LAW on value added tax increase To contribute to boosting production, expanding the circulation of goods and services, encourage the development of national economy, encouragement of a consumer's income to the State budget;
Pursuant to the Constitution of the Socialist Republic of Vietnam in 1992;
This law prescribed value added tax, chapter I GENERAL PROVISIONS article 1. Value added tax value added Tax is a tax charged on account of the increase in value of goods and services arising from the process of production, circulation to the consumer.
Article 2. Taxable goods, objects, services for the production, trading and consumption in Vietnam is subject to value added tax, except the object prescribed in article 4 of this law.
Article 3. Tax payers organizations, individual business, manufacturing goods, taxable services (referred to collectively as business establishments) and the organisation and individuals importing goods subject to tax (referred to as the import) is subject to value added tax.
Article 4. Objects not subject to value added tax goods and services below are not subject to value added tax: cultivation, animal husbandry, aquaculture is not yet processed into other products or only through the normal processing of the individual organisation of self produced and sold;
Salt products;
Goods and services subject to special consumption tax not remitted value added tax at the stage were subjected to special consumption tax;
Equipment, machinery, means of transportation in the country have not produced was that the basis of the investment project to do fixed assets according to the project;
Land use right transfer tax subject to transfer land use rights;
The State-owned housing by the State sold to people are hired;
Credit services, investment funds;
Life insurance; Student insurance; pet insurance, crop insurance and other types of non-business purposes;
Medical services;
Cultural activities, exhibitions and sport are not business purposes; performance art; film production; the release of the film, plastic film and vi-go-box materials;
Teaching, vocational training;
Radio and television broadcast programme by the State budget;
Printed, published and released: newspapers, magazines, newsletters, books, textbooks, curriculum, books, legal documents, books in ethnic minority languages; paintings, photos, old propaganda posters; print money;
Public service of sanitary drainage, streets and neighborhoods; maintain the Zoo, gardens, parks, tree-lined streets, public lighting; funeral services;
Maintenance, repair, construction of the culture, the arts, public service buildings, infrastructure and houses of affection by people's contribution and which humanitarian aid;
Public transport by bus;
The investigation, geological exploration, surveying, mapping of type basic investigation of the State;
Drip irrigation, drainage of agricultural production; clean water due to the Organization, the individual self tapped to serve for living in rural, mountainous areas, Islands, remote areas;
Weapons, equipment used to serve defense, security;
Imports in the following situations: humanitarian aid, aid is not refundable; gifts to State agencies, political organizations, social-political organizations, social organizations, social-professional organization, the people's armed units; map of the organizations, foreign individuals under diplomatic immunity; goods carried in baggage allowance tax free;
Transfer of goods export, transit, borrowed way through Vietnam; temporary import of goods, re-export and export, re;
Goods, services directly for international transportation and consumer objects outside of Vietnam;
Technology transfer;
Gold bullion form, import the pieces yet to be crafted into fine art products, jewelry or other products;
Some export products is the mineral resources exploited by specific regulations by the Government;
Goods, services of the personal business has low income levels. Low income levels due to government regulations.
Goods and services are not subject to value added tax specified in this Article are not deducted value added tax and input.
In case of need, the Commission of the National Assembly may amend, supplement the list of goods and services subject to value added tax is not subject to the provisions of this Article and to report to the National Assembly adopted in the most recent session.
Article 5. Obligation, responsibility for implementation of the value added tax Act 1-business establishments and importers are obliged to pay tax in full, in a timely manner according to the provisions of this law.
2-the tax authorities within the scope of the task, their powers are responsible for the correct implementation of the provisions of this law.
3-State agencies, political organizations, social-political organizations, social organizations, social-professional organization, the people's armed units in the range of functions and tasks, their powers of surveillance, in collaboration with the tax authorities in the enforcement of law on value added tax.
4-Vietnam's citizens have a responsibility to help tax agencies, tax officers in the enforcement 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 rates of value-added tax rates are specified as follows: 1-for goods, service is the selling price does not yet have value added tax;
2-for imported goods is the entry price at the gate, plus tax;
3-for goods or services used to Exchange, internal use, presentation, donation is tax price value of the goods or services of the same type or equivalent at the time of the operation;
4-for property rental activity is the amount of revenue each rental period;
5-for the goods sold under the installment method is the selling price of the goods, by sale price charged once, not according to the amount each pay period;
6-for machining of goods is the price;
7 – for goods or services is by the Government regulations;
Value added tax prices charged for goods or services defined in this Article including the surcharge and additional fees that businesses enjoy.
Case the tax payers have sales buy, sell in foreign currency foreign currency exchange to the Vietnam according to official rates by the State Bank of Vietnam announced at the time incurred to determine sales tax rates.
Article 8. Tax rate tax tax rate value is specified as follows: 1 – tax rate of 0% for goods for export;
2-5% tax rate for goods and services: a) clean water production and service activities;
b) fertilizers, ore for the production of fertilizers; pesticides and livestock growth stimulant, crops;
c) medical instruments and equipment; cotton sanitary and health;
d) medicines, sick room;
Educational tools used) for teaching and learning;
e) toys for children; scientific-technical, artistic, literature book books children's service, the book of the law, except for the book of laws prescribed in clause 13 of this law, article 4;
g) cultivation, livestock, aquaculture, including unprocessed animal breeds, seedlings, seeds, except the object prescribed in article 4 paragraph 1 of this law;
h) forestry (except for wood, cement) unprocessed; fresh food;
I) product by seagrass, jute, bamboo, leaves;
k) Cotton processing cotton planting in the country from;
l) animal feed, poultry and other livestock feed;
m) scientific, technical services;
n) service in direct service of agricultural production;
3-10% of the tax rates for goods and services:

