Account 333 – Taxes and other payables to the State

 

1. Rules for accounting

a) This account is used to record relation between enterprises and State about taxes, fees, charges and other payables, payment and outstanding payables to State budget in the fiscal year.

b) The enterprise shall actively calculate and determine taxes, fees, charges and other payables to State in compliance with law, and promptly reflect taxes payable, paid taxes, deductible taxes or tax refund, etc in accounting book.

c) The nature of indirect taxes including VAT (including using credit-invoice method or subtraction method), special excise tax, export duty, environmental protection tax and other indirect taxes is receipts on behalf of a third party. Therefore, these indirect taxes are eliminated from revenues stated in the financial statement or other statements.

The enterprise may record revenues and indirect taxes payable in the accounting records following one in two methods below:

- The indirect taxes payable (including VAT payable using subtraction method) shall be separately recorded at the time in which the revenues are recorded. In this method, the revenues included in accounting records shall not include indirect taxes payable, in conformity with figures of revenues stated in the financial statement and reflected the nature of the transaction.

- The indirect taxes payable shall be recorded as a decrease in revenues in the accounting records. In this method, a decrease in revenues for indirect taxes payable shall be recorded periodically, the figures of revenues stated in the accounting record are different from the revenues stated in the financial statement.

In any cases, the item ―Revenues‖ and "Revenue deductions‖ of the income statement shall not include indirect taxes payable.

d) Regarding taxes eligible for refund or deduction, it is required to distinguish these taxes are paid in purchase process or sale process and follow rules below:

- Regarding those taxes paid into purchase process eligible for refund (i.e. temporary import transaction: special excise tax, import duty, environmental protection tax which are paid shall be refunded the goods are re-exported, etc), a decrease in value of goods purchased or a decrease in costs of goods sold or other expenses. If the input VAT is eligible for refund, a decrease in deductible VAT shall be recorded;

- Regarding taxes paid in import process but imported goods are not under ownership of the enterprise, if they are eligible for refund, a decrease in other receivables shall be recorded (i.e. paid import duty on processed goods which is refunded when the goods are re-exported, etc);

- Regarding taxes payable for sale of goods or services which are eligible for deduction or refund, they shall be recorded to other income (i.e. refund of export duty, deduction in special excise tax, VAT, environmental protection tax payable for sale of goods or services).

dd) Liability for government budget in export-import entrustment transactions:

- In export-import entrustment transactions (other similar transactions), the trustor shall take over liability for government budget

- The trustor shall provide services including document preparation, declaration, and payment to government budget (taxpayer on behalf of the trustor).

- Account 333 is only used by the trustor not the trustee. The trustee shall record taxes payable to government budget as expenses on behalf of a third party in the account 3388 and receive the amounts paid on behalf of the trustor to account 138. The liability of the trustor for government budget shall be reflected according to:

+ When receiving notification of taxes payable, the trustee shall transfer all documents, materials or notification of taxes payable issued by the competent agency to the trustor to record the taxes payable to account 333.

+ According to payment slip to government budget of the trustee, the trustor shall record a decrease in payables to the government budget.

e) Each tax, fee, charge and other amounts payable, paid amounts and outstanding amounts payable shall be keep records in details.

 

2. Structure and contents of account 333 – Taxes and other payables to the State

Debit:

- Deductible VAT during a period;

- Taxes, fees, charges and other amounts payable or paid amount to the government budget;

- Taxes deducted from taxes payables;

- VAT of sales returns and sales rebates.

Credit:

- Output VAT and VAT on import goods payable;

- Taxes, fees, charges and other payables to the government budget;

Credit balance:

Taxes, fees, charges and other payables to the government budget;

In particular case, Account 333 may have the debit balance. Debit balance (if any) of Account 333 reflects tax payments and other payments greater than taxes and payables to State, or may reflect the paid taxes eligible for exemption, deduction or refund, but the refund has not been made.

Account 333 - Taxes and other payables to the State, comprises 9 sub-accounts:

- Account 3331 – VAT payable: Recording input VAT, VAT payable of import goods, deductible VAT, paid VAT and outstanding VAT payable to government budget.

Account 3331 comprises 2 sub-accounts:

+ Account 33311 – output VAT: Recording amount of output VAT, output deductible VAT, VAT on sales return or sales rebates, VAT payable, paid VAT and outstanding VAT payable of products, goods or services rendered during a period.

