x Do businesses and establishments selling goods/products need to learn about VAT?
x Individuals and businesses do not know exactly how to calculate VAT?
x Do you need to import goods to Vietnam and need to find a reputable carrier?
VAT is an important tax, helping to balance the State Budget, playing a major role in national construction and development. Below, Proship.vn answers knowledge about what VAT is, how to calculate VAT, regulations on VAT on goods, legal documents on VAT,... At the same time, the Company Proship Joint Stock Company also introduces cheap import and export services of goods by container with clear advice to customers about VAT. Please update information below.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
What is VAT? What are the characteristics?
Currently, this type of VAT has been widely applied in many countries, including Vietnam. This type of tax is no longer strange to mention. But to really understand this type of tax, certainly not everyone knows. So specifically, what is VAT?
In fact, the detailed concept of value added tax has been clearly stated in Article 2 of the 2008 Value Added Tax Law. Accordingly, value added tax is defined: "Value added tax is a tax calculated on the added value of goods and services arising in the process from production, circulation to consumption" . Thus, it can be seen that this is a type of price that is collected on the added value of the goods but not on the entire value of the goods and services.
In addition to the concept introduced in the 2008 Value Added Tax Law, Wikipedia (Open Encyclopedia) also has compiled information about this type of tax. Based on that, you can understand value added tax as follows:
Value Added Tax (VAT - Value Added Tax) is a form of business tax, an indirect tax levied on the final consumer. However, the final consumer is not the one who pays VAT to the collection agency, but the person who directly pays will be the business. To put it simply, companies, enterprises, businesses, etc. will pay value added tax on behalf of consumers by adding tax to the selling price that consumers must pay when purchasing and using goods. use their services.
VAT (value added tax) has the following characteristics:
- VAT is an indirect tax : VAT is collected on the consumption of goods and services. VAT payers are sellers of goods and providers of services. The subject subject to VAT is the final consumer of products and services;
- VAT is a multi-stage consumption tax that does not overlap : VAT targets all stages of circulation of goods and services to product consumption. However, it is only calculated on VAT for each period of circulation of goods and services;
- VAT is a regressive tax compared to income : VAT is calculated on the selling price of goods and services to the taxpayer (consumer of goods and services). Therefore, as consumers' income increases, the ratio of VAT paid in the purchase price to their income will decrease;
- VAT is levied according to the principle of destination : VAT is based on the residential status of the consumer of goods and services, not on the origin of the goods or services. The right to tax VAT belongs to the country where the goods and services consumed are produced;
- VAT has a wide scope of regulation : VAT is levied on most goods and services that serve human life. The number of goods and services exempt from VAT according to international practice is usually very small.
Legal documents on Value Added Tax (VAT).
To help individuals and businesses obtain information about value-added tax, competent authorities have issued a number of legal documents and detailed regulations on this type of tax. Accordingly, some types of documents can be mentioned such as:
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- Value Added Tax Law No. 13/2008/QH12 was issued by the National Assembly on June 3, 2008 and took effect from January 1, 2009. This document is amended and supplemented by many other Law documents, including: Law No. 31/2013/QH13 dated June 19, 2013; Law No. 71/2014/QH13 dated November 26, 2014; Law No. 106/2016/QH13 dated April 6, 2016;
- Consolidated Law No. 01/VBHN-VPQH issued by the Office of the National Assembly on April 28, 2016 consolidates the Law on Value Added Tax;
- Decree No. 209/2013/ND-CP issued by the Government on December 18, 2013 to detail and guide the implementation of a number of articles of the Law on Value Added Tax;
- Decree No. 12/2015/ND-CP issued by the Government on February 12, 2015 to detail the implementation of the Law amending and supplementing a number of articles of the Tax Laws and amending and supplementing a number of articles of Decrees on taxes;
- Decree No. 100/2016/ND-CP issued by the Government on July 1, 2016 to detail and guide the implementation of a number of articles of the Law amending and supplementing a number of articles of the Law on Value-Added Tax increase, Special Consumption Tax Law and Tax Administration Law;
- Decree No. 146/2017/ND-CP issued by the Government on December 15, 2017 Amending and supplementing a number of articles of Decree No. 100/2016/ND-CP dated July 1, 2016 and Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government;
- Circular No. 219/2013/TT-BTC issued by the Ministry of Finance on December 31, 2013 to guide the implementation of the Value Added Tax Law and Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Value Added Tax Law;
- In addition, there are a number of other legal documents such as Circular No. 26/2015/TT-BTC issued by the Ministry of Finance on February 27, 2015; Circular No. 130/2016/TT-BTC issued by the Ministry of Finance on August 12, 2016; Circular No. 25/2018/TT-BTC issued by the Ministry of Finance on March 16, 2018 and many other related documents.
What are the VAT regulations on goods?
