Chương 3 Nghị định 158/2003/NĐ-CP: Đăng ký, kê khai, nộp thuế, quyết toán thuế

Chapter III

TAX REGISTRATION, DECLARATION, PAYMENT AND SETTLEMENT

Article 11.- Business establishments shall make tax registration and payment as follows:

1. All business establishments liable to pay value added tax prescribed in Article 3 of this Decree, including their attached units and affiliates, shall have to register with the tax agencies of the localities where they conduct their business activities the business locations, business lines, existing number of laborers, capital, tax payment places and other relevant criteria under the tax agencies’ guidance.

For newly set up establishments, the time limit for tax registration shall be within ten days after they are granted business registration certificates; in cases where they have not yet been granted business registration certificates but conduct business activities, they must register tax payment before conducting business activities. For business establishments that have already registered tax payment, in case of a merger, consolidation, division, splitting, change of ownership form, dissolution, bankruptcy or change of business lines or places, the business establishments shall also have to declare such with the tax agencies at least 5 days before such changes are made.

2. For business establishments that pay tax by the method of direct calculation on the added value, if they fully meet the conditions on the regime of invoices, vouchers and accounting books, make tax declaration and payment strictly according to regulations and voluntarily register the application of tax calculation by the tax deduction method, which have been examined and certified by the tax agencies, the tax agencies shall notify such to the establishments for implementation; in the course of implementation, if the establishments fail to strictly observe the prescribed conditions, the tax agencies shall make notices on the suspension of tax calculation according to the tax deduction method.

The Finance Ministry shall guide procedures for tax registration and payment and competence to consider and permit business establishments which are liable to pay tax by the method of direct calculation on the added value to pay tax according the tax deduction method prescribed in this Article.

Article 12.- Business establishments and importers shall have to make value added tax declaration according to the following regulations:

1. Business establishments that deal in goods and services subject to value added tax shall have to make monthly value added tax declaration and submit tax declarations together with lists of purchased/sold goods and services, which shall serve as bases for determining monthly payable tax amounts, to the tax agencies within the first ten days of the subsequent month. Even in cases where there is no turnover from the sale of goods or services, where input tax and output tax do not arise, the business establishments shall still have to make and submit declarations to the tax agencies. The establishments shall have to fully declare tax strictly according to the set form and bear legal responsibility for the accuracy of their declaration.

The time for calculating arising output value added tax shall be the time the business establishments have transferred ownership (use right, for case of sale in form of installment payment) of goods or provided services to the purchasers, irrespective of whether the purchasers have paid or not yet paid therefor. When selling goods or providing services, the business establishments shall have to make invoices according to law provisions.

Foreign-based organizations and individuals that do not have their Vietnam-based offices but provide goods and/or services subject to value added tax to Vietnam-based organizations and individuals, the latter shall have to make value added tax declaration and payment on behalf of foreign-based organizations and individuals.

2. Business establishments and importers that import goods subject to value added tax shall have to make and submit value added tax declaration upon each importation together with the import tax declaration with the import tax-collecting agencies.

3. Business establishments that deal in different kinds of goods and services with different value added tax rates shall have to make value added tax declaration at each tax rate prescribed for each kind of goods or services; if business establishments cannot determine value added tax at each tax rate, they shall have to calculate and pay the tax at the highest tax rate of goods produced or services provided by the establishments.

