New Regulations on VAT, Excise Tax
The Ministry of Finance recently issued Circular 130/2016/TT-BTC on the execution of the Government's Decree No. 100/2016/ND-CP on detailed regulations on the Law on amendments and supplements to a number of articles of the Law on Value Added Tax (VAT), the Law on Special Consumption Tax (SCT) and the Law on Tax Administration. The new content is the VAT deduction to the following period. According to Circular 130, business establishments pay VAT according to the tax deduction method if VAT amount is yet to be fully credited in the month (applicable to monthly declaration basis) or in the quarter (applicable to quarterly declaration basis), it shall be deducted into the next period.
Another new content is the determination of taxable price for SCT or excise tax if the selling price is too low. According to Circular 130, excise tax-based price of goods and services is the selling price of such goods and services yet to be imposed excise tax, environmental protection tax (if any) and VAT.
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