04 cases not subject to assessment of selling prices based on normal market prices concerning automobile or motorbike traders in Vietnam

04 cases not subject to assessment of selling prices based on normal market prices concerning automobile or motorbike traders in Vietnam (Internet image)

Article 3 of Circular 71/2010/TT-BTC stipulates cases not subject to assessment of selling prices based on normal market prices concerning automobile or motorbike traders in Vietnam as follows:

• Automobile or motorbike traders that post up selling prices in accordance with normal market prices and sell automobiles or motorbikes at these prices or prices of 5 per cent lower. In this case, taxes will be calculated based on posted prices (posted prices must be notified to managing lax offices). Establishments which post up selling prices of automobiles or motorbikes but fail to comply with the above regulation will be subject to assessment of selling prices based on normal market prices and of payable tax amounts.

• Domestic automobile or motorbike manufacturers and assemblers that sell their products at prices applicable nationwide and in each region or locality. In this case, value-added tax (VAT) and enterprise income tax (HIT) will be calculated based on prices applied by the manufacturers or assemblers at the time of calculation. Selling prices set by manufacturers must be publicly announced and notified to managing tax offices. Automobile or motorbike traders that write selling prices on invoices lower than the prices announced and notified to managing tax offices will be subject to tax assessment based on their notified prices.

• Sale agents that sell goods at prices set by their principals and only enjoy commissions under the law on VAT.

• Business establishments that buy used automobiles and motorbikes with registration certificates issued by competent state management agencies for sale or receive them for consignment sale.

More details can be found in Circular 71/2010/TT-BTC, which comes into force from June 21, 2010.

Nguyen Phu

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