Circular No. 98/2001/TT-BTC guides accounting for gasoline fees

CIRCULAR

CIRCULAR NO. 98/2001/TT-BTC OF DECEMBER 5, 2001 GUIDING ACCOUNTING FOR PETROLEUM FEES

Pursuant to Decree No. 78/2000/NĐ-CP dated December 26, 2000 of the Government on petroleum fees;
Pursuant to Circular No. 06/2001/TT-BTC dated January 17, 2001 and Circular No. 63/2001/TT-BTC dated August 9, 2001 of the Ministry of Finance guiding the implementation of Decree No. 78/2000/NĐ-CP dated December 26, 2000 of the Government on petroleum fees.
The Ministry of Finance guides accounting for petroleum fees as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. This Circular applies to all production and business establishments under all economic sectors that engage in petroleum production, trading, purchasing petroleum for use, including entities subject to petroleum fees, entities required to pay petroleum fees, entities not subject to petroleum fees, and entities not required to pay petroleum fees.

2. When selling petroleum, production, processing, and trading establishments must record the amount of petroleum fees as a separate line on the VAT invoice: pre-VAT sale price, VAT, petroleum fees, and total payment amount.

3. For petroleum subject to petroleum fees and production, processing, and trading establishments required to pay petroleum fees, revenue from petroleum sales shall be reflected at the pre-petroleum fee sale price.

4. For petroleum subject to petroleum fees and production, processing, and trading establishments not required to pay petroleum fees, revenue from petroleum sales shall be reflected at the post-petroleum fee sale price.

5. The cost of purchased petroleum shall be reflected at the post-petroleum fee purchase price.

II. GUIDANCE ON ACCOUNTING FOR PETROLEUM FEES

1. Accounting for Purchased Petroleum

1.1. When importing petroleum for use in producing and trading goods and services subject to VAT under the deduction method, record:

Debit Account 152, 156...

Credit Account 112, 131...

Credit Account 3333 - Export and Import Taxes (Detailed Import Tax)

Credit Account 3332 - Special Consumption Tax.

Simultaneously, reflect the amount of VAT on imported goods payable, record:

Debit Account 133 - Deductible VAT

Credit Account 33312 - VAT on Imported Goods.

In cases where petroleum is imported for use in producing and trading goods and services not subject to VAT or calculated under the direct payment method, accounting reflects the VAT on imported goods, record:

Debit Account 152, 156...

Credit Account 33312 - VAT on Imported Goods.

1.2. When purchasing petroleum domestically for use in producing and trading goods and services subject to VAT under the deduction method, accounting reflects the cost of purchased petroleum at the post-petroleum fee purchase price, record:

Debit Account 152, 156, 641, 642 (including purchase price with petroleum fees)

Debit Account 133 - Deductible VAT

Credit Account 112, 331... (Total payment amount).

1.3. When purchasing petroleum domestically for use in producing and trading goods and services not subject to VAT or calculated under the direct payment method, purchasing petroleum for fixed assets, accounting reflects the cost of purchased petroleum at the post-petroleum fee purchase price and non-deductible input VAT, record:

Debit Account 152, 156, 641, 642... (Total payment amount)

Credit Account 112, 331... (Total payment amount).

2. Accounting for Revenue from Petroleum Sales and Petroleum Fees

2.1. For units selling petroleum subject to VAT under the deduction method and required to pay petroleum fees to the State budget, when selling petroleum, accounting reflects revenue at the pre-VAT and pre-petroleum fee sale price and reflects petroleum fees payable to the State budget, record:

Debit Account 111, 112, 131 (Total payment amount)

Credit Account 3339 - Fees, Licenses, and Other Amounts Payable (Detailed Petroleum Fees)

Credit account 3331 – VAT payable

Credit Account 511 - Revenue from Sales

Credit Account 512 - Internal Sales Revenue.

2.2. For units selling petroleum subject to VAT under the direct payment method and required to pay petroleum fees, when selling petroleum, accounting reflects revenue at the post-VAT sale price and reflects petroleum fees payable to the State budget, record:

Debit Account 111, 112, 131 (Total payment amount)

Credit Account 3339 - Fees, Licenses, and Other Amounts Payable (Detailed Petroleum Fees)

Credit Account 511 - Revenue from Sales

Credit Account 512 - Internal Sales Revenue.

2.3. For units selling petroleum subject to VAT under the deduction method and not required to pay petroleum fees, when selling petroleum, accounting reflects revenue from sales at the post-petroleum fee sale price without VAT, record:

Debit Account 111, 112, 131 (Total payment amount)

Credit account 3331 – VAT payable

Credit Account 511 - Revenue from Sales

Credit Account 512 - Internal Sales Revenue.

2.4. For units selling petroleum subject to VAT under the direct payment method and not required to pay petroleum fees, when selling petroleum, accounting reflects revenue from sales at the total payment amount, record:

Debit Account 111, 112, 131 (Total payment amount)

Credit Account 511 - Revenue from Sales (Total payment amount)

Credit Account 512 - Internal Sales Revenue.

2.5. For units entrusted to import petroleum, when exporting petroleum to the entrusting unit for import, record:

Debit Account 131 - Accounts Receivable from Customers (Detailed Entrusting Import Unit)

Credit Account 3339 - Fees, Licenses, and Other Amounts Payable (Detailed Petroleum Fees)

Credit Account 156 - Inventory.