a) oil, gas, coal, iron ore and other mining products;
b) electricity;
c) electronic products, mechanic, electric;
d) chemicals, cosmetics;
DD) fibers, fabrics, garments, embroidery;
e) paper and paper products;
g) sugar, milk, cake, candy, soft drinks and other processed foods;
h) products ceramics, glass, rubber, plastic, wood and wood products; cement, bricks, tile and other building materials;
I) construction, installation;
k) transportation, loading and unloading;
l) postal service, postal service, telecommunications;
m) For rent, warehouse, factory, machinery, equipment, means of transport;
n) legal advisory services;
o) capture, print, photo reportage; in the tape, to tape, tape to hire; spin micro-go-box, micro-go-box; shooting star;
p) hair, clothes, dye, bleach, laundry and cleaning;
q) goods or services not specified in paragraph 1, item 2, paragraph 4 of this article, except for the goods subject to special consumption tax in production, stitch;
4-20% of the tax rates for goods and services: a) gold, silver, precious stones due to base business buy-in, sell out;
b) hotels, travel, food and drink;
c) lottery and other lotteries;
d) ship agents;
DD) brokerage services.
In case of need, the Commission of the National Assembly may amend, supplement the list of goods and services according to the tariff regulations in this and must report to the National Assembly adopted in the most recent session.
Article 9. The method of tax calculation value added Tax payable is calculated according to the method of tax deductions or direct method on value.
1-tax deduction method of tax by taxing the value of output tax deductible input value.
The output value added tax by the tax price of goods and services sold multiplied by the tax rate.
Input value added tax with total value tax payment is recorded on the Bill of goods purchase value, services or certificate from the value added tax of goods imported.
2-direct method on value added tax with the added value of goods and services with value added tax.
Value added by the price of the goods or services sold out except for the payment of the price of goods and services purchased on respectively.
Direct method on value only applies to the following objects: a) individual production, business and organizations, foreign individuals doing business in Vietnam not under the law on foreign investment in Vietnam has yet to fulfill the conditions of accounting, invoicing vouchers to make the tax base according to tax deduction method;
b) base business buy, sell gold, silver, precious stones.
Article 10. Value added tax-deduction of input 1-base business value added tax according to tax deduction method deductible input value added tax (called input tax) as follows: a the input Tax) of goods and services for production, business goods, taxable services value shall be deducted in full;
b) inputs of goods and services used at the same time for the production, trading goods, taxable services value and is not subject to value added tax, the only tax deduction of input goods and services for production, business goods, taxable services value;
c) input Tax incurred in the month would be declared, deductible when determining tax of that month;
For own fixed assets, if the input tax amount to be deducted shall be deducted gradually larger or reimbursement under the provisions of the Government;
d) in the case of manufacturing and processing of purchase of agricultural, forestry and aquatic products by producer without the invoice value is input tax deduction from 1% to 5% on the price of agricultural products, forestry products, marine products buying into; deduction rate for each type of goods due to government regulations;
The tax deduction regulations at this point does not apply to the case of export;
DD) The input tax deduction for some other special cases due to government regulations.
2-according to determine the input tax amount to be deducted is: a) value added tax invoice value when buying goods, services or certificate from the value added tax for imported goods; for goods, services purchased on no value invoice or Bill does not record the value added tax shall not be tax deductible;
b the goods manifest) buy-in the form of tax authorities with respect to commodities specified in point d of paragraph 1 of this article.
Article 11. Invoices, vouchers 1-purchasing, sale of goods, the service must have the invoice vouchers in accordance with the law.
2-The business tax according to tax deduction method must use the value bills and keep full, true regulatory elements, which specify the sale price, surcharge, additional fees, value added tax, the price paid.
In the case of bills not write value added tax value added tax shall be determined by the price paid by the invoice with value added tax.
3-for the kind of stamps, tickets are considered to have payment vouchers in payment price is available, the price paid stamps, tickets which include value added tax.
 
