JOINT CIRCULAR No. 94/2003/TTLT/BTC-BTM-BCA Circular guiding the regime for using invoices and documents for goods circulating in the market

MINISTRY OF PUBLIC SECURITY-MINISTRY OF FINANCE-MINISTRY OF TRADE ********	SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness ********
No.: 94/2003/TTLT-BTC-BTM-BCA	Hanoi, October 8, 2003

JOINT CIRCULAR

JOINT CIRCULAR NO. 94/2003/TTLT-BTC-BTM-BCA OF THE MINISTRIES OF FINANCE, TRADE AND PUBLIC SECURITY DATED OCTOBER 8, 2003 GUIDING THE REGIME FOR THE USE OF INVOICES AND DOCUMENTS FOR GOODS IN CIRCULATION ON THE MARKET

Pursuant to the current Law on Value Added Tax, Law on Corporate Income Tax, Law on Export Duties and Import Duties;
Pursuant to the current Law on Trade;
Pursuant to the Law on Customs dated June 29, 2001;
Pursuant to the Ordinance on Accounting and Statistics dated May 20, 1998;
Pursuant to the Ordinance on Administrative Violations dated July 2, 2002;
Pursuant to Directive No. 853/1997/CT-TTg dated October 11, 1997 of the Government Chairman on combating smuggling and commercial fraud in the new situation and the guidance of the Government Chairman in Official Letter No. 62/TB-VPCP dated July 10, 2001; Official Letter No. 4151/VPCP-VI dated October 19, 2001; Official Letter No. 2080/VPCP-VI dated April 22, 2002; Official Letter No. 602/VPCP-VI dated February 13, 2003 of the Government Office regarding the opinions of the Government Chairman on amending the Circular on invoices and documents for goods in circulation on the market.
The Joint Ministries of Finance, Trade, and Public Security guide the regime for invoices and documents for goods in circulation on the market as follows:

I. GENERAL PROVISIONS

1. Goods, regardless of whether they are domestically produced or imported, and irrespective of whether they are in transit, on sale, sold, or in storage (collectively referred to as circulating on the market), must be accompanied by invoices and documents proving their legal origin at the time of inspection.

The following cases are not subject to the provisions of this Circular:

a. Assets of organizations that are not business entities such as administrative and public service agencies, associations, etc., when being transferred between subordinate units. To distinguish from goods of business entities, assets of non-business organizations when being transported must have a transfer decision and a warehouse withdrawal form issued by the organization. If the asset was purchased for use, it must have a valid invoice.

b. Personal assets transported or moved to a new place of residence.

c. Agricultural, forestry, fishery, and marine products directly produced, harvested, or caught by farmers or fishermen and transported for sale.

2. Invoices and documents specified in this Circular include: import documents [customs declaration forms, tax payment documents (if applicable)]; value-added tax invoices; sales invoices; invoices for the sale of liquidated assets; invoices for purchasing agricultural, forestry, fishery, and marine products; invoices for the sale of confiscated assets; invoices for the sale of national reserve goods; internal dispatch and transportation forms; forms for dispatching goods to agents for sale; tax receipts, payment receipts, and other types of documents such as stamps, tickets... printed with fixed prices (collectively referred to as invoices) must be original copies issued by the Ministry of Finance (General Department of Taxation, General Department of Customs, State Asset Management Bureau, National Reserve Bureau) or approved in writing by the tax authority for enterprises to print themselves. Other documents such as transfer orders, warehouse withdrawal orders... if they are copies (or photocopies) must bear the stamp confirming they are true copies of the business entity or non-business organization.

3. Business entities are responsible for managing, using, and retaining the invoices and documents specified in this Circular in accordance with the law; they must present them fully and promptly when requested by authorized authorities for inspection.

4. Itinerant traders who purchase goods for resale must have an invoice issued by the seller or an invoice for purchasing agricultural, forestry, fishery, and marine products and must pay taxes before transporting the goods out of the locality where they were purchased. When transporting goods, they must have an invoice from the seller or an invoice for purchasing agricultural, forestry, fishery, and marine products and a receipt for value-added tax and corporate income tax on circulation attached, except for goods exempted from value-added tax and corporate income tax on circulation according to specific regulations of the Government or the Ministry of Finance.

