CIRCULAR

GUIDING THE IMPLEMENTATION OF THE GOVERNMENT'S DECREE NO. 26/2009/ND-CP OF MARCH 16,2009, DETAILING A NUMBER OF ARTICLES OF THE LAW ON EXCISE TAX, AND DECREE NO. 113/2011/ND-CP OF DECEMBER 8, 2011, AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF DECREE NO. 26/ 2009/ND-CP

Pursuant to November 14, 2008 Law No. 27/2008/QH12 on Excise Tax;

Pursuant to November 29, 2006 Law No. 78/2006/QHU on Tax Administration;

Pursuant to the Government's Decree. No. 26/2009/ND-CP of March 16. 2009. detailing a number of articles of the Law on Excise Tax, and Decree No. 113/2011/ND-CP of December 8, 2011, amending and supplementing a number of articles of Decree No. 26/2009/ND-CP of March 16, 2009;

Pursuant to the. Government's Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;

The Ministry of Finance, guides the implementation of the Government's Decree No. 26/2009/ND-CP of March 16, 2009, and Decree No. 113/2011/ND-CP of December 8, 2011, as follows:

Chapter I

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Article 1. Scope of regulation

This Circular guides the implementation of the Government's Decree No. 26/2009/ND-CP of March 16, 2009, detailing a number of articles of the Law on Excise Tax, and Decree No. 113/2011/ND-CP of December 8. 2011, amending and supplementing a number of articles of Decree No. 26/2009/ND-CP.

Article 2. Taxable objects

Excise tax-liable objects are specified in Article 2 of Law No. 27/2008/QH12 on Excise Tax, Article 2 of the Government's Decree No. 26/2009/ND-CP of March 16,2009, and Clause 1, Article 1 of the Government's Decree No. 113/2011/ND-CP of December 8, 2011.

For excise tax-liable air conditioners of a capacity of 90,000 BTU or less: In case a producer sells or an importer imports outdoor units and indoor units separately, the sold or imported goods (outdoor units and indoor units) are also liable to excise tax like complete products (air conditioners in complete sets).

Article 3. Non-taxable objects

The goods specified in Article 2 of this Circular are not liable to excise tax in the following cases:

1. Goods directly exported by producers or processors or sold or entrusted to other business establishments for export, including:

1.1. Goods exported abroad directly by producers or processors, including goods sold to or processed for export-processing enterprises, except under-24-seat cars sold to export-processing enterprises.

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- Goods sale contract or contract on goods processing for a foreign party.

- Invoice on sale of exported goods or delivery of goods and payment of processing remuneration.

- Export declaration.

- Via-bank payment document.

Via-bank payment means the transfer of money from the importer's account into a bank account under the exporter's name in an appropriate form of payment as agreed in the contract under banking regulations. The payment document is the credit note of the exporter's bank on the sum of money already received from the importer's bank account. In case of deferred payment, such must be agreed in the export contract; upon the payment deadline, the business shall present via-bank payment documents. In case of entrusted export, the entrusted party shall make via-bank payment to the foreign parly.

1.2. Within the period during which import or export duty is not required to be paid under regulations, producers of excise tax-liable goods that temporarily export these goods for re-import under licenses are not obliged to pay excise tax when re-importing these goods but shall pay it when selling them.

1.3. Goods sold by producers or entrusted to exporters for export under economic contracts.

Producers possessing goods not liable to excise tax as specified at this Point must have dossiers comprising the following documents to prove that goods have been actually exported:

- Contract on sale and purchase of goods for export or export entrustment contract between the producer and the exporter, for case of entrusted export.

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- Record of liquidation (whole or partial liquidation) of the contract on sale of goods for export, or record of liquidation of the export entrustment contract, clearly indicating the following details:

Name, quantity, category and selling price of the actually exported goods; mode of payment; sum of money and serial number and date of the document on via-bank payment for exported goods by the foreign purchaser to the exporter; sum of money and serial number and dale of the document of payment between the producer and the exporter or the entrusted party; serial number and date of the export contract and copy of the customs declarations of exported goods.

For goods purchased by or entrusted to exporters for export and not exported but sold domestically, exporters shall declare and pay excise tax when selling them.

