Decree No. 56-CP provides detailed regulations for the implementation of the Special Consumption Tax Law and the Law Amending and Supplementing Certain Provisions of the Special Consumption Tax Law.

DECREE

Detailed regulations for implementation of the Special Consumption Tax Law and the Law Amending and Supplementing Certain Provisions of the Special Consumption Tax Law

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;
Pursuant to the Special Consumption Tax Law adopted by the National Assembly of the Socialist Republic of Vietnam at its Eighth Session on June 30, 1990; the Law Amending and Supplementing Certain Provisions of the Special Consumption Tax Law adopted by the National Assembly of the Socialist Republic of Vietnam at its Ninth Session on July 5, 1993;
At the request of the Minister of Finance.

DECREE:

PART I:
SCOPE OF APPLICATION OF THE SPECIAL CONSUMPTION TAX

Article 1. Organizations and individuals belonging to various economic sectors, enterprises established and operating under the Law on Foreign Investment in Vietnam (hereinafter referred to collectively as the "facility"), which produce and consume within Vietnam goods subject to special consumption tax, are all subject to the obligation to pay special consumption tax.

The place of payment for special consumption tax is the location where the facility directly produces the goods.

Article 2. Each item subject to special consumption tax only pays special consumption tax once and does not need to pay turnover tax at the production location. In cases where the production facility organizes retail outlets to sell products, it shall pay special consumption tax at the production location and pay turnover tax according to the trade sector at the location of product consumption.

When paying special consumption tax, the production facility may deduct the special consumption tax on raw materials from the previous stage (if applicable).

Goods subject to special consumption tax are exempt from special consumption tax in the following specific cases when exported:

- Goods produced directly exported or directly processed for foreign countries by the production facility.

- Goods sold or entrusted to export trading enterprises for export under economic contracts and export permits. If the export trading enterprise purchases goods subject to special consumption tax from the production facility for export but does not export them and instead sells them domestically, in addition to paying turnover tax at the commercial rate, they must also pay special consumption tax.

PART II:
BASIS FOR CALCULATING TAX AND SPECIAL CONSUMPTION TAX SCHEDULE

Article 3. The basis for calculating special consumption tax on goods subject to special consumption tax includes the quantity of goods consumed, the taxable price per unit of goods, and the tax rate.

Article 4. The quantity of goods consumed includes the quantity or weight of items subject to special consumption tax that are sold, exchanged, or given as gifts to others or consumed internally by the facility for daily use.

Article 5. The taxable price for special consumption tax is the selling price at the production location before the imposition of special consumption tax.

For processed goods, the taxable price for special consumption tax is the taxable price of similar or equivalent items.

For purchased goods (in cases where the special consumption tax is paid by the purchasing entity according to Article 10 of this Decree), the taxable price for special consumption tax is the purchase price at the production location before the imposition of special consumption tax.

In cases where the taxable price cannot be determined, the provincial tax authority or equivalent body shall specify the taxable price for each specific item according to the above principles.

The taxable price for special consumption tax on goods given as gifts, presented, or consumed internally shall be implemented according to the principles stipulated in this Article.

The Ministry of Finance shall provide guidance on methods for determining the taxable price for each specific item.

Article 6. Goods subject to special consumption tax and the rates of special consumption tax shall be implemented according to the following Table:

Filtered cigarettes mainly produced using imported raw materials refer to tobacco products using more than 51% of imported tobacco strands relative to the total tobacco strands required for the product.

Medicinal alcohol subject to a 15% tax rate must have product registration and a business operation permit issued by the Ministry of Health. If these conditions are not met, the special consumption tax shall be paid according to the tax rate corresponding to the type of alcohol with the same degree.

CHAPTER III:
REGISTRATION, DECLARATION AND PAYMENT OF TAX AND TRANSPORTATION OF GOODS

Article 7. Production and business facilities dealing with goods subject to special consumption tax must fully comply with the provisions regarding declaration, registration, payment, and transportation of goods as stipulated in Articles 10, 11, 12, and 13 of the Special Consumption Tax Law.

The Ministry of Finance shall provide detailed guidance on the content and procedures for declaration and registration of tax payments.

Article 8. Production and business facilities must strictly adhere to accounting bookkeeping systems according to the Accounting and Statistics Ordinance dated May 10, 1988, and current regulations on issuing purchase and sale invoices and collecting payment for services provided.

