MINISTRY OF FINANCE
GENERAL DEPARTMENT OF TAXATION
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 3021/TCT/PCCS
Hanoi, September 17, 2004
 
OFFICIAL LETTER
ON VALUE ADDED TAX (VAT)
To: The Tax Department of Phu Yen province
In response to Official Letter No. 1067 CT/TT-HT of September 9, 2004, of the Taxation Department of Phu Yen province on the application of VAT rates, the General Department of Taxation hereby gives the following opinion:
Point 3.6, Section II, Part B of the Finance Ministry’s Circular No. 120/2003/TT-BTC of December 12, 2003, guiding the implementation of 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 VAT Law stipulates: “Chemical products (except for base chemicals defined at Point 2.20, Section II, Part B of this Circular), cosmetics” are subject to the VAT rate of 10%.
Under the aforesaid guidance, chemical products of Alkaline, Diamantine, Zeolite and Oxyzeo are not on the list of base chemicals or the list of pharmaceutical materials used as raw materials for the production of preventive and curative medicines (Appendices 1 and 2 to Circular No. 120/2003/TT-BTC) and therefore, are subject to the VAT rate of 10%.
The General Department of Taxation hereby notifies the Taxation Department of Phu Yen province thereof as instruction for compliance.
 
FOR THE GENERAL DIRECTOR OF TAXATION
DEPUTY GENERAL DIRECTOR




Pham Duy Khuong