Chương 3 Nghị định 79/2000/NĐ-CP: Đăng ký, kê khai, nộp thuế, quyết toán thuế

Chapter III

TAX REGISTRATION, DECLARATION, PAYMENT AND FINAL SETTLEMENT

Article 11.- Business establishments shall have to register their tax payment as follows:

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

For newly set up establishments, the time limit for tax payment registration shall be ten days after they are granted business registration certificates; in cases where such business establishments have not yet been granted the business registration certificates but wish to conduct business activities, they shall have to register their tax payment before conducting such business activities. In case of a merger, amalgamation, split-up, division, transformation of enterprise ownership form, dissolution, bankruptcy or change in their business lines, business places, the business establishments, which have already registered their tax payment, shall also have to notify the tax authorities thereof within five days before such changes occur.

2. In cases where a business establishment that pays tax by the method of direct calculation on added value fully meets the following conditions: observing the regulations on invoices, vouchers and accounting books; registering and paying tax strictly according to the regime; and voluntarily registering to apply the tax payment by the tax deduction method, the tax authority shall, after inspecting and certifying that such business establishment has properly and fully met the above-said conditions, notify such establishment of its approval for implementation. If in the implementation courses the establishment fails to materialize all the prescribed conditions, the tax authority shall issue a notice to suspend the application of the tax deduction method.

The Finance Ministry shall guide the procedures for registering the tax payment and the competence to consider and permit the business establishments that are currently paying tax by the method of direct calculation on added value to apply the tax deduction method according to the provisions of this Article.

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

1. An establishment that trades in goods or services subject to value added tax shall have to make monthly written value added tax declaration and submit the tax registration form together with the list of goods or services purchased and sold for use as basis for determining the monthly payable tax amount to the tax authority within the first ten days of the following 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 establishment shall still have to make and submit its written tax declaration to the tax authority. The establishment shall have to fully declare the tax strictly according to the set form and take legal responsibility for the accuracy of its declaration.

In cases where foreign organizations and/or individuals, which have not yet set up their offices or executive offices in Vietnam, supply goods or services subject to value added tax to Vietnamese organizations and/or individuals for consumption, such Vietnamese organizations and individuals shall have to pay value added tax and make value added tax payment declaration on behalf of the foreign parties. The payable value added tax shall be calculated on the prices of goods or services to be paid to the foreign parties.

2. A business establishment or an importer that imports goods subject to value added tax shall have to make and submit a value added tax declaration upon each importation, together with import tax declaration with the import tax collecting agency.

3. A business establishment that trades in different kinds of goods and/or services subject to different value added tax rates shall have to declare the value added tax according to the tax rate set for each kind of goods or services. If such business establishment fails to determine payable tax amount according to each tax rate, it shall have to calculate and pay tax at the highest tax rate applicable to goods and services it produces or trades in.

In cases where a business establishment, which purchases and/or sells gold, silver and gems and is engaged in the processing and fashioning of such products, fails to account separately the turnover from and taxes on such activities, a tax rate of 20% shall be collectively applied to both processing and fashioning activities and the method of direct tax calculation on added value shall be applied.

Article 13.- Value added tax shall be paid into the State budget according to the following regulations:

1. Business establishments shall have to directly pay value added tax in full and on time into the State budget according to the tax payment notices issued by the tax authorities.

The deadline for tax payment for a month as inscribed in a tax notice shall not be later than the 25th day of the following month.

For households and individuals that conduct business activities in areas far from the State treasury offices or conduct itinerant and irregular business activities, the tax authorities shall organize the tax collection and remittance into the State budget. The tax authorities shall have to remit the collected tax amounts into the State budget within 3 days; particularly for mountainous areas, island and areas difficult to access, such time limit shall be 6 days after the tax amounts are collected.

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

The deadlines for issuing a notice on and for payment of, value added tax on import goods shall be the same as those for the import tax notice and payment. For import tax-free goods, the deadline for value added tax declaration and payment shall be the same as prescribed for goods subject to import tax.

In cases where imported goods (including materials, machinery, equipment...), which are not subject to value added tax upon importation, are sold or used for other purposes, the concerned establishments shall have to declare and pay value added tax as prescribed for other goods.