To accurately declare and pay VAT, it is necessary to clearly know the taxable and non-taxable subjects. As follows:
The subject is not subject to VAT
The subjects not subject to VAT are quite wide and are regulated based on Circular 219/2013/TT-BTC, Circular 26/2015/TT-BTC, Circular 130/2016/TT-BT. Some basic cases can be listed as:
- Products are livestock breeds and plant breeds, including breeding eggs, breeding animals, seedlings, seeds, semen, embryos, and genetic material;
- Cultivation products (including forestry products), livestock and aquaculture products that have not been processed into other products or are only normally processed by individuals and organizations that produce and sell themselves;
- Salt products are produced from sea water, natural rock salt, refined salt, and iodized salt, the main ingredient of which is sodium chloride (NaCl);
- Irrigation and drainage; plowing and harrowing the land; dredging canals and ditches in the field to serve agricultural production; agricultural product harvesting services;
- Land use right Transfer;
- State-owned housing is sold by the State to tenants;
- Life insurance, health insurance, student insurance, other insurance services related to people; livestock insurance, crop insurance, other agricultural insurance services; insurance for ships, boats, equipment and other necessary services directly serving fishing; reinsurance;
- Universal postal, telecommunications and internet services under the Government's program;
- Financial services, banking, securities trading,...
Subjects subject to VAT
According to Clause 4, Article 10 of Circular No. 219/2013/TT-BTC, the subject of VAT is "Goods and services used for production, business and consumption in Vietnam (including goods and services purchased from organizations and individuals abroad)" .
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
What are the methods of calculating VAT?
Currently, there are 2 ways to calculate VAT applied to businesses. This method will be registered by the Enterprise from its inception:
Calculate taxes directly
VAT payable = Rate % x revenue
* In there:
- The percentage depends on the level that the State regulates separately for each type of goods and services.
- Revenue is the total amount of actual products recorded on the invoice for products subject to VAT including additional fees.
Calculate withholding tax
VAT payable = Output VAT – Deductible input VAT
* In there:
Output VAT: Total VAT on goods and services is shown on the output VAT invoice and is calculated using the following formula:
- Output VAT recorded on the invoice = Sales tax calculation price x tax rate on goods and services prescribed by the state.
- Input VAT = Total VAT on purchased goods and services recorded on the purchased VAT invoice.
>>See more: What is E logistics?
Does any unit that accepts import and export of goods advise customers on VAT for each item/group of goods Accurately and Professionally?
In order to meet the increasing demand for import and export of goods by container from the market, Proship Joint Stock Company is proud to be one of the pioneers in the field of E-Logistics. With the multi-modal transport model, we apply 4.0 technology to each stage of operational and business activities. Proship is equipped with containers of 20 feet, 40 feet, 45 feet; 2 ton, 5 ton, 8 ton and 15 ton trucks, forklift cranes and warehouse systems in Ho Chi Minh City, Binh Duong, Dong Nai, Da Nang, Hanoi. We will bring appropriate Transportation, Import-Export solutions to meet all the needs of Individual/Business customers.
In case any goods business unit is having problems with the issue of value-added tax applied separately to each type of product/group of goods, Proship with a team of dedicated and experienced staff will Support you from AZ, directly exchange and consult carefully before officially signing the Contract for transporting goods by container (including combined goods or whole shipments). Time is the deciding factor in the success or failure of every shipment, so we will try to speed up every step to deliver goods to customers on time.
In addition to transporting dry goods, construction project goods, bulk goods, parcel goods,... PROSHIP also accepts transport of refrigerated containers of vegetables, fruits, food, seafood, cosmetics, medicine,... ensuring guaranteed to meet the criteria: "Professional - Safe - Economical - Delivered to your door" . With a cold storage container system that meets the required standards, the product is always in the same intact, fresh and best condition as when received.
Benefits when choosing Proship container shipping and import-export service
- Fast, safe transportation time, fixed train/bus schedule;
- Transporting large volumes and diverse types of goods;
- Container shipping and multimodal shipping rates are stable and competitive;
- Convenient customs procedures, declare once from starting point to ending point;
- Ability to connect to destinations located deep inland far from the seaport system;
- Track online cargo schedules along the entire transportation route;
- Flexible shipping and delivery methods, suitable for all customers;
- Adequate compensation policy when loss, misplacement or damage to customer's goods occurs.
Transportation and e-Logistics services at Proship
- Road transport by container and truck;
- Transporting goods by air;
- Shipping containers by sea;
- Transporting containers by rail;
- Transporting goods by refrigerated containers;
- Transporting retail cargo, bulk cargo, special cargo, and oversized and super heavy cargo;
- Multi-modal transportation of project goods.
Above is the entire content explaining what VAT is , how to calculate VAT as well as some related legal issues. Businesses that are trading in exported or imported goods from abroad to Vietnam but are still confused or do not have much experience about how to apply value added tax to their products/groups of products should save the information. The above useful items are intended to effectively serve the work of trade and customs clearance at the Customs border gate... And to receive a quote and provide import and export shipping services by container, contact PROSHIP immediately at 0909 344 247 .
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
