CIRCULAR of the MINISTRY of FINANCE number: 40/TC-TCT on October 25, 1995 ADDITIONAL INSTRUCTIONS and MODIFY a SCORE in CIRCULAR NO. 73A/TC-TCT 30/8/1993 of the MINISTRY of FINANCE GUIDELINES on SALES TAX in order to make the rules of tax revenue and timely resolution of issues and problems arising in the process of implementation of law sales tax;
Based on the law on turnover tax, the law on amendments and supplements to some articles of the law on turnover tax and Decree No. 55/CP 28/8/1993 detailing the Government's enforcement of the law on turnover tax; The Ministry of finance the additional instructions, modifying some points in circular No. 73A/TC-TCT 30/8/1993 of the Ministry of Finance shall guide the implementation of Decree No. 55/CP of the Government on sales tax as follows: I-scope apply sales tax 1. Specific instructions to add the case production, outsourcing exports not filed turnover tax as follows: a. the goods produced by the unit itself and directly work for foreign countries under a contract signed with foreign parties, including cases brought by the goods production base abroad to participate in the Expo and was selling such goods in foreign countries.
b. goods due to the unit and sell it to the duty free shop to which the item belongs to the item sold to the tax object specified by the Government.
c. goods due to production units sold for processing the objects in the export processing zones (except for the provision of consumer service, activities such as food, food etc. as stipulated in Decree No. 322, dated 18 October 1991 of the Council of Ministers (Government) regulations on export processing activities).
d. the goods by direct unit production for export but not directly contracting with foreign countries which made export sales contract or a representative unit signed a contract with a foreign country, or exporting mandate through an import-export trading company.
One example: the total company business import and export garments directly contracted purchase of garments production base to export, then the production facilities do not have to pay tax revenue to produce sold for a total import-export trading company apparel. The total company business when exporting the goods purchase of production facilities, to pay sales tax according to tax export business.
Example two: the total import-export trading company contracted work garments for foreign, then the Corporation signed a contract for the delivery of other companies outsource the day-to-day doing this processing in the object does not have to pay tax outsourcing export sales, the Corporation must pay sales tax according to the tax rate of 12% on commissions or revenue section The Corporation was entitled to.
The base case is defined as A direct base export processing, but the base contract to the base B whole machining or some finished products in the form of raw material delivered the tax return outsourcing export sales get back from A facility. The facility must submit A sales tax for delivery back to the base B manufacturing 12% tax charged on the price difference got machining with prices handed back to the base B. cases of manufacturing, outsourcing exports not filed turnover tax must have the following conditions:-with regard to the cases referred to in points a, b, c + contract manufacturing or sales, due to foreign-registered establishments or objects to be regarded as the exporter.
+ Sales invoice, return consistent machining of economic contracts.
+ Export declarations had liquidity, certified by customs.
-For cases referred to in points d to have: + economic contract between production facilities, manufacturing facility with the export-import business organization or representative organizations contracted with foreign countries; the content of the contract must specify the number of items produced for sale or export processing consistent with items included in the license of import and export business organization and the Organization's contracts with foreign countries.
+ Sales invoice, return export processing consistent with economic contracts.
+ A payment of export sales contracts, the fabrication base return tax.
In addition to the direct case production, outsourcing exports not filed turnover tax stipulated in point 1 above, all other cases must pay tax revenues, including some specific cases below:-the production of raw materials, packaging, label, components, parts, semi-finished products etc. sell production facilities, processing export business to manufacture, export packing.
-Perform back machining, production contract some of the unit's manufacturing production, export processing in the object does not have to pay tax revenues.
-Import and export businesses for the purchase of export if the preliminary operations, sorting, packing of goods was purchase to the export of the aforementioned activities of import and export business base are not considered manufacturing operations, processing for export. Import and export businesses to pay sales tax according to the import-export business.
