Which account is used for environmental protection tax in Vietnam? What are the regulations on accounting for environmental protection tax eligible for refund or deduction in Vietnam?
What is the environmental protection tax? When is the taxable time of the environmental protection tax in Vietnam?
Environmental protection tax, according to Clause 1, Article 2 of the Law on Environmental Protection Tax 2010, means indirect-collected tax, collected on products and goods (hereafter referred to as goods) when used to cause negative environmental impacts
Pursuant to Article 9 of the Law on Environmental Protection Tax 2010 on taxable time:
(1) For goods manufactured, sold, exchanged, donated, taxable time is the time transferring the ownership or right to use goods.
(2) For manufactured goods brought into internal consumption, taxable time is the time when taxable goods brought into use.
(3) For imported goods, taxable time is the time of registration of customs declarations.
(4) For gasoline, petroleum produced or imported for sale, taxable time is the time when the business hub of petrol and oil sold.
Which account is used for environmental protection tax in Vietnam?
Pursuant to Clause 2, Article 52 of Circular 200/2014/TT-BTC on Account 333 – Taxes and other payables to the State:
Account 333 – Taxes and other payables to the State
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2. Structure and contents of account 333 – Taxes and other payables to the State
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Account 333 - Taxes and other payables to the State, comprises 9 sub-accounts:
- Account 3331 – VAT payable: Recording input VAT, VAT payable of import goods, deductible VAT, paid VAT and outstanding VAT payable to government budget.
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- Account 337 – Land tax and land rent: Recording amounts payable, paid amounts and outstanding amounts payable of land tax and land rent to government budget.
- Account 3338 – Environmental protection tax and other taxes: Recording amounts payable, paid amounts and outstanding amounts payable of environmental protection tax and other taxes, such as: Business rates, tax payable on behalf of oversea organizations and individuals having business activities in Vietnam, etc.
+ Account 33381: environmental protection tax: Recording amounts payable, paid amounts and outstanding amounts payable of environmental protection tax;
+ Account 33382: Other taxes: Recording amounts payable, paid amounts and outstanding amounts payable of other taxes. Every tax shall be kept records in sub-accounts in details.
- Account 3339 – Fees, charges and other payables: Recording amounts payable, paid amounts and outstanding amounts payable of fees, charges and other payables to State other than amounts recorded to accounts 3331 through 3338. This account also reflects government grants (if any).
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Thus, Account 33381: environmental protection tax: Recording amounts payable, paid amounts and outstanding amounts payable of environmental protection tax
In addition, Account 33381 is a sub-account of Account 3338 – Environmental protection tax and other taxes.
Where the Account 3338 – Environmental protection tax and other taxes: Recording amounts payable, paid amounts and outstanding amounts payable of environmental protection tax and other taxes, such as: Business rates, tax payable on behalf of oversea organizations and individuals having business activities in Vietnam, etc.
Which account is used for environmental protection tax in Vietnam? (Image from the Internet)
What are the regulations on accounting for environmental protection tax eligible for refund or deduction in Vietnam?
Pursuant to section 3.9.1, point 3.9, clause 3, Article 52 of Circular 200/2014/TT-BTC on Account 333 – Taxes and other payables to the State:
Account 333 – Taxes and other payables to the State
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3. Method of accounting for several major transactions
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3.9. Environmental protection tax
3.9.1. Rules for accounting
- This account is used by the environment protection taxpayer as prescribed. In the import entrustment, this account is used by the trustor, not by the trustee.
- Enterprises selling goods subject to environmental protection tax shall record their revenues excluding environmental protection tax payable. At the time recording revenues, if it fails to separate the environmental protection tax payable, the revenue shall be recorded including such tax, but the environmental protection tax payable shall be recorded as a decrease in revenue periodically.
- Enterprises importing or selling domestic goods or fixed assets subject to environmental protection tax shall record their environmental protection tax payable to original cost of inventories.
- Accounting for environmental protection tax eligible for refund or deduction:
+ If the environmental protection tax paid for import of goods or services is eligible for refund, a decrease in costs of goods sold (goods dispatched for sale) or a decrease in value of goods (goods dispatched for loans or borrowings, etc);
+ If the environmental protection tax paid for import of fixed assets is eligible for refund, a decrease in other expenses (sale of fixed assets) or a decrease in historical costs of fixed assets (fixed assets for return);
+ If the environmental protection tax paid for import of goods or fixed assets is eligible for refund by the entity having no ownership, a decrease in other receivables shall be recorded.
+ If the environmental protection tax paid for sale of goods or services is eligible for refund or deduction, such tax shall be recorded to other income.
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Thus, accounting for environmental protection tax eligible for refund or deduction:
+ If the environmental protection tax paid for import of goods or services is eligible for refund, a decrease in costs of goods sold (goods dispatched for sale) or a decrease in value of goods (goods dispatched for loans or borrowings, etc);
+ If the environmental protection tax paid for import of fixed assets is eligible for refund, a decrease in other expenses (sale of fixed assets) or a decrease in historical costs of fixed assets (fixed assets for return);
+ If the environmental protection tax paid for import of goods or fixed assets is eligible for refund by the entity having no ownership, a decrease in other receivables shall be recorded.
+ If the environmental protection tax paid for sale of goods or services is eligible for refund or deduction, such tax shall be recorded to other income.
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