+ Account 33312 – VAT on imported goods: Recording amounts payable, paid amounts and outstanding amounts payable of VAT on imported goods to government budget.

- Account 3332 – Special excise tax: Recording amounts payable, paid amounts and outstanding amounts payable of special excise tax to government budget.

- Account 3333 – Export-import duty: Recording amounts payable, paid amounts and outstanding amounts payable of export-import duty to government budget.

- Account 3334 – Enterprise income tax: Recording amounts payable, paid amounts and outstanding amounts payable of enterprise income tax to government budget.

- Account 3335 – Personal income tax: Recording amounts payable, paid amounts and outstanding amounts payable of personal income tax to government budget.

- Account 3336 – Natural resource tax: Recording amounts payable, paid amounts and outstanding amounts payable of natural resource tax government budget.

- Account 337 – Land tax and land rent: Recording amounts payable, paid amounts and outstanding amounts payable of land tax and land rent to government budget.

- Account 338 – Environmental protection tax and other taxes: Recording amounts payable, paid amounts and outstanding amounts payable of environmental protection tax and other taxes, such as: Business rates, tax payable on behalf of oversea organizations and individuals having business activities in Vietnam, etc.

+ Account 33381: environmental protection tax: Recording amounts payable, paid amounts and outstanding amounts payable of environmental protection tax;

+ Account 33382: Other taxes: Recording amounts payable, paid amounts and outstanding amounts payable of other taxes. Every tax shall be kept records in sub-accounts in details.

- Account 3339 – Fees, charges and other payables: Recording amounts payable, paid amounts and outstanding amounts payable of fees, charges and other payables to State other than amounts recorded to accounts 3331 through 3338. This account also reflects government grants (if any).

 

3. Method of accounting for several major transactions

3.1. VAT payable (3331)

3.1.1. Accounting for output VAT (Account 33311)

a) Accounting for output VAT payable using credit-invoice method:

When issuing a VAT invoice and paying VAT using credit-invoice method, the income shall be recorded according to VAT-exclusive prices (VAT payable shall be recorded separately at the issuing time) as follows:

Dr 111, 112, 131 (total payment)

Cr 511, 515, 711 (VAT-exclusive prices)

Cr 3331 - VAT payable (33311).

b) Accounting for output VAT payable using subtraction method:

One of two methods below shall be chosen:

- Method 1: VAT payable is recorded separately when issuing invoices in accordance with above Point a;

- Method 2: Recording income including VAT payable using subtraction, when determining VAT payable periodically, a decrease in income shall be recorded:

Dr 511, 515, 711

Cr 3331 - VAT payable (33311).

c) When paying VAT to the government budget, the following accounts shall be recorded as follows:

Dr 3331 - VAT payable

Cr 111, 112.

3.1.2. Accounting for VAT on imported goods (33312)

a) When importing materials, goods, tangible fixed assets, import VAT payable, total payment and value of materials, goods, tangible fixed assets imported (excluding VAT of import goods) shall be recorded as follows:

Dr 152, 153, 156, 211, 611, etc.

Cr 333 – Taxes and other payables to the State (3333)

Cr 111, 112, 331, etc.

b) Recording VAT payable on imported goods:

- When deducting VAT payable on imported goods, the following accounts shall be recorded as follows:

Dr 133 – Deductible VAT

Cr 3331 - VAT payable (33312).

- If the VAT payable on the imported good is not deductible, it shall be included in the value of materials, goods or import fixed asset as follows:

Dr 152, 153, 156, 211, 611, etc.

Cr 3331 - VAT payable (33312).

c) When paying VAT to the government budget actually, the following accounts shall be recorded as follows:

Cr 3331 - VAT payable (33312).

Cr 111, 112, etc.

d) Import entrustment (applying for the trustor)

- When receiving notification of VAT payable on imported goods from the trustee, the trustor shall record deductible VAT payable on imported goods as follows:

Dr 133 – Deductible VAT

Cr 3331 - VAT payable (33312).

- When receiving tax payment slip from the trustee, the trustor shall record a decrease in the liability with government budget on VAT on import goods as follows:

Cr 3331 - VAT payable (33312).

