Add more conditions for special consumption tax deduction

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Source: Internet

Accordingly, amendments to regulations related to Special Consumption Tax (SCT), specifically as follows:

The payers of goods that are charged SCT, will enjoy SCT deduction with the same amount of tax paid already at the import stage when determining amounts of SCT to be paid in the country. The amount of SCT deducted shall correspond to the amount of SCT of liable goods. The maximum amount of deduction shall be equal to the amount of SCT calculated at the stage of domestic sale.

For amounts of SCT that do not enjoy tax deduction, taxpayers may take account into expenses for calculating enterprise income tax.

Circular 20/2017/TT-BTC also specified the conditions for deducting SCT as follows:

For the case of imported raw materials which are subject to special consumption tax in order to produce goods, and the case of imported goods that are subject to excise tax, the payment receipt of SCT in the import stage will be used as evidence for tax reduction.

For cases of purchase of raw materials directly from domestic producers, in the sale contract must express the term that goods are produced directly by the production base; A copy of the business certificate of the production base; Payment voucher via bank.

Vouchers that are used as a foundation for SCT deduction are VAT invoices upon purchase. The amount of SCT has to paid is SCT calculation price multiplied with SCT rate.

In that, the SCT calculation price shall be equal to the purchase price without value added tax (shown on the VAT invoice) minus environmental protection tax (if any) divided to 1 plus SCT rates.

The deduction of SCT will be implemented when declaring SCT and it will be determined by the following formula: the amount of paid SCT is equal to the amount of tax of goods sold in the quarter minus the amount of SCT paid for goods, raw material at import stage or the amount of SCT paid at the stage of purchase of raw materials equivalent to the quantity of goods sold in the period.

According to the Circular, if the amount of excise tax already paid for the quantity of raw materials conform to the quantity of product consumption in the period is not specified accurately, it could be based on the data in the last period to calculate the amount of SCT deduction and will determine according to actual data at the end of the period and end of the year. In every case, the minimum amount of SCT allowed for deduction is not over the amount of SCT calculated for the raw material part of the product in accordance with the technical and economic norms of the product

Notably, Circular 20 stipulated that for enterprises licensed to produce E5 and E10 petrol, the declaration for tax payment and SCT deduction shall be implemented at the local tax office where the head office of the enterprise is settled. The excise tax amount not yet fully credited in the period of E5 and E10 petrol shall be offset with the payable SCT amount of other goods and services.

It could be said that Circular 20/2017/TT-BTC has more specific provisions on SCT deduction when separating other imported goods from petrol. At the same time, this Circular already added more conditions for deducting SCT in order to help businesses thoroughly understand the provisions on tax deduction.

A policy on special consumption tax for imported petrol and oil VCN - The Ministry of Finance has sent documents to the Departments of Taxation of provinces and ...

Circular 20/2017/TT-BTC takes effect on 20^th February 2017, The Ministry of Finance will continue to research solutions if there are problems in the course of implementation.