Decree No. 76/2002/ND-CP Amending and Supplementing Certain Articles of Decree No. 79/2000/ND-CP dated December 29, 2000 of the Government detailing the implementation of the Law on Value Added Tax.

DECREE OF THE GOVERNMENT

Regarding amendments and supplements to certain articles of the Decree

number 79/2000/NĐ-CP dated December 29, 2000 of the Government

detailing the implementation of the Value Added Tax Law

THE GOVERNMENT

Pursuant to the Law on Organization of the Government dated December 25, 2001;

Pursuant to the Value Added Tax Law No. 02/1997/QH9 dated May 10, 1997;

Pursuant to Point 1, Section II of Resolution No. 50/2001/QH10 dated November 29, 2001 of the Tenth National Assembly, tenth session on the State budget for the year 2002;

At the proposal of the Minister of Finance;

DECREE:

Article 1. Amending and supplementing certain articles of the Decree No. 79/2000/NĐ-CP dated December 29, 2000 of the Government detailing the implementation of the Value Added Tax Law as follows:

Article 4, Clause 20, which defines the objects not subject to value added tax, is amended as follows:

"20. Goods imported in the following cases: humanitarian aid goods, non-repayable aid; gifts to state agencies, political organizations, political-social organizations, social organizations, social-professional organizations, people's armed forces units; gifts and presents to individuals in Vietnam at levels prescribed by the Government; items of foreign organizations and individuals according to diplomatic exemption standards; items carried by persons within the duty-free baggage allowance; items of Vietnamese citizens living abroad when returning to Vietnam. Goods imported in the above cases shall be determined according to the regulations of the State. "

Goods sold to international organizations, foreigners for humanitarian aid, non-repayable aid to Vietnam; projects using non-repayable ODA funds."

Clause 1 of Article 7, which defines the rate of value added tax, is amended and supplemented as follows:

"1. The zero percent tax rate applies to: exported goods, including goods subject to special consumption tax for export, goods processed for export; repair of machinery, equipment, transportation means for foreign countries; exported computer software, labor export services; construction and installation activities outside Vietnam and for export processing zones.

Export includes exporting to foreign countries, exporting to export processing zones or exporting to export processing zone enterprises and other specific cases considered as exports according to the regulations of the Government.

Businesses exporting the above goods and services must comply with all export procedures and documents and must settle the proceeds from the sale of exported goods and services through banks."

Point d of Clause 1 of Article 9, which defines the deduction of input value added tax, is amended as follows:

"d) Business establishments paying value added tax under the deduction method may deduct input value added tax at a rate of 1% based on the price of goods and services purchased without a value added tax invoice for:

Agricultural, forestry, and aquatic products that have not been processed; land; stone; sand; gravel and scrap materials purchased without a value added tax invoice. Business establishments purchasing the above items must issue purchase receipts and lists according to the guidance of the Tax Authority.

Goods and services subject to value added tax purchased from business establishments paying tax under the direct calculation method on value added with a sales invoice; agricultural, forestry, and aquatic products that have not been processed purchased from production establishments with a value added tax invoice but are exempt from value added tax at the production stage; goods subject to special consumption tax purchased by trading businesses from production establishments for resale; compensation payments from insurance business operations."

Clause 5 of Article 15, which defines the refund of paid value added tax, is amended and supplemented as follows:

"5. Organizations in Vietnam using foreign organizations' and individuals' humanitarian aid and non-repayable aid funds to purchase goods in Vietnam for aid purposes; subjects enjoying diplomatic exemption benefits according to the Diplomatic Exemption Ordinance purchasing goods and services in Vietnam for their own use can be refunded the value added tax paid as recorded on the value added tax invoice."

Article 2. This Decree takes effect from October 1, 2002.

Article 3. The Minister of Finance shall guide the implementation of this Decree.

Article 4. Ministers, Heads of ministerial-level agencies, Heads of agencies under the Government, Chairpersons of People's Committees of provinces and centrally governed cities are responsible for implementing this Decree.