II. INVOICES AND DOCUMENTS FOR SPECIFIC CASES

A. FOR DOMESTICALLY PRODUCED GOODS:

1. Goods dispatched from warehouses for sale, exchange, gift, or internal consumption must have a value-added tax invoice or sales invoice accurately reflecting the quantity and value of the goods dispatched for sale, exchange, gift, or internal consumption to be given to customers or used as accounting documents of the unit.

2. Goods dispatched to agents for sale at a price determined by the business entity to earn commission may use one of the two methods to issue invoices and documents as follows:

a. Using a value-added tax invoice or sales invoice.

b. Using a dispatch form for agents' sale along with an internal transfer order.

3. Goods transferred internally from a business entity to branches, retail stores under its accounting, or vice versa, or between independent branches can use one of the two methods to issue invoices and documents as follows:

b. Using an internal dispatch and transportation form along with an internal transfer order.

b. Using a dispatch form for agents' sale along with an internal transfer order.

If goods are transferred from a business entity as a superior unit to independent branches or between independent branches, a value-added tax invoice, sales invoice, or self-printed invoice according to the prescribed regime must be issued.

4. Goods of a business entity that are taken out for mobile sales or exhibition must have an internal transfer order and an internal dispatch and transportation form given to the transporter. When selling goods, an invoice must be issued in accordance with the regulations and given to the buyer.

5. A business entity exporting raw materials for processing must have a warehouse withdrawal form clearly stating the export of materials for processing along with a processing contract. The entity receiving the processing must have a warehouse withdrawal form clearly stating the export of processed products back to the entity leasing the processing along with a processing contract.

5. A business entity exporting raw materials for processing out must have a warehouse withdrawal form clearly indicating the export of goods for processing, accompanied by a processing contract. The entity receiving the processed products and returning them to the entity leasing for processing must have a warehouse withdrawal form clearly indicating the export of processed products returned to the leasing entity, accompanied by a processing contract.

6. Business entities exporting goods (including goods processing for export) shall use one of the following invoices when exporting: value-added tax invoice, sales invoice, or self-printed invoice in accordance with prescribed regulations as proof of circulation on the market. For specific cases where invoices or other documents are used to transport exported goods, they shall be used as follows:

a. Goods in transit to a customs checkpoint or to a place for export procedures at a customs office, if there is no basis to issue an invoice, the business entity shall use the Internal Warehouse Withdrawal and Transport Form accompanied by the Internal Movement Order as proof of circulation of goods on the market. After completing the export procedures for the goods, the business entity shall issue an invoice for the exported goods.

b. In the case of consigned export of goods (including consigned export of processed goods for other entities), when exporting goods to the consignee, the consignor shall use the Internal Warehouse Withdrawal and Transport Form accompanied by the Internal Movement Order. Once the goods have been officially exported and confirmed by the customs authority, the consignor shall issue an invoice to the consignee.

7. Products that are goods sold by sellers who are not required to issue sales invoices include:

a. Agricultural, forestry, fishery, and marine products that have not been processed and are directly produced or harvested by farmers or fishermen and sold.

Business entities purchasing agricultural, forestry, fishery, and marine products from farmers or fishermen must issue purchase invoices for agricultural, forestry, fishery, and marine products according to form number 06/TMH-3LL issued together with Circular No. 120/2002/TT-BTC dated December 30, 2002, of the Ministry of Finance guiding the implementation of Decree No. 89/2002/NĐ-CP dated November 7, 2002, of the Government regarding printing, issuing, using, and managing invoices. If a business entity sets up a procurement station for such goods, it must register with the tax authority where the station is located. When transporting purchased goods, the business entity must have its internal movement order accompanied by the Internal Warehouse Withdrawal and Transport Form.

b. For personal items sold directly by users, business entities purchasing these items for resale or accepting consignment sales must issue a purchase list or consignment acceptance list. The list is prepared by the business entity and the entity bears full responsibility (according to the attached model). When selling goods, the business entity must issue one of the following invoices: value-added tax invoice, sales invoice, or self-printed invoice in accordance with prescribed regulations and hand over the invoice to the buyer.

