THE MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom - Happiness
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No. 120/2003/TT-BTC
Hanoi, December 12, 2003
 
CIRCULAR
GUIDING THE IMPLEMENTATION OF THE GOVERNMENT’S DECREE NO. 158/2003/ND-CP OF DECEMBER 10, 2003 DETAILING THE IMPLEMENTATION OF THE VALUE ADDED TAX LAW AND THE LAW AMENDING AND SUPPLEMENTING A NUMBER OF ARTICLES OF THE VALUE ADDED TAX LAW
 
Pursuant to Value Added Tax (VAT) Law No. 02/1997/QH9 of May 10, 1997;
Pursuant to Law No. 07/2003/QH11 of June 17, 2003 Amending and Supplementing a Number of Articles of VAT Law;
Pursuant to the Government’s Decree No. 158/2003/ND-CP of December 10, 2003 detailing the implementation of the VAT Law and the Law Amending and Supplementing a Number of Articles of the VAT Law;
Pursuant to the Government’s Decree No. 77/2003/ND-CP of July 1, 2003 defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
The Ministry of Finance hereby guides the implementation as follows:
 A. SCOPE OF APPLICATION OF VAT

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I. OBJECTS SUBJECT TO VAT AND VAT PAYERS
1. Objects subject to VAT:
Objects subject to VAT are goods and services used for production, business and consumption in Vietnam (including goods and services purchased from organizations and individuals abroad), except for those not subject to the tax as mentioned in Section II, Part A of this Circular.
2. VAT payers:
All organizations and individuals engaged in producing and dealing in goods and/or services, which are subject to VAT, in Vietnam, regardless of business lines, forms and organization (called collectively the business establishments) and other organizations and individuals that import goods and/or procure services, which are subject to VAT, from abroad (called collectively the importers) shall have to pay VAT.
Organizations and individuals engaged in producing and dealing in goods and/or services include:
- Business organizations set up and registering business under the Law on Enterprises, the Law on State Enterprises and Law on Cooperatives;
- Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, people’s armed force units, non-business organizations and other organizations;
 

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