OFFICIAL LETTER NO. 4991/TCT-CS ON TAX POLICY REGARDING SALES DISCOUNTS AND TRADE DISCOUNTS
VAT Policy
On the VAT taxable price (pursuant to Clause 22, Article 7 of Circular 219/2013/TT-BTC):
For businesses applying trade discounts to customers, the VAT taxable price is the selling price after the trade discount;
If the discount is based on volume or turnover, it shall be adjusted on the invoice for the final purchase or subsequent period;
In cases where the discount is determined at the conclusion of a program, an adjustment invoice must be issued, accompanied by a statement listing the invoices to be adjusted and the corresponding tax adjustment.
On invoices:
Invoice preparation: For goods or services applying trade discounts, the VAT invoice must state the selling price after the trade discount, the VAT, and the total payment including VAT (Point 2.5, Appendix 4 of Circular 39/2014/TT-BTC dated 31 March 2014). If the business applies trade discounts or promotions as per legal provisions, such discounts or promotions must be explicitly stated on the invoice (Clause 6, Article 10 of Decree No. 123/2020/ND-CP dated 19 October 2020).
CIT Policy
Accounting principles for trade discounts: Businesses must separately track trade discounts given to buyers but not yet reflected as a deduction in the payable amount on the invoice. In such cases, the seller records gross revenue based on the price before the trade discount;
Determining revenue for tax calculation:
Revenue for taxable income calculation includes all proceeds from the sale of goods, processing fees, and service provision, including subsidies, surcharges, and additional charges, regardless of whether payment has been received;
The point in time for determining revenue for taxable income from the sale of goods is when ownership or usage rights of the goods are transferred to the buyer.
Adjustments to revenue reductions:
Trade discounts and sales discounts arising within the same period as the sale of goods or services may reduce the revenue for that period;
If discounts arise after the goods or services have been consumed in prior periods, revenue adjustments shall follow these principles:
For events occurring before the issuance of financial statements, they must be treated as post-balance-sheet adjusting events and reduce the revenue in the financial statements of the reporting period (previous period);
For events occurring after the issuance of financial statements, revenue reductions are recorded in the period when the event occurs (subsequent period).
DECREE NO. 143/2024/NĐ-CP ON OCCUPATIONAL ACCIDENT INSURANCE IN THE FORM OF VOLUNTARY PARTICIPATION FOR WORKERS WITHOUT EMPLOYMENT CONTRACTS
On November 1, 2024, the Government issued Decree No. 143/2024/ND-CP regulating voluntary occupational accident insurance for employees working without a labor contract.
Accordingly, a number of regulation related to the support of 30% of the voluntary occupational accident insurance premium that need attention are as follows:
Eligibility for 30% Contribution Support:
According to Article 12 of Decree 143/2024/NĐ-CP, employees working without labor contracts who participate in voluntary occupational accident insurance are entitled to partial financial support from the government, calculated as a percentage (%) of the insurance premium. Specifically:
30% support for participants classified as poor households under the rural poverty standards;
25% support for participants classified as near-poor households under the rural near-poverty standards;
10% support for other workers.
Thus, individuals participating in voluntary occupational accident insurance who belong to poor households under rural standards will receive 30% support of the insurance premium from the government.
Support Method:
Insurance Payment: Workers participating in voluntary insurance must pay their share of the premium to the social insurance agency or an authorized service provider;
Fund Aggregation and Transfer: The social insurance agency will aggregate the number of eligible participants and the amount of government-funded support, then send this information to the financial authority for transferring the funds to the social insurance fund;
Funding Transfer Procedure: The financial authority is responsible for transferring the support funds into the Voluntary Occupational Accident Insurance Fund on a regular basis, either every 6 months or 12 months, with the latest transfer due by December 31 each year.
Using the Voluntary Occupational Accident Insurance Fund
According to Article 9 of Decree 143/2024/NĐ-CP, the Voluntary Occupational Accident Insurance Fund will be used by the social insurance agency for the following purposes: Paying benefits for occupational accidents; Covering management costs related to voluntary occupational accident insurance, in accordance with the Social Insurance Law; Investing in the fund to protect and grow its value, ensuring the fund has the financial capacity to meet its long-term obligations to workers.
DECISION NO 2537/QĐ-TCHQ DATED 01/11/2024 ISSUING THE PROCEDURE FOR IMPLEMENTING CUSTOMS PROCEDURES FOR IMPORT AND EXPORT GOODS, CUSTOMS-SUPERVISED GOODS IN CASE OF VNACCS/VCIS SYSTEM MALFUNCTION.