3. A business establishment shall be entitled to have its overpaid tax amount in a tax calculation period deducted from the payable tax amount of the following period or shall have to pay the outstanding tax amount from the previous period, if any. A business establishment that pays value added tax by the tax deduction method and has the input tax amount larger than the payable output tax amount, shall be entitled to the deduction of the difference for the following taxation period. In cases where a business establishment makes new investment in fixed assets and has a large deductible input tax amount, it shall be entitled to gradual tax deduction or reimbursement according to provisions of Article 15 of this Decree.

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

In cases where a business establishment has its turnover, output tax and input tax in foreign currency(ies), it shall have to convert them into Vietnam dong at the inter-bank market’s exchange rates at the time such foreign currency amounts are generated, so as to determine the payable tax amount.

The Finance Ministry shall guide in detail the tax payment procedures applicable to each tax payment method and each kind of tax payers defined in this Article.

Article 14.- Business establishments shall have to make the annual tax final settlement with the tax authorities. A tax final settlement year shall be the solar calendar year. Within 60 days after a years end, the business establishments shall have to submit their tax final settlement reports to the tax authorities and fully pay the outstanding tax amounts into the State budget within 10 days from the date the tax final settlement reports are submitted. In case of overpayment, such overpaid amounts shall be deducted from the tax amounts to be paid in the following period.

In case of a merger, amalgamation, split-up, division, dissolution or bankruptcy, a business establishment shall also have to make the tax final settlement and submit the report thereon to the tax authority within 45 days from the date the decision on such merger, amalgamation, split-up, division, dissolution or bankruptcy is issued.

The business establishment shall have to declare the total payable tax amount, the paid tax amount, the outstanding amount or overpaid amount up to the prescribed date for tax final settlement. It shall have to fully and accurately declare the indexes and data according to the set form of tax final settlement and send the tax final settlement to the tax authority of the locality where the establishment has registered its tax payment within the time limit prescribed above.

The Finance Ministry shall set form and guide the final settlement of value added tax as prescribed in this Article.

Article 15.- The reimbursement of value added tax already paid according to Article 16 of the Value Added Tax Law shall be specified as follows:

1. Business establishments that pay tax by the tax deduction method shall be considered for tax reimbursement if their deductible input tax is larger than their output tax for a period of 3 consecutive months or more. Business establishments which seasonally or periodically export goods in large volumes, if their input value added tax on their export goods is larger than their output tax, shall be considered for value added tax reimbursement for each period.

2. Business establishments that pay tax by the tax deduction method and make investment in the procurement of fixed assets, shall be considered for reimbursement of input tax on fixed assets as follows:

a/ For a business establishment that has made new investment and registered for tax payment with the tax authority, but has no output tax, if its investment period is one year or more, it shall be considered for input tax reimbursement for each year. An establishment that has a large input tax amount of its invested assets to be reimbursed, it shall be considered for quarterly tax reimbursement.

b/ For a business establishment that has made extensive or intensive investment, if after 3 months of deduction, the undeducted amount of input tax on the investment assets is still larger than the deducted amounts; it shall be considered for reimbursement of the undeducted tax amount.

3. For business establishments that have overpaid tax amounts in their tax final settlement upon a merger, amalgamation, split-up, division, dissolution or bankruptcy, they shall be considered for reimbursement.

4. Value added tax shall also be reimbursed to projects funded by the official development assistance (ODA) sources:

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

b/ For projects non-refundably invested by the State with ODA sources: The project owners or principal contractors shall be reimbursed the value added tax amounts paid upon the import and purchase of goods and services at home for use for their projects.

5. Vietnam-based organizations that use humanitarian aids or non-refundable aids from foreign organizations and individuals for purchasing goods in Vietnam shall be reimbursed the value added tax amounts already paid inscribed in added value invoices upon the purchase of such goods for use as aids.