2. more specific instructions for some temporary cases have yet to collect sales tax on the following:

a/activities to print and publish the provisional regulation have not collecting sales tax stipulated in article 13 of Decree 35/CP 28/8/1993 of the Government and the tax provisions by 0% (in point 22-section I-the schedule of sales tax) only apply to works printed and published. Business operations selling this product including the release must file sales tax according to the commercial business activities.
b/activities: "maintenance, repair and maintenance of roads, railways, waterways, bridges, embankments, dams ... by his career due to State budget grants or donations of" temporarily not yet collecting sales tax.
Specific identification is based on the following conditions:-is the maintenance, repair, operations, maintenance of public works under the category rules, be approved by the authorized estimation.
-Capital source In my career due to the State budget grants or donations of ...
Capital career management agency when building unit price estimates were not calculated for the sales tax structure works do not collect sales tax under this provision.
The unit of work in an not pay tax revenue under this regulation, if the revenue from other activities must pay sales tax.
Example: a unit of dredged canals are identified in the activity does not have to pay tax revenues, not only collecting sales tax for dredging operations revenue, but if the revenue from the sale of soil, sand dredging, the unit must pay sales tax on sale of land, the sand under active exploitation of tax charged on the sale of the land , cat.
c. do not collect sales tax for sale of fixed assets is the machinery, equipment, vehicles, factories have been shopping or build on a year and in the correct sequence of procedures and regulations on investment, are tracking accounting about artifacts, value, capital in accordance with current accounting regime for fixed assets.
II-On taxable sales of taxable revenue with some of the activities are defined as follows: 1. for construction activities: a. sales tax for construction operations how tender and how the bid materials.
The concept of materials including construction contractors are understood to be the kind of constituent materials of construction products, by the side of the building is responsible for the supply to the construction works (not including the value of machinery, the entire device if available). The materials, the materials used for the construction machinery and equipment construction materials and how the bid considered.
The determination of revenue building contractors or contractors do not have supplies of raw materials are based on the construction contract and real contract settlement.
The case is built on how the contractor primarily that the total value of supplies bid cover constitute over 50% of the total value of construction materials is considered how building contractor of Liao, the tax revenue of 3%. If the value of the small contractors cover supplies over 50% of the total value of construction materials, the application of the tax for each activity are as follows: + construction revenue (excluding the value of materials) the tax building activities do not cover bid materials is 5% of the value of materials and parts brought into the building if there are sides to build the same level (even in the form of buying households) for home tax works by providing activities; the case is not enough to determine a base revenue details as stated above then the tax of 5% on the total revenue of the construction.
b/tax revenue for many of the units involved to build a project: to limit the collection of duplicate sales tax in respect of a construction works, in principle only, and once on a revenue building, revenue arising where must declare turnover tax in it.
The case of many organizations and individuals, joined in the construction of a building in the form of one or several contractors directly contracted with the contracting of works (known as main contractor) then the main contractor signed the contract for delivery of the other contractors (so-called subcontractors), the main contractor must declare and pay tax revenue to operate built with local tax authorities where the construction works. Taxable turnover is the total value of works or projects main contractor contractor (including the value of joint works were entrusted to subcontractors), subcontractors do not have to pay tax revenue to build the main contractor work already paid sales tax.
The case of the main contractor contractor building the project items of construction works in the local (city, province) different then the main contractor or the subcontractors building contractor directly to declare tax revenues at the local tax Bureau where the construction projects. Taxable revenue is determined by the value of projects or parts of the work arises in each locality; When sales tax settlement construction, the main contractor being deducted sales tax already paid in the locality for the projects or part of the work, the prime contractor must present to the tax authorities to manage the unit from and confirmed by local tax offices have tax collectors.

To determine the base revenue and tax for contractors and participating units built as specified above, the contractor must provide to the tax authorities the whole building contractor contract and subcontract contract back for the other units, the payment voucher construction contract, settlement and the vouchers filed turnover tax (if any).
