What are distribution methods of excise tax in Vietnam?

What are distribution methods of excise tax in Vietnam?

Pursuant to Article 14 of Circular 80/2021/TT-BTC stipulates as follows:

Declaration, calculation, distribution, and payment of excise tax

1. distribution Cases:

Business activities of electronic lottery.

2. distribution Method:

The excise tax payable to each province with electronic lottery business activities is equal to (=) the excise tax payable for the electronic lottery business activities multiplied (x) by the percentage (%) of the actual ticket sales revenue from electronic lottery business activities in each province over the actual ticket sales revenue of the taxpayer.

The actual ticket sales revenue from electronic lottery business activities is determined as per the provisions in point a, clause 2, Article 13 of this Circular.

3. Tax Declaration and Payment:

Taxpayers declare the excise tax for the entire electronic lottery business activities nationwide and submit the tax declaration as per form No. 01/TTDB, annex of the excise tax deduction determination table for purchased inputs, imported goods (if any) as per form No. 01-2/TTDB, annex of the excise tax distribution table payable to localities benefiting from revenue from electronic lottery business activities as per form No. 01-3/TTDB issued together with appendix II of this Circular to the directly managing tax authority; paying the distributed tax amount to the province with electronic lottery business activities as stipulated in clause 4, Article 12 of this Circular.

The excise tax is distributed in electronic lottery business activities according to the following method:

The excise tax payable to each province with electronic lottery business activities = (excise tax payable for electronic lottery business activities) x (percentage (%) of actual ticket sales revenue from electronic lottery business activities in each province over the actual ticket sales revenue of the taxpayer).

What are distribution methods of excise tax in Vietnam? (Image from the Internet)

Which goods and services are subject to excise tax in Vietnam?

Pursuant to Article 2 of Law on excise tax 2008 (amended by clause 1, Article 1 of the Law on Amendment to the Law on excise tax 2014), the following goods and services are subject to excise tax:

- Goods:

+ Cigarettes, cigars, and other tobacco products used for smoking, inhaling, chewing, snuffing, or sucking;

+ Alcohol;

+ Beer;

+ Automobiles with less than 24 seats, including those with both passenger and cargo functions with more than two rows of seats and a fixed partition between the passenger and cargo compartments;

+ Motorcycles with two wheels, motorcycles with three wheels with engine displacement over 125cm³;

+ Airplanes, yachts;

+ Various types of gasoline;

+ Air conditioners with a capacity of 90,000 BTU or less;

+ Playing cards;

+ Votive paper and items.

- Services:

+ Nightclub business;

+ Massage and karaoke business;

+ Casino business; prize-winning electronic games including jackpot machines, slot machines, and similar types;

+ Betting business;

+ Golf business including selling membership cards, golf tickets;

+ Lottery business.

However, pursuant to Article 3 of Law on excise tax 2008 (amended by clause 2, Article 1 of the Law on Amendment to the Law on excise tax 2014) the above-mentioned goods will not be subject to excise tax in the following cases:

- Goods directly exported or sold, entrusted for export by the manufacturing or processing base;

- Imported goods including:

+ Humanitarian aid, non-refundable aid; gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, armed forces, gifts for individuals in Vietnam within the prescribed limits of the Government of Vietnam;

+ Goods in transit or borrowing Vietnam's customs clearance, border gates, goods being transshipped as prescribed by the Government of Vietnam;

+ Goods temporarily imported for re-export and temporarily exported for re-import are not subject to import tax, export tax within the legal limits of the law on export tax and import tax;

+ Items of foreign organizations and individuals eligible for diplomatic immunity; items brought in the tax-exempt luggage standard; goods imported for selling in duty-free shops as prescribed by law;

+ Aircraft and yachts used for commercial transport of goods, passengers, tourists, and aircraft used for security and defense purposes;

+ Ambulance cars; prisoner transport cars; funeral cars; cars designed to have both seating and standing space for carrying 24 or more people; cars operated in entertainment, recreation, and sports areas not registered for traffic circulation and participation.

+ Goods imported from abroad into the non-tariff zone, goods sold domestically into the non-tariff zone and only used in the non-tariff zone, goods traded among non-tariff zones, excluding passenger cars with less than 24 seats.

What is the formula for calculating excise tax in Vietnam?

Pursuant to Article 5 of Law on excise tax 2008 stipulates as follows:

Tax Calculation Basis

The basis for calculating the excise tax is the taxable price of goods, services subject to tax, and the tax rate. The excise tax payable equals the taxable price multiplied by the excise tax rate.

Calculating the excise tax follows the formula:

excise tax = Taxable Price x Tax Rate