Tiếng Việt| THE NATIONAL ASSEMBLY | SOCIALIST REPUBLIC OF VIET NAM |
| No. 270B-NQ/HDNN8 | Hanoi, 30 June 1990 |
In order to stimulate production, expand distribution, encourage the development of the national economy, and impose a consumption tax as a source of revenue for the State;
Pursuant to articles 80 and 83 of the Constitution of the Socialist Republic of Vietnam;
Pursuant to article 84 of the 1992 Constitution.
This Law provides for a turnover tax.
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1. Agricultural production which is subject to agricultural tax;
2. The production of commodities which are subject to special sales tax;
3. Production of goods for export.
1. production means mining, manufacturing, and the processing of goods. processing means production where a person who places an order delivers all, or a substantial part of, the materials to a business establishment for conversion to products and return on a subcontract basis.
2. construction means the activities of surveying for, designing and building premises and factories, roads, bridges, mines and earthworks, and interior decoration and includes sub-contracting and supply of building materials.
3. transportation means the carriage of goods and passengers by simple or mechanized transport by road, rail, waterway, air or pipeline.
4. trade in lots means the trading in of lots or consignments of goods, or sale of goods by a business establishment belonging to a commercial branch outside its fixed business location.
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6. turnover means gross receipts from the sale of goods, processing goods by way of subcontract, and provision of services.
7. barter of goods or services means the use of goods or services for payment.
8. internal consumption of goods or services means the consumption, by a business establishment of its own goods or services internally or as gifts.
A business establishment shall make full payment of taxes as stipulated by this Law.
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THE BASIS FOR CALCULATION OF TURNOVER TAX
The basis for tax calculation is turnover and the tax rate.
1. For the purpose of tax calculation turnover is defined as follows:
(a) The turnover from production, commerce and restaurant businesses is the revenue received.
(b) The turnover from processing is the value of labour, fuel, power, raw materials, and other expenditure.
(c) The turnover from the business of sales or purchases is the commission earned;
(d) The turnover from services is the fees paid for their provision;
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2. Where turnover of a business establishment is in a foreign currency, it shall be permitted to pay tax in either foreign or Vietnamese currency and the rate exchange shall be the rate published by the State Bank of Vietnam at the time of payment.
3. Where there is barter or internal consumption of goods or services, those goods and services shall, for the purpose of calculation of tax, be valued at the market prices applicable at the time of barter or internal consumption.
Tax rates for each type of business activity are stipulated in the tariff attached to this Law.
Where deemed necessary, the Standing Committee of the National Assembly may make and publish a decision to amend or add to the tax rates stipulated in the turnover tax tariff, and any such decision shall be submitted to the next meeting of the National Assembly for approval.
REGISTRATION, DECLARATION AND PAYMENT OF TURNOVER TAX
A business establishment shall:
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2. For each separate activity strictly comply with the regulations of the State on accounting standards, records, vouchers and receipts.
3. Declare in full its turnover in the manner stipulated by the Ministry of Finance.
4. Provide data books of account, records, and vouchers requested by the tax office.
5. Pay taxes in full and in time.
A business establishment shall:
1. Submit a turnover declaration to the tax office for each month within the first five days of the next month even if it has no turnover.
2. Pay turnover tax in full in the time stipulated by the tax office but no later than the 15th day of the next month.
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When there is barter of goods and services each party must pay turnover tax.
Small business establishments for purposes of tax calculation are those which have the following average monthly turnover in the sectors stated:
1. Commercial production sector: up to three million (3,000,000) dong.
2. Restaurant sector: up to one million five hundred thousand (1,500,000) dong.
3. Production, processing, construction, transportation, and services sector: up to seven hundred thousand (700,000) dong.
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The tax office shall have the following powers and duties:
1. To guide, assist, and supervise business establishments to comply strictly with the standards of accounting, records and vouchers and the procedures for making declarations and payment of turnover tax.
2. To examine and supervise all business activities in order to the calculate the tax.
3. In necessary cases, to require any organization or individual to provide documents relating to the calculation and the payment of turnover tax.
4. To calculate turnover tax, prepare and approve the tax book, notify the amount of turnover tax to be paid to the State Treasury and in collecting tax to issue to the taxpayer a receipt of the Ministry of Finance for tax paid.
5. In relation to any breaches of the Law on Turnover Tax, to prepare reports, impose administrative penalties within its authority, and propose prosecution for criminal responsibility.
6. To consider and resolve complaints and accusations relating to turnover tax.
Article 17
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1. Registered with the tax office or has not made a declaration in accordance with the stipulations regarding determination of turnover tax.
2. Submitted at all, or in time, a declaration of monthly turnover.
3. Strictly complied with regulations relating to accounting standards, records and vouchers.
4. Produced the books of account, records and vouchers and invoices required by the tax office or has not supplied sufficient documents necessary for calculation of turnover for tax purposes.