The case construction broker brokerage Commission and case winning bid then signed whole subcontract for other bidders, only affect earnings from transfer activities, apply currency sales tax according to the tax rate of 15% (15 Points. e-VI-sales tax).
c. with regard to the construction activities of DIY: + no sales tax in the case of:-the active planting, care perennial in the construction period of the switch to business.
-Activities to build the factory, offices, roads in the internal unit with own capital, does not arise.
+ Must pay sales tax in the following cases:-the unit is a member of the venture got built in capital works of JV basis.
Example: Unit B is a member of a joint venture, A contractor building a work of JV A, unit B must pay a sales tax for public works contractor of the venture.
-The subdivisions built contractor for other units of the company or Of companies or divisions on economic contract.
-Construction works in the categories listed in the State plan; capital investment in the capital of the State (the State budget directly or under other forms).
Tax revenue in the above cases is worth building delivered to home use.
2. for transport operations: transport units perform stock currency mechanism associated with the allocation of means for controlling the media, taxable sales and tax payers determined for each specific case as follows: – where the means of transport enterprise owned, but for business people control the vehicles themselves are a part of costs (gasoline oil and fat, regular wages, repair ...) or package for the number of units to meet the requirements of general management, KHCB etc ... then the transport unit is subject to turnover tax declaration on transport activities; taxable revenue is total revenue before subtracting any expenses.
Sales tax revenue = sum of stock index + securities filing securities genus is determined according to the norm for media recipients match each type of means of transport and individual stock method.
– Where means of transport are owned by the media owner is the person or private households, the vehicle is subject to tax declaration directly in revenue and other income taxes (if any).
For the sea transport unit to have business registration and tax in Vietnam, has revenues from transport operations between ports in foreign countries and from the foreign port of Vietnam (not including transport from Vietnam to foreign ports) if enough of the base as a contract of carriage and the vouchers proving payment revenues obtained from these activities arise outside Vietnam territory shall not pay sales tax, but must still reflect this revenue to total revenue of transport to determine the business results and the profit of the unit.
3. for commercial business: a. on the application form to submit the turnover tax on the difference between the selling price and the purchase price.
Commercial business units have enough the condition specified in section A, part II, circular No. 73 TC/TCT were filed turnover tax on the difference between the sales price with the purchase price.
In a unit of business activity, for the just business operations are applied, tax revenue in one of two forms: tax revenue on sales or on the disparity. "The unit" to determine the tax form according to this rule is an object made of registration tax declaration, tax revenue directly with the tax agency.
b. the purchase price into sales, base calculated sales tax on the difference is determined according to the invoice price.
Where to buy sell many types of goods, the purchase price, the sale price is variable, to determine the difference between the sales price with the price of purchase: the purchase price of the goods sold is calculated according to the weighted average price of inventory previously purchased goods into the States tax declaration.
c. for some items of State regulation to submit the extra currency, and tax rates are defined as follows:-for the extra currency lodging into the stabilization fund: Unit case apply Declaration filed turnover tax on the revenue of the surcharge are not deductible from taxable turnover. The case was filed the Declaration applied sales tax on the difference between the sales price with the purchase price, the surcharge is not deductible in determining taxable revenue disparity.

-For some of the extra currency such as power price surcharges, extra installation of telephones etc. then in addition to the specific cases prescribed by the Government are taking extra money as a source of capital, not accounting to taxable turnover the turnover and results of the business unit, all other cases are accounted into revenues, must declare the statutory turnover tax.
4. With regard to the organized production unit the store product sales: production units must declare turnover tax according to the tax rate in the manufacturing sector where production and turnover tax declaration according to the tariff of the local business sector where opening to consume the product.
