Tax Alert
Keeping you informed
November 2015
New Decree guiding the implementation
of the Law on Special Sales Tax and the
amended, supplemented Law on Special
Sales Tax
© 2015 Deloitte Vietnam Tax Advisory Company Limited
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New Decree provides detailed regulations and guidance on implementation of the
Law on Special Sales Tax and the amended, supplemented Law on Special Sales Tax.
Further to the issuance of the Law No. 70/2014/QH13 of National Assembly amending and
supplementing Law on Special Sales Tax (“SST”), the Government recently issued Decree
108/2015/ND-CP (“Decree 108”) dated 28 October 2015 which provides detailed regulations
and guidance on implementation of the Law on Special Sales Tax and the amended,
supplemented Law on Special Sales Tax. Decree 108 would be effective from January 1st
2016 and replace Decree No. 26/2009/ND-CP dated 16 March 2009 and Decree No.
113/2011/ND-CP dated 8 December 2011.
Below are key changes in Decree 108/2015/ND-CP.
Taxable Price
Decree 108 amends and supplements important points related to determination of taxable
price for special sales tax purpose, specifically:
•
Provide additional guidance on taxable price of imported goods by imposing SST
upon re-sales by the importers. Particularly, when selling imported goods (except
petrols), the taxable price shall be determined by the same principle applied for
domestically produced products (i.e. selling price exclusive of VAT).
•
Amend the threshold on the taxable price to be not lower than the average selling
price of distributors by 7% instead of 10% as before (excluding petrol and under 24seat cars). Simultaneously the Decree also emphasizes that these distributors must
not have parent-son relationship, or subsidiaries of the same parent company with
the manufacturing companies or the importers and should be the first channel in the
distribution chain.
•
Provide detailed guidance on determination of taxable price in case of manufacturing,
assembling and importing under 24-seat cars upon sale to distributors. Especially in
case of importing under 24-seat cars, taxable price would be the selling price of the
importers but not less than 105% cost of imported cars.
•
Supplement guidance on taxable price for tobacco. Accordingly, taxable price of
tobacco would include compulsory contribution and funding as stipulated by Law on
Prevention and Control of Tobacco Harms.
Tax Credit
Decree 108 supplements principles for tax credit of goods subject to SST (excluding petrols),
specifically, SST paid at import stage (input SST) will be credited when determining SST
payables at subsequent domestic sales. In particular, the creditable SST should not exceed
the SST calculated upon domestic sales. For those SST at importation that is not fully
credited, it would be included in CIT deductible expenses.
* * * * *
Should you have any further concerns regarding the above regulations, please contact us.
© 2015 Deloitte Vietnam Tax Advisory Company Limited
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Contact
For more information, please contact:
Thomas McClelland
Tuan Bui
Minh Bui
Tax Leader
Tax Partner
Tax Partner
+84 (8) 3910 0751
tmcclelland@deloitte.com
+84 (4) 6268 3568
tbui@deloitte.com
+84 (4) 6268 3568
mbui@deloitte.com
Hoang Phan
Dion Thai
Tax Partner
Tax Partner
+84 (8) 3910 0751
hoangphan@deloitte.com
+84 (8) 3910 0751
dthai@deloitte.com
Website: www.deloitte.com/vn
Email: deloittevietnam@deloitte.com
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