Cr 111, 112 (if the trustee receives cash instantly)

Cr 3388 – Other payables (if the VAT on imported goods is not paid instantly to the trustee)

Cr 138 – Other payables (a decrease in the advance paid to the trustee for payment of VAT on imported goods)

- The trustee does not record the VAT payable on import goods similarly to the trustor, that VAT shall be recorded as VAT paid on behalf of the trustor and the following accounts shall be recorded as follows:

Dr 138 – Other payables (collecting the VAT paid on behalf of the trustor)

Dr 3388 – Other payables (deducting from received amounts from the trustor)

Cr 111, 112.

3.1.3. Accounting for deductible VAT

- Periodically, deductible VAT from output VAT payable during a period shall be determined and recorded as follows:

Cr 3331 - VAT payable (33311).

Cr 133 – Deductible VAT.

- When a transaction takes place, if it fails to determine that the input VAT on goods or services is whether or not deductible, all input VAT shall be recorded to account 133. Periodically, when determining the VAT not deductible from output VAT, it shall be recorded relevant expenses as follows:

Dr 632 - Costs of goods sold (non-deductible input VAT of inventory sold)

Dr 641, 642 (non-deductible VAT of sales expenses or enterprise administration expenses)

Cr 133 – Deductible VAT.

3.1.4. Accounting for deduction in VAT payable

If the enterprise is eligible for deduction in VAT payable, such VAT shall be recorded to other income as follows:

Dr 33311 – VAT payable (if deduction in VAT payable)

Dr 111, 112 - If the deduction is received in cash.

Cr 711 – Other income.

3.1.5. Accounting for refund of input VAT

If the enterprise is eligible for VAT refund as prescribed in regulations of law because the input VAT is greater than the output VAT, the following accounts shall be recorded as follows:

Dr 111, 112.

Cr 133 – Deductible VAT.

3.2. Special excise tax (3332)

3.2.1. Rules for accounting

- This account is used by the special excise taxpayer as prescribed. In the export-import entrustment, this account is used by the trustor, not by the trustee.

- Enterprises selling goods subject to special excise tax shall record their revenues excluding special excise tax. At the time recording income, if it fails to separate the special excise tax payable, the revenue shall be recorded including such tax, but the special excise tax payable shall be recorded as a decrease in revenue periodically. In any cases, the item ―Revenues‖ and ―Revenue deductions‖ in the income statement shall not include special excise tax payable when selling goods or providing services.

- Enterprises importing or selling domestic goods or fixed assets subject to special excise tax, their special excise tax payable shall be recorded to original cost of inventories. If the enterprise imports goods on behalf of a third party without ownership of such goods, for example, temporary import on behalf of a third party, the import duty payable shall not be recorded to value of goods but be recorded to other receivables.

- Accounting for special excise tax eligible for refund or deduction:

+ If the special excise tax paid for import of goods or services is eligible for refund, a decrease in costs of goods sold (goods dispatched for sale) or a decrease in value of goods (goods dispatched for loans or borrowings, etc) shall be recorded;

+ If the special excise tax paid for import of fixed assets is eligible for refund, a decrease in other expenses (sale of fixed assets) or a decrease in historical costs of fixed assets (fixed assets for return) shall be recorded;

+ If the special excise tax paid for import of goods or fixed assets is eligible for refund by the entity having no ownership, a decrease in other receivables shall be recorded.

+ If the special excise tax paid for sale of goods or services is eligible for refund or deduction, such tax shall be recorded to other income.

3.2.2. Accounting for special excise tax

a) Accounting for special excise tax payable for sale of goods or services:

- When a transaction takes place, if it fails to separate the special excise tax payable, the revenues shall be recorded excluding special excise tax as follows:

Dr 111, 112, 131 (total payment)

Cr 511 - Revenues

Cr 3332 - Special excise tax.

- When a transaction takes place, if it fails to separate the special excise tax payable, the revenues shall be recorded including special excise tax as follows: When determining special excise tax payable, a decrease in revenues shall be recorded as follows:

Cr 511 - Revenues

Cr 3332 - Special excise tax.

1. b) When importing goods subject to special excise tax, according to sale invoices of imported goods and tax notification issued by the competent agency, the special excise tax payable on imported goods shall be determined and recorded as follows:

Dr 152, 156, 211, 611, etc.

Cr 3332 - Special excise tax.