1.4. Goods brought abroad for sale at overseas fairs or exhibitions.

An establishment possessing goods which are brought for sale at an overseas fair or exhibition must have:

- Invitation to or written registration for participation in an overseas fair or exhibition.

- Export declaration, with the customs office's certification that the goods have been exported.

- List of goods sold at the fair or exhibition.

- Cash payment documents for goods sold at the fair or exhibition. In case the value of goods sold in cash is higher than the prescribed level, such must be declared to the customs office and a remittance certificate is required according to current regulations.

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2.1. Humanitarian and non-refundable aid; gifts and donations, including:

a/ Humanitarian and non-refundable aid, including also goods imported with non­refundable assistance funds as approved by competent agencies; goods provided as humanitarian assistance or emergency relief for remedying consequences of wars, natural disasters or epidemics;

b/ Gifts of overseas organizations or individuals for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations or people's armed forces units;

c/ Donations or gifts for individuals in Vietnam within law-prescribed quotas.

2.2. Goods transited or transported through Vietnam's border gates or borders and goods in border-gate transfer, including:

a/ Goods transported from countries of exportation to countries of importation through Vietnam's border gates without going through import and export procedures;

b/ Goods transported from countries of exportation to countries of importation through Vietnam's border gates and brought into bonded warehouses without going through import and

export procedures;

c/ Goods transited or transported through Vietnam's border gates or borders under agreements between the Vietnamese Government and foreign governments or between agencies and representatives authorized by the Vietnamese Government and foreign governments;

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2.3. Goods temporarily imported for re-export and actually re-exported within the time limit during which import duty payment is not required under the law on import duty and export duly. In this case, payment of excise tax is not required for the volume of goods actually re-exported.

Goods temporarily exported for re-import and actually re-imported within the time limit during which export duty payment is not required under the law on import duty and export duty. In this case, payment of excise tax is not required for the volume of goods actually re-imported.

2.4. Goods temporarily imported for display at fairs or exhibitions which have actually been re-exported within the time limit during which import duty payment is not required under regulations.

After a fair or an exhibition closes, organizations or individuals that fail to re-export temporarily imported goods shall declare and pay excise tax. If being detected through inspection as failing to make declaration, they shall, apart from paying excise tax, be sanctioned under law.

2.5. Personal effects of foreign organizations and individuals within diplomatic immunity quotas under the law on diplomatic immunities.

2.6. Personal effects within import duty-free luggage quotas of Vietnamese and foreigners upon entry or exit via Vietnam's border gates.

2.7. Goods imported for duty-free sale at duty-free shops under law.

3. Goods imported from abroad into non-tariff areas, goods sold from inland Vietnam into non-tariff areas and used only in these areas, and goods traded between non-tariff areas, except under-24-seat cars.

The dossier, order and competence for deciding on non-collection of excise tax in the cases specified in Clauses 2 and 3 of this Article are similar to those for deciding on import duty non-collection or exemption under the law on import duty and export duty.

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4. Aircraft and yachts used for commercial cargo or passenger transportation or tourism business.

Aircraft or yachts not liable to excise tax which are used for purposes other than commercial cargo or passenger transportation or tourism business are liable to excise tax.

Businesses possessing imported aircraft or yachts used for other purposes as mentioned above shall declare and pay excise tax to customs offices under the Ministry of Finance's guidance on customs procedures; customs inspection and supervision; and import duly, export duty and tax administration of imports and exports.

Businesses possessing domestically produced aircraft or yachts used for other purposes as mentioned above shall declare and pay excise tax to their managing tax agencies based on the residual value of such aircraft or yachts after making depreciation according to regulations.

5. Cars specified in Clause 4, Article 3 of the Law on Excise Tax include cars which are designed by manufacturers to be used as ambulances, prison vans or hearses; radio frequency inspection and control vehicles; armored vehicle mounted ramp systems; mobile television trucks; cars designed with both seats and standing places for transporting 24 or more people; cars operating within recreation, entertainment and sports centers which neither are registered for circulation nor move on roads, special-use vehicles and cars which neither are registered for circulation nor move on roads as guided by the Ministry of Finance in coordination with related ministries and sectors.

An importer of excise tax-free cars designed for operating within recreation, entertainment or sports centers which neither are registered for circulation nor move on roads specified in Clause 5 of this Article shall:

- Produce to the custom office at which the import declaration is opened a copy of its business registration certificate indicating its business in recreation, entertainment or sports centers (containing the importer's signature and seal).

