Circular No. 571/TC-TCT stipulates the sale of tax-free goods to entities under Decision No. 131/HĐBT, including production units and duty-free shops. Production units must pay export tax but are refunded import tax and exempted from business income tax and special consumption tax. Duty-free shops have quotas for selling tax-free goods to individuals based on their positions.
Scope of application
Domestic production units, duty-free shops, heads of diplomatic agencies and international organizations, diplomatic personnel, administrative technical staff, and accompanying persons.
Key points
- Domestic production units → must pay export tax but are refunded import tax on imported raw materials used to produce goods sold to duty-free shop 131/HĐBT, while also being eligible for exemption from business income tax and special consumption tax.
- Duty-free shops → have quotas for selling tax-free goods to individual recipients based on their positions: heads of diplomatic agencies and international organizations (3000 USD per quarter), diplomatic personnel (2000 USD per quarter), and administrative technical staff and accompanying persons (1000 USD per quarter).
- If duty-free shops sell to unauthorized recipients, they will be subject to full recovery of import tax and business income tax, special consumption tax.
- Effective date → from the date of issuance of the circular.
- Form of documentation → foreign contracts are replaced by sales contracts with duty-free shops to claim refund of import tax.
🌐 Social impact of this document
- Positive impact: Helps domestic production units to export goods, reducing the tax burden on businesses.
- Negative impact: May cause difficulties in managing and controlling tax-free sales activities, increasing the risk of tax evasion.
❓ Frequently asked questions
Domestic production units must pay how much tax when selling goods to duty-free shops?
Domestic production units must pay export tax according to the Law on Export Tax and Import Tax when selling goods to duty-free shop 131/HĐBT.
Heads of diplomatic agencies and international organizations can purchase how much cash each quarter?
Heads of diplomatic agencies and international organizations can purchase 3000 USD per quarter.
Which individual recipients can duty-free shops sell goods to?
Duty-free shops can sell tax-free goods to heads of diplomatic agencies and international organizations (3000 USD per quarter), diplomatic personnel (2000 USD per quarter), and administrative technical staff and accompanying persons (1000 USD per quarter).
How will duty-free shops be treated if they sell to unauthorized recipients?
If duty-free shops sell to unauthorized recipients, they will be subject to full recovery of import tax (on imported materials used to produce those goods) and business income tax, special consumption tax as prescribed.
What is the effective date of this circular?
This circular takes effect from the date of issuance. The specific duration is not mentioned in the document.
Full text
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MINISTRY OF FINANCE Number: 571/TC-TCT |
SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness Hanoi, August 3, 1993 |
CIRCULAR
OF THE MINISTRY OF FINANCE
Supplemental guidance on tax-free sales for subject 131/HĐBT
Implementing the directives of the Prime Minister as stipulated in Circulars No. 1433/PPLT dated April 16, 1992, and No. 2163/KTTH dated May 12, 1993, of the Government Office, following Circular No. 67/TC-TCT dated October 30, 1992, and after reaching consensus with relevant functional sectors, the Ministry of Finance provides supplemental guidance on tax-free sales for subject 131/HĐBT as follows:
1- Domestic production and processing units selling goods to tax-free stores shall be considered export activities. These units must pay export tax according to the Law on Export Tax and Import Tax, and they will be refunded import tax on imported raw materials used to produce such goods, and may be exempted from business income tax and special consumption tax as provided for in Circular No. 29 TC/TCT/CS dated July 18, 1992, issued by the Ministry of Finance.
Specifically, the procedure for refunding import tax on raw materials used to produce goods sold to tax-free stores 131-HĐBT, as stipulated in Circular No. 08/TC-TCT dated March 31, 1992, issued by the Ministry of Finance, shall be replaced by contracts for sales to tax-free stores instead of foreign contracts.
In cases where tax-free stores sell goods to non-designated subjects, they will be required to pay back all import taxes (on imported raw materials used to produce such goods) and business income tax and special consumption tax as prescribed.
2- Tax-free stores selling foodstuffs (excluding those specified in Decree No. 131/HĐBT) to subject 131-HĐBT shall follow the quotas below:
a) For diplomatic agencies and international organizations, there is no quantity limit. Tax-free stores shall base their sales on the actual needs of these agencies.
b) For individual subjects:
Heads of diplomatic missions and international organizations: 3000 USD per quarter.
Diplomatic personnel: 2000 USD per quarter
Administrative and technical staff and accompanying persons: 1000 USD per quarter
This Circular takes effect from the date of issuance. Any issues encountered during implementation should be reported to the Ministry of Finance for further guidance and supplementation./.
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(Signed) Phan Van Dinh |
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