Decree No. 351-HDBTof October 02, 1990, on Turnover Tax.


Independence – Freedom – Happiness

No. 351-HDBT

Hanoi, October 2, 1990





Pursuant to the Law on the Organization of the Council of Ministers dated 4 July 1981;
Pursuant to the Law on Turnover Tax;
Pursuant to the Resolution of the State Council No. 270B-NQ-HDNN8 dated 8 August 1990 regarding the proclamation and implementation of the Law on Turnover Tax, the Law on Special Sales Tax and the Law on Profits Tax;


Chapter I


Article 1

Each revenue earning business organization which, and individual who, (hereinafter called business establishments) engages at a permanent or temporary location in any type of full or part time business activity in any economic sector in Vietnam as defined in article 1 of the Law on Turnover Tax shall be liable to pay turnover tax.

Article 2

The following business shall not be subject to turnover tax:

1. Agricultural production which is subject to agricultural tax.

2. The production of commodities which are subject to special sales tax.

3. Production of goods for export.

Chapter II


Article 3

The amount of turnover in respect of which tax is to be paid shall be the total revenue earned: from sales; pursuant to sub-contract; as commissions on sales; or for services provided: during the tax period and after the taxpayer has made the sales, performed the sub-contract, earned the commission or provided the services, as described in article 8 of the Law on Turnover Tax, prior to any deductions being made for costs incurred and regardless of whether the taxpayer has actually received the revenue.

1. Turnover from production, processing, and assembling (including small and cottage industry) and from exploitation of minerals, forests and sea products, shall comprise all revenue earned from the sale of products, semi-finished products, defective products, the packaging of products, materials, fuel, motors and fixed assets.

2. Turnover from construction shall be the amount paid or payable upon completion of construction and any payments for repairs and the provision of building services.

3. Turnover from transportation shall be fees paid for the transport of commodities, passengers, cargo and other items.

4. Turnover from commerce shall be all proceeds from the sale of goods including those internally consumed.

5. Turnover from the provision of services shall be fees received for those services including labour costs, raw materials, spare parts, if any, and other expenses:

(a) Turnover from post and telecommunication services shall be revenue received from postage charges (including the sale of postage stamps) and from all other business activities and services provided.

(b) Turnover from banking and finance shall be all interest paid by borrowers, service fees and other bank charges.

(c) Turnover from property leasing shall be all rents and other payments received.

6. Schools and educational training establishments which produce goods outside the scope of their normal activities shall also be liable to pay the turnover tax which is applicable to the particular activity concerned.

A school which requires funds for the purposes of maintenance and improvement of its facilities and equipment, may submit a proposal which accords with the plans of its own branches or locality. The proposal shall be considered by the finance office which, in the event that it deems it appropriate, may make funds available to the school from State Revenue.

7. All revenue which is earned in foreign currency shall be converted into Vietnamese currency at the exchange rate published by the State Bank as at the date of its conversion. Where the exchange rate of a particular foreign currency is not published by the State Bank it shall be converted in accordance with the exchange rate provided by the Ministry of Finance.

Article 4

In accordance with the provisions of article 9 of the Law on Turnover Tax, the Council of Ministers shall delegate to the Ministry of Finance the task of determining the turnover tax rates to be applied to turnover to which the Law on Turnover Tax applies.

Where a manufacturer but for this provision would be liable to pay tax on the basis of its type of business and raw materials used and also on the basis of the purpose of its products, the manufacturer shall only be liable to pay tax on the latter basis.

Article 5

Where a business establishment conducts a number of different economic activities to which different rates of turnover tax apply, those establishments shall pay turnover tax in accordance with the individual rates which apply to each separate activity. Where establishments are unable separately to calculate the turnover which arises from each separate activity, then the highest applicable tax rate shall be applied to the whole turnover of the establishment.

Chapter III


Article 6

Each business establishment shall register at the tax office closest to its place of business in accordance with paragraph 1 of article 10 of the Law on Turnover Tax.

The Ministry of Finance shall provide all relevant information as to procedures and requirements for registration.