CHAPTER III registration, DECLARATION, filing taxes, TAX article 12. Tax registration 1-business establishments, including establishments of that facility must register for value added tax to the tax authorities directly managed under the guidance of the tax authorities. Business establishments newly set up, time registration tax value of ten days from the date of certificate of business registration. In the event of a merger, amalgamation, Division, separation, dissolution, bankruptcy or change business, business establishments have to declare to the tax authorities at the latest five days before the merger, amalgamation, Division, separation, dissolution, bankruptcy or business changes.
2-base business tax according to the direct method on value if implemented in full mode, vouchers, invoices, accounting, voluntary registration apply tax according to tax deduction method, the tax authorities considered to perform.
Article 13. Tax Declaration 1-base business is value added tax declaration every month and submit the tax return for the tax authorities in the first ten days of the next month. In the absence of input tax incurred, the output tax, businesses still have to declare and pay the tax to the tax authorities. Business establishments must fully declare the correct tax return form, and is responsible for the accuracy of the Declaration.
2-business establishments, the imported goods must declare and pay the tax value under each of the imports with the import tax declaration with the tax authorities where the goods entering the gate.
3-shipment business establishments have to declare and pay tax for each shipment to the tax authority where the purchase order, before shipping.
4-business establishments, many types of goods, the service has a value added tax to different value added tax declaration for each tax rate prescribed for each type of goods, services; If the business does not determine each tax rate to calculate and pay tax according to the tax rate of the goods and services that the facility has manufactured, business.
The Ministry of Finance regulates the tax form and instructions for the Declaration.
Article 14. Tax value added Tax was filed on the State budget according to the following provisions: 1-base business value added tax in full, due to the State budget according to the tax notice of tax authorities.