Regarding to temporary goods not under ownership of the enterprise, i.e. transit goods which are re-exported at the bonded warehouse, when paying special excise tax on imported goods, the following accounts shall be recorded as follows:

Dr 138 – Other receivables

Cr 3332 - Special excise tax.

c) When paying special excise tax to the government budget, the following accounts shall be recorded as follows:

Dr 3332 - Special excise tax.

Cr 111, 112.

d) Accounting for refund of special excise tax in the import process:

- When re-exporting goods whose special excise tax is eligible for refund, the following accounts shall be recorded as follows:

Dr 3332 – Special excise tax

Cr 632 – Costs of goods sold (goods dispatched for sale)

Cr 152, 153, 156 (goods dispatched for return).

- When re-exporting fixed assets whose special excise tax is eligible for refund, the following accounts shall be recorded as follows:

Dr 3332 – Special excise tax

Cr 211 – Tangible fixed assets (fixed assets dispatched for return)

Cr 811 – Other receivables (sale of fixed assets).

- When re-exporting goods not under ownership of the enterprise whose special excise tax is eligible for refund, the following accounts shall be recorded as follows:

Dr 3332 – Special excise tax

Cr 138 – Other receivables.

dd) Accounting for special excise tax payable for sale of goods or services which is eligible for refund or deduction: When receiving notification of special excise tax eligible for refund or deduction in the sale process issued by the competent agency, the following accounts shall be recorded as follows:

Dr 3332 – Special excise tax

Cr 711 – Other income.

e) When dispatching goods or services subject to special excise tax for internal consumption, giving, promotion or advertisement without collecting money, the following accounts shall be recorded as follows:

Dr 641, 642.

Cr 154, 155.

Cr 3332 – Special excise tax

g) Import entrustment (applying for the trustor)

- When receiving the special excise tax notification from the trustee, the trustor shall record the special excise tax payable as follows:

Dr 152, 156, 211, 611, etc.

Cr 3332 - Special excise tax.

- When receiving tax payment slip from the trustee, the trustor shall record a decrease in the liability with government budget on special excise tax as follows:

Dr 3332 - Special excise tax.

Cr 111, 112 (if the trustee receives cash instantly)

Cr 3388 – Other payables (if the special excise tax is not paid instantly to the trustee)

Cr 138 – Other payables (a decrease in the advance paid to the trustee for payment of special excise tax).

- The trustee does not record the special excise tax payable similarly to the trustor, that tax shall be recorded as special excise tax paid on behalf of the trustor and the following accounts shall be recorded as follows:

Dr 138 – Other payables (collecting the VAT paid on behalf of the trustor)

Dr 3388 – Other payables (deducting from received amounts from the trustor)

Cr 111, 112.

3.3. Export duty (3333)

3.3.1. Rules for accounting

- This account is used by the export se taxpayer as prescribed. In the export-import entrustment, this account is used by the trustor, not by the trustee.

- Export duty is an indirect tax and not included in the revenue structure of the enterprise. When exporting goods, the export duty payable shall be separated from revenues. At the time recording revenues, if it fails to separate the export duty payable, the revenue shall be recorded including such tax, but the export duty payable shall be recorded as a decrease in revenue periodically. In any cases, the item ―Revenues‖ and ―Revenue deductions‖ in the income statement shall not include export duty payable when selling goods or providing services.

- If the export duty paid for export is eligible for refund or deduction, it shall be recorded to other income

3.3.2. Method of accounting

a) Accounting for export duty payable for sale of goods or services:

- When a transaction takes place, if it fails to separate the export duty payable, the revenues shall be recorded excluding export duty as follows:

Dr 111, 112, 131 (total payment)

Cr 511 - Revenues

Cr 3333 – Export-import duty (export duty in details).

- When a transaction takes place, if it fails to separate the export duty payable, the revenues shall be recorded including export duty as follows: When determining export duty payable, a decrease in revenues shall be recorded as follows

Dr 511 - Revenues

Cr 3333 – Export-import duty (export duty in details).

b) When paying export duty to the government budget, the following accounts shall be recorded as follows:

Dr 3333 – Export-import duty (export duty in details).