- Write on the import declaration: "cars designed and manufactured for operating only within recreation, entertainment or sports centers which neither are registered for circulation nor move on roads." The importer shall take responsibility for the accuracy of its import dossier.

The customs office with which the importer registers the import declaration shall check the goods and neither collect excise tax nor issue a declaration of origin of imported cars to the importer.

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6. Naphtha, condensate, reformade components and other components used as production raw materials (except gasoline production) imported directly by production establishments:

Naphtha, condensate, reformade components and other components directly sold by their producers to other production establishments for use as production raw materials (except gasoline production).

Excise tax-free goods specified in this Clause must comply with the following provisions on their dossiers and procedures:

a/ In case a producer directly imports goods, it shall produce to customs offices dossiers according to the Ministry of Finance's guidance on customs procedures; customs inspection and supervision; and import duty, export duty and tax administration of imports and exports (in case of entrusted import, import enmeshment contract is required); a copy of the business registration certificate (containing the producer-cum-importer's seal and signature) and a written commitment stating that naphtha, condensate, refonnade components or other components are imported for use as production raw materials (except gasoline production), made by the producer-cum-importer's lawful representative;

In case goods are sold directly by its domestic producer to another producer for use as production raw materials (except gasoline production), the following papers are required: the goods sale and purchase contract; a copy of the goods buyer's business registration certificate (containing the buyer's signature and seal) and a written commitment stating that naphtha, condensate, refonnade components and other components are bought for use as production raw material (except gasoline production), made by the buyer's lawful representative;

b/ Via-bank payment documents.

If using the excise tax-free goods specified in Clause 6 of this Article for other purposes, producers-cum-importers shall declare and pay excise tax at the stage of importation to customs offices under the Ministry of Finance's guidance on customs procedures, customs inspection and supervision; and import duty, export duty and tax administration of imports and exports.

In case naphtha, condensate, refonnade component and other components are sold directly by their domestic producers to other establishments for use as production raw materials (except gasoline production), goods sale invoices must clearly indicate that the goods are not liable to excise tax.

After buying excise tax-free naphtha, condensate, refonnade component and other components specified in Clause 6 of this Article directly from their producers, if selling them in the domestic market or using them for other purposes, buyers shall declare and pay excise tax for these goods.

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Example 1: Refining and Petrochemical Joint-Stock Company A imports condensate for use as raw material for producing gasoline, fuel oil and some other petrochemical solvents. Company A shall pay excise tax when importing condensate. The excise tax amount paid by Company A condensate shall be deducted under Article 8 of this Circular.

Example 2: Refining and Petrochemical Joint-stock Company B buys condensate from its producer, Petroleum Company C, for use as raw material for producing gasoline, fuel oil and some other petrochemical solvents. Company B shall make payment to Company C at the excise tax-inclusive price. The excise tax amount paid by Company B to Company C shall be deducted under Article 8 of this Circular.

7. Air conditioners of a capacity of 90,000 BTU or less which are designed by manufacturers only to be fitted on means of transport, including cars, train carriages, ships, boats or aircraft.

In case a business imports, entrusts the import of, or signs with a domestic contractor a contract on the supply of a central air-conditioning system of over 90,000 BTU which will be delivered according to work construction schedule (this air-conditioning system is imported in many shipments), in order to not be required to calculate and pay excise tax upon each importation of the imported equipment's components such as the outdoor or indoor unit, the business shall produce to the customs office a dossier comprising:

- The original or a copy containing the importer's seal of the import contract (in case of entrusted import, the import entrustment contract is required) or the contract on the sale and purchase of the central air-conditioning system signed with a domestic construction contractor, clearly stating that such system is a synchronous equipment of a capacity of over 90,000 BTU which is imported in complete set under the producer's standards, enclosed with a list of the imported equipment's components.

- The air-conditioning system's connection diagram, certified by the importer and the construction contractor (if any).

- A certificate of inspection of the capacity and synchronicity of the imported equipment as well as the inability to operate independently of its detachable parts (outdoor and indoor units) or groups of detachable parts, issued by a competent inspection agency according to law.