Article 13.- Payment of value added tax into the State budget

1. Business establishments shall have to pay value added tax fully and on time into the State budget.

a/ For business establishments that pay tax according to the tax deduction method, after submitting the value added tax declarations to the tax agencies, they shall have to pay value added tax into the State budget. The deadline for monthly tax payment shall be the 25th day of the subsequent month. In cases where business establishments have large amounts of payable value added tax amounts (an average of VND 200 million/month or more), they shall have to pay tax once every 5 or 10 days in a month. At the month-end, after making tax declaration and calculation, business establishments shall have to pay the outstanding tax amounts into the State budget. The deadline for paying the outstanding tax amounts shall be the 25th day of the subsequent month.

b/ Business establishments, that fail to fully abide by the regimes on accounting and tax payment invoices and vouchers according to the method of direct calculation, shall have to pay value added tax fully and on time into the State budget according to the tax agencies’ tax payment notices. The deadline for monthly tax payment shall be the 25th day of the subsequent month.

c/ For business households and individuals that are based in areas far from the State treasuries or that conduct itinerant or irregular business activities, the tax agencies shall collect and remit tax into the State budget. The time limit for the tax agencies to remit the collected tax amounts into the State budget shall be within 3 days, or 6 days for mountainous areas, islands and areas where travel is difficult, after the tax amounts are collected.

2. Business establishments and goods importers shall have to pay value added tax upon each importation.

The time limit for notifying and the time limit for paying the value added tax on import goods shall coincide with the time limit for notifying the import tax payment. For goods not subject to import tax, the time limit for value added tax declaration and payment shall comply with the regulations applicable to goods subject to import tax.

For import goods not subject to value added tax as prescribed in Clause 4, Article 4 of this Decree, if establishments sell them or use them for other purposes, they shall have to make value added tax declaration and payment according to the regulations applicable to other goods.

3. In a tax calculation period (a month), if business establishments have overpaid tax amounts of the previous period, such overpaid amounts shall be deducted from the payable tax amount of the subsequent period, if they have not fully paid tax, they shall have to fully pay the outstanding tax amount of the previous period. Business establishments liable to pay value added tax according to the tax deduction method, which have the input tax amount larger than the output tax amount in a tax calculation period, shall be entitled to deduct such larger tax amount from the subsequent tax calculation period. In cases where business establishments make new investment in fixed assets and have large amounts of deductible input tax, they shall be entitled to gradual tax deduction or tax reimbursement according to the provisions of Article 15 of this Decree.

4. Value added tax shall be remitted into the State budget in Vietnam dong.

In cases where business establishments have turnovers in foreign currencies, they must convert such foreign currencies into Vietnam dong at the exchange rates announced by Vietnam State Bank at the time the foreign currency turnovers are generated in order to determine the payable tax amounts.

The Finance Ministry shall provide specific guidance on tax payment procedures suitable to each mode of tax payment and each tax payer prescribed in this Article.

Article 14.- Business establishments shall have to make annual tax settlement with the tax agencies. The tax settlement years shall be the calendar years. Within sixty days after the year-end, business establishments shall have to send tax settlement reports to the tax agencies and fully remit the outstanding tax amounts into the State budget within ten days after submitting the tax settlement reports; in case of overpayment, the overpaid amounts shall be deducted from the payable tax amounts of the subsequent period.

In case of merger, consolidation, division, splitting, dissolution, bankruptcy or change of ownership form; assignment, sale, contracting or lease of State enterprises, business establishments shall have to make tax settlement with the tax agencies and send tax settlement reports to the tax agencies within forty five days after the issuance of the decisions on such merger, consolidation, division, splitting, dissolution, bankruptcy or change of ownership form; assignment, sale, contracting or lease of State enterprises.

Business establishments shall have to declare all the payable tax amounts, the already paid amounts, the outstanding amounts or overpaid amounts by the time prescribed for tax settlement. The establishments shall have to fully and accurately declare the criteria and data according to the tax settlement forms; send tax settlements to the tax agencies of the localities where they register the tax payment within the time limits prescribed above.

The Finance Ministry shall set forms and guide the value added tax settlement prescribed in this Article.

Article 15.- The reimbursement of the paid value added tax as prescribed in Article 16 of the Value Added Tax Law is specified as follows:

1. Business establishments liable to pay tax according to the tax deduction method shall be considered for tax reimbursement if after three consecutive months or more their input tax amounts have not yet fully been deducted. Business establishments entitled to tax reimbursement consideration in this case shall include also those that make extensive or intensive investment.

