Decree No. 14/2019/ND-CP amending the Decree No. 108/2015/ND-CP

DECREE

Amending and supplementing a number of articles of the Government’s Decree No. 108/2015/ND-CP of October 28, 2015, detailing and guiding a number of articles of the Law on Excise Tax and the Law Amending and Supplementing a Number of Articles of the Law on Excise Tax^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the November 14, 2008 Law on Excise Tax and the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Law on Excise Tax;

Pursuant to the November 29, 2006 Law on Tax Administration and the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to the April 6, 2016 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, Law on Excise Tax and Law on Tax Administration;

At the proposal of the Minister of Finance,

The Government promulgates the Decree amending and supplementing a number of articles of the Government’s Decree No. 108/2015/ND-CP of October 28, 2015, detailing and guiding a number of articles of the Law on Excise Tax and the Law Amending and Supplementing a Number of Articles of the Law on Excise Tax.

Article 1.To amend and supplement a number of articles of the Government’s Decree No. 108/2015/ND-CP of October 28, 2015:

1. To amend and supplement Clause 3, Article 3 as follows:

“3. Aircraft and yachts used for commercial transportation of cargoes, passengers and tourists; and aircraft used for the purposes of pesticide spraying, firefighting, filmmaking, photography, survey and mapping activities, security and national defense.

Aircraft and yachts not used for commercial transportation of cargoes, passengers and tourists; and aircraft not used for the purposes of pesticide spraying, firefighting, filmmaking, photography, survey and mapping activities, security and national defense shall be liable to excise tax under the Law on Excise Tax and the Ministry of Finance’s guidance.”

2. To amend and supplement Clause 3, Article 6 as follows:

“3. Procedures, dossiers, order and competence for excise tax refund:

a/ Procedures, dossiers, order and competence for excise tax refund for goods temporarily imported for re-export specified in Clause 1 of this Article are similar to those for import duty refund prescribed in Article 34 of the Government’s Decree No. 134/2016/ND-CP of September 1, 2016, detailing a number of articles of, and measures to implement, the Law on Import Duty and Export Duty, and amending and supplementing documents (if any).

b/ Procedures, dossiers, order and competence for excise tax refund for raw materials imported for export production and processing specified in Clauses 2 of this Article are similar to those for import duty refund prescribed in Article 36 of the Government’s Decree No. 134/2016/ND-CP of September 1, 2016, detailing a number of articles of, and measures to implement, the Law on Import Duty and Export Duty, and amending and supplementing documents (if any).

In case both the import duty amount and excise tax amount requested for refund are stated in an import declaration, the dossier for import duty refund may also be used for excise tax refund.”

3. To amend and supplement Article 7 as follows:

“Article 7. Tax deduction

1. Taxpayers that produce excise tax-liable goods from excise tax-liable raw materials are entitled to deduction of the excise tax amount paid for imported raw materials (including the excise tax amount paid according to a customs office’s tax assessment decision, except the case in which the customs office imposes a sanction for tax evasion or tax fraud) or for raw materials purchased directly from domestic producers upon the determination of the payable excise tax amount. The deductible excise tax amount is equivalent to the amount of excise tax on raw materials used for production of excise tax-liable goods sold.

Particularly for biogasoline, the deductible excise tax amount in a tax period shall be determined based on the excise tax amount paid per unit of purchased raw-material mineral gasoline used for production of biogasoline in the previous tax period.

For an enterprise licensed to produce and prepare biogasoline, excise tax payment declaration and deduction shall be made at a tax office of the locality where its head office is located. The after-deduction remainder of the excise tax amount for raw-material mineral gasoline used for production and preparation of biogasoline (including the after-deduction amount in the January 2016 tax period) shall be cleared against the payable amount of excise tax on other goods or services in the tax period. After the clearing, the remainder of the excise tax amount for raw-material mineral gasoline used for production and preparation of biogasoline shall be deducted in the subsequent tax period or refunded.

Dossiers, order and competence for excise tax refund are provided as follows:

- A biogasoline-producing or -preparing establishment shall make a written request according to Form No. 01a/DNHT in the Appendix to this Decree for refund of the amount remitted into the state budget, which is cleared against other payable tax amounts (if any).

- The biogasoline-producing or -preparing establishment shall submit a dossier of request for refund of the remainder of the excise tax amount after deduction to a tax office in the locality where its head office is located.

- The tax administration agency shall process the excise tax refund dossier specified in this Clause under Article 60 of the Law on Tax Administration and the Law Amending and Supplementing a Number of Article of the Law on Tax Administration and amending and supplementing documents (if any).

- Pursuant to the tax office’s order for refund of the amount remitted into the state budget, the State Treasury shall refund the amount of excise tax on raw-material mineral gasoline used for production and preparation of biogasoline. Funding for excise tax refund shall be taken from the central budget’s revenue on excise tax.

2. Payers of excise tax on excise tax-liable imported goods are entitled to deduction of the excise tax amount paid at the stage of import, including the excise tax amount paid according to a customs office’s tax assessment decision, except the case in which the customs office imposes a sanction for tax evasion or tax fraud upon determination of the payable excise tax amount for domestically sold goods. The deductible excise tax amount is equivalent to the amount of excise tax on excise tax-liable imported goods sold and must not exceed the excise tax amount for domestically sold goods. For the deference between the excise tax amount paid at the stage of import and the excise tax amount for domestically sold goods, taxpayers may account it as an expense for calculation of enterprise income tax.

3. Conditions for excise tax deduction are provided as follows:

a/ In case of import of excise tax-liable raw materials for production of excise tax-liable goods, and in case of import of excise tax-liable goods, documents for excise tax payment at the stage of import shall be used for excise tax deduction.

b/ In case raw materials are purchased directly from a domestic producer:

- A purchase and sale contract, which must state that the raw materials are directly produced by the seller; a copy of the business registration certificate of the seller (with the seller’s signature and seal).

- Via-bank payment documents.

- Value-added tax (VAT) invoices upon goods purchase serving as a basis for excise tax deduction. The excise tax amount paid by the purchaser for raw materials equals (=) excise tax calculation price multiplied by (x) excise tax rate, of which:

The excise tax shall be deducted when making excise tax declaration and the payable excise tax amount shall be calculated according to the following formula:

In case the excise tax amount paid for the quantity of raw materials that are equivalent to products sold in the tax period has not been determined accurately, the figures of the previous tax period may be used to calculate the deductible excise tax amount and the actual amount shall be determined at the end of the quarter or at the year-end. In any case, the deductible excise tax amount must not exceed the amount of excise tax on the quantity of raw materials set out in techno-economic norms applied to the products.

4. Payers of excise tax shall submit an excise tax return, made according to Form No. 01/TTDB, and a table determining deductible excise tax amounts (if any), made according to Form No. 01-1/TTDB, in the Appendix to this Decree.”

Article 2.Effect and implementation responsibility

1. This Decree takes effect on March 20, 2019.

2. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related organizations and individuals shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN XUAN PHUC

* The Appendix to this Decree is not translated.