8. For goods returned to the seller due to non-compliance with specifications or quality, one of the following invoices shall be used: value-added tax invoice, sales invoice, or self-printed invoice in accordance with prescribed regulations as follows:

a. When returning goods to the seller, the buyer must issue an invoice, clearly stating on the invoice that the goods are being returned to the seller due to non-compliance with specifications or quality, along with a copy of the second copy of the original invoice (stamped as a true copy).

b. In the case where the buyer is not a business entity and does not have an invoice, when returning goods, both the seller and the buyer must prepare a record or written agreement specifying the type of goods, quantity, and value of the returned goods according to the invoice issued at the time of sale (number, code, date of the invoice), the reason for returning the goods, and attach the invoice sent back to the seller as evidence for adjusting the value-added tax declaration of the seller.

9. In the case of purchasing assets for liquidation or transfer from administrative and public service agencies, a liquidation asset sales invoice must be obtained.

In the case of purchasing goods that are confiscated assets, a confiscated asset sales invoice for state treasury must be obtained.

In the case of purchasing goods that are national reserve assets, a national reserve goods sales invoice must be obtained.

10. Business entities selling goods to consumers with low values below the specified limit are not required to issue invoices but must prepare a retail sales list for each sale and each type of goods, and at the end of the day, prepare a list to serve as the basis for determining revenue.

11. Business entities purchasing or receiving goods must require the supplier to issue valid invoices or documents to be handed over to them, including in cases where goods with low values below the specified limit must be invoiced. In cases where purchases are made from entities that are not business entities as stipulated in point 7 above, a list must be prepared.

B. FOR IMPORTED GOODS:

1. Business entities importing goods, including imports from export processing zones, border economic zones, encouraged economic and trade areas, etc., as decided by the Prime Minister, must complete import procedures with the customs authority in accordance with regulations for imported goods. When transporting into the domestic market, the following documents must be provided:

1.1. Goods imported by business entities that have not completed customs procedures and are transported from the customs checkpoint to a location outside the checkpoint for actual inspection of the goods must have transportation documents as prescribed in Decision No. 53/2003/QĐ-BTC dated April 16, 2003, of the Minister of Finance regarding customs procedures for exported and imported goods transferred between checkpoints.

1.2. Imported goods by business entities that have completed customs procedures and are transported into the domestic market must have:

a. A customs declaration with confirmation of completed customs procedures (original) accompanied by a tax notification or receipt for import tax, VAT, and special consumption tax (if applicable).

b. If imported goods are transported in multiple shipments due to large quantities, a company's dispatch order accompanied by the customs declaration (original or a photocopied version stamped as a true copy by the company) must be provided. The dispatch order must specify the type, quantity, and destination of the goods being transported.

2. Imported goods that are gifts or donations must have a non-commercial import declaration that has been inspected and confirmed by the customs authority, accompanied by a receipt for import tax, VAT, and special consumption tax (if applicable). If tax exemption is granted, a customs authority confirmation of tax-exempt goods must be provided. This non-commercial import declaration is only valid for the recipient of the gift or donation to transport from the customs checkpoint into the domestic market.

3. Luggage of persons entering Vietnam exceeding the tax-free allowance standard must be declared on an import goods declaration form which has been inspected and confirmed by the Customs authority, accompanied by a receipt for import duties, value-added tax, and special consumption tax (if applicable). This non-commercial import declaration form is only valid for the transportation of goods from the port to inland areas by the person entering the country.

4. If imported goods are items that require affixing of labels as prescribed by the state, they must have such labels affixed in accordance with the regulations. For consignments of goods that must be labeled according to state regulations, if it is necessary to transport them to another location other than the port of entry to affix the labels, the procedures shall be carried out in accordance with the provisions for consignments of goods transferred between ports set forth in Decision No. 53/2003/QĐ-BTC dated April 16, 2003 issued by the Minister of Finance regarding customs procedures for exported and imported goods transferred between ports.

5. When entrusting enterprises importing goods on behalf of others return the goods to the principal, they must issue one of the following invoices: value-added tax invoice, sales invoice, or self-printed invoice in accordance with the prescribed regulations.

6. Goods that have been imported directly by an enterprise or purchased by another enterprise for resale must comply with the invoice and documentation requirements for domestically produced goods as stipulated in Section A above.

