Pursuant to the law on organization of the Government of 25 December 2001;

Pursuant to the law on value added tax on June 3, 2008;

Considering the recommendation of the Minister of finance DECREE: chapter I GENERAL PROVISIONS article 1. Scope of this Decree, detailing and guiding the implementation of some articles of the law on value added Tax;

Article 2. The taxpayer 1. The taxpayer value is organization, personal business, production of goods and services subject to value added tax (hereafter referred to as business establishments) and the Organization, personal imports of goods subject to value added tax (hereafter referred to as the import).

2. organizations, individual manufacturing, business in Vietnam to buy services (including the service purchase cases tied to goods) by foreign organizations without resident establishments in Vietnam, individuals in foreign countries is subject to non-residents in Vietnam, the Organization, individuals buying services is the taxpayer.

Where to buy services such as repair of means of transport, machinery and equipment; advertising, marketing; trade and investment promotion; brokers sell goods; training; divide the cost of the postal service, international telecommunications between Vietnam with foreign countries that these services are carried out in Vietnam, the Organization, individuals buying services or split for the foreign countries are not value added tax.

Regulations on permanent basis and the object does not reside in this paragraph follow the provisions of the law on enterprise income tax and personal income tax law.

The Ministry of finance guidelines specified in this clause.

Article 3. The object is not subject to tax on the taxable non-object value performed according to the provisions of article 5 of law of value-added Tax.

1. for the products specified in paragraph 1 article 5 value added tax act through the usual processing as new products are clean, sun exposure, dried, peeled, split, cut slices, salted, preserved the cold and the other regular preserving form.

2. for the products of salt prescribed in clause 4 Article 5 value added tax act is the main component of the product that has the chemical formula is NaCl.

3. Life insurance provisions in paragraph 7 article 5 value added Tax law, including health insurance, personal accident insurance in life insurance package.

4. Some of the services specified in clause 8 article 5 of law of value-added Tax shall be as follows: a. credit services including forms: lending; discount transfer tools and other valuable papers; guarantee; financial leasing and other forms of credit granted under the provisions of the law by financial institutions, credit in Vietnam supply.

b. securities business including: brokerage, proprietary trading of securities, securities underwriting, investment securities, securities, securities investment fund management, portfolio management, securities market organization of services of the Department or the securities trading center other business activities, according to the provisions of the law on securities.

c. assignment which included the transfer of a part or the whole of the capital invested, including selling the business case for business to business and production, transfer of securities and other forms of capital transfer as stipulated by law.

5. examination and treatment services regulations in paragraph 9 Article 5 value added tax law including transport, testing, screening, taking blood and blood products, used for human disease.

6. for maintenance activities, repair, construction works specified in clause 12 article 5 If the value added tax Act have used other sources of capital outside of people's contribution (including capital contributions, the funding of the Organization, individuals), which humanitarian aid that other funds does not exceed 50% of the total amount of capital used for the object is not the taxable value is the full works.

The object of social policy including: people under the provisions of the law on people; the object of social assistance allowances from the State budget; people in poor households, poor access and other cases prescribed by law.

7. public passenger transport prescribed in clause 16 Article 5 value added tax law including public passenger transport by bus, trams follow the routes in the province, in the municipality and neighboring foreign routes the specified by the competent State bodies.

8. Ships flying the clause 17 Article 5 of value-added Tax law, including aircraft engines.

The Ministry of planning and investment to host, in cooperation with the relevant authorities issued the list of machinery, equipment, and materials of the type in the country has produced is to be distinguished from the type in the country have not produced the needed import used directly for scientific research and technological development; List of machinery, equipment, spare parts, vehicles and supplies of the type used in the water produced as a basis to distinguish this type of water has not yet produced the need to conduct exploration, develop oil, gas; The catalogue of ships, drilling rig, water-type vessels were produced as the basis to distinguish this type of water has not yet produced the necessary import create fixed assets of the business, hire of foreign countries use for production, business and to hire.

9. Weapons, specialized equipment, Defense security service specified in clause 18 article 5 of law of value-added Tax by the Ministry of defence, the Ministry of public security, consistent with The financial regulations.