In case each detachable part is, or some detachable parts are assembled into, a complete air conditioner of 90,000 BTU or less which can operate independently without connection to the entire system, each part will be liable to excise tax.

- The business's written commitment to using the imported goods for the proper purpose and taking responsibility before law for its commitments.

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Article 4. Taxpayers

1. Excise taxpayers are producers and importers of goods and providers of services liable to excise lax, including:

Business organizations established and making business registration under the Law on Enterprises, the Law on State Enterprises (now the Law on Enterprises) or the Law on Cooperatives.

1.2. Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, politico-socio-professional organizations, people's armed forces units, non-business organizations or other organizations.

1.3. Foreign-invested enterprises and foreign parties to business cooperation contracts under the Law on Foreign Investment in Vietnam (now the Investment Law); foreign organizations and individuals doing business in Vietnam without establishing legal entities in Vietnam.

1.4. Individuals, households, independent business groups and other producers, traders and importers.

2. In case a business purchases excise tax-liable goods from producers for export and do not export but sell these goods domestically, this business is taxpayer. When selling these goods, the business shall declare and fully pay excise tax.

Chapter II

TAX BASES

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The excise tax calculation price of a goods or service is the goods selling price or the service charge rate, exclusive of excise tax, environmental protection tax (if any) and value-added tax, set by the producer or business, specifically as follows:

1. For domestically produced goods, the taxed price is determined as follows:

Excise tax calculation price

=

Selling price exclusive of value-added tax

-

Environmental protection tax (if any)

1 + Excise tax rate

Of which, the selling price exclusive of value-added tax is determined under the law on value-added tax and the environmental production tax is determined under the law on environmental protection tax.

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b/ In case an excise tax-liable goods producer sells goods via traders, the price as a basis for excise tax calculation is that producer's selling price exclusive of value-added lax and environmental protection tax (if any), which must not be 10% lower than the average selling price applied by these traders. Particularly, the average selling price of cars applied by traders which is used for comparison is the selling price announced by the manufacturer for a car according to its quality standards, excluding equipment and accessories which are further installed by traders at customers' request.

If a producer's selling price is more than 10% lower than the selling price applied by traders, the taxed price shall be assessed by tax agencies under the Law on Tax Administration and its guiding documents.

2. For imports, the taxed price is determined as follows:

Excise tax calculation price = Import duty calculation price + Import duty.

The import duty calculation price is determined under the Law on Import Duty and Export Duty. For imports eligible for duty exemption or reduction, the taxed price is exclusive of the exempted or reduced import duty amount.

3. For excise tax-liable goods, the taxed price is the price exclusive of value-added tax, environmental protection tax (if any) and excise tax and inclusive of the tare value.

For bottled beer, if a deposit is made for empty bottles and producers and customers make quarterly finalization of such deposit, the deposit amount equivalent to the value of lost empty bottles must be included in excise tax calculation turnover.

Example 3: For canned beer, in 2012, the value-added tax-exclusive selling price of 1 liter of canned beer is VND 20,000, and the excise tax rate for beer (applicable from January 1, 2010, through December 31,2012) is 45%, then the excise tax calculation price is determined as follows:

Excise tax calculation price of 1 liter of canned beer

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VND 20,000

=

VND 13,793

1 + 45%

Example 4: In the second quarter of 2012, the value-added tax-exclusive selling price of one box of Hanoi bottled beer is VND 120,000, then the excise tax calculation price is determined as follows:

Excise tax calculation price of1 box

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VND 120,000

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1+45%

Example 5: In the third quarter of 2012, Beer Company A sells 1,000 beer bottles to customer B and collects a total deposit for empty bottles of VND 1,200,000 (VND 1,200/bottle). At the end of the quarter. Company A and customer B make finalization: the number of recovered empty bottles is 800 and the number of lost bottles is 200. Based on the number of recovered bottles. Company A returns to customer B a sum of VND 960,000 and shall include in excise tax calculation turnover the deposit amount for lost bottles which is VND 240,000 (200 bottles x VND 1,200/bottle).

4. For processed goods, the taxed price is that of sold goods set by the processing-ordering establishment or the selling price of products of the same or similar kind at the time of goods sale, exclusive of value-added lax, environ­mental protection tax (if any) and excise tax.

