Quyết định 05/2012/QD-TTg

THE PRIME MINISTER

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

Pursuant to the Law on Value Added Tax dated June 03, 2008;

Pursuant to the Law on Tax management dated November 29, 2006;

At the proposal of Minister of Finance,

DECIDES:

Article 1. Scope of governing

This decision defines on the subject, location, procedures, time to pilot the value-added tax refund for goods purchased by foreigners in Vietnam to carry when exiting the border gates of Noi Bai International Airport and Tan Son Nhat International airport.

Article 2. Subjects of application

Subjects of application of this Decision are: Foreigners purchased goods in Vietnam and brought along when exiting the border gates of Noi Bai International Airport and Tan Son Nhat International airport (hereinafter referred to as foreigners); the customs offices, tax offices and customs officers, tax officials; businesses facilities, commercial banks are selected to pilot; other agencies, organizations and individuals participating in the pilot of value added tax refund under the provisions of this Decision.

Article 3. The foreigners, goods to be subjects to refund

A. Foreigners who are subjects to refund of value added tax as prescribed in this Decision are:

a) Brought passport is not a passport granted by the competent state agencies of Vietnam;

b) Not being a member of the cabin crew on the flights leaving from Vietnam to foreign countries.

2. Goods refunded value added tax under the provisions of this Decision must satisfy the following conditions:

a) Being goods subject to value added tax, unused and allowed to bring along on the aircrafts as prescribed by law on security, aviation safety;

b) Being goods not in the list of goods banned from export or list of goods limited for export;

c) Having the invoices together with declarations of tax refund issued within 30 days from the date of departure to their countries;

d) The value of goods recorded in invoice and declaration of tax fund for goods bought in 01 (a) store in 01 (a) the date (including cumulating many  purchase invoices within 01 day at 01 store) at least from 02 (two) million VND or more.

Article 4. Conditions, the choice of business facilities, banks participating in the pilot

1. Conditions, the selection of business facilities participating in the pilot.

a) Business facilities participating in implementation of this Decision must satisfy the following conditions:

- Being enterprises established and operating under Vietnam law, trading items refunded as prescribed in clause 2, Article 3 of this Decision; having business locations in the Hanoi city, Ho Chi Minh City or in the center of handicraft villages in the destinations of the travel routes;

- Performing the regimes of accounting, invoices, vouchers as prescribed by law; declaring and paying value added tax by the deduction method.

b) Business facilities which meet the sufficient conditions specified in point a of this clause registered and are considered and decided on selection of participation in the implementation of this Decision by the Ministry of Finance.

2. Commercial bank established and operating under the provisions of the Law on Credit Institutions, to be coordinated by the Ministry of Finance with the State Bank of Vietnam to select as an agent of tax refund to make this Decision.

Article 5. Place of inspecting cargos, checking invoices, tax refund declaration and location paying amount of value added tax refund

1. Place of inspecting cargos, checking invoices, tax refund declarations is set at the regions making procedures of baggage sending and boarding pass of the Noi Bai international airport, Tan Son Nhat international airport and ensured the following conditions:

a) Having enough surface area needed to sort, inspect cargos, check invoices cum tax refund declarations;

b) Having its own counters (or kiosks) meeting the requirements of safety and order.

2. Places to pay amount of VAT refund are placed in the isolated areas of Noi Bai international airport, Tan Son Nhat international airport that have their own counters (or kiosks), ensuring the conditions of money management, accounting documents in accordance with the law provisions.

Article 6. Invoices cum tax refund declarations; dossiers and procedures for inspecting cargos, checking invoices cum tax refund declarations; dossiers and procedures for paying amount of tax refund

1. Invoices cum tax refund declarations defined by the Ministry of Finance.

Business facilities selected to participate in implementing this Decision when selling goods to foreigners are responsible for recording all the contents to be shown in the invoices cum tax refund declarations in accordance with provisions of the Ministry of Finance for providing for buyers.

2. Dossiers and procedures for inspection of the invoice cum tax refund declarations:

a) The foreigners purchasing goods in the business facilities provided for in clause 1, Article 4 of this Decision must present passports (originals) to be the business facilities to provide invoices cum tax refund declarations for goods brought along as exiting;

Foreigners are responsible for recording all the contents required to declare in the invoice cum tax refund declaration under the provisions of the Ministry of Finance.

b) Prior to conducting the procedures of baggage sending and boarding pass, at the place specified in clause 1 of Article 5 of this Decision, the foreigners must present to the customs offices:

- Passport (original);

- Invoice cum tax refund declaration (original) as prescribed at point c, clause 2 of Article 3 of this Decision;

- Goods actually brought along when exiting requested for tax refund.

c) After checking records and goods specified at point b of this clause, the customs officers shall sign to certify and seal "checked" into the invoice cum the tax refund declaration and return to the foreigners.

