40 Questions
What is the impact of the development of commodity-money relations on the development of taxation?
It creates favorable conditions for the development of taxation.
What is the characteristic of taxation that distinguishes it from voluntary contributions?
It is a compulsory contribution.
What is the role of the state in the taxation process?
The state exercises its power through the taxation process.
What is the nature of taxation in terms of refundability?
Taxation is a non-refundable payment.
What is the purpose of taxation in terms of state functions?
To finance the state's social and economic functions.
What happens to taxpayers who violate tax laws?
They are punished and forced to comply with tax laws.
What is the difference between taxation and a loan?
A loan is refundable, while taxation is not.
What is the relationship between the development of taxation and the development of the market economy?
The development of taxation promotes the development of the market economy.
What is the main advantage of Value-Added Tax (VAT) over turnover tax?
VAT does not overlap in tax payments at different stages of production
What is the benefit of VAT for exporters?
They receive a full refund of input VAT when exporting goods
Who is liable to pay VAT?
All organizations and individuals engaged in production and business activities
What is one of the effects of VAT on businesses?
It promotes accurate accounting and transparency in business operations
What is the impact of VAT on the national economy?
It contributes to a stable and large source of revenue for the government
How does VAT affect investment?
It encourages investment through the refund of input VAT
What is one of the advantages of VAT over other tax systems?
It promotes economic growth and social welfare
What is the impact of VAT on international trade?
It encourages international trade through the refund of input VAT
Which of the following is not a type of income that is not related to the sale of goods and services?
Revenue from selling goods
What is the tax treatment of goods that are imported and then exported but are returned by the foreign buyer?
The business must pay VAT on the importation and re-sale of the returned goods
Which of the following is an example of a service that is exempt from VAT?
Insurance agency services
What is the tax treatment of goods that are transferred within a business for further production or business use?
The business is exempt from VAT on the transfer
Which of the following is an example of a commission that is exempt from VAT?
Commission from selling insurance policies
What is the tax treatment of goods that are lent or borrowed by a business?
The business is exempt from VAT on the lending or borrowing
Which of the following is not a type of service that is exempt from VAT?
Tour operations
What is the tax treatment of fees received by a business from the government for collecting debts on behalf of the government?
The business is exempt from VAT on the fees
What is the main purpose of the regulations regarding cases that are not subject to VAT declaration and payment?
To increase transparency and minimize conflicts in the implementation of tax laws
Which of the following is NOT a case that is not subject to VAT declaration and payment?
Provision of repair services to an individual
What happens when a business receives compensation in kind?
The business must issue an invoice and declare VAT
What is the treatment of monetary rewards received by a business?
They are subject to VAT and must be declared
Why was Circular 193/2015/TT-BTC issued?
To add a new case that is not subject to VAT declaration and payment
What is the treatment of services provided by a Vietnamese business to a foreign organization?
They are exempt from VAT
What is the basis for a business to determine whether it needs to declare and pay VAT?
The purpose of the payment
What happens when a business receives monetary support from an organization or individual to perform a service?
The business must declare and pay VAT
Which of the following situations is subject to VAT?
A foreign organization provides advertising services to a Vietnamese business.
What is the main reason for exempting certain transactions from VAT?
To prevent tax evasion and reduce social costs.
Which of the following services is not subject to VAT?
Advertising services on the internet.
What is the tax implication for an individual who sells a personal asset not used for business purposes?
The individual is exempt from VAT and income tax.
Which of the following is an example of a transaction that is exempt from VAT?
An individual sells a personal car to a business.
What is the tax implication for a business that transfers a project to another business?
Neither business is required to pay VAT on the transfer value.
Which of the following services is subject to VAT?
Training services provided by a foreign organization.
What is the main purpose of exempting certain transactions from VAT?
To prevent tax evasion and reduce social costs.
Study Notes
Tax on Goods and Services
- The tax on goods and services is a type of tax that applies to organizations and individuals who produce and trade goods and services in Vietnam.
- It is a value-added tax that is imposed on the value added to goods and services at each stage of production and distribution.
Cases where Tax on Goods and Services is not Applicable
- Organizations and individuals who are not engaged in business and do not have to pay tax on goods and services include:
- Those who sell assets that are not used for business purposes.
- Those who receive compensation in the form of money or goods and services.
- Those who engage in transactions outside of Vietnam.
- Those who provide services such as advertising, market research, and investment promotion.
- Those who engage in the transfer of projects to produce goods and services that are subject to tax.
- Those who receive money from the state budget for the implementation of projects.
Characteristics of Tax on Goods and Services
- Tax on goods and services is a compulsory contribution made by organizations and individuals to the state budget.
- It is a type of indirect tax that is imposed on the value added to goods and services.
- It is a tax that is imposed on the consumption of goods and services.
- It is a tax that is imposed on the production and distribution of goods and services.
Functions of Tax on Goods and Services
- Tax on goods and services has the function of regulating the economy and stabilizing the financial system.
- It has the function of promoting the development of the economy and society.
- It has the function of reducing the gap between the rich and the poor.
- It has the function of promoting transparency and accountability in the use of public funds.
Scope of Application of Tax on Goods and Services
- The tax on goods and services applies to all organizations and individuals who produce and trade goods and services in Vietnam.
- It applies to all goods and services that are produced and traded in Vietnam, regardless of their origin.
- It applies to all imports of goods and services into Vietnam.
Subjects of Tax on Goods and Services
- Organizations and individuals who produce and trade goods and services in Vietnam are subjects of tax on goods and services.
- Organizations and individuals who import goods and services into Vietnam are also subjects of tax on goods and services.
Characteristics of Organizations and Individuals who are Subjects of Tax on Goods and Services
- They are organizations and individuals who have business activities in Vietnam.
- They are organizations and individuals who produce and trade goods and services in Vietnam.
- They are organizations and individuals who import goods and services into Vietnam.
Learn about the tax on goods and services in Vietnam, including its application and exemptions. Understand the value-added tax imposed on goods and services at each stage of production and distribution.
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