7. For imported goods purchased from agencies selling confiscated goods, the buyer of confiscated goods must have a sales invoice for confiscated goods, a detailed list of confiscated goods, and a decision to sell confiscated goods (if any), all provided by the agency selling confiscated goods. The buyer of confiscated goods must inform the agency selling confiscated goods of the destination and time of shipment. Depending on the distance and time of transportation, the agency selling confiscated goods will set a reasonable delivery period. In cases where the buyer of confiscated goods cannot transport the goods out of the selling province/city due to force majeure, they must immediately notify the agency selling confiscated goods for review; if there are justifiable reasons, the agency selling confiscated goods will confirm and extend the period. If the goods have already been transported out of the selling province/city but the delivery period specified on the sales invoice for confiscated goods cannot be met due to force majeure, the transporter must report to the nearest tax authority or market management station for confirmation and extension.

8. Enterprises purchasing goods at border markets in border provinces must have an invoice issued by the seller. When transporting these goods into the interior, the enterprise must present the entire invoice along with the transported goods to the nearest checkpoint (which may vary by locality and could be a customs checkpoint, market management station, tax authority, or joint checkpoint) for inspection, taxation (if applicable), and confirmation of the quantity and type of legally inspected goods by the checkpoint chief on the invoice (signature and stamp if applicable). Staff at the checkpoint must inspect the goods and compare them with the invoice; if they are found to be in compliance, the date and time of inspection will be clearly noted on the invoice for the chief's signature and confirmation. If the enterprise fails to declare for inspection and confirmation, even though they have an invoice and supporting documents, the goods transported into the interior will still be considered smuggled goods and subject to penalties as stipulated in Section B, Part III of this Circular.

9. For other imported goods when transported from the port to the interior, if there are specific regulations by authorized agencies regarding the accompanying invoices and documents for imported goods, they must be strictly followed.

10. Based on the actual situation of smuggling and commercial fraud during each period, the Head of the Central Directive 127 Steering Committee, in coordination with the Ministry of Finance, may supplement regulations on invoices and documents for certain imported goods circulating in the market.

III. VIOLATION HANDLING

Enterprises violating the invoice and document regime for goods circulating in the market, if not reaching the level requiring criminal prosecution, shall be handled as follows:

A. FOR DOMESTICALLY PRODUCED GOODS

1. If goods are sold without issuing an invoice as prescribed in Points 1, 2, 3, 4, 5, 6, and 9 of Section A, Part II of this Circular, they will be subject to back taxes for value-added tax, special consumption tax (if applicable), and corporate income tax. Depending on the severity of the violation, they will be fined from one to five times the amount of the back taxes for value-added tax, special consumption tax, and corporate income tax in accordance with laws on administrative penalties in the field of taxation and relevant tax laws.

2. Raw materials purchased, received, remaining in stock, or used in production and consumption without proper invoices and documents will be subject to administrative penalties in the field of taxation and will not be recognized as legitimate bases for calculating deductible expenses when determining taxable corporate income.

3. Enterprises engaged in speculative trading who transport goods for sale (excluding those temporarily exempted from taxes by the state during circulation) without a receipt for payment of value-added tax and corporate income tax during circulation will be subject to back taxes for value-added tax and corporate income tax during circulation and may be fined from one to five times the amount of the back taxes depending on the severity of the violation.

4. Enterprises transporting raw materials for processing without a processing contract will be subject to taxes for value-added tax and corporate income tax during circulation.

B. FOR IMPORTED GOODS

1. Imported goods circulating in the market without proper invoices and documents as prescribed in Section B, Part II of this Circular will be considered smuggled goods and handled as follows:

a. Enterprises violating this requirement will be subject to back taxes for import duties, value-added tax during importation, or special consumption tax (if applicable) and fined from one to five times the amount of the fraudulent taxes.

b. In cases where enterprises are found to be rotating invoices and documents or using fake invoices and documents to legitimize smuggled goods, the goods will be confiscated.

c. Business entities dealing with goods prohibited from importation or trade by the State shall be subject to confiscation of all prohibited imported goods or goods prohibited from trade.

d. In cases where imported goods lack valid invoices and certificates, upon inspection revealing that the business entity has sold such goods, measures will be taken to recover import taxes and impose fines ranging from one to five times the amount of the import tax, or confiscate the entire amount corresponding to the value of the imported goods lacking valid invoices and certificates, as stipulated above.