The time limit for the submission of tax, are credited in the latest message 25th of the next month;
2-business basis, the import of the goods must pay tax according to each value imports.
The time limit for notification and the time limit for the submission of value-added tax for imported goods made according to the time limit for notification and the time limit for submission of import tax;
3-during the tax period, base business value added tax according to tax deduction method, if the input tax amount greater than output tax amount shall be deducted from the next tax period.
In cases where business establishments, new investment of fixed assets, input tax has been deducted, the largest made under the provisions of point c of paragraph 1 of article 10 of this Law;
4-value added Tax, filed into the State budget in Vietnam.
Article 15. Tax business establishments have to make annual tax to the tax authorities. Tax year is calculated according to the calendar year. Within a period of sixty days from the date of the end of the year, businesses have to file tax reports to the tax authorities and are fully missing tax into the State budget within ten days from the date of submission of report, if the surplus shall be deducted from the tax next.
In the event of a merger, amalgamation, Division, separation, dissolution, bankruptcy, business establishments shall have to make tax with the tax authorities and tax reporting to tax authorities within a period of forty-five days from the date of the decision to merge, merge, split, splitting, dissolution, bankruptcy.
Article 16. Reimbursement of value-added tax refunds are only made in the following cases: 1-business establishments subject to tax according to tax deduction method are the complete review quarterly tax if the amount of the input tax deduction of the months in the quarter greater than output tax amount or be input tax refund of fixed assets according to point c paragraph 1 article 10 of this law;
2-tax when the merger, amalgamation, Division, separation, dissolution, bankruptcy has a surplus;
3-tax refund processing decisions of competent authorities under the provisions of the law.
The Ministry of finance specifies procedures and reimbursement jurisdiction as defined in this article.
Article 17. The duties, powers and responsibilities of the tax authorities the tax authorities have the powers and duties of the following responsibilities: 1-Manual the registered base of business registration regimes, declare, pay tax according to the provisions of this law;
2-information for businesses regarding tax and tax period in accordance with the regulations; If the tax deadlines indicated on notice that business establishments not yet filed then continue out the message about tax and fine amounts slowly filed under the provisions of paragraph 2 of article 19 of this Law; If business is still not sufficient amounts of the fines under the notice shall have the right to apply handling measures prescribed in paragraph 4 to article 19 of this law to ensure enough tax revenue, the amount of the fine; If made on processing measures that businesses are still not fully tax and fine amounts, then the transfer of records to the State agency authorized to handle in accordance with the law;
3-check, inspection Declaration and payment of tax, business establishments, ensuring correct implementation of the provisions of the law;
4-handling administrative violations of tax and tax-related complaints;
5-ask tax payers to provide accounting books, invoices, vouchers and records other documents related to tax calculation and payment; ask credit institutions, banks and organizations, other relevant individuals provide documents related to tax calculation and tax;
6-keep and use data, documents, business establishments and other objects provided according to the prescribed regimes.
Article 18. Right to assign tax 1-the tax authorities assign the number value added tax payable for the tax payers in the following cases: a) Not done or done incorrectly the accounting mode, bills, vouchers;
b) does not enumerate or too prescribed time limit filed declarations have been reported but still not done properly; have filed a tax return but not the correct declaration the grounds to determine value added tax;
c) refuse the present accounting books, invoices, vouchers and other necessary documents related to tax calculation value;
d) business without business registration that was discovered.
2-the tax authorities based on the documents of investigation on the situation of the business activity of the business establishment or based on the tax of business establishments in the same industry, have equivalent business scale to fix tax.
In case of failure to agree with the tax determined the business establishments have the right to appeal to the superior tax authority directly; While pending, businesses still have to pay tax at the rate specified.
 
CHAPTER IV HANDLING OFFENSE, REWARDED article 19. Processed in breach of tax for tax payers tax payers violates the law of value added tax shall be treated as follows: 1-do not comply the regulations on registration, Declaration, tax, tax, and accounting mode and store vouchers, invoices as specified in articles 11 , 12, 13, 14 and 15 of this law shall, depending on the nature and extent of the violation that sanctioned violation of tax administration;
2-submission of tax money, fine slow compared to the prescribed amount or the date of decision for tax processing shall in addition submit sufficient amounts of the fines, the daily fine is also slowly filed by 0.1% (one thousand) slow amount filed;
3-perjury, tax evasion, the tax payable in addition to the full tax under the provisions of this law, depending on the nature and extent of the violation is a fine of from one to five times the amount of tax fraud; tax evasion in large numbers or were sentenced to administrative violations of tax but also the violation or other serious violations being blind for criminal liability in accordance with the law;
4-do not pay tax, the penalty by filing the notice or decision for tax processing then dealt as follows: a) deposits of tax payers in banking, Treasury, credit institutions to pay tax, fine;
Banking, Treasury, credit institutions have the responsibility to extract money from the deposit account of tax payers to pay tax, forfeit to the State budget according to the decision of tax processing of tax authorities or competent authority before collecting the debt;
b) Keep the goods, exhibits to ensure enough tax revenue, the amount of the fine;
c) levy of property under the provisions of the law to ensure enough tax revenue, the amount of the fine is missing.
Article 20. The tax agency's competence in handling the violation of tax 1-the tax agency heads directly manage tax collectors was the right handle towards the violation of tax payers to the provisions in paragraphs 1, 2 and 3 of article 19 of this Law.
2-Director, Director of the tax organ directly manage currency tax applied measures to handle specified in paragraph 4 of article 19 of this Law and transfer of records to the competent authority for handling in accordance with the law for violations of the provisions of paragraph 3 of article 19 of this Law.
Article 21. Handle violation of internal taxes and other individual 1-other personal, tax officer abusing Office powers to unauthorized use, appropriating money taxes, fines, they must reimburse the State the full amount of tax, the amount of the fine was illegal use, appropriating and depending on the nature that infringement levels, being disciplined or prejudice criminal liability under the law.