To determine the revenue base and the tax payable in each place, while the unit shipment shop for consumption must use the sales invoice stating the amount, type of item, the unit price and the total export worth of stock. Store product sales when sales are used to buy sales invoice in tax authorities where to open stores. If the store is eligible to submit sales tax on the difference, tax authorities to apply tax on chệnh and if the Unit conducted the sale price (the price of the place of production and the place of the shop), not the price difference, the shop does not have to pay tax sales of goods.
The case of the production facilities have hosted the warehouse in the local (not business direct warehouse sales), must use the vouchers for invoices and tax declaration as follows:-when the shipment from the warehouse to the production well as export items from this warehouse to another warehouse voucher must be used to export the internal transport cum warehouse , Production facilities and warehouses not enumerate filed turnover tax for goods warehouse with internal rotation.
-When exporting goods from warehouse for objects of purchase, sales and dealer stores, production facilities are invoiced sales, sales tax declaration at the place of production according to the tariff of the manufacturing sector.
5. The commercial business unit if the Organization of warehouse, shop, dependent, not accounting statements filed turnover tax for internal rotation output from the unit's inventory for the affiliated shops as well as maneuver from this store to another store. The case production comes on the ballot must be used internal transport cum warehouse production.
6. With regard to the case of a sale under the installment method: sales tax revenues for the sale of goods is determined by the total value of the goods sold is that the actual buyer is charged on sales invoice or purchase contract.
Private for sale under the installment method for several years, revenue and tax revenue is determined by the amount of revenue each States according to agreement.
7. With respect to the operation of the service: the postal service: a. The organization, individuals not belonging to the postal industry such as hotels, restaurants ... have business activities in the postal services such as telephone, FAX, ... the tax as follows: where do service for the postal sector the economic contract signed with the postal sector is only entitled to enjoy roses and apply the tax rate is 12% as sales agent activity.
The case does not make the service enjoy commissions that directly collect sales tax payable under the telecommunication business, the tax of 4% on the total turnover of the postal service, if not separate sales tax, then the tax revenue of the business.
b. for operations for rental houses, stores, machinery ... tax revenue is not rental proceeds minus costs.
-The case for long-term rental paid in advance for many months, years, sales tax is calculated and collected once on the entire amount of tax paid object.
-Case of the rent, shop prepaid rent made in whole or in part in the form of investment spending to renovate or rebuild the House, shop to use within the entire rental lease money upfront investment to renovate the building, has been agreed upon and specified in the lease is calculated as revenue and rental party must declare tax revenue.
The determination of the turnover tax for the operation for the rent, shop ... is based on the lease, contract hire prices and the real world of payment vouchers. If the test detects invalid contract, rental contract on record is incorrect, the tax authorities must coordinate with the branches functional testing, verification, tax authorities have the right to assign sales tax calculated based on price of the House by the provincial people's Committee, the city regulation under article 22 of Decree 60/CP dated 5/7/1994 of the Government regulations on the sale and Housing business. If found to have violated perjury tax evasion must be processed in accordance with current legislation.
The determination of revenue and costs to calculate income taxes with respect to the form of rent, shop prepaid ... had a private guide.
c. transport service activities:

-Case implementation services such as showcase for owners to hire transport means as well as introduce search shipping source for media owners, including doing the service paperwork, test monitoring of the carriage, storage of goods, etc. for shippers; If individual organizations do this service only affects the service money, did the media rental expenses, Portage shipping by shippers or shippers household expenditure are identified in the contract, then economic units do this service must pay sales tax according to the tax rate of 15% on sales or Commission is entitled from that service (under the provisions of point 15. e-section IV-Timetable sales tax) regardless of the name of the contract is the dealer, broker or transportation services.
The case of the unit signed a contract with shippers make transport of goods according to the method of package (package), the contract does not specify the expenses and commissions; apply tax revenues as the transport activities, tax revenue is total revenue received (regardless of transport units or outsourced).
