Chương 1 Luật Thuế giá trị gia tăng 1997: Những quy định chung

Chapter I

GENERAL PROVISIONS

Article 1.- Value added tax

Value added tax is the tax imposed on the added value of goods or services in the process of their production, circulation and consumption.

Article 2.- Tax liability

Goods and services used for production, business and consumption in Vietnam shall be subject to the value added tax, except for those subjects defined in Article 4 of this Law.

Article 3.- Tax payers

An organization or an individual that produces and trades in taxable goods and services (commonly referred to as "business establishments") and any organizations and individuals that import taxable goods (commonly referred to as "importers") are liable to value added tax.

Article 4.- Subjects not liable to the value added tax

The following goods and services shall not be subject to value added tax:

1. Agricultural, husbandry and aquaculture products that are not yet processed into other products or are only primarily processed by organizations or individuals.

2. Salt products;

3. Goods and services that are subject to special consumption tax shall be exempt from the value added tax;

4. Equipment, machinery, specialized transport means which are not manufactured in the country but imported by business establishments to be used as fixed assets of their investment projects;

5. Transfer of land use right, which is subject to the transfer of land use right tax;

6. State-owned houses sold to their present tenants;

7. Credit services, investment funds;

8. Life insurance; school insurance; insurance on domestic animals and plants; and other kinds of insurance of non-business character;

9. Health care services;

10. Non-profit cultural, exhibition and sports activities; art performances; making, distribution and showing of motion pictures and video documentaries;

11. Educational and vocational training;

12. Radio and television broadcast under programs financed by the State Budget;

13. Printing, publishing and distributing of newspapers, magazines, professional news bulletins, political books, text books, books on legal documents, books in ethnic minority languages, money; propaganda postcards, pictures, posters;

14. Public services: sanitation and water drainage in streets and residential quarters, maintenance of zoos, gardens, parks, street greenery, public lighting; funeral services;

15. Maintenance, renovation and construction of cultural, art and public works, infrastructures and "houses of gratitude" financed by contributions of people and humanitarian aid;

16. Mass transit by bus;

17. Geological surveys and exploration, measuring and mapping which are included in the national basic surveys;

18. Irrigation and drainage in service of agricultural production; clean water exploited by organizations and individuals for daily life in rural and mountainous regions, islands, deep-lying and remote areas;

19. Weapons and ammunition for special use in service of national defense and security;

20. Goods imported in the following cases: humanitarian aid; non-refundable aid, gifts for State agencies, political organizations, socio-political organizations, social organizations, socio-professional organizations, peoples armed forces units; belongings of foreign organizations and individuals under diplomatic immunity regulations; duty free luggage;

21. Goods on transfer across the border, in transit or transported via Vietnam; goods temporarily imported for re-export; goods temporarily exported for re-import;

22. Goods and services directly supplied for international transportation and consumers outside Vietnam;

23. Transfer of technology;

24. Gold imported in form of ingots or pieces not yet processed into fine art items, jewelleries or other products;

25. Several export products which are unprocessed minerals and shall be specified by the Government;

26. Goods and services of business and production households with low incomes as determined by the Government.

Goods and services that are not subject to value added tax as provided for in this Article shall not be entitled to deductions and rebates on the input value added tax .

Article 5.- Obligations and responsibility to implement the Law on Value Added Tax

1. Business establishments and importers shall be obliged to pay the full amount of tax on time as prescribed by this Law.

2. Tax authorities, within their duties and capacity, shall have to strictly observe the provisions of this Law.

3. State bodies, political organizations, socio-political organizations, social organizations, socio-professional organizations, and peoples armed forces units shall, within their functions, duties and capacity supervise and co-ordinate with tax authorities in enforcing the Law on Value Added Tax.

4. Vietnamese citizens shall have to assist tax authorities and tax officials in enforcing this Law.