2-the tax officers, other individuals lack of responsibility or incorrect handling causing damage to the taxpayers pay compensation in accordance with the law and depending on the nature and extent of the violation being disciplined or prejudice criminal liability under the law.
3-the tax officers, other individuals taking advantage of the prerogatives, powers to connivance, covering up the illegal value added tax or other acts violating the provisions of this law shall, depending on the nature and extent of the violation being disciplined or prejudice criminal liability under the law.
4-Who hinder or incited others to obstruct the enforcement of tax Laws, the value depending on the nature and extent of the violation which dealt with administratively or prejudice criminal liability under the law.
Article 22. Rewarded by tax authorities, the tax officer complete the assigned tasks; Organization, individual achievement in the implementation of the law on value added tax; tax payers make good tax obligation shall be rewarded.
The Government specifies the rewards.
 
Chapter V COMPLAINTS and TIME LIMITS Article 23. The rights and responsibilities of tax payers in the complaint of tax 1-tax payers have the right to appeal the tax officers, tax authorities incorrect enforcement of value-added tax law.
The complaint was sent to the tax authorities directly managed currency within 30 days from the date of the notice or decision on disposal of tax officials, tax authorities.
While pending, tax payers must still follow the notice or decision disposing of the tax authorities.
2-cases that the complainant does not agree with the decision of the Agency to resolve complaints or too the time limit specified in article 24 of this law that has not been resolved then has the right to appeal to the superior tax offices or directly to the Court under the provisions of the law.
Article 24. The responsibility and authority of the tax authorities in resolving complaints about taxation 1-the tax authorities upon receipt of complaining about taxes is considered resolved within fifteen days from the date of the complaint, for the complex case that time limit may be extended but not be too thirty days; If the case is not in their jurisdiction, they must transfer the record or report the Agency has jurisdiction and inform the complainant know within 10 days from receipt of the complaint.
2-the tax authorities receive the complaint have the right to request the complainant to provide the records, documents relating to the complaint; If the complainant refused to provide records, the document shall have the right to refuse to consider complaint resolution.
3-the tax authorities to repay the amount of the tax, the penalty amount for income tax payers within fifteen days from the date of the decision of the superior tax authorities or competent authority under the provisions of the law.
4-If the findings and conclusions the perjury, tax evasion or confused about taxes, tax authorities have the responsibility for collection of money taxes, fines or tax refund within a period of five years earlier, since checking the perjury, tax evasion or confused about taxes. Case of non-registered businesses declare, then the tax collection period tax fine, since the business began operations.
5-level tax on agency heads are responsible for resolving complaints about the tax of the tax payers for the tax authorities.
The decision of the Minister of finance to resolve complaints about taxes is the final decision.
 
CHAPTER VI ORGANIZATION of the IMPLEMENTATION of article 25.
The Government directs the implementation of value-added tax law in the country.
Article 26.
The Minister of finance are responsible for implementation and examine the implementation of the value added tax law in the country.
Article 27.
The people's Committee of the levels, within the scope of its powers, duties and directing the implementation and examine the observance of Tax Legislation the local value.
 
CHAPTER VII ENFORCEMENT PROVISIONS Article 28.
Value added tax act has effect from January 1, 1999.
Abolition of the law on turnover tax, the law on amendments and supplements to some articles of the law on turnover tax and the regulation of sales tax in the other legal texts, since the value added tax act in force.
Tackling the existence of tax, tax, tax exemptions and handle breach of the sales tax before January 1, 1999, made under the provisions of the law on turnover tax, the law on amendments and supplements to some articles of the law on turnover tax and the sales tax regulations in the legal text.
For the manufacturing, construction, transportation in the first year of application of the value added tax which was due to losses of value added tax to be paid is greater than the tax calculated according to the number of sales tax rates are reduced before value added tax payable. The levels are considering reducing the value added tax corresponding to the number of the hole is determined by this cause but must not exceed 50% of the tax. Tax time each year and are calculated according to the calendar year but must not exceed 3 years from the date of the value added tax act in force.
The Government specifies the value added tax review as specified in this article.
Article 29.
The case of the international treaties to which the Socialist Republic of Vietnam signed or otherwise with this law of value-added tax shall be made according to the provisions of international treaties.
Article 30.
Government regulations detailing the implementation of this law.
 
 
This law was the National Assembly of the Socialist Republic of Vietnam 11-session IX, courses through May 10, 1997.