Business establishments that export goods and/or services in large volumes and values according to seasons or business affairs, if the amount of input value added tax on export goods or services not yet fully deducted in the month is VND 200 million or more, they shall be considered for monthly tax reimbursement. Business establishments that have export goods eligible for value added tax reimbursement must fully satisfy the conditions and procedures prescribed at Point d, Clause 1, Article 9 of this Decree.

2. Business establishments that make new investment, have already registered their business and tax payment by the tax deduction method, are being in investment period, have not yet operated, if the investment period is 1 year or longer, shall be considered for annual value added tax reimbursement for goods and services used for investment. In cases where establishments have the amounts of value added tax on goods and services used for investment of VND 200 million or more, they shall be considered for quarterly tax reimbursement.

3. Operating business establishments liable to pay tax according to the tax deduction method, that have projects for investment in new production establishments, which are in the investment period, have not yet operated, registered their business or tax, and have the amounts of value added tax on goods and services used for investment projects of VND 200 million or more, shall be considered for quarterly tax reimbursement. Business establishments shall have to separately declare and make dossiers on tax reimbursement for such investment projects.

4. Business establishments, that make tax settlement upon their division, splitting, dissolution, bankruptcy or change of ownership form; assignment, sale, contracting or lease of State enterprises, have input value added tax amount not yet fully deducted or have overpaid value added tax amounts.

5. Value added tax reimbursement for projects funded by the Official Development Assistance (ODA) capital sources:

a/ For projects funded with non-refundable ODA capital: The project owners or principal contractors shall be reimbursed the value added tax amounts already paid within the purchase prices of goods or services used for their projects.

b/ For projects funded with ODA capital being non-refundable State budget capital: the projects owners or principal contractors shall be reimbursed the value added tax amounts already paid upon the importation or purchase of domestic goods and services used for their projects.

6. Vietnam-based organizations, which use foreign organizations’ or individuals’ humanitarian aids for the purchase of value added tax-liable goods in Vietnam to provide humanitarian aids, shall be reimbursed the value added tax amounts on such goods.

7. Subjects enjoying the diplomatic privileges and immunities under the provisions of the Ordinance on Diplomatic Privileges and Immunities, that purchase goods and/or services in Vietnam at the prices inclusive of the value added tax for use shall be reimbursed the paid value added tax amounts inscribed in the added value invoices.

8. Business establishments that have tax reimbursement decisions of competent agencies according to law provisions.

To be entitled to tax reimbursement according to the provisions of this Article, organizations and individuals shall have to send their written requests enclosed with tax reimbursement dossiers to the grassroots tax collection managing agencies. The tax agencies shall have to examine and determine the to be-reimbursed tax amounts and carry out procedures for tax reimbursement or request competent agencies to make tax reimbursement to the establishments.

The Finance Ministry shall prescribe the procedures, time limits and competence for tax reimbursement prescribed in this Article.

Article 16.- The tax agencies shall have the following tasks, powers and responsibilities:

1. To guide business establishments that have registered their business in making value added tax registration, declaration and payment strictly according to the provisions of the Value Added Tax Law.

For business establishments that fail to strictly observe the regulations on tax registration, declaration and payment, the tax agencies shall issue the first notices, if after receiving the first notices, the establishments still fail to implement them, the tax agencies may handle tax-related administrative violations.

2. To notify the business establishments that pay tax according to the tax deduction method to make explanations, adjustments, supplements or re-declaration in cases where their value added tax declarations have failed to state the full and accurate payable tax amounts. To notify the business establishments that pay tax according to the method of direct calculation of the payable tax amounts and the time limits for tax payment as prescribed. Tax payment notices must be sent to the tax payers 3 days before the date of tax payment inscribed in the notices.