2. Business entities selling imported goods without issuing invoices to buyers or engaging in fraudulent record-keeping on invoices and certificates shall, in addition to recovering value-added tax and corporate income tax, be subject to fines ranging from one to five times the amount of the recovered taxes.

3. Purchasers of imported goods for trade without valid invoices and certificates shall be considered as importing goods illegally and shall be dealt with according to the provisions set forth in point 1, Section B, Part III above, depending on the severity of the violation.

For imported goods that have valid invoices and certificates but show signs of illegal origin upon inspection and control, the inspection authority has the right to trace back to the business entity that issued the invoices and certificates to clarify the origin of the goods:

- If the business entity issuing invoices for imported goods cannot present invoices and certificates proving the legitimate origin of the sold goods, it will be subject to administrative penalties, recovery of import taxes, and fines ranging from one to five times the amount of the import tax, or confiscation of the equivalent amount corresponding to the value of the goods sold at the time of the violation.

- If verification fails to identify the business entity issuing invoices, or if verified and found to issue false invoices to legitimize the purchase of smuggled goods, the business entity (buyer) will be subject to administrative penalties, recovery of import taxes, and fines ranging from one to five times the amount of the import tax, or confiscation of all the violating goods.

4. Business entities purchasing liquidated assets from imported goods or assets donated by administrative agencies, imported goods as national reserves, or confiscated goods without lawful certificates as specified in point 9, Section A; point 7, Section B, Part II of this Circular shall be subject to penalties under current laws.

5. Business entities engaging in circular invoicing and documentation for circulating goods to legitimize tax-evaded imported goods will be subject to administrative penalties and confiscation of goods. If they exploit circular invoicing and documentation to legitimize large quantities of smuggled goods, they may face criminal liability.

C. DISPUTE RESOLUTION:

Business entities have the right to lodge complaints or initiate administrative litigation against administrative decisions that are not in accordance with their own circumstances. The procedures, formalities, and jurisdiction for resolving complaints or initiating administrative litigation cases shall be carried out in accordance with the Law on Complaints and Petitions and the Ordinance on Procedures for Resolving Administrative Litigation Cases.

While awaiting resolution of complaints or pending decisions from the Administrative Court, business entities must still comply with the administrative decision of the competent authority.

IV. IMPLEMENTATION

1. The authority to handle violations concerning invoice and certificate systems for circulating goods as stipulated in this Circular is defined as follows:

a. Domestic product business entities violating tax laws and this Circular shall be handled according to the legal authority regarding invoices and certificates; and taxes.

b. Imported goods business entities lacking certificates proving legitimate import origins will be treated as smuggled goods. Inspection authorities discovering such violations have the right to handle them, including recovery and imposition of import taxes.

c. In cases where violations reach the level requiring criminal responsibility, the inspection authority must prepare files and transfer them to relevant agencies to pursue criminal responsibility according to the law.

Legal authorities receiving files and handling violations must inform the transferring agency of the results of the handling.

2. All violations must be documented in a record, and the handling must be decided in writing according to the law. Collection of recovered taxes and fines must be conducted using financial documents as prescribed by the Ministry of Finance, and one copy of the document must be provided to the violating business entity. Recovered taxes and fines must be deposited into the state budget according to current regulations. Confiscated goods must be managed and auctioned off according to current regulations.

3. Organizations and individuals obstructing the circulation of goods, causing incorrect handling resulting in losses to business entities must compensate the affected parties.

4. State agencies, mass organizations, business entities, and citizens have the responsibility to cooperate and support market inspection forces in inspecting and handling violations. Market inspection forces must adhere to regulations concerning inspection and control of circulating goods.

Responsibilities of government agencies in supervising circulating goods: The organization of coordination and assignment of responsibilities among functional forces shall be implemented according to the Joint Circular No. 07/1997/TTLT dated October 21, 1997, of the Ministry of Trade, Ministry of Home Affairs, Ministry of Finance, and General Department of Customs.