Article 7

Each business establishment shall maintain full and proper books of account in accordance with the provisions of the Ordinance on Accounting and Statistics dated 10 May 1988, and shall keep all books, receipts, and other documents in relation to the receipt of revenue from the supply of goods and services in accordance with all relevant provisions as may be in force from time to time.

Article 8

The Ministry of Finance shall issue all vouchers to be used by all establishments operating in the country.

Article 9

A business establishment shall, upon request made by a tax office for the production of documents and data which relate to the calculation of turnover tax:

1. Provide all necessary documents and data within the time required.

2. Provide explanations for all unclear entries in its declaration, books of account, records and vouchers.

A business establishment is not permitted to refuse, upon the demand of the tax office, to produce or explain any of the information referred to above on the basis of confidentiality or sensitivity of information.

The tax office shall keep confidential all information provided by a business establishment.

Article 10

Turnover tax shall be paid periodically or monthly within the time determined by the tax office for each establishment. In each case payment shall be made no later than on the fifteenth day of the month following that in respect of which the payment is due.

Each small household business establishment shall pay tax on turnover at the end of each month on the date stipulated by the tax office.

Article 11

Where a business establishment operating within an approved fixed area, sells goods outside that area and pays turnover tax on the goods of that trading lot, it shall not be obliged to pay further turnover tax at its approved fixed area of business.

Chapter IV


Article 12

Consideration for exemption from or reduction of turnover tax shall take place as follows:

1. Exemption from the payment of turnover tax shall be considered in respect of:

(a) The elderly and disabled.

(b) Small traders who trade only in order to maintain a minimal living standard.

(c) Employees of the State who are paid the minimum award wage for their services.

2. Exemptions from, or reductions of, turnover tax shall be considered in respect of business establishments which suffer losses as a result of natural disasters, war, and other contingencies.

(a) Particular consideration shall be given where the value of losses incurred is between twenty (20) per cent and fifty (50) per cent of the establishment’s expected taxable turnover for the year.

Any proposed reduction shall be considered by a tax office at the provincial level and in the event that it is approved, the reduction shall be for an amount which is proportionate to the loss incurred.

(b) Where the value of the losses incurred is greater than fifty (50) per cent of the establishment’s expected turnover for the year, the consideration for tax exemption or reduction shall be undertaken by the General Department of Taxation.

Article 13

The following shall not, for the time being, be subject to turnover tax.

The activities of: printing the Nhan Dan and Quan Doi Nhan Dan newspapers and other specialty magazines; the traditional ensemble on Tuong, Cheo; puppet performance; traditional performance of dance and opera under the Ministry of Culture, Information, Sports and Tourism pursuant to the State Plan; radio and television broadcasting; tractors engaged in agricultural production; provision of meals in offices, enterprises, schools, and armed forces.

Provincial people’s committees shall also consider and make decisions regarding the reduction of or exemption from turnover tax for certain important businesses managed by the local authority, particularly those located in mountainous regions and encountering difficulties, which are in need of State support in order to maintain their operations.

The Ministry of Finance shall make regulations on the reductions of and exemptions from turnover tax in respect of institutes, stations and farms performing general research and testing and farms breeding animals for the purpose of such research and testing, in order to reduce the amount of public funds allocated for scientific research.

Chapter V


Article 14

The Council of Ministers shall issue separate rules for rewards for tax offices and individual tax officers who satisfactorily carry out their assigned duties and discover breaches of the Law on Turnover Tax.

Article 15

All regulations previously in force in respect of enterprise tax, tax to be paid on trade in lots, and the State tax collection system shall no longer be of effect.

Article 16

The Law on Turnover Tax shall be of full force and effect as of 1 October 1990 in relation to those enterprises which form part of the non State economy and the State owned enterprises which have already completed their transfer of capital and assets.

State owned enterprises, which have not yet transferred their capital and assets, shall continue to make all payments in accordance with the State tax system, by deducting the amount to be paid from profits, until the transfer of capital and assets is complete, which shall be no later than 31 December 1990.

Article 17

The Minister of Finance shall provide all assistance necessary for the implementation of this Decree.



Vo Van Kiet


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