Giới thiệu

Question: Is an enterprise specializing in manufacturing and exporting plastic products, during the production process, the generated waste cannot be recycled? Enterprises have sold inland as scrap and declared VAT to tax administration agencies. However, according to the guidance for the scrap company formed from both imported and purchased domestic materials, the enterprise must allocate and split the scrap selling price into 2 parts; for the import part, the Customs declaration also for the domestic part, the tax declaration.
Enterprises wonder, in case of VAT declaration with the customs office, does the scrap purchasing unit need red invoice ?.
Reply:
 According to the General Department of Customs, Clause 35, Article 1 of Circular 39 amends and supplements Article 55 of Circular 38 stipulating the actual production norm is the actual amount of raw materials and supplies used for processing and manufacturing a units of exported products and determined according to the form in Form No. 27, Appendix II to this Circular.
In case scrap and waste products created during the production of previous export products are used for recycling and production of exported products, norms must be set to produce those exported products according to the provisions of this Article. . (Example: Enterprise A imports tobacco leaves to produce export of type 1 and type 2 cigarettes, the production stage is separating leaves to produce type 1 and stems of tobacco leaves, then drying, pressing) bread ... sliced ​​to produce second-hand tobacco fibers. So enterprise A must set a norm for first-class and second-class tobacco fibers.)
In which, scrap is material removed during processing, production of export goods whose initial useless value is recovered to be raw material for other production process; waste products are finished products, semi-finished products not up to technical standards (specifications, dimensions, qualities, etc.), which are excluded in the process of processing and manufacturing export goods and are not up to export quality.
Clause 49, Article 1 of Circular 39 amending and supplementing Article 71 of Circular 38 stipulates that scraps and defective products obtained during the production of export goods, when being sold for domestic consumption, are exempt from import tax but must be declared and paid. VAT, excise tax (if any) and environmental protection tax (if any).
Accordingly, enterprises only have to declare and pay VAT, excise tax (if any), and environmental protection tax (if any) to the customs office for discarded materials and faulty products generated from imported raw materials and supplies. The company is not required to declare and pay taxes to the Customs for discarded materials and defective products which are formed from domestic raw materials.
The distribution and division by enterprises themselves are determined based on the actual production norms prescribed in Article 55 of Circular 38, which are amended and supplemented in Clause 35, Article 1 of Circular 39 (actual data of material sources, imported supplies with domestic purchasing sources are recorded in purchase and sale contracts, import declarations, warehousing bills, ex-warehousing bills, purchase invoices, payment documents and other relevant documents for determining the number quantity of discarded materials and defective products subject to tax declaration and payment by the customs office).
The General Department of Customs requests enterprises to re-check the actual production norms, dossiers, books, accounting vouchers, payment documents and relevant documents to serve as a basis for tax declaration and payment. for discarded materials and faulty products to the customs offices strictly according to regulations.
According to: General Department of Customs