Circular guiding the exemption from special consumption tax for passenger cars with less than 24 seats but designed to have both standing and seating areas equivalent to those over 24 seats, used for public passenger transport or at airports. The document specifies detailed requirements for the necessary files and procedures for this exemption.
Scope of application
Import units of passenger cars with less than 24 seats but with standing areas, domestic enterprises producing and assembling such vehicles
Key points
- Passenger cars actually installed with fewer than 24 seats but designed to have both standing and seating areas equivalent to those of passenger cars over 24 seats used for public passenger transport or at airports are exempt from special consumption tax (Article 1).
- Import units must submit a file including a request letter, foreign trade purchase contract, and certification from competent authorities regarding the design of the vehicle to determine the exemption from special consumption tax (Point 2.1).
- Domestic production enterprises must attach documents such as notification letters to purchasing units, vehicle quality certificates, and technical design files when declaring taxes to determine the exemption from special consumption tax (Point 2.2).
- If the passenger car is used for purposes other than intended or modified for such use, the enterprise must report to the customs authority or local tax authority within two working days to recover the special consumption tax (Point 3).
🌐 Social impact of this document
- To reduce financial burdens for passenger transport units and airports when purchasing passenger cars with less than 24 seats but with standing areas.
- Increase management and inspection costs for customs and tax authorities in determining exemptions from special consumption tax.
❓ Frequently asked questions
Are passenger cars with less than 24 seats but with standing areas exempt from special consumption tax?
Yes, if these vehicles are used for public passenger transport or at airports.
What documents are required to determine the exemption from special consumption tax for this type of vehicle?
The file includes an import unit's request letter, foreign trade purchase contract, and certification regarding the vehicle design.
What documents must domestic production enterprises submit when declaring taxes?
Attach notification letters to purchasing units, quality certificates, and technical design files.
What must be done if the vehicle is used for purposes other than intended?
Report to the customs authority or local tax authority within two days to recover the special consumption tax.
Full text
LETTER
OF THE MINISTRY OF FINANCE NO. 3052 TC/TCT ON MARCH 29, 2002
REGARDING SPECIAL CONSUMPTION TAX ON PASSENGER CARS
Dear: - Ministries, ministerial-level agencies, government agencies
- People's Committees of provinces and centrally governed cities
Pursuant to the provisions of the Special Consumption Tax Law No. 05/1998/QH10 and the Government Decree No. 84/1998/NĐ-CP dated October 12, 1998 detailing the implementation of the Special Consumption Tax Law.
To implement the directive of the Prime Minister in Circular No. 4838/VPCP-KTTH dated October 12, 2001 of the Government Office regarding special consumption tax on passenger cars.
The Ministry of Finance guides that special consumption tax shall not be levied on passenger cars which are actually installed with less than 24 seats but designed with both standing and seating areas equivalent to those of passenger cars over 24 seats, as follows:
1. Object and scope of application:
Passenger cars that are actually installed with less than 24 seats but designed with both standing and seating areas equivalent to those of passenger cars over 24 seats, used for public passenger transport or for transporting passengers within airports, are exempt from special consumption tax.
Passenger cars under 24 seats and other types of vehicles designed to carry both people and goods, such as lam cars, are subject to special consumption tax according to the Special Consumption Tax Law No. 05/1998/QH10 dated May 20, 1998, Government Decree No. 84/1998/NĐ-CP dated October 12, 1998, and Circular No. 168/1998/TT-BTC dated December 21, 1998 of the Ministry of Finance.
2. Implementation:
Procedures and documents to determine that passenger buses and airport shuttle buses with less than 24 seats but designed with both standing and seating areas equivalent to those of passenger cars over 24 seats, which are exempt from special consumption tax, are as follows:
2.1. For imported passenger cars:
When processing import procedures, the importing unit must submit the following documents to the local Customs Department:
- A request letter from the importing unit to use the vehicle for public passenger transport or to transport passengers within airports.
- A notification from the People's Committee of the province or city or from the competent ministry or agency approving the importing unit to use passenger buses for public passenger transport according to the approved public passenger transport plan of the province or centrally-administered city, or approving the importation of airport shuttle buses by Vietnam Airlines Corporation (specifying the importing unit, quantity, type, number of seats and standing spaces of the imported vehicles).
- An export sales contract.
- Entrusted import contracts (if the goods are entrusted imports).
- A certification from the competent authority regarding the design of the imported vehicle (including the number of seats, standing spaces, and the equivalent number of seats according to the design of similar vehicles only designed for seating).
The local Customs Department will base its determination of whether the vehicle is exempt from special consumption tax or should be taxed according to regulations based on the submitted documents, the actual inspection of the imported vehicle, the original design by the manufacturer, the original design by the manufacturer for similar vehicles only designed for seating, and the standards set by relevant authorities for vehicle specifications (such as load capacity, dimensions, etc.).
2.2 For domestically produced and assembled passenger cars:
Each month or periodically when declaring and paying taxes, enterprises producing and assembling passenger cars must submit the following documents along with their tax declaration to the tax authority directly managing the enterprise:
- A notification from the People's Committee of the province or centrally-administered city or from the competent ministry or agency approving the purchasing unit to use the vehicle for public passenger transport according to the approved public passenger transport plan of the province or centrally-administered city, or for airport passenger transport (a certified copy stamped by the enterprise). the ||| - A certificate of automotive quality issued by the Vietnam Vehicle Inspection Center confirming the type, number of seats, and standing spaces of the vehicle produced by the enterprise (a certified copy stamped by the enterprise).
- A technology transfer agreement and trademark license for the production of foreign-branded vehicles confirmed and approved by the Ministry of Science and Technology (a certified copy stamped by the enterprise).
- Technical design documents for passenger cars with both standing and seating areas equivalent to those of passenger cars over 24 seats, confirmed and approved by the Ministry of Science and Technology (a certified copy stamped by the enterprise).
- A sales contract between the manufacturing enterprise and the public passenger transport business unit or the enterprise assigned by Vietnam Airlines Corporation to purchase vehicles for airport passenger transport (a certified copy stamped by the enterprise).
- A detailed list of all passenger cars sold to public passenger transport businesses or to enterprises under Vietnam Airlines Corporation for airport passenger transport (according to Form No. 01/TTĐB and Form No. 02/TTĐB stipulated in Circular No. 168/1998/TT-BTC dated December 21, 1998 of the Ministry of Finance).
(If this document has already been submitted to the provincial tax department during previous tax declarations, it does not need to be resubmitted).
The manufacturing enterprise and the user enterprise must retain all sales invoices corresponding to signed economic contracts and related accounting records at the enterprise, and present them to the tax authority upon inspection, audit, or tax settlement.
The tax authority directly managing the manufacturing and assembly enterprises will check the submitted documents and confirmations regarding the quantity, type, number of seats, and standing spaces of the vehicles, and the purpose of using the vehicles by the purchasing enterprise, to determine whether the vehicles are exempt from special consumption tax or should be taxed according to regulations.
3. In cases where vehicles are used for purposes other than intended, modified for unintended use, or sold off:
3. In case of motor vehicles being used for purposes other than intended, modified for such unauthorized use, or sold:
Within two working days, the enterprise using the vehicle shall declare to the customs authority of the province or city or the local tax authority where the enterprise has registered the vehicle, to proceed with the procedure for recovering the special consumption tax that was not collected. If the unit fails to declare, it will be subject to recovery of the special consumption tax and penalties as prescribed by law.
It is requested that relevant ministries, sectors, and agencies coordinate to direct implementation.
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