Decision 2537/QĐ-TCHQ dated 01 November 2024 issuing the procedure for guiding the order and customs procedures for export, import, and transit goods in case of VNACCS/VCIS system malfunction, making electronic customs procedures impossible to be carried out; other supporting systems for customs operations remain functional. This decision is effective when the VNACCS/VCIS system is malfunctioning, as announced by the General Department of Customs. Once the system is back online, the General Department of Customs will announce the suspension of this decision. In addition to providing guidance for customs officials at all levels, Decision 2537/QĐ-TCHQ also provides information and guidelines for companies in case of system malfunction, specifically as follows:
Procedures will be carried out in paper form when the VNACCS/VCIS system malfunctions:
Customs procedures for export and import goods (including goods transferred to other border gates for customs procedures under combined transport);
Customs procedures for goods in transit, transshipment, export and import goods, and goods transferred to other border gates for independent transport procedures (hereinafter referred to as independent transport), including:
Export and import goods transferred to other border gates for independent transport;
Transit goods passing through Vietnam's land territory;
Transshipment goods transported between seaports and transshipment goods transported between wharves within the same seaport.
In addition, for low-value goods sent via postal or express delivery services, procedures will be carried out according to separate instructions from the General Department of Customs.
Specific cases and solutions from the General Department of Customs:
In case the export or import customs declaration has been registered and assigned a declaration number on the VNACCS system (hereinafter referred to as the "declaration with system information"), the customs authority will look up the information and print two copies of the export or import declaration (including the result of the customs channeling) from the electronic customs system (V5) to continue the customs procedure as instructed;
In case the export or import customs declaration has not been registered or assigned a declaration number on the VNACCS system (hereinafter referred to as the "declaration without system information"), the customs authority will guide the declarant to fill out the paper declaration according to the provisions of Article 25 of Decree No. 08/2015/ND-CP dated 21 January 2015, as amended and supplemented by Decree No. 59/2018/ND-CP dated 20 April 2018 of the Government, and proceed with customs procedures as instructed;
For tax declaration information and declarations involving trade remedy measures, as well as other required information not available on the paper customs declaration, the customs sub-department will guide the declarant to fill in the empty fields on the customs declaration and specify the type of declared information.
Channeling principles when the system malfunctions:
Based on historical data, the company's compliance record, and other information available at the time of customs procedures, the customs sub-department head where the declaration is registered will decide the form and extent of inspection for export, import, and independently transported goods according to the following principles:
In cases where declaration information is available in the system but the procedure is not yet completed, customs inspection will be carried out according to the system's channeling;
In cases where no declaration information is available, the customs sub-department head will decide the form and extent of inspection based on the channeling principles notified by the General Department of Customs.
OFFICIAL DISPATCH NO. 5840/TCHQ-GSQL ON ENHANCING THE MANAGEMENT OF IMPORTED GOODS VIA E-COMMERCE TRANSACTIONS
On 8 November 2024, the General Department of Customs issued Official Dispatch No. 5840/TCHQ-GSQL to strengthen the management of imported goods transacted via e-commerce platforms. This measure responds to the rapid growth of e-commerce and associated risks such as counterfeit goods, intellectual property violations, and tax evasion.
Responsibilities of Customs Sub-Departments
Control of Goods at Entry Points:
Customs sub-departments must strictly follow customs procedures, particularly for independently transported shipments;
Procedures for shipments lacking sufficient information about websites, e-commerce applications, or those using unregistered platforms in Vietnam will be denied.
Inspection at Warehousing Locations:
Focus on verifying customs valuation, especially in cases of false declarations to evade taxes or bypass specialized inspections;
Special attention should be given to the origin, provenance, and intellectual property compliance of sensitive product categories, including food, cosmetics, fashion items, and electronic components.
Warehouse Management
Review express delivery warehouses. Those failing to meet inspection and monitoring conditions will be proposed for closure and revocation of warehouse codes.
Responsibilities of Businesses
The official dispatch emphasizes the responsibilities of e-commerce businesses to register their operations and comply with legal regulations. Importers must ensure accurate declarations and that their goods meet inspection standards to mitigate risks of procedural rejection or penalties for violations;
Businesses should verify the legitimacy of their e-commerce partners, ensuring they are registered on online.gov.vn
Additionally, companies must review and prepare all required documentation, including proof of origin and value of goods, before making customs declarations;
If any issues arise during the process, businesses are advised to seek assistance from consultants or relevant authorities to receive support and minimize legal risks.
DECISION NO. 2902/QD-BCT ON THE ANNOUNCEMENT OF AMENDED AND SUPPLEMENTED ADMINISTRATIVE PROCEDURES IN THE FIELD OF TRADE PROMOTION UNDER THE MANAGEMENT FUNCTIONS OF THE MINISTRY OF INDUSTRY AND TRADE.
Decision No. 2902/QD-BCT provides information on amendments and supplements to administrative procedures at the central and provincial levels in the field of trade promotion under the management functions of the Ministry of Industry and Trade. Specifically, as follows:
CENTRAL-LEVEL ADMINISTRATIVE PROCEDURES:
Registration of promotional activities for promotional programs of a lottery nature carried out in two or more provinces/cities directly under the central government and promotional programs under other forms:
Merchants submit their dossiers to the Trade Promotion Department via postal mail, in person, or online through the Ministry of Industry and Trade's administrative procedure information system. The dossier includes the program registration, program guidelines, and proof of prize-winning sample (1 set). The Trade Promotion Department will review and respond within 5 working days. The result will be a confirmation letter or non-confirmation (with clear reasons if rejected). No fees or conditions are required. The procedure is based on the Commercial Law and related decrees.