Cr 111, 112, etc.

c) Export duty eligible for refund or deduction (if any), the following accounts shall be recorded as follows:

Dr 111, 112, 3333

Cr 711 – Other income.

d) Import entrustment (applying for the trustor)

- When buying goods or services subject to export duty, the revenues and export duty payable shall be recorded similarly to ordinary export as prescribed in Point a of this section.

- When receiving tax payment slip from the trustee, the trustor shall record a decrease in the liability with government budget on export duty as follows:

Dr 3333 – Export-import duty (export duty in details).

Cr 111, 112 (if the trustee receives cash instantly)

Cr 3388 – Other payables (if the export duty is not paid instantly to the trustee)

Cr 138 – Other payables (a decrease in the advance paid to the trustee for payment of export duty).

- The trustee does not record the export duty similarly to the trustor, that export duty shall be recorded as export duty paid on behalf of the trustor and the following accounts shall be recorded as follows:

Dr 138 – Other payables (collecting the VAT paid on behalf of the trustor)

Dr 3388 – Other payables (deducting from received amounts from the trustor)

Cr 111, 112.

3.4. Export duty (3333)

3.4.1. Rules for accounting

- This account is used by the export taxpayer as prescribed. In the export-import entrustment, this account is used by the trustor, not by the trustee.

- Enterprises importing goods or fixed assets shall record import duty payable to the original cost of goods or fixed assets. If the enterprise imports goods on behalf of a third party without ownership of such goods, for example, temporary import on behalf of a third party, the import duty payable shall not be recorded to value of goods but be recorded to other receivables.

- Accounting for import duty eligible for refund or deduction:

+ If the import duty paid for import of goods or services is eligible for refund, a decrease in costs of goods sold (goods dispatched for sale) or a decrease in value of goods (goods dispatched for loans or borrowings, etc);

+ If the import duty paid for import of fixed assets is eligible for refund, a decrease in other expenses (sale of fixed assets) or a decrease in historical costs of fixed assets (fixed assets for return);

+ If the import duty paid for import of goods or fixed assets is eligible for refund by the entity having no ownership, a decrease in other receivables shall be recorded (i.e. temporary imported goods for processing, etc)

3.4.2. Method of accounting for import duty

a) When importing materials, goods or fixed assets, import duty payable, total payment or paid amounts to the seller and value of imported materials, goods or fixed assets (import duty-inclusive prices) shall be recorded as follows:

Dr 152, 156, 211, 611, etc. (import duty-inclusive prices)

Cr 3333 – Export-import duty (import duty in details).

Cr 111, 112, 331, etc.

Regarding to temporary imported goods not under ownership of the enterprise, i.e. transit goods which are re-exported at the bonded warehouse, when paying import duty; the following accounts shall be recorded as follows:

Dr 138 – Other receivables

Cr 3333 – Export-import duty (import duty in details).

b) When paying import duty to the government budget, the following accounts shall be recorded as follows:

Dr 3333 – Export-import duty (import duty in details).

Cr 111, 112, etc.

c) Accounting for refund of import duty in the import process

- When re-exporting goods whose import duty is eligible for refund, the following accounts shall be recorded as follows:

Dr 3333 – Export-import duty (import duty in details).

Cr 632 – Costs of goods sold (goods dispatched for sale)

Cr 152, 153, 156 – Goods (goods dispatched for return).

- When re-exporting fixed assets whose special excise tax is eligible for refund, the following accounts shall be recorded as follows:

Dr 3333 – Export-import duty (import duty in details).

Cr 211 – Tangible fixed assets (fixed assets dispatched for return)

Cr 811 – Other receivables (sale of fixed assets).

- Regarding import duty paid in import process but imported goods are not under ownership of the enterprise, if they are eligible for refund (i.e. paid import duty on processed goods), the following accounts shall be recorded as follows:

Dr 3333 – Export-import duty (import duty in details).

Cr 138 – Other receivables.

- When receiving money from the government budget, the following accounts shall be recorded as follows:

Dr 112 – Cash in bank

Cr 3333 – Export-import duty (import duty in details).

d) Import entrustment (applying for the trustor)

- When receiving notification of import duty from the trustee, the trustor shall record import duty payable as follows:

Dr 152, 156, 211, 611, etc. (import duty-inclusive prices)

Cr 3333 – Export-import duty (import duty in details).

- When receiving tax payment slip from the trustee, the trustor shall record a decrease in the liability with government budget on import duty as follows:

Dr 3333 – Export-import duty (import duty in details).