The tax office shall determine the amount of turnover on the basis of the results of its investigation.
In the event that the business establishment disagrees with the amount of turnover tax levied, it may complain to the immediately superior tax office. Pending resolution of the complaint, the business establishment shall pay the amount of turnover tax levied.
REDUCTION OF AND EXEMPTION FROM TURNOVER TAX
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1. Elderly or disabled people, and small traders who only maintain a minimal living standard.
2. A business establishment which has suffered losses due to natural disasters, war or other contingencies.
3. A business establishment operating in mountainous areas or islands, which conducts scientific research, or applies new technology, and any manufacturing establishment which puts into actual or trial operation a new production line or which manufacturers import substitutes shall if faced with difficulties be considered for a reduction of tax payable of up to 50% for a period of up to two years.
In the case of a business establishment which operates in mountainous areas or islands the period for reduction may be up to three years.
The Government shall stipulate the principles and procedures required for, and shall delegate the authority to grant, a tax reduction or exemption as provided for in this article.
1. Breaches of the Law on Turnover Tax shall be dealt with as follows:
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(b) Any organization which or individual who makes false declarations or evades payment of tax shall in addition to making full payment of the turnover tax stipulated in this Law, be fined an amount of up to three times the amount of the tax evaded:
-For the first offense: once
-For the second offense: twice
-For the third offense: three times.
If the first offense is very serious it may be the subject of a fine of twice or three times the tax evaded;
(c) Any organization which, or individual who, makes late payment of the tax due or of a fine imposed as a penalty shall, in addition to paying the tax or fine as stipulated by this Law, pay, in respect of each day of late payment a fine of one fifth of one per cent (0.2%) of the amount of tax paid late;
(d) Any organization which, or individual who, delays payment of tax or a fine shall be dealt with as follows:
The amount of the tax or fine payable shall be transferred as a priority by the bank concerned from the credit balance of a bank account of the organization or individual to the State Revenue;
-Its goods and chattels shall be impounded as security for the full payment of the tax or fine payable; and
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2. Any individual who evades paying a large amount of tax or who has been previously subjected to administrative penalty due to a failure to comply with any of sub-clauses (a), (b), (c) or (d) of clause 1 of this article and who again commits either of those offenses or a serious crime shall be subject to criminal prosecution in accordance with the stipulations of article 169 of the Criminal Code.
The power to deal with the breaches mentioned in clause 1 of article 19 of this Law is as follows:
1. For the breaches referred to in sub-clause (a):
(a) The head of the local tax office has power to impose a fine of up to fifty thousand (50,000) dong.
(b) The head of the district or equivalent level tax office has power to impose a fine of up to two hundred thousand (200,000) dong.
(c) The tax office of a province or equivalent level has power to impose a fine of up to five hundred thousand (500,000) dong.
2. For the breaches mentioned in sub-clause (b):
(a) The head of a district or equivalent level tax office has power to impose a fine equal to the amount of the evaded tax.
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3. The head of the tax office directly responsible for business establishment may impose the penalty stipulated in articles 19(1)(c) and (d) of this Law for delay in making a tax payment .
Any tax officer or individual who takes advantage of his position and ability to protect those who breach the provisions of this Law on Turnover Tax, who behaves in a manner which is contrary to the provisions this Law, or who is irresponsible in its implementation shall, depending on the seriousness of the offense, be subject to administrative penalty or prosecution for criminal responsibility in accordance with the provisions of the law.
Any tax officer who is irresponsible or intentionally deals with a case in an unlawful manner which results in damage being suffered by the taxpayer or other person shall pay compensation to the person affected.
The Government shall make rules for the reward of:
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2. Persons who discover breaches of this Law on Turnover Tax.
A complaint shall be lodged at the tax office which issued the notice to pay tax or the relevant decision, within thirty (30) days from the date of receipt of the notice or the decision.
Pending resolution of the complaint the complainant shall pay in full and in time the amount of tax payable or fines imposed.
The office which received the complaint shall consider and resolve it within fifteen (15) days from the date of receipt. In more complicated cases, the period may be extended up to thirty (30) days from the date of receipt.
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ORGANIZATION OF IMPLEMENTATION
The Government shall be responsible for the organization of tax collection throughout Vietnam.
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This Law on Turnover Tax shall be of full force and effect as of 1 October 1990.
All previous provisions inconsistent with this Law are hereby repealed.
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PRESIDENT OF THE NATIONAL ASSEMBLY
Le Quang Dao
PROVISIONS OF AMENDING LAW NOT INCLUDED ABOVE.
Article 3
The Government shall amend and add to all promulgated provisions detailing implementation of the Law on Turnover Tax in order to be consistent with this law.
Article 4
This Law shall be at full force and effect as of 1 September 1993.
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FOR THE NATIONAL ASSEMBLY
CHAIRMAN
Nong Duc Manh