6. Business establishments that have tax reimbursement decisions of the competent bodies as defined by law.

To be entitled to tax reimbursement, business establishments shall have to send their tax reimbursement applications and dossiers to the local tax collection managing authorities. The tax authorities shall have to check and determine the tax amounts to be reimbursed and then carry out the tax reimbursement procedures or request the competent bodies to make the tax reimbursement to the concerned establishments.

The Finance Ministry shall prescribe the procedures, time limit and competence to settle the tax reimbursement provided for in this Article.

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

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

To send first notices to business establishments that fail to properly implement the regulations on tax registration, declaration and payment. If after first notices are issued, the notified establishments still fail to implement, they may handle such tax-related administrative violations. Upon inspecting and detecting business establishments that have conducted business activities without business registration, they shall request such establishments to make tax registration, declaration and payment as prescribed by law and handle tax-related administrative violations committed by such establishments.

2. To send to business establishments notices on the payable tax amounts and the tax payment deadlines within the prescribed time limit. A tax payment notice must be sent to a tax payer within three days before the date of tax payment inscribed in such notice. The deadline for tax payment for a month shall not be later than the 25th day of the following month.

To issue another notice on the payable tax amount and fine for deferred tax payment according to the provisions of Clause 2, Article 19 of the Value Added Tax Law, if past the tax payment deadline inscribed in the notice, the notified business establishment still fails to pay tax. The period of deferred tax payment shall be calculated as from the 26th day of the following month. For import goods and other cases, such period shall be calculated as from the date of tax payment as prescribed by law and inscribed in the tax notice. If such establishment still fails to pay tax and fine as stated in the notice, the tax authority may apply or request the competent bodies 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. If such business establishment once again fails to pay full amount of tax and fine after such handling measures have been applied, the tax authority shall forward the dossier to law enforcing bodies for further handling.

3. To examine and inspect the tax declaration, payment and final settlement by business establishments strictly according to the provisions of law.

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

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

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

Article 17.- Tax authorities may set value added tax amounts that must be paid by tax payers in the following cases where the latter:

1. Fail to implement or improperly implement the regulations on accounting, invoices and vouchers.

For business establishments that pay value added tax by the method of direct calculation on the added value that have not yet effected or improperly effected the purchase and/or sale of goods and/or services with invoices and vouchers, the tax authorities shall base themselves on the business situation to determine the added value and payable tax amounts by the tax calculation method prescribed in Clause 2, Article 8 of this Decree.

For individuals engaged in medium- and small-scale business activities, the tax amount set to be paid each time may serve as basis for tax collection for a period of 6 months or 12 months, depending on the business line, the price fluctuation and the business situation of such tax payers. The tax authority shall have to publicly announce the tax level set for such tax payers.

Individuals engaged in medium- and small-scale business activities shall pay tax at the rate set for each period. They shall have to declare any change in their business lines, scale or turnover to the tax authority for consideration and readjustment of the set tax level. If they fail to declare or untruthfully declare such, the tax authority may set a certain payable tax rate suitable to the business situation. Those individuals who suspend their business activities for 15 days or more shall be considered for 50% reduction of such month’s payable tax amount. If they suspend their business activities for the whole month, they shall be exempt from tax payment for that month.

The Finance Ministry shall guide the determination of the percentage (%) of added value calculated on the turnover to serve as basis for determine payable value added tax suitable to each business line or trade; the procedures for declaring the business suspension and the tax reduction for households suspending their business activities according to the provisions of this Article.

2. Fail to declare or to submit tax declaration forms within the notified time limit; or have submitted tax declaration but falsely declared the bases for determining the value added tax amount;

3. Refuse to produce accounting, invoices, vouchers and necessary documents related to the value added tax calculation;

4. Are inspected and detected to have conducted business activities without business registration, and without tax payment registration and declaration;

The tax authority shall base itself on documents related to survey of business activities of establishments or on the payable tax amounts of other business establishments with the same business lines and similar scale to set the payable tax amount for each business establishment in the above-said cases.

In cases where a business establishment disagrees with the set payable tax amount, it may lodge a complaint to the tax authority that has set the payable tax amount or to the immediate superior authority of such tax authority. Pending the settlement, such complaining business establishment or individual still has to pay tax at the rate set by the tax authority.