Chapter II
BASIS AND METHOD OF TAX CALCULATION
Article 6.- Basis of tax calculation
The bases for the calculation of value added tax shall be the taxable price and tax rate.
Article 7.- Taxable price
The price for the value added tax calculation is provided for as follows:
1. For goods and services, it shall be the selling price without value added tax.
2. For import goods, it shall be the import price at the border gate plus (+) import tax.
3. For goods and services used for purposes of exchange, internal use, gifts, donations, it shall be the price for value added tax calculation applied to goods and services of similar or same types at the time such activities occur.
4. For property leasing activities, it shall be the rental collected in each period of time.
5. For goods sold in the mode of deferred payment, it shall be the selling price paid in a lump sum but not the amount of money paid in each installment.
6. For the processing of goods, it shall be the processing price.
7. For other goods and services, it shall be decided by the Government.
The price for the calculation of value added tax on goods and services defined in this Article shall include the surtax and surcharge enjoyed by business establishments.
Where a tax payer has his/her sale and purchase turnover in foreign currency(ies), he/she must convert such foreign currency(ies) to the Vietnamese Dong at the official rate of exchange announced by the State Bank of Vietnam at the time such turnovers occur to determine the tax calculation price.
Article 8.- Tax rate
Value added tax rates are as follows:
1. 0% for export goods;
2. 5% for the following goods and services:
a/ Clean water in service of production and daily life;
b/ Fertilizer, ore used for the production of fertilizer; insecticide; growth stimulants for domestic animals and plants;
c/ Medical equipment and instruments; medical bandage and cotton;
d/ Curative and preventive medicines;
e/ Teaching and learning aids;
f/ Children toys; scientific-technical books, literary and stipulated books, books for children, law books excluding legal document books stipulated in Clause 13, Article 4 of this Law;
g/ Agricultural, husbandry and aquaculture products that have not yet been processed, including animal and plant breeds, seeds excluding those defined in Clause 1 Article 4 of this Law.
h/ Unprocessed forest products (excluding timber and bamboo shoots) fresh and raw foodstuffs;
i/ Products made of jute, reed, bamboo, sedge;
j/ Primarily processed home-grown cotton;
k/ Feeds for cattle, poultry and other domestic animals;
l/ Scientific and technical services;
m/ Services in direct service of agricultural production.
3. 10% tax for the following goods and services:
a/ Oil, gas, coal, ore and other mineral products;
b/ Commercial electricity;
c/ Electronic and engineering products, electric items;
d/ Chemicals, cosmetics;
e/ Yarn, fabrics, garments and embroideries;
f/ Paper and paper products;
g/ Sugar, milk, confectionery, drinks and other processed foodstuff .
h/ Pottery, ceramic, glass, rubber and plastic products, wood and wood products; cement, bricks, tiles and other construction materials;
i/ Construction and installation;
j/ Transportation and loading;
k/ Post, mail and telecommunications services;
l/ Leasing houses, stores, ports, buildings, machinery, equipment and transportation means;
m/ Legal consultancy services;
n/ Photographing, printing and developing films, cassette tape recording, dubbing and renting; video shooting, projecting and reproducing;
o/ Hair dressing, tailoring, dyeing, laundering, bleaching;
p/ Other goods and services that are not defined in clauses 1, 2 and 4 of this Article, excluding goods the production or import of which are liable to special consumption tax.
4. A tax rate of 20% on the following goods and services:
a/ Gold, silver and gems sold and bought by business establishments;;
b/ Hotels, tourism, catering services;
c/ Lottery of all kinds;
d/ Shipping agents;
e/ Brokerage services.
Where necessary, the Standing Committee of the National Assembly may make amendments or supplements to the list of goods and services according to various tax rates prescribed in this Article and submit them to the National Assembly for approval in its nearest session.
Article 9.- Tax calculation method
The payable value added tax shall be calculated either by the method of tax deduction or the method of direct calculation on the added value.
1. The method of tax deduction:
The tax amount payable is equal (=) to the output value-added tax minus (-) the input value added tax.
An output value added tax amount is equal to the tax-calculating price of goods and services to be sold or provided multiplied by the tax rate.
An input value added tax amount is equal to the total paid value added tax written on the invoice of added value of a goods purchase or service provision or a voucher of paid value added tax on import goods.
2. The method of direct calculation on the added value
The tax amount payable is equal (=) to the added value of goods, services multiplied by (x) the value added tax rate.
The added value is equal (=) to the payment price of goods sold and services provided minus (-) the payment price of equivalent goods and services purchased.
The method of direct calculation on added value shall be applied only to the following subjects:
a/ Individuals producing goods and doing business, foreign organizations and individuals doing business in Vietnam that are not governed by the Law on Foreign Investment in Vietnam and that fail to fully implement regulations on accounting, invoices, vouchers to serve as bases for tax calculation by the method of tax deduction;
b/ Business establishments selling and purchasing gold, silver and gem stones.
Article 10.- Deduction of input value added tax
1. A business establishment that pays value added tax by the method of tax deduction shall be entitled to the deduction of input value added tax (called "input tax") as follows:
a/ Input tax imposed on goods and services used for the production and trading of goods and services liable to value added tax shall be fully deducted.
b/ Input tax imposed on goods and services which are used for the production and trading of goods and services liable to value added tax and which are not subject to value added tax shall be deducted only from the input tax imposed on goods and services used for the production and trading of goods and services liable to value added tax.
c/ Any input tax incurred in a month shall be declared and deducted upon the calculation of payable tax amount of such month.
In particular, with respect to fixed assets, if the amount of input tax deduction is large, it shall be deducted gradually or the tax shall be returned in accordance with the regulations of the Government.
d/ In cases where a production and/or processing establishment purchases unprocessed agricultural, forest or aquatic products without added value invoice, the input tax shall be deducted at a rate of 1% to 5% on the price of agricultural, forestry and aquatic products bought. Specific deduction rates for each kind of goods shall be determined by the Government.
The tax deduction provided for in this Article shall not be apply to exports.
e/ For a number of other exceptional cases, the input tax deduction shall be determined by the Government.
2. The following bases shall be used to determine the input tax amount to be deducted:
a/ The amount of value added tax written on the added value invoice for the purchase of goods or services or the voucher of the payment of the value added tax. For goods or services bought without added value invoices or with invoices that fail to state the added value amount tax deductions must not be made.
b/ The invoice shall comply with the form set by the tax authority for the types of goods defined at Point d, Clause 1 of this Article.
Article 11.- Invoices, vouchers
1. Any purchases and sales of goods and services must have invoices and vouchers as prescribed by law.
2. Business establishments paying tax by the method of tax deduction shall have to use the added value invoice where all prescribed items including sale price, surcharges, surtax, value added tax amounts, payment price must be fully and accurately stated.
Where the invoice fails to state the value added tax amount, such value added tax shall be determined by the invoiced payment price multiplied by (x) the value added tax rate.
3. With respect to the stamps and tickets that are considered payment vouchers with the prices for payment being already printed therein, such payment prices are considered having already included the value added tax.
Tìm kiếm
Luật Thuế giá trị gia tăng 1997 (Bản Word)