Form 01/GTGT Value Added Tax Declaration Applicable to Taxpayers Calculating Tax by the Deduction Method with Business and Production Activities

Form 01/GTGT Value Added Tax Declaration Form Applicable to Taxpayers Calculating Tax by Deduction Method Engaged in Production and Business Activities?

Based on Form 01/GTGT issued together with Circular 80/2021/TT-BTC, specifying the value-added tax declaration form applicable to taxpayers calculating tax by the deduction method engaged in production and business activities.

See detailed and download the declaration form here Download

Form 01/GTGT value-added tax declaration form applicable to taxpayers calculating tax by the deduction method engaged in production and business activities? (Image from Internet)

Who is not subject to value-added tax?

Based on Article 5 of the 2008 Value-Added Tax Law supplemented by Clause 1 Article 3 of the Amended Tax Laws 2014, Clause 1 Article 1 of the Amended 2016 Value-Added Tax Law, the Amended Special Consumption Tax Law and the Amended Tax Administration Law, and Clause 1 Article 1 of the Amended 2013 Value-Added Tax Law, the subjects not subject to value-added tax include:

- Products from cultivation, livestock, aquaculture, caught fisheries not processed into other products or only through simple preliminary processing of entities or individuals self-producing, selling, and at the import stage.

- Products as breeding animals, plants, including breeding eggs, breeds, seedlings, seeds, semen, embryos, genetic materials.

- Irrigation and drainage services; land plowing and harrowing; canal and ditch dredging for agricultural production; agricultural product harvesting services.

- Fertilizers; specialized agricultural production machinery and equipment; offshore fishing vessels; animal feed, poultry feed, and other livestock feed.

- Salt products produced from seawater, natural rock salt, refined salt, iodized salt with sodium chloride (NaCl) as the main component.

- State-owned housing sold by the State to current tenants.

- Land use rights transfer.

- Life insurance, health insurance, student insurance, other insurance services related to humans; pet insurance, plant insurance, other agricultural insurance services; insurance for ships, boats, necessary equipment and tools directly serving fishing; reinsurance.

- The following financial, banking, securities services:

+ Credit granting services include: lending; discount, rediscount of negotiable instruments and valuable papers; guarantee; financial leasing; credit card issuance; domestic factoring; international factoring; other forms of credit granting as per the laws.

+ Lending services of taxpayers who are not credit institutions.

+ Securities trading including: securities brokerage; securities dealing; securities issuance underwriting; securities investment advisory; securities custody; securities investment fund management; securities portfolio management; market organizing services of the stock exchange or securities transaction center; other securities trading activities as per securities laws.

+ Capital transfer includes: partial or whole transfer of invested capital, including selling a business to another business for production and business purposes; securities transfer; other forms of capital transfer as per the law.

+ Debt sale.

+ Foreign currency trading.

+ Financial derivative services including: interest rate swaps; forward contracts; futures contracts; options to buy and sell foreign currencies; other financial derivative services as per the law.

+ Selling collateral assets of debt owned by an entity with 100% charter capital owned by the Government of Vietnam to handle bad debts of Vietnamese credit institutions.

- Medical services, veterinary services including medical examination, treatment, disease prevention for humans and animals; care services for the elderly and disabled.

- Postal, telecommunications services for public welfare and widespread Internet services under the program of the Government of Vietnam.

- Services for maintaining zoos, flower gardens, parks, street greenery, public lighting; funeral services.

- Maintenance, repair, construction with funding from people's contributions, humanitarian aid for cultural, artistic works, public service works, infrastructure, and housing for social policy beneficiaries.

- Education, vocational training as per the law.

- Radio and television broadcasting funded by the state budget.

- Publishing, importing, distributing newspapers, magazines, specialized bulletins, political books, textbooks, teaching materials, legal documents, scientific-technical books, books printed in ethnic minority languages, propaganda posters, including forms of audio or video recordings, electronic data; money, currency printing.

- Public passenger transport by bus, electric car.

- Machinery, equipment, spare parts, supplies that are not produced domestically and need to be imported for direct use in scientific research, technology development; machinery, equipment, spare parts, specialized means of transport, and supplies that are not produced domestically and need to be imported to conduct oil and gas exploration activities; airplanes, drilling rigs, ships not produced domestically and need to be imported to create fixed assets of enterprises or leased from abroad for production, business, leasing, and subleasing.

- Weapons, specialized equipment serving national defense, security.

- Goods imported under humanitarian aid, non-refundable aid; gifts to state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, armed forces units; gifts to individuals in Vietnam as per the Government of Vietnam’s regulations; personal belongings of foreign organizations and individuals under diplomatic immunity; items carried by people within duty-free luggage quotas.

- Goods in transit through the Vietnamese territory; temporary import for re-export; temporary export for re-import; raw materials imported for the production and processing of export goods under production contracts; processing contracts signed with foreign parties; goods and services purchased and sold between foreign countries and non-tariff zones and among non-tariff zones.

- Technology transfer; intellectual property right transfer.

- Imported gold in bullion, bars that have not been crafted into fine art products, jewelry, or other products.

- Export products being unprocessed natural resources and minerals; export products processed from natural resources, minerals with total value of resources plus energy costs accounting for 51% or more of the product price.

- Artificial products used to replace parts of the human body; crutches, wheelchairs, and other specialized tools for the disabled.

- Goods and services of households, individuals with annual revenue not exceeding one hundred million VND.

In which cases are value-added tax declarations and payments not required?

Clause 3 Article 2 of Decree 209/2013/ND-CP stipulates cases where value-added tax declarations and payments are not required, including:

- Organizations and individuals receiving income from compensation, rewards, support, emission right transfer, and other financial incomes.

- Organizations and individuals producing, doing business in Vietnam purchasing services from foreign organizations without permanent establishments in Vietnam, non-resident foreign individuals, including cases:

+ Repairing means of transport, machinery, equipment (including materials, spare parts); advertising, marketing; investment and trade promotion; sales brokerage, service provision; training.

+ Sharing international postal, telecommunications service charges between Vietnam and foreign countries performed outside Vietnam.

- Organizations and individuals not doing business, not subject to value-added tax selling assets.

- Organizations and individuals transferring investment projects for producing, trading goods and services subject to value-added tax to enterprises, cooperatives.

- Products from crops, livestock, aquaculture not processed into other products or only through simple preliminary processing sold to enterprises, cooperatives, except as stated in Clause 1 Article 5 of the 2008 Value-Added Tax Law.