10. Goods specified in clause 19 article 5 of law on value added Tax are specified as follows: a. for humanitarian aid, non-refundable aid imports must be competent State agencies for approval.

b. for gifts to State agencies, political organizations, social-political organizations, social-political organizations, social organizations, social-professional organization, the people's armed units comply with the provisions of the law on gifts, gifts.

c. the level of imported goods as gifts, gifts for individuals in Vietnam made under the provisions of the law on gifts, gifts.

11. The case of technology transfer, intellectual property rights assignment under the provisions of clause 21 Article 5 of value-added tax law that have accompanied the transfer of machinery, equipment, the object is not subject to value added tax calculated on the value of technology, intellectual property rights transfer , transfer; the case does not separate the value added tax shall be calculated on the value of technology, intellectual property rights, transfer transfer together with machinery, equipment.

12. Resources, mineral exploitation has not yet processed the provisions in Article 23, paragraph 5 of law of value-added Tax are the mineral resources have not been processed into other products.

Chapter II BASE and TAX CALCULATION METHODS article 4. Tax rates Tax Rates made under the provisions of article 7 value added tax Act 1. For purchase of services specified in clause 2 2 of this Decree, the tax calculation is the price stated in the purchase contract of service does not yet have value added tax.

2. For goods or services used to Exchange, internal consumption, presentation, donation is tax price value of the goods or services of the same type or equivalent at the time of presentation, donation, exchanges.

Goods, consumer services internally defined in this clause is goods, services or businesses supplying used for consumption, not including the goods and services of use to continue the process of production and business establishments.

3. for operations in real estate, tax price is the price of real estate transfers minus (-) the actual land price at the time of the transfer. The case of the actual land price at the time of the transfer of lower-priced land by the provincial people's Committee, the central cities, land prices are deducted by the Commission charged by the provincial, city, centrally prescribed at the time of the transfer of the property.

The case building, business infrastructure, building homes for sale, transfer or lease is the amount obtained by the progress of the project or the progress of collecting the money in the contract.

4. For power of the hydroelectric-dependent accounting Vietnam electricity, the value added tax rates to determine value added tax amount filed locally where the plant was calculated by 60% of the average commercial electricity sales year ago excluding value added tax.

5. With regard to the service of electronic games, casino gambling, entertainment business have bet, is the amount of revenue from this activity including the special consumption tax minus the amount paid the reward.

6. value added tax prices charged for goods or services specified in clause 1 article 7 value added tax law including surcharges, extra currency more business establishments are affected.

The Ministry of Finance tax price specific instructions specified in this article.

Article 5. The time determines the value added tax 1. The time determines the value added tax for goods is the time of the transfer of ownership or rights to use goods to the buyer, irrespective of whether the money has earned the money.

2. time to determine the value added tax for services is the time of the completion of the provision of services or time of billing services, irrespective of whether the money has earned the money.

3. The Ministry of finance to specific instructions about the time determines the value added tax for other cases.

Article 6. The tax value added tax made under the provisions of article 8 of law value added Tax 1. A 0% tax rate applies to goods and services exports, international transportation, goods, services in an value added tax is not subject to the provisions of article 5 of value-added Taxes when exported, except for the goods or services specified in point DD clause.

a. for goods exports consist of goods exported abroad, sold in tax-free zones and other cases considered as exported under the provisions of the law on trade.


b. for export services include supply services directly to organizations and individuals overseas or in the tax-free zones.

Overseas institutions is held no resident establishments in Vietnam, not the taxpayers of value in Vietnam.

Overseas individual is non-resident foreigners in Vietnam, Vietnam people settled abroad and outside of Vietnam during the provision of services.

Individual organizations in the tax-free is organization, personal business registration and other cases prescribed by the Prime Minister.

c. goods, exports of services specified in point a, b account are tax 0% must meet conditions:-Has a contract to sell, export or authorize the export goods processing, service provision contracts with organizations and individuals overseas or in the tax-free zones;

-Have the certificate from payment of the goods, the export of services through banks and other documents prescribed by law; for goods exported must have a customs declaration.