5. For goods produced in the form of business cooperation between a producer and an user or owner of goods trademarks (brands) or production technologies, the price as a basis for excise tax calculation is the selling price exclusive of value-added tax and environmental protection tax (if any) set by that user or owner. In case an establishment produces goods under a franchising license and transfers goods to Vietnam-based branches or representatives of the foreign company concerned for sale, the excise tax calculation price is the selling price of those branches or representatives.

6. For goods sold on installment or deferred payment, the excise tax calculation price is the one-off selling price of such goods, exclusive of value-added tax, environmental protection tax (if any), excise tax and the installment or deferred payment interest.

7. For goods and services used for barter, internal consumption, donation or sales promotion, the taxed price is that of goods or services of the same or similar kind at the time of barter, internal consumption, donation or sales promotion.

8. In case an exporter purchases excise tax-liable goods from producers for export then does not export but sells them domestically, the taxed price is the selling price exclusive of excise tax, environmental protection tax (if any) and value-added tax and shall be determined as follows:

Excise Tax calculation price

Domestic sale price set by the exporter exclusive of value-added tax

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Environmental protection tax (if any)

1 + Excise tax rate

In case an exporter declares a selling price (inclusive of value-added tax, environmental protection tax (if any) and excise tax) which is 10% lower than the market price as a basis for determining the taxed price, the taxed price shall be assessed by tax agencies under the Law on Tax Administration and its guiding documents.

9. For services, the taxed price is the service charge rate, exclusive of value-added tax and excise tax, set by the service provider, specifically as follows:

Excise tax calculation price

Service charge rate exclusive of value-added tax

1 + Excise tax rate

For some services, the service charge rate exclusive of value-added tax serving as a basis for determining the taxed price is specified as follows:

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Example 6: For a golf business also deals in hotel, catering, goods sale or game business activities not liable to excise tax, these goods or services are not liable to excise tax.

b/ For casino or prized video game business, it is turnover from such business minus prizes paid to customers, i.e., the collected amount of money (exclusive of value-added tax) from the exchange of money at exchange counters or card tables or slot machines minus the amount of money exchanged back to customers;

c/ For betting business, it is sales of betting tickets minus (-) prizes paid to customers (exclusive of value-added lax), exclusive of sales of entry tickets to entertainment events associated with betting business;

d/ For dance hall, massage parlor and karaoke bar business, it is the value-added tax-exclusive turnover from such business, inclusive of the turnover from catering services and other associated services (e.g., bath and sauna in massage service establishments).

Example 7: Value-added tax-exclusive turnover from dance hall business (inclusive of turnover from catering services) of establishment A in a tax period is VND 100 million.

Excise tax calculation price

=

VND 100 million

=

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1+40%

e/ For lottery business, it is sales (exclusive of value-added tax) of tickets of licensed lotteries under law.

10. Taxed prices of goods and services specified in Clauses 1 thru 9 of this Article arc inclusive of additional revenues (if any) collected by production and business establishments together with goods selling prices or service charges.

Taxed prices arc calculated in Vietnam dong. In case a taxpayer has foreign-currency turnover, such turnover must be converted into Vietnam dong at the average inter-bank exchange rate announced by the State Bank of Vietnam at the time of turnover generation.

For imports, the conversion of Vietnam dong into a foreign currency used for determining the taxed value complies with the law on import duty and export duty.

11. In case production and business establishments fail to comply with or improperly comply with regulations on invoices and documents, tax agencies shall, based on production and business realities, assess turnover under the Law on Tax Administration and determine the payable excise tax amount.

12. The time of determining excise tax is specified as follows:

- For goods, the time of turnover generation is the time of transfer of the right to own or use the goods to the purchaser, regardless of whether or not money has been collected;

- For services, the time of turnover generation is the time of completing service provision or the time of making a service provision invoice, regardless of whether or not money has been collected;

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13. When trading in goods, providing services and transporting goods, producers and importers of excise tax-liable goods and providers of excise tax-liable services shall comply with regulations on accounting, invoices and documents.

When selling or delivering goods to their branches, dependent establishments or agents, producers shall issue invoices. In case of selling or delivering goods to branches or shops in the same province or centrally run city or when consigning goods from one to another warehouse, producers may use the ex-warchousing-cum-internal transportation bill enclosed with the internal transfer order.