Cr 111, 112 (if the trustee receives cash instantly)

Cr 3388 – Other payables (if the import duty is not paid instantly to the trustee)

Cr 138 – Other receivables (a decrease in the advance paid to the trustee for payment of import duty).

- The trustee does not record the import duty similarly to the trustor, that import duty shall be recorded as import duty paid on behalf of the trustor and the following accounts shall be recorded as follows:

Dr 138 – Other payables (collecting the VAT paid on behalf of the trustor)

Dr 3388 – Other receivables (deducting from received amounts from the trustor)

Cr 111, 112.

3.5. Enterprise income tax (3334)

a) According to enterprise income tax payable to the government budget quarterly, the following accounts shall be recorded as follows:

Dr 821 - Enterprise income tax expenses (8211)

Cr 3334 - Enterprise income tax.

b) When paying enterprise income tax to the government budget, the following accounts shall be recorded as follows:

Dr 3334 - Enterprise income tax.

Cr 111, 112.

c) Determination of enterprise income tax payable at the end of the fiscal year:

- If the enterprise income tax payable is smaller than the provisional enterprise income tax every quarter, the difference between them shall be recorded as follows:

Dr 3334 - Enterprise income tax.

Cr 821 - Enterprise income tax expenses (8211).

- If the enterprise income tax payable is greater than the provisional enterprise income tax every quarter, the difference between them shall be recorded as follows:

Dr 821 - Enterprise income tax expenses (8211)

Cr 3334 - Enterprise income tax.

3.6. Personal income tax (3335)

When determining personal income tax payable which is deducted from taxable income of staff and other employees, the following accounts shall be recorded as follows:

Dr 334 – Payables to employees

Cr 333 – Taxes and other payables to the State (3335)

- When paying salaries to outsourcing people, the enterprise must determine personal income tax payable subject to irregular upon each generation of income, the following accounts shall be recorded as follows:

+ When paying remuneration, fees for outsourcing, etc instantly to outsourcing people, the following accounts shall be recorded as follows:

Dr 623, 627, 641, 642, 635 (total payment); or

Dr 161 – Non-business expenses (total payment); or

Dr 353 – Welfare funds (total payment) (3531)

Cr 333 – Taxes and other payables to the State (3333) (deductible personal income tax)

Cr 111, 112 (actual payment).

+ When paying liabilities to outsourcing people having income, the following accounts shall be recorded as follows:

Dr 331 – Trade payables (total payables)

Cr 333 – Taxes and other payables to the State (deductible personal income tax)

Cr 111, 112 (actual payment).

- When paying personal income tax to the government budget on behalf of the people having income, the following accounts shall be recorded as follows:

Dr 333 – Taxes and other payables to the State (3335)

Cr 111, 112, etc.

3.7. Natural resource tax (3336)

- When determining natural resource tax payable which is included in the factory overheads, the following accounts shall be recorded as follows:

Dr 627 – Factory overheads (6278)

Cr 3336 – Natural resource tax.

- When paying natural resource tax to the government budget actually, the following accounts shall be recorded as follows:

Dr 3336 – Natural resource tax.

Cr 111, 112, etc.

3.8. Land tax and land rent (3337)

- When determining land tax and land rent payable which is included in the general administration expenses, the following accounts shall be recorded as follows:

Dr 642 - Enterprise income tax expenses (6425)

Cr 3337 - Land tax and land rent.

- When paying land tax and land rent to the government budget, the following accounts shall be recorded as follows:

Dr 3337 - Land tax and land rent.

Cr 111, 112, etc.

3.9. Environmental protection tax

3.9.1. Rules for accounting

- This account is used by the environment protection taxpayer as prescribed. In the import entrustment, this account is used by the trustor, not by the trustee.

- Enterprises selling goods subject to environmental protection tax shall record their revenues excluding environmental protection tax payable. At the time recording revenues, if it fails to separate the environmental protection tax payable, the revenue shall be recorded including such tax, but the environmental protection tax payable shall be recorded as a decrease in revenue periodically.

- Enterprises importing or selling domestic goods or fixed assets subject to environmental protection tax shall record their environmental protection tax payable to original cost of inventories.