Goods and services are paid under complementary forms between goods, services for export goods, services imports, repay the state change is also considered to be paid through the Bank.

d. international transport provisions in this clause includes the transport of passengers, baggage, goods under international leg from Vietnam abroad or from abroad to Vietnam. The case, international transport contracts including long inland transport, the international transport including domestic leg.

sync the cases do not apply a tariff of 0% value added tax included: reinsurance abroad; technology transfer, intellectual property rights assignment abroad; the transfer of capital, credit, stock investment abroad; financial services; postal services, telecommunications; export products, mineral resource extraction has not yet processed the provisions in paragraph 12 of article 3 of this Decree; goods and services provided to individuals not registered business in tax-free zones.

2. Tax rate of 5% applicable to goods and services as defined in clause 2 article 8 value-added tax law. Some cases applies a tariff of 5% are specific provisions as follows: a. clean water production and activities specified in point a of paragraph 2 article 8 value-added tax law does not include bottled water, close the jar and other beverage types in an applicable tax rate of 10%.

b. the products specified in point b of paragraph 2 article 8 value-added tax law including: fertilizer is organic fertilizers, inorganic fertilizers, manure of micro and other fertilizers;

-The ore for the production of fertilizers is the iron ore as raw materials to produce fertilizer;

-Smoking Rooms except and the pet growth stimulant, crops.

c. forage, poultry and food for other pets specified in point c of paragraph 2 article 8 value-added tax law covering the product category was over processed or unprocessed bran, dried, such as the type of oil, fish meal, bone powder.

d. preliminary services, preservation of the products specified in point d of paragraph 2 article 8 includes value added tax law: exposure, dried, peeled, split, cut, grind, slice of cold preservation, salting and preserving normal forms.

preferred fresh food specified in point g item 2 article 8 tax law value consists of foods that have not been made nine or processed into other products.

Unprocessed products as defined in point g item 2 article 8 tax law value includes the products of natural forest exploitation in the Group: song, rattan, bamboo, mushrooms, ear; the roots, leaves, flowers, medicinal plants, plastic plants and types of forest products.

e. product chemistry, medicinal herbs as raw materials for the production of medicines, drug prevention is specified in point l item 2 article 8 tax law value under the category due to the Ministry of finance consistent with the Health Ministry.

Article 7. Tax deduction method the method of tax deductions made under the provisions of article 10 of law of value-added Tax.

1. value added tax payable calculated by the method of deduction equal to the tax value of outputs minus (-) of the input value added tax was deducted.

2. value added tax Number output by total tax value of the goods or services sold is recorded on the invoice value.

Value added tax indicated on the invoice value with the prices of the goods tax, taxable services sold (x) for value added tax of goods and services.

Cases using evidence from the record price paid is the price there was value added tax value added tax, then the output is determined by the price paid excluding (-) price tax determined in accordance with point k paragraph 1 article 7 value added tax law.

3. the number of the input value added tax deductible are determined based on: a. value added tax amount indicated on the invoice value of the goods or services purchased; certificate from the tax value of the imported goods or pay tax for purchase of services specified in clause 2 2 of this Decree.

The case goods, services purchased to use evidence from the record price paid including value added tax, the value added tax input deduction determined by the price paid excluding (-) tax rates specified in point k paragraph 1 article 7 value added tax law.

b. conditions of value added tax-deduction of input made according to the provisions in clause 2 article 9 of this Decree.

Article 8. Direct method on value-direct method on value made under the provisions of article 11 of law of value-added Tax.

1. value added tax payable according to the direct method on value using the value of the goods, taxable services sold (x) with the tax rate applicable to the goods, services.

a. the value of the goods and services are determined by the price of the goods or services sold minus (-) the price of goods and services purchased on respectively.

The price of the goods or services sold is the actual selling price recorded on the Bill of sale of goods and services, including value-added tax and the surcharge, additional fee that the seller was entitled to.

The price of goods and services purchased on is determined by the value of goods and services purchased on or imported, there was value added tax for business, manufacturing goods, taxable services value sell out respectively.

b. business establishments that sell goods, services are full of bills, vouchers according to the prescribed regimes, to determine the true revenue sale of goods or services but do not have enough bills to purchase goods, services, the input value is determined by multiplying (x) turnover ratio (%) value calculated on the turnover.

