Công văn 4682/TCT-DNNN

OFFICIAL LETTER

DISSEMINATING AND GUIDING THE IMPLEMENTATION OF NEW AMENDMENTS AND SUPPLEMENTS TO SPECIAL CONSUMPTION TAX AND VALUE ADDED TAX POLICIES

To: Provincial/municipal Tax Departments

The Ministry of Finance issued on December 16, 2005 Circular No. 15/2005/TT-BTC guiding the implementation of the Government’s Decree No. 156/2005/ND-CP of December 15, 2005, which amends and supplements decrees detailing the implementation of the Law on Special Consumption Tax (SCT) and the Law on Value Added Tax (VAT). In order to help tax officers and taxpayers promptly understand amendments and supplements to aforesaid tax policies and properly implement these tax laws, the General Department of Taxation hereby requests provincial/municipal Tax Departments to disseminate the aforesaid Circular No. 115/2005/TT-BTC among tax officers and taxpayers and draws an attention to the following major amendments and supplements in this Circular:

a/ On SCT

- SCT calculation price

+ For imported canned beer, the value of cans to be excluded from SCT calculation price shall be VND 3,800/per liter of canned beer like home-made canned beer.

+ For bottled liquors and bottled beer, the value of bottles shall not be excluded when calculating SCT.

- The SCT rates specified in the SCT tariff shall apply to both imported goods and home-made goods, except for some goods items such as cigarettes, liquor, draught beer and automobile, etc., which are subject to different SCT rates. Particularly for cigarettes, the applicable SCT rate shall not depend on sources of their materials. Some other contents on SCT declaration and payment are also annulled.

b/ On VAT

- VAT rates shall apply to products of cultivation (including forest plantation products) and husbandry; cultured and fished aquatic and marine products which have just been preliminarily processed and sold by producing or fishing organizations or individuals themselves and at the stage of importation.

- Preliminarily processed cotton, both imported and domestically planted, shall be subject to the VAT rate of 5%.

Other issues which are not amended, supplemented or annulled in aforesaid Circular No. 115/2005/TT-BTC shall still comply with the Finance Ministry’s Circular No. 119/2003/TT-BTC of December 12, 2003; Circular No. 18/2005/TT-BTC of March 8, 2005; Circular No. 82/2005/TT-BTC of September 21, 2005; and Circular No. 120/2003/TT-BTC of December 12, 2003.

Any problems arising in the course of implementation should be reported to the General Department of Taxation for uniform guidance and settlement.