III-About turnover tax pursuant to tariff revenue attached to Decree No. 55/CP 28/8/1993 of the Government and the tax revenue was revised Supplement No.: 182/CP dated 10 November 1994 from the Government; The Ministry of finance more specific instructions applying the tax rates change with some specific business operations below: 1. Mining: tax by industry, mining products (point 2 items I Schedule sales tax). Case extraction unit using extraction products produce other products then the turnover tax payable calculated on the product produced or sold by the tax rate of the sector, manufacturing products.
For example, the unit of quarrying, manufacturing the stone from stone to stone production, sales tax revenue as the tax building material manufacturing 5%.
2. Production of metal cable types, including power cables, telephone, information (with plastic cover, insulator and the kind without casing) the tax practice, rolling drag metal (point 4-section I-the schedule of sales tax) 3. Production, new means of transport (except bicycles, motorcycles), machinery, equipment and production tools, moulds and parts of machinery components ... tax rate of 1% (point 5a, section I).
4. The manufacture, Assembly: tags, weight, safety deposit boxes, bicycles, motorbikes, sewing machines, watches and accessories of this product (electronic products do not belong) and the civil products, aluminum, enameled iron roofing sheets zinc, Tin coated by religious, the tax of 2% (point 5b Item I).
5. Production in except termites, rats, cockroaches, flies, mosquitoes (including divisions except mosquitoes) tax rate 0.5%, production of basic chemicals (according to product category of the Ministry of heavy industry) tax rate of 1% (point 7, section I).
6. Paper manufacturing oil, lime, bricks, tiles, refractory materials, the tariff of 5% (point 10, section I).
7. fix the type of production (including soy milk) tax rate of 4% (point 15, section I).
8. The recovery of byproduct in the manufacture of the tax by industry, the main manufacturing products.
For example: food grinding unit sell sheets, thank you is a by-product revenue tax according to operate milling is 2%.
Sold for scrap, scrap case does reduce accounting apply the 1% sales tax. Selling products is the product (product types 2, 3, ...) to apply tax rate by industry, the main manufacturing products.
9. urban passenger transport, by means of: blue, car, auto rickshaw ... tax rate of 1%. Passenger case mainly staff members working from the inner city, to the neighboring region.
For example, From Hanoi to HA Dong town, Ho Chi Minh City to bien Hoa, applying internal transport fares also apply a tariff of 1%.
10. Sell items below list the items the tax by 1% (point 1, section IV-tariff revenue):-food-food,-the production materials including: fuel, gas, burning oils, coal types (including the processing of coal into coal cinder, grasp the hive for sale) , lubricants, fabric vertical blinds, awning fabric.
-Means of transport boats, canoe, car transport, car, car car car, agriculture, innovation, forklift, push the goods, (not including bicycle, motorcycle, car son from 15 seats).
-Machinery, production tools: machine tool, machine dynamics, welding machines, generators ... and the type of production tools, fishing nets.
-Selling machine parts, equipment, means of transport (not including spare parts to assemble consumer products such as: bicycles, motorcycles, watches, cameras ...)-Sold (issued) books, movies (kind of coated film back to premiere). Eligible cases pay tax on the difference, tax 4% (point 10 section IV tariffs).
11. business items being is machinery, equipment (production), raw materials, spare parts to the 1% tax, then the tax of 2% for domestic goods, the tax rate of 4% for other imports (excluding the items have specified at point 4-section IV-sales tax).
12. remittances service brokerage Commission, the tax rate 6% as the Bank's payment services (point 3b category VI).
13. karaoke service business, advertising, tax of 8% (9-VI)

The ad includes the form: advertising through the mass media: television, radio, books, magazines, advertising venue rental, pano, posters.
14. the massage, bath sales tax 10% (score 11-VI).
15. the business activities of the games: table rental, table tennis, pool table, table football, video games (not counting the electronic lottery) tax 4% (point 14, section VI).
IV-about tax reduction review 1. The new production facility established to consider reducing the sales tax is the basis of production lines in "section I-production" sales tax.
