Circular No. 93/1997/TT-BTC guides tax policies for duty-free shops selling to Chinese citizens exiting at northern border gates using travel permits. This document specifies the type of taxes applied, sales invoices, payment currency, and procedures for implementation.
Scope of application
Duty-free shops licensed by the Ministry of Trade to operate in northern border provinces; enterprises operating duty-free shops; Chinese citizens exiting using travel permits.
Key points
- Duty-free shops sell duty-free goods to Chinese citizens exiting using travel permits, exempting import duties and value-added tax on goods from abroad entering Vietnam or produced domestically.
- Invoices must be issued by the Ministry of Finance or have specific characteristics, clearly indicating customer information, travel permit number, date of departure, item name, quantity, and value.
- Payments must be made in freely convertible foreign currencies according to international practice and announcements by the State Bank of Vietnam.
- Goods sold at duty-free shops must be labeled with the 'VIETNAM DUTY NOT PAID' stamp as prescribed.
- Customs management, supervision procedures, and violation reporting systems are implemented according to this Circular and relevant regulations of the General Department of Customs and the Ministry of Trade.
🌐 Social impact of this document
- Positive impact: Facilitates shopping for Chinese citizens at border gates, increasing revenue for duty-free shops.
- Negative impact: May cause difficulties in tax management and fraud control if regulations are not strictly followed.
❓ Frequently asked questions
Who can duty-free shops sell duty-free goods to?
Duty-free shops sell duty-free goods to Chinese citizens exiting at northern border gates using travel permits.
Which types of goods are exempt from import duties and value-added tax?
Goods from abroad entering Vietnam or produced domestically are exempt from import duties and value-added tax.
How must invoices be used when selling duty-free goods?
Invoices must be issued by the Ministry of Finance or have specific characteristics, clearly indicating customer information, travel permit number, date of departure, item name, quantity, and value.
What currency should be used for payment when purchasing duty-free goods?
Payments must be made in freely convertible foreign currencies according to international practice and announcements by the State Bank of Vietnam.
What label must be affixed to goods sold at duty-free shops?
Goods sold at duty-free shops must be labeled with the 'VIETNAM DUTY NOT PAID' stamp as prescribed.
Full text
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
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Number: 93/1997/TT/BTC |
Hanoi, December 29, 1997 |
CIRCULAR
Guidelines for implementing tax policies for duty-free shops selling to Chinese individuals exiting at border gates in northern provinces using travel permits
Implementing the directive of Deputy Prime Minister Phan Van Khai in Circular No. 3255/KTTH dated June 30, 1997, and Circular No. 4295/KTTH dated August 28, 1997, of the Government Office regarding permission to sell duty-free goods to Chinese individuals exiting at Lao Cai and Quang Ninh provinces using travel permits. Based on Circulars No. 72A TC/TCT dated August 30, 1993, No. 107 TC/TCT dated December 30, 1993, and Point 7 of Circular No. 84/1997/TT/BTC dated November 13, 1997, of the Ministry of Finance guiding the implementation of tax policies for duty-free shops at seaports and international airports in Vietnam.
After reaching a consensus with the General Department of Customs and the Ministry of Trade.
The Ministry of Finance provides guidelines for implementing tax policies for the business of selling duty-free goods to Chinese individuals exiting at border gates in northern provinces using travel permits as follows:
For office premises of agencies and units under the Ministry of Public Security and the Ministry of Defense, they shall be implemented according to separate guidelines issued by the Ministry of Public Security and the Ministry of Defense after consultation with the Ministry of Finance.
Duty-free shops licensed by the Ministry of Trade to operate duty-free sales for exiting customers at border gates in northern provinces may sell goods to Chinese individuals exiting using travel permits (both individual and group), issued by authorized agencies. Goods sold at duty-free shops must be approved by the Government and the Ministry of Trade for sale to the aforementioned target group.
The aforementioned individuals may purchase duty-free goods up to the value of foreign currency declared on the Entry Declaration Form HQ-60.
II. TAXES APPLICABLE:
1. Import Tax, Value Added Tax: For goods imported from abroad into Vietnam and domestically produced goods sold at duty-free shops, import tax and VAT (if applicable) are exempted. When importing goods into Vietnam, businesses operating duty-free shops must submit applications for temporary exemption from import tax and VAT (if applicable) to the Ministry of Finance. Procedures for application and settlement of taxes shall be carried out according to specific provisions in Point 7 of Circular No. 84/1997/TT/BTC dated November 13, 1997, of the Ministry of Finance amending and supplementing certain points in Circulars No. 72A TC/TCT dated August 30, 1993, No. 107 TC/TCT dated December 30, 1993, and No. 53 TC/TCT dated July 13, 1995, of the Ministry of Finance concerning export tax and import tax.
2. Business Income Tax, Profit Tax, other types of taxes, fees, and declaration procedures: shall be implemented according to regulations stipulated in Circular No. 107 TC/TCT dated December 30, 1993, of the Ministry of Finance guiding the implementation of tax policies for duty-free shops at seaports and international airports in Vietnam, and other current regulations.
III. SALES INVOICES AND STAMPING OF DUTY-FREE GOODS:
Sales invoices must be issued by the Ministry of Finance or special invoices approved by the Ministry of Finance (General Department of Taxation), clearly stating: customer name, travel permit number, date of departure, item name, quantity, value... and must comply with all management requirements for invoice issuance and usage as prescribed by the Ministry of Finance.
Goods sold at duty-free shops must be stamped with "VIETNAM DUTY NOT PAID" and must comply with the provisions in Circular No. 55 TC/TCT dated September 16, 1996, of the Ministry of Finance guiding the implementation of Decision No. 195 TTg dated April 8, 1996, of the Prime Minister establishing regulations for duty-free shops.
IV. CURRENCY FOR PAYMENT OF GOODS PURCHASED AT DUTY-FREE SHOPS:
Transactions must be conducted in freely convertible foreign currencies according to international practice and announcements by the State Bank of Vietnam.
V. IMPLEMENTATION ORGANIZATION AND EFFECTIVE DATE:
The objects purchasing duty-free goods, types of goods, quota for duty-free sales, sales procedures, customs management and supervision procedures, and violation reporting and handling procedures for businesses operating duty-free sales for Chinese individuals exiting at northern border provinces using travel permits shall be implemented according to the regulations stipulated in this Circular and relevant regulations of the General Department of Customs and the Ministry of Trade.
This Circular takes effect from the date of signature. Any issues encountered during implementation should be reported to the Ministry of Trade, the General Department of Customs, and the Ministry of Finance (General Department of Taxation) for timely research and resolution./.
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DEPUTY MINISTER (Signed) Vu Mong Giao |
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