Value added tax Act _ _ _ _ _ _ _ _ _ _ pursuant to the Constitution of the Socialist Republic of Vietnam in 1992 was revised, some additional articles by resolution No. 51/2001/QH10;
Congress enacted law on value added tax, chapter I GENERAL PROVISIONS article 1. Scope this law regulating the taxable object, the object is not subject to tax, taxpayers, tax calculation method and base, and deduction of value-added tax.
Article 2. Value added tax value added Tax is the tax calculated on the value added of goods and services arising from the process of production, circulation to the consumer.
Article 3. Taxable goods object, use the service for the production, trading and consumption in Vietnam is subject to value added tax, except the object prescribed in article 5 of this law.
Article 4. Taxpayers taxpayers 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).
Article 5. The object is not subject to taxation 1. Agriculture products, livestock, fisheries and aquaculture, caught yet processed into other products or only through the normal processing of the personal self, organization of production, sales and caught at the stage of import.
2. The product is breeding, plant breeding, including egg, hatchling, saplings, seed, semen, embryos, genetic material.
3. Drip irrigation, drainage; ploughs, cultivators of land; dredged channel, ditch the infield serving agricultural production; the service harvest agricultural products.
4. The product is made from sea salt, salt, salt, salt, natural iodine.
5. State-owned housing by the State sold to people are hired.
6. transfer of land use rights 7. Insurance, life insurance, pet insurance learner, crop insurance and reinsurance.
8. credit services; stock trading; transfer of capital; financial services, including interest rate swaps, futures contracts, the futures contract, option to purchase, sell, Exchange and other derivative financial services under the provisions of the law.
9. medical services, veterinary services, including medical services, treatment, prevention for people and pets.
10. Postal services, telecommunications and public utility In-ter-net universal under the Government's program.
11. public service of sanitary drainage, streets and neighborhoods; maintain the Zoo, gardens, parks, tree-lined streets, public lighting; funeral services.
12. Maintenance, repair, built by the people's contribution, which was humanitarian aid for culture, the arts, public service buildings, infrastructure and housing for social policy object.
13. Teaching, vocational training in accordance with the law.
14. radio and television broadcasts by the State budget.
15. Publish, import, release of newspapers, magazines, newsletters, books, textbooks, curriculum, books, legal documents, scientific-technical, printed with the letter of minorities and paintings, photo's, dynamic stock propagation posters, including tape or disc, the recording, recorded, electronic data; print money.
16. public passenger transport by bus, tram.
17. Machinery, equipment and supplies in kind in the country have not produced the need to import used directly for research activities, technological development; machinery, equipment, spare parts, transportation means and materials of its kind in the country have not produced the need to conduct the search, exploration, oil, gas development; aircraft, ship, drill rig of its kind in the country have not produced the needed import create fixed assets of the business, hire of foreign countries use for production, business and to hire.
18. The weapons, equipment, specialized in serving national defense, security.
19. the import goods in the case of humanitarian aid, aid is not refundable; gifts to State agencies, political organizations, social-political organizations, social-political organizations, social organizations, civil society organizations-careers, people's armed units; gifts, gifts for individuals in Vietnam according to the level of government regulation; the Organization's supplies, foreign individuals according to standard diplomatic immunity; goods carried in baggage allowance tax free.
The goods or services sold to foreign individuals, institutions, the International Organization for humanitarian aid, grants for Vietnam.
20. The cargo transfer, in transit through the territory of Vietnam; temporary import of goods, re-export; the temporary export goods, re; imported raw materials to produce goods for export, according to the contract; exports machining signed with foreign parties; the goods or services are traded between overseas with the tax-free zones and between tax-free zones together.
21. Technology transfer in accordance with the law on the transfer of technology; transfer of intellectual property rights under the provisions of intellectual property Law; computer software.
22. Gold bullion form, import the pieces yet to be crafted into fine art products, jewelry or other products.
23. export products, mineral resource extraction has not yet processed under regulations of the Government.
24. the artificial products used to replace the patient's body parts; crutches, wheelchairs and other devices for the disabled.
25. Goods, personal services business, average income levels are lower than the general minimum wage applies to organizations, enterprises in the country.
Commodity trading basis, services that are not subject to value added tax specified in this Article are not deducted value added tax and the input, except apply a 0% tax rate prescribed in clause 1 article 8 of this law.
Chapter II BASE and TAX CALCULATION METHODS article 6. Tax base tax base of value added tax and the tax is the price.