- Accounting for environmental protection tax eligible for refund or deduction:

+ If the environmental protection tax paid for import of goods or services is eligible for refund, a decrease in costs of goods sold (goods dispatched for sale) or a decrease in value of goods (goods dispatched for loans or borrowings, etc);

+ If the environmental protection tax paid for import of fixed assets is eligible for refund, a decrease in other expenses (sale of fixed assets) or a decrease in historical costs of fixed assets (fixed assets for return);

+ If the environmental protection tax paid for import of goods or fixed assets is eligible for refund by the entity having no ownership, a decrease in other receivables shall be recorded.

+ If the environmental protection tax paid for sale of goods or services is eligible for refund or deduction, such tax shall be recorded to other income.

3.9.2. Method of accounting for environmental protection tax

a) When selling goods or providing services subject to environmental protection tax and VAT, the revenues shall be recorded excluding environmental protection tax and VAT as follows:

Dr 111, 112, 131 (total payment) Cr 511 – Revenues (Environment protection and VAT-exclusive prices)

Cr 3331 - VAT payable (33311).

Cr account 33381 - Environmental protection tax

When a transaction takes place, if it fails to determine the environmental protection tax payable, the revenue shall be recorded including such tax, but the environmental protection tax payable shall be recorded as a decrease in revenue periodically.

Dr 511 - Revenues

Cr 333 – Taxes and other payables to the State (in details).

b) When importing goods subject to environmental protection tax, according to sale invoices of imported goods and tax notification issued by the competent agency, environmental protection tax payable on imported goods shall be determined and recorded as follows:

Dr 152, 156, 211, 611, etc.

Cr account 33381 - Environmental protection tax:

- When dispatching goods or services subject to environmental protection tax for internal consumption, giving, promotion or advertisement without collecting money, the following accounts shall be recorded as follows:

Dr 641, 642.

Cr 152, 154, 155, etc.

Cr account 33381 - Environmental protection tax:

c) In case the enterprise is an import trustee who pays environmental protection tax on behalf of the import trustor, when determining the environmental protection tax payable, the following accounts shall be recorded as follows:

Dr 138 – Other receivables

Cr account 33381 - Environmental protection tax:

- When paying environmental protection tax to the government budget, the following accounts shall be recorded as follows:

Dr 33381 - Environmental protection tax

Cr 111, 112, etc.

d) Accounting for refund of environmental protection tax in the import process

- When re-exporting goods whose environmental protection tax is eligible for refund, the following accounts shall be recorded as follows:

Dr 33381 - Environmental protection tax

Cr 632 – Costs of goods sold (goods dispatched for sale)

Cr 152, 153, 156 (goods dispatched for return).

- When re-exporting fixed assets whose special excise tax is eligible for refund, the following accounts shall be recorded as follows:

Dr 33381 - Environmental protection tax

Cr 211 – Tangible fixed assets (fixed assets dispatched for return)

Cr 811 – Other receivables (sale of fixed assets).

- When re-exporting goods not under ownership of the enterprise whose environmental protection tax is eligible for refund, the following accounts shall be recorded as follows:

Dr 33381 - Environmental protection tax

Cr 138 – Other receivables.

dd) Accounting for environmental protection tax payable for sale of goods or services which is eligible for refund or deduction: When receiving notification of special excise tax eligible for refund or deduction in the sale process issued by the competent agency, the following accounts shall be recorded as follows:

Dr 33381 - Environmental protection tax

Cr 711 – Other income.

3.10. Other taxes (33382), fees, charges and other payables (3339)

- When determining property transfer taxes subject to value of purchased asset (registration of ownership or rights to use), the following accounts shall be recorded as follows:

Dr 211 – Tangible fixed assets

Cr 333 – Taxes and other payables to the State (3339)

- When paying other taxes (i.e. foreign contractor tax), fees, charges and other payables actually, the following accounts shall be recorded as follows:

Dr 333 – Taxes and other payables to the State (33382, 3339)

Cr 111, 112.

3.11. Accounting government grants for enterprises

- When receiving decisions on government grants for enterprises providing goods or services at the request of the state; the government grants shall be recorded to revenues as follows:

Dr 333 – Taxes and other payables to the State (3339)

Cr 511 – Revenues (5114).

- When receiving government grants, the following accounts shall be recorded as follows:

Dr 111, 112.

Cr 333 – Taxes and other payables to the State (3339)

Source: Circular 200