Producers of excise tax-liable trademarked goods shall register trademarks under regulations.

Article 6. Excise tax rates

1. Excise tax rates comply with Article 7 of Law No. 27/2008/QH 12 on Excise Tax, Article 5 of the Government's Decree No. 26/2009/ND-CP of March 16, 2009, and Clause 4, Article 1 of the Government's Decree No. 113/2011/ND- CP of December 8,2011.

2. In case an establishment produces different kinds of goods or provides different kinds of services liable to excise tax at different tax rates, it shall declare and pay excise tax according to the tax rate prescribed for each kind of goods or service. If the establishment cannot determine tax according to each tax rate, it shall calculate and pay tax at the highest tax rate applicable to the goods it produces or the services it provides.

Chapter III

EXCISE TAX REFUND, DEDUCTION AND REDUCTION

Article 7. Tax refund

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1. Goods temporarily imported for re-export, including:

a/ Imports for which excise tax has been paid but which are still kept in warehouses or yards at border gates under customs supervision and will be re-exported abroad;

b/ Imports for which excise tax has been paid for delivery or sale abroad through Vietnam-based agents; goods imported for sale to foreign firms' vehicles operating on international routes via Vietnamese ports or to Vietnamese vehicles operating on international routes under the Government's regulations;

c/ Goods temporarily imported for re-export by the mode of temporary import for re-export. When they are re-exported, the excise tax amount already paid on the volume of actually re-exported goods will be refunded;

d/ Imports for which excise tax has been paid but re-exported abroad. When they are exported abroad, the excise tax amount already paid on the volume of re-exported goods will be refunded;

e/ Goods temporarily imported for display at fairs, exhibitions or showrooms or for other purposes in a certain period for which excise tax has been paid. When they are re-exported, the paid excise tax amount will be refunded.

f/ Imports for which excise tax has been paid as declared but the volume of actually imported goods is smaller than declared; imports damaged or lost in the course of importation for plausible reasons for which excise tax has been paid.

g/ For imports failing to meet quality or category requirements under contracts or import licenses (at the fault of foreign goods owners) which have been inspected by competent, testing agencies and certified by foreign goods owners and are permitted for import, customs offices shall inspect and re-certify the payable excise tax amount. The overpaid tax amount, if any, will be refunded, and the insufficient tax amount, if any, will be added.

In case goods are permitted for re-export abroad, the excise tax amount already paid on the volume of re-exported goods will be refunded.

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2. For goods which are raw materials imported for export production and processing, the excise tax amount already paid on the volume of raw materials used for producing actually exported goods will be refunded.

The excise tax refund under Clauses 1 and 2 of this Article applies only to actually exported goods, and the procedures, dossiers, order and competence for refunding excise tax on imports are similar to those for import duty refund under the law on import duty and export duty.

3. When making tax finalization upon merger, separation, split-up, dissolution, bankruptcy, ownership transformation. assignment, sale, contracting or lease of state enterprises, production and business establishments that have overpaid excise tax amounts may request tax agencies to refund such amounts.

4. Excise tax will be refunded in the following cases:

a/ Tax refund under competent agencies' decisions according to law;

b/ Tax refund under treaties to which the Socialist Republic of Vietnam is a contracting party;

c/ Tax refund in case the paid excise tax amount is larger than the payable excise tax amount under regulations.

The procedures, dossiers, order and competence for excise tax refund under Clauses 3 and 4 of this Article comply with the Law on
Tax Administration and its guiding documents.

Article 8. Tax deduction

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For a taxpayer that concurrently produces gasoline, oil and petrochemical solvents from excise tax-liable raw materials, the excise tax amount already paid on imported raw materials or for raw materials bought from domestic producers may be deducted when determining the payable excise tax amount. The deductible excise tax amount is equivalent to the excise tax amount on raw materials used for producing goods sold.

Conditions for excise tax deduction are specified as follows:

- For cases of importing excise tax-liable raw materials for producing excise tax-liable goods, documents as a basis for excise tax deduction arc those on payment of excise tax at the stage of importation.

