According to Clause 1 Article 3 of Decree No. 105/2017/ND-CP (previously, it was Decree No. 94/2012/ND-CP), liquor products that are subject to excise tax do not include fermented fruit juice with ABV less than 5%.
In addition, according to the National technical regulation for alcoholic beverages QCVN 6-3:2010/BYT, liquor products must meet standards on ABV as follows: Wine must contain ABV at least 8.5%; spirit must contain ABV at least 15%.
Accordingly, fermented fruit juice products that contain ABV less than 5% shall not be subject to excise tax.
Accordingly, in the case the company manufactures beer (the product subject to excise tax) and distributes the product to trading establishments, the excise tax must be calculated, declared and paid according to the selling price but must not fall below 7% of the average price of products of the same kind sold by the trading establishments in the month.
In addition, this Circular also supplements the provisions on deduction of excise tax incurred by establishments importing goods to sell domestically. Accordingly, the importers shall be deducted the excise tax amount already paid at the importation from excise tax payable on goods sold domestically. Deductible excise tax is equal to the excise tax on goods subject to excise tax that are sold after import, and must not exceed the excise tax on goods sold domestically. The taxpayers may include excise tax that remains after deduction because of a force majeure event in reasonable expenses when calculating corporate income tax.
This Circular takes effect from January 01st, 2016 and replaces Circular No. 05/2012/TT-BTC dated January 05th, 2012.
One of the new noticeable points of this Decree is the supplement to the provisions on excise duty exemption for goods in free trade zones (Clause 6 Article 3)
Accordingly, goods imported into free trade zones, goods sold from inland to free trade zones and used within the free trade zones only; goods traded between free trade zones are all exempted from excise duty (except for goods brought into zones applicable the free trade zone rules having residences and no hard fences, vehicles that seat fewer than 24 people)
Regarding duty excise rate, it is not based on the earlier Tariff issued together with Law No. 27/2008/QH12, it shall be complied with the new Tariff issued together with Law No. 70/2014/QH13
This Decree takes effect from January 01st, 2016. To replace Decree No. 26/2009/ND-CP dated 16th, 2009 and Decree No. 113/2011/ND-CP dated December 08th, 2011.
- The first paragraph of Article 6 on taxed prices of goods/services liable to excise tax
- Article 7 on excise tax rates
According to the amendment in Article 7, the following items shall be increased tax rates from 2016
1. Cigarettes, cigars: Increased from 65% to 70%; from 2019, the tax rate of 75% shall be applied
2. Alcohol with ABV ≥ 20o: Increased from 50% to 55%; from 2017, the tax rate of 60% shall be applied 2017 60% and from 2018 shall be 65%
3. Alcohol with ABV < 20o: Increased from 25% to 30%; from 2018, the tax rate of 35% shall be applied
4. Beer: Increased from 50% to 55%; from 2017, the tax rate of 60% shall be applied; and from 2018 shall be 65%
5. Casino and prize-winning electronic gaming business: Increased from 30% to 35%
Particularly, cars and aircrafts and other items are remained their tax rates
This Law shall take effect from January 1, 2016.
Circular No. 05/2012/TT-BTC - New guidance on excise tax ( 5-Jan-2012) Under Circular No 05, there are seven cases in which taxable goods are not subject to special sales taxes, including (i) automobiles used for emergency medical care, hearses, or in entertainment; (ii) naphtha, condensate, reformate components and other components used as raw materials to produce products (except petrol); (iii) air conditioners with a capacity of 90,000BTU or less to mount on vehicles. read more
Under the circular, environmental protection taxes, if any, will be deducted from the calculation of special sales taxes. For domestic goods, the taxable price is determined as follows: selling price without VAT - environmental protection taxes (if any) / 1 + special sales tax rate.
The circular took effect on February 1, replacing Circular No 64/2009/TT-BTC of March 2009