3. Dossiers and procedures for paying amount of tax refund:

a) Before going on board for exiting to foreign countries, at the place specified in clause 2 of Article 5 of this Decision, the foreigners must present to the commercial banks selected as agents for tax refund the records:

- Passport (original);

- Boarding pass of the flight of departure to foreign country (original);

- Invoice cum the tax refund declaration sealed "checked" of the customs office (the original).

b) After commercial banks selected as agents for tax refund check the records specified in point a of this clause, withdraw invoices cum the tax refund declarations (originals) and conduct procedures paying amount of tax refund to the foreigners.

Article 7. The amount of tax refundable and service charges; payment of tax refund and settlement of amount of tax refund paid.

1. Determination of the amount of tax refundable to pay to foreigners:

Refundable tax amount to pay to foreigner = total amount of value added tax required to refund (-) fee of tax refund services, including:

a) Total amount of value added tax refundable is the amount of value-added tax recorded in invoice cum tax refund declaration of the goods actually brought along by foreigner when exiting that has been inspected and certified by the customs office;

b) Fee for service of tax refund shall be determined as prescribed in clause 2 of this Article.

2. Fee for service of tax refund shall not exceed 15% on the total amount of value added tax required to refund collected by commercial banks selected as agents for spending the costs of the service for tax refund.

The Ministry of Finance shall specify the rates of service fee, the other costs for serving the tax refund at this clause.

3. Payment of amount of tax refund; payment and settlement of amount of tax refund paid or service charges collected.

a) When paying amount of tax refund, commercial banks chosen as the agents of tax refund are responsible for disbursing advance capital to pay tax refund to foreigners;

b) Amount of tax refund is paid in cash. The currency refunded is Vietnam dong. In case foreigners request for being paid in foreign currency, amount of tax refund shall be converted from Vietnam dong into foreign currencies at the exchange rate of transactions listed by commercial banks chosen as the agent of tax refund at the time of payment of tax refund;

c) Ministry of Finance shall provide for the payment and settlement of amounts of tax refund paid, service fees collected by commercial banks as agents for tax refund with the state budget.

Article 8. Time of pilot

Pilot period of value added tax refund under the provisions of this Decision is from July 01, 2012 to the end of June 30, 2014.

Article 9. Handling of violations

1. Organizations and individuals with false declaration leading the refundable tax increases or fraud, tax evasion, then depending on the severity, violations will be handled in accordance with the law of tax administration.

2. Organizations and individuals causing damage to the refundable amount of the foreigners under the provisions of this Decision shall pay compensation for all damages caused and depending on the severity, violations will be handled according to the provisions of law.

Article 10. Responsibility for implementation organization

A. Ministry of Finance is responsible for:

a) Guiding the implementation of this Decision;

b) Presiding over and coordinating with the Ministry of Culture, Sport and Tourism, Ministry of Industry and Trade, State Bank of Vietnam and other concerned agencies and localities to decide on the selection of enterprises, commercial banks conducting as agents for tax refund provided for in Article 4 of this Decision;

c) Presiding over and coordinating with ministries, concerned localities to organize the implementation of this Decision; annually sum up partially the implementation; in the second quarter of 2014 to review the pilot and propose the official refund of VAT for goods purchased by foreigners in Vietnam to carry when exiting.

2. Ministry of Transport is responsible for:

a) Presiding over and coordinating with the Ministry of Finance and State Bank of Vietnam to direct the North Airports Corporation,South Airports Corporation to arrange location, premises, counters (or kiosks) of inspecting cargos, checking invoices cum tax refund declarations and place of tax refund at the Tan Son Nhat international airport, Noi Bai international airport specified in Article 5 of this Decision;

b) Coordinating with the Finance Ministry in organizing the implementation of this Decision.

3. Ministry of Industry and Trade, Ministry of Culture, Sport and Tourism, Ministry of Information and Communications, Ministry of Foreign Affairs, Chamber of Commerce and Industry of Vietnam, the People's Committee of Hanoi City, People's Committee of Ho Chi Minh City are responsible for:

a) Studying and collecting information on enterprises, types of goods that buyers often purchase in Vietnam to bring along when exiting to coordinate with the Ministry of Finance in the selection of enterprises registered for this Decision;

b) Propagating and disseminating policy of value-added tax refund of this Decision;

c) Coordinating with the Finance Ministry in organizing the implementation of this Decision.

4. State Bank of Vietnam shall coordinate with the Ministry of Finance in the selection of commercial banks to act as agents for tax refund and the organization, implementation of this Decision.

Article 11. Implementation provisions

1. This Decision takes effect as from July 01, 2012.

2. The ministers, heads of ministerial-level agencies, heads of Governmental agencies, Presidents of the People’s Committees of provinces and cities directly under the Central Government and other concerned organizations and individuals shall implement this Decision./.