Article 9. When the tax authority requests relevant documents and data related to tax calculation, the business facility has the duty to:

1. Provide timely and complete documentation, materials, and data related to the calculation of special consumption tax;

2. Explain and substantiate unclear items in declarations, accounting books, and accounting vouchers.

Business facilities may not refuse to present, provide, or explain necessary documents based on confidentiality or other reasons upon request by the tax authority.

The tax authority must maintain confidentiality regarding the materials provided by production and business facilities.

Article 10. Special consumption tax is paid by the production facility. In exceptional cases involving small, scattered production, the special consumption tax may be paid by organizations or individuals purchasing the goods on behalf of the producers according to the guidelines of the Ministry of Finance.

Article 11. Payment of special consumption tax is regulated as follows:

Production facilities with significant tax liabilities must declare and pay special consumption tax when selling goods or delivering processed goods, as notified by the tax authority. The tax authority assigns staff to manage the facility regularly, inspect, and urge timely payment of taxes into the State Treasury.

In cases of exporting goods, including exports to agency, consignment, or entrusted facilities, but without immediate receipt of payment, the deadline for tax payment is the day payment is received, but not later than 14 days from the date of issuance of the tax notification.

For small production units, based on the quantity of goods produced and consumed under a quota system, special consumption tax shall be paid periodically on the 10th, the 20th, and the last day of each month according to the notification of the tax authority for each tax payment period.

In cases where special consumption tax is collected at purchasing bases, such purchasing bases must declare to the tax authority at the place of purchase and pay the special consumption tax per batch of purchased goods or per shipment before transportation.

Organizations or individuals who delay in paying taxes or fines as stated in the tax notice, tax collection order, or penalty decision shall, in addition to paying the full amount of tax or fine as prescribed, also be subject to a daily late payment penalty of 0.2% (two thousandths) of the delayed payment amount.

Article 12.

1. Goods that have been subject to special consumption tax when transported must have a tax payment receipt, a transport document, or a sales invoice registered with the tax authority. In cases of transferring goods within the same production unit without consumption, there must be an uncollected tax transfer document issued by the tax authority.

2. Goods subject to special consumption tax stored in warehouses or retail stores must have proof of having paid the special consumption tax.

The Ministry of Finance shall specify the issuance, management, and use of tax documents related to special consumption tax.

CHAPTER 4:
REDUCTION AND EXEMPTION OF SPECIAL CONSUMPTION TAX

Article 13. Reductions and exemptions from special consumption tax are regulated as follows:

a) Production units producing goods subject to special consumption tax encountering difficulties due to natural disasters, enemy actions, or unexpected accidents may be considered for a reduction in special consumption tax. The reduction rate shall correspond to the percentage of asset damage but not exceed 50% of the tax payable and not more than 30% of the value of damaged assets. The tax reduction period shall not exceed 180 days from the date of damage occurrence and shipment.

b) Newly established production units officially operating from 1993 or production units expanding and applying new production technologies, if they incur losses after fully paying the special consumption tax, may be considered for annual tax reductions. The reduction rate shall correspond to the annual loss but not exceed 30% (thirty percent) of the tax payable for that year. The period for considering tax reduction shall not exceed two years.

A newly established production unit refers to a new unit invested and constructed according to the decision of the competent authority and granted a business license. Units previously established and now divided, merged, renamed, dissolved, and re-established do not qualify for tax reduction under this provision.

In cases where tax reductions are granted for production expansion or application of new technology, such reductions shall only apply to additional goods produced compared to previous production levels.

The Ministry of Finance shall stipulate the procedures for declaring exemption and reduction of tax and the procedures and authority for reviewing tax exemptions and reductions as provided in this Article.

Chapter V:
FINAL PROVISIONS

Article 14. The Government shall establish separate regulations regarding reward systems for tax authorities, tax officials who complete assigned tasks, and individuals who contribute to detecting violations of the Special Consumption Tax Law.

Article 15. This Decree takes effect from September 1, 1993, replacing Decree No. 352-HĐBT dated October 2, 1990, of the Council of Ministers.

Any previous provisions concerning special consumption tax that conflict with the provisions of this Decree shall be abolished.

Article 16. The Minister of Finance shall guide the implementation of this Decree.

The Minister, Heads of Ministries equivalent to Ministries, Heads of Government Agencies, Chairmen of People's Committees of provinces and centrally governed cities are responsible for organizing the implementation of this Decree./.