Article 7. Tax price 1. Tax rates are specified as follows: a) for goods, services, facilities, sales business is the selling price does not yet have value added tax. For goods or services subject to special consumption tax is the sale price had the special consumption tax but no value added tax;
b) for imported goods is the entry price at the gate plus the import tax (if any), plus the special consumption tax (if any). Import price at the gate are defined according to the rules of import tax rates.
c) for goods or services used to Exchange, internal consumption, provided for the tax price is the value of the goods or services of the same type or equivalent at the time of the operation;
d) for property rental activity is the amount of tax not available rental value;
The case in the form of rental paid each rental or lease money upfront for a limited time, the rental price is tax money for rent paid each period or pay in advance for lease not yet have value added tax;
The case of the rental of machines, equipment, transport means of foreign countries in domestic production was not kind to the back rent, tax rates are excluding rents to pay for foreign countries.
DD) with respect to goods sold under the installment method, the price is calculated according to the deferred sale price charged once yet has value added tax of goods, not including interest, deferred interest rate;
e) for commodity processing is the processing of value-added tax yet;
g) for construction activities, installation is worth the work, projects or work done have yet to hand over value added tax. Case construction, installation contractors not raw materials, machinery, equipment, then tax rates is worth construction, installation does not include the value of raw materials and machinery and equipment;
h) for real estate business activity is the selling price of property value tax yet, except the price of land use right or land rent right, filed the State budget;
I) for active agent, the broker for the sale of goods and services enjoyed by the Commission is the Commission earned from this activity yet have value added tax;
k) for goods, services, vouchers used for payment recorded price paid is the price there was value added tax, the tax rates are determined by the following formula: price = price value added tax payments 1 + tax of goods and services (%)
2. tax calculation Prices for goods, the service specified in clause 1 of this article including the surcharge and additional fees that businesses enjoy.
3. Tax Rates are determined by the Council of Vietnam. The case of the taxpayer have the revenue in foreign currency, they must convert the Vietnam average transaction rate on the inter-bank foreign currency market by the State Bank of Vietnam announced at the moment arise to determine tax rates.
Article 8. Tax rate 1. A 0% tax rate applies to goods and services exports, international transportation and cargo services, value added tax is not subject to the provisions of article 5 of this law upon export, except in the case of technology transfer, transfer of intellectual property rights abroad; reinsurance services abroad; credit services, transfer of capital, financial services; postal services, telecommunications; export products, mineral resources are mined by the provisions in clause 5 of Article 23 of this Law.
2. Tax rate of 5% applicable to the goods, the following services: a) clean water production and service activities;
b) fertilizer; the ore for the production of fertilizers; smoking pesticide and growth stimulant pets, crops;
c) animal feed, poultry and other livestock feed;
d) training services, dredging channels, ditches, ponds serve agricultural production; cultivation, care, pesticide for crops; preliminary processing, preservation of agricultural products;
DD) cultivation, livestock, unprocessed seafood, except for the products specified in paragraph 1 of article 5 of this Law;

e) rubber processing; preliminary turpentine; nets, ropes and strands to knitting fishing nets;
g) fresh food; unprocessed forest products except timber, cement and products specified in paragraph 1 of article 5 of this Law;
h) line; a by-product of sugar production, sugar cane residue, rust included, excess sludge;
I) product by seagrass, jute, bamboo, leaves, straw, coconut shell, coconut water hyacinth, cranial and Western other craft products manufactured with raw materials from agriculture advantage; cotton processing; newsprint;
k) machinery, specialized equipment served for agricultural production, including plows, cultivators, air drills, air, plucking rice, grain elevator, air combine harvesters, agricultural products, or the average pesticide pumps;
l) equipment, medical instruments, cotton, sanitary health; smoking prevention and treatment; pharmaceutical chemistry, medicinal products are production materials medicament, drug prevention;
m) Spear used for teaching and learning, including the types of models, drawings, tables, chalk, rulers, compasses and other types of equipment, specialized tools for teaching, research, scientific experiments;
n) cultural activities, exhibitions, sports, gymnastics; performing arts, film production; import, distribution and projection of films;
o) toys for children; books of all kinds, except the books prescribed in clause 15 of this law, article 5;
p) service science, technology in accordance with the law on Science and technology.
3. the 10% tax rate applies to goods and services not specified in clause 1 and clause 2 of this Thing.
Article 9. The method of tax calculation method of calculating value added tax including tax deduction method of value and direct method on value.