The percentage (%) value calculated on the turnover as a base value determination are specified as follows:-commercial (distribution, supply): 10%;

-Services, construction (except construction how tender materials): 50%;

-Production, transport, services associated with the goods, how building contractor of materials: 30%.

c. business activities, business households do not make or made incomplete accounting regime, bills, vouchers under the provisions of the law of the value added tax according to tax stock method specified in article 38 of the tax administration Law.

The Ministry of Finance shall guide the methods of specific tax provisions on the stock at this point.

2. The object of applying the method of tax calculation directly on the value of: a. base business, individuals, households, business is not done or made incomplete accounting regime, bills, vouchers in accordance with the law.

b. the Organization, foreign individuals doing business in Vietnam not under the investment law and other organizations do not make or made incomplete accounting regime, bills, vouchers under the provisions of the law c. business buy, sell gold, silver, precious stones.

The base case in business tax payers according to tax deduction method in active trading buy, sell gold, silver, precious stones and crafted products operation gold, silver, precious stones, they must separate accounting is active trading buy, sell gold, silver, precious stones to apply according to the direct method on value.

Chapter III, article 9 TAX DEDUCTIONS. Value added tax-deduction of input tax-deduction of input value is made according to the provisions of article 12 the value added tax Act 1. Business value added tax according to tax deduction method deductible input value added tax as follows: a. the input value added tax on goods or services used for the production, trading goods, taxable services value is deducted in full;

b. value added Tax input of goods and services used at the same time for the production, trading goods, taxable services and is not subject to tax, the only tax deductible input value of goods and services used for the production, trading goods, taxable services value. Business establishments to private accounting input value added tax is deductible and non-deductible; where does the private accounting, the input tax deduction calculated according to the rate (%) between the taxable sales value compared to the total sales of goods and services sold.

Input value added tax of the fixed assets used simultaneously for business and production goods, taxable services value and is not subject to value added tax shall be deducted in full.


Input value added tax of the fixed assets in the following cases are not deducted that computer into the raw cost of fixed assets: fixed assets used in weapons production, equipment, Defense Security Service; fixed assets buildings is the Headquarters Office and the specialized equipment serving the credit activity of the credit institution, the reinsurance business, life insurance, stock trading, hospitals, schools; civilian ships, yachts are not used for business purposes, cargo, passengers, business travel, hotels.

Fixed assets are cars transported people from 9 seats (except cars used for business and cargo, passengers, business travel, hotel) valued at over 1.6 billion, the value added tax corresponding to the input value of over 1.6 billion will not be deductible.

c. value added Tax input of goods and services used for the production, trading goods, services not subject to value added tax shall not be deducted, except in cases specified in point d and point VND account.

d. value added Tax of goods, services that businesses buy in to business and production of the goods or services provided to individual organizations abroad, the International Organization for humanitarian aid, non-refundable aid prescribed in clause 19 article 5 value added tax Act are the entire deduction.

Sync input value added tax on goods or services used for the search operation, exploration, oil and gas development be deducted in full.

e. input value added Tax incurred in the month would be declared, deductible when determining tax of that month. Case trading post uncovered of input value added tax when paying, deduct malfunction shall be declared, the additional deduction; time to declare, the additional deduction to a maximum of six months, from the time of arising errors.

g. number of input value added tax is not deductible, business establishments are accounted into the costs to the enterprise income tax calculation or calculated on the raw price of fixed assets 2. Conditions to deduct input value added tax: a. have the invoice value of the goods and services purchased on or certificate from the tax value of the goods at the stage of import, tax vouchers value for purchase of services specified in clause 2 2 of this Decree.

b. have the certificate from the bank payment for goods, services purchased, unless the total value of goods and services purchased on each value below 20 million.

