides this guidance for the Provincial Tax Departments to be aware of and implement.
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