This Joint Circular takes effect fifteen days after its publication in the Official Gazette, replacing Circular No. 73 TC/TCT dated October 20, 1997, Circular No. 17/1999/TT-BTC dated February 5, 1999, Circular No. 92/1997/TT-BTC dated December 25, 1997, and Circular No. 140/1999/TT-BTC dated December 2, 1999, of the Ministry of Finance.

During implementation, if there are any difficulties, please promptly report to the Joint Ministries (Ministry of Finance, Ministry of Trade, Ministry of Public Security) for examination and guidance on amendments and supplements to ensure compliance.

…, day…month……year……. (or the name of the individual business operator) Address... Tax code.

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness

PURCHASE RECORD AND RECEIVED GOODS FOR STORAGE AND SALE FORM

(ISSUED TOGETHER WITH JOINT CIRCULAR NO. 94/2003/TTLT-BTC-BTM-BCA GUIDING THE REGIME OF USE OF INVOICES AND DOCUMENTS FOR GOODS CIRCULATING ON THE MARKET)
NAME OF THE SELLER OR THE DEPONENT
APPLICATION FOR INSPECTION AND SUPERVISION OF EXPORT AND IMPORT GOODS RELATED TO INTELLECTUAL PROPERTY RIGHTS

Serial number	ADDRESS OF THE SELLER OR THE DEPONENT	ID CARD NUMBER OF THE SELLER OR THE DEPONENT	ITEMS SOLD OR DEPOSITED FOR SALE	TOTAL AMOUNT (IN WORDS)...	Quantity	Unit price	Total Amount	Remarks
1	2	3	4	5	6	7	8	9

SELLER

SIGNATURE, FULL NAME ..., DATE..., MONTH..., YEAR...

(OR HEAD OF THE BUSINESS HOUSEHOLD) Head of the unit SIGNATURE, FULL NAME, STAMP (IF ANY) GUIDELINES FOR COMPLETING THE INVENTORY LIST:

- THE PURCHASE INVENTORY LIST AND RECEIPT FOR GOODS DEPOSITED FOR SALE IS USED TO RECORD AND CONFIRM THE NAME, ADDRESS, ID CARD NUMBER OF THE SELLER, THE ITEMS, QUANTITY (WEIGHT), AND AMOUNT OF GOODS PURCHASED OR RECEIVED FOR SALE BY THE BUSINESS ESTABLISHMENT ON THE SAME DAY.

- THE PURCHASE INVENTORY LIST AND RECEIPT FOR GOODS DEPOSITED FOR SALE SHALL BE COMPLETED WHEN THE BUSINESS ESTABLISHMENT BUYS GOODS OR RECEIVES GOODS FOR SALE FROM INDIVIDUALS NOT ENGAGED IN BUSINESS AS PROVIDED FOR IN POINT 7, SECTION A, PART II OF THIS CIRCULAR.

- THE INVENTORY LIST IS COMPLETED BY THE BUSINESS ESTABLISHMENT ITSELF AND THE BUSINESS ESTABLISHMENT SHALL BE RESPONSIBLE FOR ITS ACCURACY BEFORE THE LAW.

- EACH INVENTORY LIST MUST BE SIGNED BY THE HEAD OF THE UNIT OR THE HEAD OF THE BUSINESS HOUSEHOLD AND STAMPED (IF ANY).

- THE INVENTORY LIST IS PRINTED BY THE BUSINESS ESTABLISHMENT ACCORDING TO THE MODEL ABOVE.

- THE DATE LINE AT THE TOP SHOULD BE THE DATE, MONTH, YEAR OF COMPLETING THE INVENTORY LIST.

- THE DATE LINE AT THE BOTTOM OF THE INVENTORY LIST SHOULD BE THE DATE, MONTH, YEAR WHEN THE HEAD OF THE BUSINESS ESTABLISHMENT APPROVES IT.

- SPECIFICALLY, FOR GOODS DEPOSITED FOR SALE, THE UNIT PRICE AND TOTAL AMOUNT COLUMNS ARE ENTERED ACCORDING TO THE UNIT PRICE AND TOTAL AMOUNT SET BY THE HOLDER OF THE GOODS.

- For consigned goods sold at fixed prices, the total amount shall be recorded according to the fixed price determined by the party holding the consigned goods.

Lê Thế Tiệm (Signed)

Phan The Viet (Signed)

Truong Chi Trung (Signed)