If past the prescribed tax payment time limits, the business establishments fail to pay tax, to notify them of the tax amounts and fines for deferred tax payment according to the provisions of Clause 2, Article 19 of the Value Added Tax Law. The time limits for calculating monthly fines for deferred tax payment shall count from the 26th day of the subsequent month or from the date of tax payment notified by the tax agencies to the tax payers. The time limits for calculating fines for deferred payment for import goods and other cases shall be after the prescribed date of tax payment inscribed in the tax notices. If business establishments still fail to pay tax and fine amounts stated in the notices, the tax agencies may apply or request competent agencies to apply handling measures prescribed in Clause 4, Article 19 of the Value Added Tax Law in order to ensure the full collection of tax and fine amounts. If the above-mentioned handling measures have been applied, but the business establishments still fail to fully pay tax and fine amounts, the tax agencies shall transfer the dossiers of the cases to law bodies for handling.

3. To examine and inspect the tax declaration, payment and settlement by business establish-ments strictly according to law provisions.

4. To handle tax-related administrative violations and settle tax-related complaints according to law provisions.

5. To request tax payers to provide accounting books, invoices, vouchers as well as other dossiers and documents related to tax calculation and payment; to request credit institutions, banks as well as other relevant organizations and individuals to provide documents related to tax calculation and payment.

6. To keep and use data and documents provided by business establishments and other subjects in accordance with the prescribed regime.

Article 17.- The tax agencies may determine the payable value added tax for the tax payers in the following cases:

1. Tax payers fail to implement or improperly implement the regimes on accounting, invoices and vouchers.

For business establishments liable to pay tax according to the method of direct calculation on the added value, that fail to effect or fully effect the goods purchase/sale with invoices and vouchers, the tax agencies shall base themselves on their business situation to determine the added value and the payable tax amounts according to the tax calculation method prescribed in Clause 2, Article 8 of this Decree.

For individuals conducting medium- and small-scale business, the fixed tax amount to be paid each time shall be determined for use as basis for tax collection in each period of 6 or 12 months, depending on business lines and price fluctuations as well as business situation of the tax payers. The tax agencies shall have to publicly notify the tax levels set for such subjects.

For individuals conducting medium- and small-scale business that pay tax at the levels prescribed for each period, if there are any changes in their business lines, scales or turnovers, they shall have to declare such with the tax agencies for consideration and adjustment of the set tax levels. In cases where they fail to make declaration or make untruthful declaration, the tax agencies may set the payable tax levels suitable to practical business situation. Individuals that cease to conduct business activities shall have to declare such with the tax agencies for tax exemption or reduction consideration; if they cease their business activities for 15 days or more in a month, they shall be considered for 50% reduction of the payable tax amounts of the month, if they cease their business activities for the whole month, they shall be exempt from tax for such month.

The Finance Ministry shall guide the determination of the percentage (%) of the added value calculated on the turnovers for use as basis for determination of the payable value added tax suitable to each business line; as well as the procedures for declaring business cessation and the tax reduction for business households prescribed in this Article.

2. Tax payers fail to declare or, if past the prescribed time limits for submitting declarations, they have been reminded thereof but still fail to strictly comply therewith, or have submitted their tax declarations but falsely declared the bases for determining the value added tax amounts.

3. Tax payers refuse to produce accounting books, invoices, vouchers and relevant necessary documents related to value added tax calculation.

4. Tax payers conduct business without business registration, without tax payment registration and/or declaration, as detected through inspection.

The tax agencies shall base themselves on the investigation documents on establishments’ business activities or the tax amounts to be paid by other business establishments engaged in the same business lines with equivalent scales to determine the tax amounts to be paid by each business establishment mentioned above.

In cases where business establishments disagree with the determination of the payable tax amounts, they may lodge complaints to the tax agencies which have determined tax or the immediate superior tax agencies of the tax agencies which have determined tax. Pending the settlement, business establishments or complainants shall still have to pay tax at the levels determined by the tax agencies.