The new production facilities to be considering reducing sales tax must have the stipulated below:-Have decided to set up business, business registration certificate clearly define industry, product or business. Case of households produce new individual business out of business, only need a business license.
-New investment reality, shops of machinery, equipment and tools, building (or rent) of factory production to form the new production facility. For large scale enterprises (companies, Enterprise) must have a technical-economic justification of construction investment, settlement or the minutes handed the basic construction to production.
-Signed tax declaration to the tax authorities.
-Have or plan to produce the year's business tax reduction, please clearly define the sales tax amount to be paid and would decrease.
The new production facility, please reduce the sales tax to set up the profile on the enclosed application for remission of the tax agency for facility management units. Copies of the decision to establish the business, business registration certificate must be certified notary, other records if copies must be sent to the star of the unit or have a decision. The tax authorities responsible unit manager Archana receive check record and the fact is this unit new production facility to consider tax relief, if the unit is not subject to tax relief must be notified in writing to the unit said. The case of the Department to reduce taxes but not record properly, not enough to require additional units to complete. After checking, complete records, tax authorities have written comments included the unit's records to the tax level on considering resolution according to the jurisdiction rules.
-The establishment of new production facilities have adequate regulatory conditions as new production facilities mentioned above, but is the company or enterprise, focus on income accounting firms, corporations, then this basis only are considering reducing sales tax, not considering reducing the sales tax and income tax under this provision only review for manufacturing operations.
The cases below are not in the new production facilities are considering tax relief under this provision:-manufacturing base has formed previously now rename, convert, split, merge, dissolution and then formed again (including joint ventures, joint stock companies, limited liability companies established the capital contribution by machinery , equipment, factory facility established earlier).
-Production facilities had now registered business start-up, business establishments are operating now in investment to upgrade production items change or additional production.
2. jurisdiction to review the decision to reduce sales tax regulations in part C, section IV circular No 73A TC, TCT for Director of taxation is defined specifically as follows: Director of taxation are decided for tax breaks for business objects is households, collective economic organization Ltd., and local-State-enterprise management (except the company established and operating under the foreign investment law) in the case of tax relief under the provisions of point 1, point 2 B of circular section 73A TC/TCT with considering tax relief for each case averaged under 4 million per month.
In addition to the objects and the cases falling under the jurisdiction of the tax Director of the tax rules on this case, please decrease other taxes and the tax Bureau Chief in the case review but have reduced levels of world average, from 4 million or more, are part of the authority the decision of the Minister of finance or the General Director of a tax Bureau (under the authorization of the Minister of Finance).
The sequence of procedure reduce the sales tax in all cases must request the object please set tax application regulations, the tax authorities to check records and practice, a decision to reduce taxes on the case under the control of their supply or suggest writing your profile sent to the tax level on the review decision. Reducing taxes must follow the decision of the tax authority.
3. Additional guidelines review tax exemptions for small business in the production of household tax payers and tax revenue on the revenue securities, lower reduction in income due to the fact the holiday business as follows:-on the actual number of households have production operations in the business, from 5 days or less are exempt from the sales tax and income tax of the month it.
-Households having the actual number of days in the business, from 15 days down are considering reducing 50% of sales tax and income tax of that month.

To reduce taxes, households and business must declare to tax authorities the reason for and the number of days off business (tax rebate application form and instructions of tax authorities).
The decision to review tax breaks for small business households as defined above under the authority of the Chief tax Bureau Bureau. The total tax and specific guidelines on the procedure of records and procedures review tax breaks for households business according to regulations.
V-organization made the additional instructions, modifying some points about the sales tax in this circular are effective from July 1, 1995. The Guide to sales tax previously opposed this text are no longer enforceable. The point of no guidance in this circular shall follow the instructions of circular 73A TC, TCT.
In the implementation process have difficult obstacles and nothing to suggest the unit, the Agency reflects on the Finance Ministry to study additional instructions./.