MINISTRY OF FINANCE
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 91/2009/TT-BTC
Hanoi, May 12, 2009
 
CIRCULAR
PROMULGATING ADDITIONAL LIST OF GOODS ENTITLED TO FIFTY PER CENT REDUCTION OF VALUE ADDED TAX RATE IN ACCORDANCE WITH DECISION 16/2009/QD-TTg OF THE PRIME MINISTER OF THE GOVERNMENT DATED 21 JANUARY 2009
 
Pursuant to Law 13/2008/QH12 on Value Added Tax dated 3 June 2008;
Pursuant to Decree 123/2008/ND-CP of the Government dated 8 December 2008 with detailed provisions for implementation of the Law on Value Added Tax;
Pursuant to Decree 118/2008/ND-CP of the Government dated 27 November 2008 stipulating functions, duties, powers and organizational structure of the Ministry of Finance;
Pursuant to Decision 16/2009/QD-TTg of the Prime Minister of the Government dated 21 January 2009 with tax solutions for stimulating investment and sales in order to alleviate the economic downturn and relieve hardships for enterprises ["Decision 16"];
The Ministry of Finance provides detailed guidelines on additional headings of a number of goods entitled to fifty (50) per cent reduction of the value added tax (VAT) rate in accordance with Decision 16/2009/QD-TTg:
Article 1. List of goods entitled to fifty (50) per cent reduction of the VAT rate
1. Issued with this Circular is a list of goods entitled to 50% reduction of the VAT rate in addition to the list issued with Circular 18/2009/TT-BTC of the Ministry of Finance dated 30 January 2009 guiding implementation of the 50% reduction of the VAT rate for goods on the preferential import tariff list.
2. The 50% reduction of the VAT rate applicable to goods on the list issued with Circular 18/2009/TT-BTC and on the additional list as stated in clause 1 of this article shall apply uniformly to the commercial business, processing, production and import stage.
3. When scraps and sub-standard products are recovered for re-cycling and re-use and are sold, the VAT rate applicable to the particular line of goods shall apply.
In accordance with article 1 of Decision 16 which provides for items of goods entitled to 50% reduction of the VAT rate, scraps and sub-standard products which are recovered and sold shall also be entitled to the 50% reduction of the VAT rate.
Example: The VAT rate applicable to recycled plastic when sold shall be the VAT rate applicable to plastic products, namely 10%; recovered coal slag when sold from 1 February 2009 up to 31 December 2009 shall be entitled to 50% reduction of the VAT rate as applicable to coal.
4. Goods entitled to a 50% reduction of the VAT rate are marked "x" in the column "Goods entitled to reduction" on the list. With respect to heading 84.13, water pumps of a capacity exceeding 10 m3 per hour shall be entitled to 50% reduction of the VAT rate; water pumps of a capacity not exceeding 10 m3 per hour shall not be entitled to 50% reduction of the VAT rate.
5. Other goods not guided in this Circular shall comply with Circular 131/2008/TT-BTC of the Ministry of Finance dated 26 December 2008 on implementation of VAT in accordance with the list of goods on the preferential import tariff list, shall comply with Circular 18/2009/TT-BTC.
Article 2. Effectiveness

1. This Circular shall be of full force and effect as from 1 February 2009 up to the end of 31 December 2009.