2.6. In cases of selling petroleum through agents at the correct price and receiving commission:

– At the unit dispatching goods to agents:

+ When dispatching petroleum to agents, issue a dispatch note for goods sent to agents based on which, record:

Debit Account 157 - Goods Sent for Sale

Credit Account 155, 156.

+ In cases where the unit dispatching goods to agents is subject to VAT under the deduction method and required to pay petroleum fees, upon receipt of the Sales Invoice Summary of petroleum sold through agents at the correct price and receiving commission, accounting issues a VAT Invoice according to regulations and reflects revenue from sales and reflects petroleum fees payable to the State budget, record:

Debit Account 111, 112, 131

Credit account 3331 – VAT payable

Credit Account 3339 - Fees, Licenses, and Other Amounts Payable (Detailed Petroleum Fees)

Credit Account 511 - Revenue from Sales.

+ In cases where the unit dispatching goods to agents is subject to VAT under the deduction method and not required to pay petroleum fees, upon receipt of the Sales Invoice Summary of petroleum sold through agents at the correct price and receiving commission, accounting issues a VAT Invoice according to regulations and reflects revenue from sales, record:

Debit Account 111, 112, 131

Credit account 3331 – VAT payable

Credit Account 511 - Revenue from Sales.

+ The amount of commission payable to the agent, record:

Debit Account 641 - Selling Expenses

Debit Account 133 - Deductible VAT

Credit Account 131, 111, 112.

– At the unit acting as an agent, selling at the correct price and receiving commission:

+ When receiving goods dispatched by the agent, debit Account 003 "Goods Received for Sale or Consignment". When selling or returning goods to the dispatching party, credit Account 003 "Goods Received for Sale or Consignment".

+ When selling dispatched petroleum, record the amount of petroleum fees as a separate line on the VAT Invoice or Sales Invoice according to regulations. Based on the VAT Invoice or Sales Invoice, accounting reflects the amount of dispatched petroleum sales revenue payable to the dispatching party, record:

Debit Account 111, 112, 131

Debit Account 331 - Amounts Payable to Seller (Total payment amount including fuel oil fees).

+ Periodically, when determining the revenue from commission on agency sales that the agency sales entity is entitled to, the agency sales entity must issue a VAT invoice or sales invoice according to the prescribed regulations and reflect the revenue from commission on agency sales, record:

Debit Account 331 - Amounts Payable to Seller

Credit Account 511 - Revenue from Sales.

+ When paying for agency sales to the delivery party, record:

Debit Account 331 - Amounts Payable to Seller

Credit Accounts 111, 112...

2.7. For internal use of fuel oil at entities subject to fuel oil fees: When issuing fuel oil subject to fuel oil fees for use in production and business activities of goods and services subject to VAT under the deduction method, record:

Debit Accounts 627, 641, 642... (fuel oil cost and fuel oil fee payable)

Credit Account 3339 - Fees, Licenses, and Other Amounts Payable (Detailed Petroleum Fees)

Credit Account 512 - Internal Sales Revenue (at cost price).

2.8. For entities not subject to fuel oil fees, when issuing fuel oil for use in production and business activities of goods and services subject to VAT, record:

Debit Accounts 627, 641, 642...

Credit account 3331 – VAT payable

Credit Account 512 - Internal Sales Revenue (at cost price).

2.9. When paying fuel oil fees to the State Budget, record:

Debit Account 3339 - Fees, Licenses and Other Amounts Payable (Detailed Fuel Oil Fee)

Credit Account 111 - Cash

Credit Account 112 - Bank Deposits.

2.10. When exporting fuel oil, record:

– Reflecting sales revenue, record:

Debit Accounts 112, 131

Credit Account 511 - Revenue from Sales.

– Reflecting export tax payable, record:

Debit Account 511 - Sales Revenue

Credit Account 3333 - Export and Import Duties (Detailed Export Tax).

– The amount of fuel oil fee refunded by the State, record:

+ In the case where the amount of fuel oil fee refunded corresponds to the quantity of exported fuel oil within the same fiscal year, the refunded fuel oil fee amount is recorded as a reduction in the cost of goods sold for exported goods, record:

Debit Account 3339 - Fees, Licenses and Other Amounts Payable (Detailed Fuel Oil Fee)

Credit Account 632 - Cost of Goods Sold.

+ In the case where the fuel oil fee refunded corresponds to the actual quantity of fuel oil exported in the previous year (Fuel oil fee of the previous year refunded in the following year), the accountant records the refunded fuel oil fee as extraordinary income for the years receiving the refund, record:

Debit Account 3339 - Fees, Licenses and Other Amounts Payable (Detailed Fuel Oil Fee)

Credit Account 721 - Extraordinary Income.

+ When receiving the money refunded by the State for the fuel oil fee, record:

Debit Accounts 111, 112

Credit Account 3339 - Fees, Licenses and Other Amounts Payable (Detailed Fuel Oil Fee).

III. IMPLEMENTATION

This Circular takes effect from January 1, 2001. All previous provisions contrary to this Circular are abolished. Parts of accounting not covered in this Circular shall be implemented according to the current accounting system.