Registration for amendments or supplements to the content of promotional programs for promotional programs of a lottery nature carried out in two or more provinces/cities directly under the central government and promotional programs under other forms:
Merchants submit their dossier for amendments or supplements to the Trade Promotion Department via postal mail, in person, or online. The dossier includes an amendment application form (Form No. 06a) (1 set). The processing time is 5 working days. The amendment must ensure that the rights of customers who have previously participated are protected. The result will be a confirmation letter or non-confirmation (with clear reasons if rejected). No fees or conditions are required. The procedure is based on the Commercial Law and related decrees.
Registration for organizing trade fairs or exhibitions abroad:
Merchants or organizations submit their registration dossiers to the Trade Promotion Department via postal mail, in person, or through online public services. The dossier includes a registration form (Form No. 10) (1 set). The processing time is 7 working days. The Trade Promotion Department will respond in writing with confirmation or non-confirmation (with clear reasons if rejected). No fees or conditions are required. The procedure is based on the Commercial Law and related decrees.
Registration for amendments or supplements to the content of organizing trade fairs or exhibitions abroad:
Merchants or organizations submit their amendment or supplement registration to the Trade Promotion Department via postal mail, in person, or online at least 30 days before the event's opening. The dossier includes an amendment application form (Form No. 13) (1 set). The processing time is 7 working days. The amendment must ensure that the rights of all parties involved are not affected. The result will be a confirmation letter or non-confirmation (with clear reasons if rejected). No fees or conditions are required. The procedure is based on the Commercial Law and related decrees.
PROVINCIAL-LEVEL ADMINISTRATIVE PROCEDURES:
Registration for promotional activities of a lottery nature carried out in one province or city directly under the central government:
Merchants submit their dossiers to the Department of Industry and Trade via postal mail, in person, or through the provincial-level administrative information system. The dossier includes a registration form (Form No. 02), program guidelines (Form No. 03), and proof of prize-winning sample (1 set). The processing time is 5 working days. The result will be a confirmation letter or non-confirmation (with clear reasons if rejected). No fees or specific conditions are required. The procedure is based on the Commercial Law and related decrees.
Registration for amendments or supplements to the content of promotional programs for promotional programs of a lottery nature carried out in one province or city directly under the central government:
Merchants submit their amendment dossiers to the Department of Industry and Trade via postal mail, in person, or through the provincial-level administrative information system. The dossier includes the amendment application (Form No. 06a) (1 set). The amendment must ensure the rights of customers who participated earlier are protected. The processing time is 5 working days. The result will be a confirmation letter or non-confirmation (with clear reasons if rejected). No fees or specific conditions are required. The procedure is based on the Commercial Law and related decrees.
Notification of promotional activities:
Merchants are required to submit notification documents at least 3 working days before conducting the promotion as per Decree 81/2018/ND-CP. The dossier includes a notification form (Form No. 01) (1 set). The dossier can be submitted by postal service, in person, or through the provincial-level administrative information system. No fees, specific processing time, or confirmation result are required. The legal basis includes the Commercial Law and related decrees.
Notification for amendments or supplements to the content of promotional programs:
Merchants must send notifications of amendments or supplements to the Department of Industry and Trade where the promotion was previously registered. The dossier can be submitted via postal service, in person, or through the administrative procedure information system. The dossier includes an amendment notification (1 set). There is no defined processing time. The Department of Industry and Trade will process the procedure with no fees or charges. The legal basis for this procedure includes the Commercial Law, Decree No. 81/2018/ND-CP, and Decree No. 128/2024/ND-CP.
Registration for organizing trade fairs or exhibitions in Vietnam:
Merchants or organizations submit their registration dossiers to the Department of Industry and Trade. The Department of Industry and Trade will review and confirm the organization; if not confirmed, a written response will be issued with the reasons. The dossier can be submitted by postal service, in person, or through online public services. The dossier includes a trade fair or exhibition registration form (1 set). The processing time is 7 working days from the receipt of a complete dossier. The Department of Industry and Trade implements this procedure with no fees or charges. The legal basis includes the Commercial Law, Decree No. 81/2018/ND-CP, and Decree No. 128/2024/ND-CP.
Registration for amendments or supplements to the content of organizing trade fairs or exhibitions in Vietnam:
Merchants or organizations must submit their amendment registration to the Department of Industry and Trade at least 30 days before the event's opening. The Department of Industry and Trade will confirm or reject the registration, providing reasons if rejected. The amendment must ensure that the rights of all parties involved are not affected. The dossier can be submitted by postal service, in person, or through online public services. The dossier includes an amendment registration form (1 set). The processing time is 7 working days from the receipt of a complete dossier. No fees or charges are applied. The legal basis includes the Commercial Law, Decree No. 81/2018/ND-CP, and Decree No. 128/2024/ND-CP.
In addition to the changes and supplements, Decision No. 2902/QD-BCT also provides the relevant forms for trade promotion registration procedures as detailed above. Specific forms can be referred to in Decision No. 2902/QD-BCT.
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