For goods, services purchased deferred installment, worth over 20 million business establishments, pursuant to a contract of purchase of goods, services, value added invoices and payment vouchers through the Bank of goods, services purchased installment, deferred to enumerate, tax deductible input value. Case bank payment voucher do not yet to the point of payment under the contract, the business still to be declared, the tax deduction of the input value. Up to the time of payment under the contract if there is no proof of the payment through the Bank shall not deduct input value added tax, businesses must declare, to adjust the number of input value added tax was deducted.

Goods and services purchased on the method of clearing between the value of goods and services purchased on the value of goods and services sold are also considered to be paid through the Bank; After the case compensated that part remaining value be paid by funds worth between 20 million and above are tax deductible only for cases where there bank payment voucher.

Where to buy goods, services of a provider of value under 20 million, but the purchase several times in the same day had a total value of over 20 million, the tax deduction is only for cases where there bank payment voucher.

c. for goods, services for export, in addition to the conditions referred to in points a, b account have to meet all the conditions specified in point c of paragraph 1 article 6 of this Decree.

Article 10. Reimbursement of value added value added tax refunds made in accordance with article 13 of law value added Tax 1. Business tax according to tax deduction methods refundable value added tax if in three consecutive months over which the input value added tax is not deductible.

2. Business establishments newly set up under investment projects registered business, register value added tax according to the method of deduction, or project exploration and development of oil and gas deposits are in the investment phase, not yet in operation, if the investment period from 1 year upwards shall be reimbursement of value of goods use of the services, to invest each year. The case, if the amount of value added tax estimated of goods, services purchased to use for investments from 200 million and above, the value added tax is completed.

3. active business establishments (except the whole industry accounting business) of the tax payers of value added by the method of deduction have investment projects in the newly established production base in the province, other central cities with the city, the main headquarters , are in the stage of investment has not come into operation yet, business registration, tax registration yet, if there is value added tax amount of the goods and services purchased to use for investments from 200 million and above, the value added tax is completed. Business establishments to declare establishment of private reimbursement for this case.

4. Business establishments in may have the goods, service exports have value added tax input has not been deducted from 200 million and above, the value added tax is completed by month.

5. business tax base when divided, split, dissolution, bankruptcy, ownership conversion; delivery, sale, lease, rental of State enterprises has the input value added tax has not been deducted off or have value added tax overpaid.

6. value added Tax Refund for the program, projects using funds official development assistance (ODA) non-refundable or non-refundable aid, humanitarian aid: a. for projects using ODA not refundable: master program, project or main contractors, held by the foreign donors specify the management program , the project is refundable value added tax paid for goods, services purchased in Vietnam to use for programs, projects.

b. the Organization in Vietnam use the money the Organization's humanitarian aid, foreign individuals to buy goods and services for the program, non-refundable aid projects, humanitarian aid in Vietnam, the complete value added tax to be paid by goods and services.

7. the preferential beneficiaries diplomatic immunity in accordance with the Ordinance on preferential diplomatic immunity to buy goods and services in Vietnam to use the value added tax is paid on the invoice value or on the payment voucher price paid record had tax value 8. Business establishments have decided to handle the reimbursement of the authorities under the provisions of the law.

Article 11. Where tax 1. Taxpayers Declaration, the value added tax at the place of production, local business.

2. The tax declaration, tax the value added by the method of deduction have production facilities accounting depends on the province, central cities other than the city, the main headquarters, the value added tax to be paid locally where the manufacturing base and local political headquarters.

The Ministry of finance guidelines specified in this article.

Chapter IV the TERMS OF IMPLEMENTATION of article 12. The effect and enforcement instructions 1. The Decree has effect from January 1, 2009 and replaces the Decree No. 158/2003/ND-CP dated 10 December 2003, number 148/2004/ND-CP dated 23 July 2004, and the provisions on value added tax no. 156/2005/ND-CP on December 15, 2005 by the Government.

2. Basis of the shipbuilding contract business with customers before the decree to this effect by price enforcement there was value added tax calculated at the tax rate of 5%, but until 31 December 2008 not yet completed, the transfer shall continue to apply a tariff of 5%.

3. The Ministry of Finance shall guide the implementation of this Decree.

The Ministers, heads of ministerial agencies, heads of government agencies, the Chairman of people's Committee of the central cities, is responsible for the implementation of this Decree.