Article 10. Tax deduction method 1. Tax deduction method of value is specified as follows: a Number of value-added tax) payable under tax deduction methodology by value-added tax the output value added tax deductible input;
b) value added tax Number output by total tax value of the goods or services sold is recorded on the invoice value;
c) Of input value added tax was deducted by total tax value indicated on the invoice the purchase value of goods, services, vouchers for value added tax of goods imported and meet the conditions specified in article 12 of this law.
2. The method of tax deductions applicable to business establishments to fulfill accounting regime, bills, vouchers in accordance with the law on accounting, invoices, vouchers and tax registration according to tax deduction method.
Article 11. Direct method on value 1. Direct method on value is specified as follows: a Number of value-added tax) payable under the direct method on value using the value of the goods or services sold multiplied by the value added tax;
b) value is determined by the price of the goods or services sold out except for the payment of the price of goods and services purchased on respectively.
2. direct method on the value applies to the following cases: a) base business and organizations, foreign individuals doing business without resident establishments in Vietnam but have incomes generated in Vietnam have not made full accounting mode , invoices and vouchers;
b) activity of buying and selling gold, silver, precious stones.
Chapter III, article 12 REIMBURSEMENT DEDUCTIBLE. Value added tax-deduction of input 1. Business value added tax according to tax deduction method deductible input value added tax on the following: a) input value added tax on goods or services used for the production, trading goods, taxable services value is deducted in full;
b) input value added tax on goods or services used simultaneously for production, business 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. The case of value added tax input of fixed assets in use simultaneously for production, business goods, taxable services value and is not subject to value added tax shall be deducted in full;
c) input value added tax on goods or services sold to institutions, individuals use humanitarian aid funds, aid non-refundable deductible in whole;
d) 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 maximum supplement is 6 months from the time of arising errors.
2. conditions to deduct the input value added tax shall be as follows: a) Has value invoice purchase goods, services or certificate from the value added tax at the stage of import;
b) Has proof of bank payment for goods, services purchased, except for goods, services purchased each value under twenty million;
c) for goods, services for export, in addition to the conditions specified in point a and point b of this clause must have a contract signed with the outside on the sale, of goods, provision of services, bills of sale of goods, services, vouchers for payment through the Bank, customs declarations for goods exports.
The payment of goods, exports of services in the form of clearing between goods, services for export goods, services imports, repay state changes are considered to be paid through the Bank.
Article 13. The tax refund case 1. Business value added 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.
The base case of registered business value added tax according to the method of deduction have new investment projects, investment in value added tax amount of the goods and services purchased to use for investments that have not been deducted off and have the remaining tax amount from two hundred million over, value added tax is completed.
2. Business establishments in may have goods, services for export if there is value added tax input has not been deducted from the two hundred million over, value added tax is completed by month.
3. Base business value added tax according to tax deduction methods refundable value added tax when converting property, business transformation, merger, amalgamation, Division, separation, dissolution, bankruptcy, terminated the activities of surplus value tax or value added tax input has not been deducted.
4. Business establishment have decided to refund the tax value of the competent authority under the provisions of the law and the case of value-added tax refund under the international treaties to which the Socialist Republic of Vietnam is a member.
Article 14. Bill, from 1. The sale of goods, the service must have the invoice vouchers under the provisions of the legislation and the following provisions: a) base business tax according to tax deduction method using the invoice value; the Bill must be written in full, the right content regulation, including surcharge, additional fees (if applicable). The case of the sale of goods, the taxable value of services that increase the value on the Bill not write value added tax value added tax, then the output is determined by the rates of payment indicated on the invoice with value added tax, except in the case specified in clause 2 of this Thing;
b) business tax according to the direct method on value using the sales invoice.
2. For other types of stamps, tickets are vouchers available in payment price paid price paid stamps, tickets which include value added tax.
Chapter IV article 15 ENFORCEMENT TERMS. Effect 1. This Act has effect from January 1, 2009.
2. This Act replaces the following law: a) the value added tax act of 1997;
b) amendment, addition of some articles of the law on value added tax number 07/2003/QH11;
3. Annuls Article 2 of the law on amendments and supplements to some articles of the law on special consumption tax and value added tax Act No. 57/2005/QH11.
Article 16. Government enforcement guide detailing and guiding the implementation of articles 5, 7, 8, 12, 13 and the other necessary contents of this Act at the request of management.
This law was the National Assembly of the Socialist Republic of Vietnam XII, third session through June 3, 2008./.