VILAF

LEGAL UPDATE
Date: Legislation updated: 10 February 2012 Circular 05/2012/TT-BTC of the Ministry of Finance ate 05 !anuary 2012 "ui in" the i#$le#entation of %ecree 2&/200'/(%C) of the *o+ern#ent ate 1& March 200' an %ecree 11,/2011/(%-C) of the *o+ern#ent ate 0- %ece#ber 2011 on a#en #ent an su$$le#ent of a nu#ber of Articles of %ecree 2&/200'/(%-C) of the *o+ern#ent ate 1& March 200' $ro+i in" etails for the i#$le#entation of a nu#ber of Articles of the La. on /$ecial Consu#$tion Ta0 12Circular 0534 Mac )huon" 5hanh )artner ("oc Anh ENT:

Presenter: Supervising Partner: KEY POINTS TO CO !"

#$at are %e& issues o' t$e ne( legislation) Circular 05 re$laces Circular &6/200'/TT-BTC of the Ministry of Finance ate 27 March 200' $ro+i in" the etail i#$le#entation of %ecree 2&/200'/(%-C) of the *o+ern#ent ate 1& March 200' $ro+i in" etails for the i#$le#entation of a nu#ber of Articles of the La. on /$ecial Consu#$tion Ta0 12 Circular *+348 /ince the ne. Circular re$laces Circular &69 the :ey issues are iscusse in ite# 2 hereun er8

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#$at are t$e c$anges in co-parison (it$ previous legislation.s/ on t$e sa-e issue) Circular 05 $ro+i es for se+eral si"nificant a#en #ents an co#$are to Circular &6 as follo.s; ,"!" su$$le#ents as

Ti-eline 'or declaration and pa&-ent o' special consu-ption ta0 .1SCT2/ ($ere use o' goods not su34ect to SCT 'or ot$er purposes

<n er Circular &69 if i#$orters of the "oo s .hich are not liable to e0cise ta0 u$on i#$ortation use these "oo s for other $ur$oses9 they shall .ithin 10 ays after the "oo s are eli+ere for use for other $ur$oses9 eclare an $ay /CT to custo#s offices .here custo#s eclarations are re"istere 8 =o.e+er9 un er Circular 059 the re>uire#ent to eclare an $ay /CT for "oo s .hich are use for other $ur$oses
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VILAF .ithin a fi0e 10 ays as abo+e #entione is abolishe 8 Accor in"ly9 the i#$orters are not liable to eclare an $ay /CT .ithin a ti#eline of 10 ays after the "oo s are use for other $ur$oses8 ,"," SCT applica3le to aircra't and &ac$ts

Aircraft an yachts use for co##ercial trans$ortation of car"oes9 $assen"ers an tourists shall not sub?ect to /CT8 If these aircraft an yachts are use for $ur$oses other than the abo+e $ur$oses9 they .ill be /CT e0cise 8 <n er the ne. Circular 059 if the business establish#ents ha+in" aircraft an yachts .hich are i#$orte for co##ercial trans$ortation chan"e the use $ur$ose of those aircraft an yachts9 they shall eclare an $ay /CT8 If business establish#ents ha+in" aircraft an yachts .hich are $ro uce o#estically for co##ercial trans$ortation chan"e the use $ur$ose of those aircraft an yachts9 they shall eclare an $ay /CT on their +alue left after subtractin" the e$reciate +alue8 ,"5" Dossier to 3e su3-itted 'or cars designed 'or operating in recreation6 entertain-ent and sports areas ($ic$ are not su34ect to SCT

Circular 05 etails the ocu#ents to be sub#itte in or er for the cars i#$orte an esi"ne for o$eratin" in recreation9 entertain#ent an s$orts areas to be not sub?ect to /C8 Accor in"ly9 the business establish#ents shall sub#it the ossier inclu in" the follo.in" ocu#ents; 1a4 the co$y of the Business @e"istration Certificate of the business establish#ents e+i encin" that the business establish#ents re"istere recreation9 entertain#ent an s$orts in their business linesA the I#$ort %eclaration For# on .hich the business establish#ent clearly eclare that 2cars esi"ne an #anufacture for o$eratin" in recreation9 entertain#ent an s$orts areas to be not sub?ect to /CT .hich neither are re"istere for circulation nor #o+e on roa s38 Supple-enting a nu-3er o' o34ects not su34ect to SCT

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The ne. Circular $ro+i es for a nu#ber of ob?ects .hich are not sub?ect to /CT such as; (a$htha9 con ensate9 refor#ates co#$onent an other refor#ates for #anufacture of "oo s 1e0ce$t those for #anufacture of $etrol48 In or er for the abo+e substances to be ob?ects not sub?ect to /CT9 the business establish#ents shall sub#it se+eral re>uire ocu#ents8 ,"5" SCT ta0ed prices

VILAF The /CT ta0e $rice of "oo s or ser+ice is the "oo s sellin" $rice or the ser+ice char"e set by the $ro uction an business establish#ent9 e0clusi+e of /CT9 en+iron#ental $rotection ta0 an +alue-a e ta08 ,"*" 1a4 Ta0 deduction Accor in" to the ne. Circular 059 ta0$ayers those $ro uce /CT-liable "oo s fro# /CT-liable ra. #aterials #ay en?oy the /CT e uction for the $ai /CT for the i#$orte ra. #aterials or for the ra. #aterials $ro uce o#estically .hen eter#ine the liable /CT8 The e ucte /CT is e>ual to the /CT for ra. #aterials use for $ro uction of the "oo s sol 8 To en?oy /CT e uction9 the business establish#ents shall sub#it the follo.in" ocu#ents; If raw materials are imported to produce SCT-liable goods /CT $ay#ent ocu#ents at the i#$ort sta"e 1a$$licable for the ra. #aterials i#$orte to $ro uce e0cise ta0-liable "oo s48

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If raw materials are purchased from local manufacturer /ale an )urchase A"ree#ent in icatin" the "oo s $ro uce by the local #anufacturerA Certifie co$y of the Business @e"istration for# of the local #anufacturerA %ocu#ents e+i encin" the $ay#ent of the business establish#ents +ia ban:A VAT in+oice8

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7o( (ill clients or 3usinesses 3e a''ected) ,818 The i#$orters of "oo s .hich are not sub?ect to the /CT are not re>uire to eclare an $ay /CT .ithin a ti#eline of 10 ays after the "oo s are use for other $ur$osesA If business establish#ents ha+in" aircraft an yachts .hich are i#$orte for co##ercial trans$ortation chan"e the use $ur$ose of those aircraft an yachts9 they shall eclare an $ay /CTA If business establish#ents ha+in" aircraft an yachts .hich are $ro uce o#estically for co##ercial trans$ortation chan"e the use $ur$ose of those aircraft an yachts9 they shall
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VILAF eclare an $ay /CT on their +alue left after subtractin" the e$reciate +alueA ,8,8 Business establish#ents those i#$ort or $urchase na$htha9 con ensate9 refor#ates co#$onent an other refor#ates for their #anufacture of "oo s 1e0ce$t those for #anufacture of $etrol4 shall not be re>uire to $ay /CTA Business establish#ents those $ro uce /CT-liable "oo s fro# /CT-liable ra. #aterials #ay en?oy the /CT e uction for the $ai /CT for the i#$orte ra. #aterials or for the ra. #aterials $ro uce o#estically .hen eter#ine the liable /CT8

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