- For cases of purchasing raw materials directly from domestic producers:

+ Goods sale and purchase contract, clearly indicating that the goods are produced directly by the seller, copy of the seller's business registration certificate (containing the seller's signature and seal);

+ Via-bank payment documents;

+ Documents as a basis for excise tax deduction are value-added invoices issued upon goods purchase. The excise tax amount already paid by the buyer when buying raw material shall be determined to be the excise tax calculation price multiplied (x) by the excise tax rate; of which:

Excise tax calculation price

=

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...

1 + Excise tax rate

The deductible excise tax amount is equal to the excise tax amount already paid for raw material used for producing the goods sold.

Excise tax shall be deducted upon tax declaration. The payable excise tax amount is determined according to the following formula:

Payable excise tax amount

=

Excise tax amount payable for excise tax- liable goods ex-warehoused for sale in the period

-

Excise tax amount already paid upon buying raw materials equivalent to the volume of goods ex-warehoused for sale in the period

Example 8:

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+ Importing 10,000 liters of liquor and paying an excise tax amount of VND 250 million upon importation (based on the receipt of excise tax payment at the stage of importation).

+ Ex-warehousing 8,000 liters for producing 12,000 bottles of liquor.

+ Selling 9,000 bottles of liquor; the excise tax amount payable for these 9,000 bottles is VND 350 million.

+ The excise tax amount already paid at the stage of importation of liquid liquor for 9,000 sold bottles of liquor is VND 150 million.

So, the excise tax amount payable by establishment A is this period will be:

VND 350 million - VND 150 million = VND 200 million.

In case the excise tax amount already paid for raw materials equivalent to products sold in the period cannot yet be accurately determined, the previous period's data may be used to temporarily calculate the deductible excise tax amount which shall be re-determined based on the actual data at the end of the quarter or year. In all cases, the deductible excise tax amount must not exceed the excise tax amount calculated for raw materials according to techno-economic norms of products. Producers shall register products' techno-economic norms with their managing tax agencies.

Article 9. Tax reduction

Excise tax reduction complies with Article 9 of Law No. 27/2008/QH12 on Excise Tax.

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Chapter IV

IMPLEMENTATION PROVISIONS

Article 10. Effect

1. This Circular takes effect on the effective date of Decree No. 113/2011/ND-CP (February 1,2012).

2. This Circular replaces the Ministry of Finance's Circular No. 64/2009/ND-CP of March 27, 2009, detailing the implementation of Decree No. 26/2009/ND-CP of March 16, 2009, which details a number of articles of the Law on Excise Tax.

Article 11. Organization of implementation

1. Tax agencies shall manage excise tax collection, refund and reduction for businesses.

2. Customs offices shall manage excise tax collection and refund for imported goods.

3. Any difficulties and problems arising in the course of implementation should be reported to the Ministry of Finance for timely settlement.-

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FOR THE MINISTER OF FINANCE
DEPUTY MINISTER




Do Hoang Anh Tuan

 ANNEX No. 1

(To the Ministry of Finance‘s Circular No. 05/2012/TT-BTC of January 5, 2012,  guiding the implementation of the Government’s No. 26/2009/ND-CP of March 16, 2009, and Decree No. 113/2011/NĐ-CP of December 08, 2011, amending and supplementing a number of articles of Decree No. 26/2009/ND-CP  of March 16, 2009, detailing a number of articles of the Law on Excise Tax)

RECONCILIATION MONITORING CARD FOR IMPORTED DETAILS OF IMPORTED CENTRAL AIR-CONDITIONING SYSTEMS OF OVER 90.000 BTU

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Sheet No. …………...

1. Enclosed with the list of quantities of imported details of imported central air-conditioning systems of over 90.000 BTU under contract No. ... , date  … month … year……….

2. Name of organization/individual:.........................................; Code .............................

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No.

No., sign, date of customs declaration

Name of goods, specifications

Unit of calculation

Goods imported under customs declaration

Remaining goods not yet imported

Signature, stamp of customs officer in charge of statistics, reconciliation

Quant.

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Quant.

Value

1

2

3

4

5

6

7

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9

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Card-issuing customs officer
(Signature; stamp)

 Notes:

- The items Number of sheets and Sheet No. 1, 2, 3 and 4 are filled in by the card-issuing customs office. When issuing this card with many sheets, the customs office shall append its stamp on all sheets.

- Columns 1 to 9 of the card are filled in by the customs office carrying out import procedures.

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