On March 6th 2017, the Ministry of Finance issued the Circular No. 20/2017/TT-BTC. Whereby, special consumption taxpayer in relation to imported goods, which are taxable on special consumption tax, are deductible for special consumption tax amount paid at importation phase when defining payable amount of special consumption tax in regards to domestically sold goods. The deductible amount of special consumption tax in line with special consumption tax amount of imported goods which are sold domestically and the deductible maximum tax amount is equivalent to the special consumption tax amount which is accountable at domestic selling phase. Regarding nondeductible amount of special consumption tax, taxpayer is accounted in expense to calculate corporate income tax.
Conditions of deductible special consumption tax are regulated as follows:
– Regarding imported materials subject to special consumption tax for purpose of manufacturing goods subject to special consumption tax and in case of imported goods subject to special consumption tax, the document considered as a base to deduct special consumption tax is the paid tax paper at importation phase.
– In case of materials directly bought from domestic suppliers: including commodity trading contracts, these contracts must show out that goods are self-manufactured by providers; a copy of business registration certificate of providers; via banking payment voucher; document to be as a base to deduct special consumption tax is VAT invoice when purchasing goods.
This curricular becomes effective as from April 20th 2017.
