Which services are subject to excise tax in Vietnam?

Which services are subject to excise tax in Vietnam?

Based on Article 2 of the 2008 Law on excise tax (amended by Clause 1 Article 1 of the 2014 Law on amendments to the Law on excise tax), the following 6 types of services are subject to excise tax:

(1) Nightclub business;

(2) Massage, karaoke business;

(3) Casino business; Reward-based electronic games including jackpot machines, slot machines, and similar types of machines;

(4) Betting business (including: sports betting, entertainment betting, and other types of betting as prescribed by law);

(5) Golf business including the sale of membership cards, golf tickets;

(6) Lottery business.

Which services are subject to excise tax in Vietnam? (Image from the Internet)

What is the taxable price for excise tax on services in Vietnam?

Based on Article 6 of the 2008 Law on excise tax amended by Clause 3 Article 1 of the 2014 Law on amendments to the Law on excise tax, it is stipulated as follows:

Taxable Price

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3. For processed goods, the taxable price is the sale price of the goods sold by the processing establishment or the sale price of similar or equivalent products at the time of sale;

4. For goods sold on an installment or deferred payment basis, the taxable price is the one-time payment sale price of such goods excluding interest on installments or deferred payments;

5. For services, it is the service provision price of the business establishment. The service provision price for certain cases is specified as follows:

a) For golf business, it is the sale price of membership cards, golf tickets, including golf playing fees and deposits (if any);

b) For casino business, reward-based electronic games, and betting business, it is the revenue from these activities minus the amount paid out as prizes to customers;

c) For nightclub, massage, and karaoke business, it is the revenue from business activities in nightclubs, massage facilities, and karaoke businesses;

6. For goods and services used for exchange, internal consumption, gifting, and giving, the taxable price is the price of similar or equivalent goods or services at the time these activities occur.

The taxable price for excise tax for goods and services specified in this Article includes any additional charge, if any, that the business establishment is entitled to.

The taxable price is calculated in Vietnamese Dong. If the taxpayer has revenue in foreign currency, it must be converted to Vietnamese Dong according to the average exchange rate on the interbank foreign currency market announced by the State Bank of Vietnam at the time the revenue arises to determine the taxable price.

The taxable price for excise tax on goods and services is the sale price, service provision price excluding excise tax, environmental protection tax, and value-added tax. For services, it is the service provision price of the business establishment. The service provision price for certain cases is specified as follows:

- For the golf business, it is the sale price of membership cards, golf tickets, including golf playing fees and deposits (if any);

- For the casino business, reward-based electronic games, and betting business, it is the revenue from these activities minus the amount paid out as prizes to customers;

- For nightclub, massage, and karaoke business, it is the revenue from business activities in nightclubs, massage facilities, and karaoke businesses.

Which imports are not subject to excise tax in Vietnam?

According to Article 3 of the 2008 Law on excise tax and Article 3 of Decree 108/2015/ND-CP, the imports not subject to excise tax include:

- Humanitarian aid goods, non-refundable aid; gifts for state agencies, political organizations, socio-political organizations, socio-professional political organizations, social organizations, socio-professional organizations, and people’s armed forces units, gifts for individuals in Vietnam as prescribed by the Government of Vietnam, including:

+ Humanitarian aid goods, non-refundable aid goods, including imports using non-refundable aid capital approved by competent authorities, humanitarian aid goods, emergency relief goods to mitigate the consequences of war, natural disasters, and disease;

+ Gifts from organizations and individuals abroad to state agencies, political organizations, socio-political organizations, socio-professional political organizations, social organizations, socio-professional organizations, and people’s armed forces units;

+ Gifts for individuals in Vietnam within the stipulated limit of the law.

- Goods transported in transit through or borrowed roads through Vietnam’s border gates, borders, and goods transshipped as prescribed by the Government of Vietnam;

- Temporary import, re-export, temporary export, re-import goods exempt from import and export duties within the time limit prescribed by the law on import and export duties;

- Goods used by foreign organizations and individuals under diplomatic immunity standards; goods brought along by individuals within the duty-free baggage allowance; goods imported for sale at duty-free shops as prescribed by law.