Law No. 106/2016 / QH13 of April 6, 2016 amending and supplementing the Law on VAT, the Law on Special Consumption Tax and the Law on Tax Administration.

I. VAT

1. Non-taxable objects: Additional objects

– Enterprises and cooperatives purchase products of cultivation, husbandry and aquaculture which are not yet processed into other products or are only preliminarily processed and sold to other enterprises or cooperatives. These units are not required to declare and pay tax but are entitled to deduct input VAT;

– care services for the elderly, people with disabilities;

– Export products are commodities processed from natural resources and minerals with the total value of natural resources and minerals plus energy costs accounting for 51% of the cost of products or more.

2. Regarding taxable objects: 0%:

The tax rate of 0% and tax deduction for export products are those processed from natural resources and minerals with the total value of natural resources and minerals plus energy costs accounting for 51% of the cost price. more products.

3. Regarding tax refund:

– Failure to make tax refund for at least twelve (12) months from the first month or at least after four quarters from the first quarter, which has not yet been deducted but still counts. input value added tax not yet deducted;

– Failure of tax refund for investment projects in the following cases:

+ Do not contribute fully the charter capital as registered; failing to meet or fail to ensure the satisfaction of conditions for conditional business lines;

+ Projects on exploitation of natural resources and minerals shall be licensed from July 1, 2016 or investment projects on the production of commodity products with the total value of natural resources and minerals plus the cost of energy taken from 51% or more of product price.

– Failing to reimburse export goods or services without exporting in the geographical areas of customs operation under the provisions of the Customs Law.

– To carry out the tax refund first, and check later on, taxpayers who manufacture export goods without violating the tax law or customs regulations for two consecutive years and are not subject to high risks under the provisions of Tax management Law

II. SPECIAL CONSUMPTION TAX LAW

1. Tax calculation prices:

– The tax calculation price of imported goods is the price imported by the importer into the country and deducted of the special consumption tax already paid at the importation stage when determining the payable special consumption tax amount to be sold.

– Regarding the selling prices between commercial establishments which have mother-child relations or associate relations: The tax calculation prices must not be lower than the average percentages of the direct purchase business establishments. of the production or importing establishments.

2. To amend the tax rates on automobiles of under 24 seats

III. TAX MANAGEMENT LAW

1. Tax exemption and reduction:

Supplementation of tax exemption for households and individuals that have annual non-agricultural land use tax amounts of fifty thousand dong or less

2. Forced taxation:

Taxpayers shall not be subject to tax coercive measures in cases where taxpayers are allowed by tax administration agencies to gradually remit tax debts within twelve months from the date of commencement of tax coercive time limits. The delayed payment of tax debts must be guaranteed by the credit institution and must be paid at the rate of 0.03% per day.

3. Fine level for late payment:

– Tax arrears, including arrears arising before July 1, 2016, which have not been paid by taxpayers, shall be converted to 0.03% per day from July 1, 2016.

– Where taxpayers supply goods or services paid with state budget capital but have not yet been paid, thus leading to tax debts, they shall not have to pay late tax amounts calculated on the outstanding tax amounts but not exceed The amount of money the state budget has not paid

4. To annul the provisions on the time limit for tax payment for export or import goods

IV. EFFECTIVE IMPLEMENTATION

It takes effect from July 1, 2016, except for the provisions on deregulation of the time limit for tax payment for export and import goods effective from 1 September 2016.