Công văn 50825/CT-TTHT năm 2017 về bán thanh lý hàng tồn kho do Cục Thuế thành phố Hà Nội ban hành

To: Tat Hong Vietnam Co. Ltd.(Address: Building B-14, VINACONEX 3, Dich Vong Ward, Cau Giay District, Hanoi City - TIN: 0303311558)

In response to the Official Dispatch No. 04/2017/CV/THVN dated July 11, 2017 of Tat Hong Vietnam Co. Ltd. (hereinafter referred to as “Company”) requesting for guidance on registration of inventory liquidation programs.  Hanoi City Department of Taxation hereby gives guidance as follows:   

Pursuant to the Law on Commerce No. 36/2005/QH11 dated June 14, 2005:

+ Clause 3 Article 92 stipulates forms of sales promotion as follows: 

“Article 92. Forms of sales promotion

3. Sales of goods and supply of services at discounted prices during a registered or announced sales promotion period.  With regard to goods/services whose prices are governed by the State, the sales promotion in this form shall be implemented according to the Government’s regulations.”

+ Clause 4 Article 94 stipulates goods/services used for sales promotion and discount levels as follows: 

“Article 94. Goods/services used for sales promotion (hereinafter referred to as “promotional goods/services”) and discount levels

4. The Government shall stipulate maximum values of promotional goods/services and highest discount levels of promoted goods/services given by traders during sales promotion period”

+ Article 95 and Article 96 stipulate rights and obligations of traders doing sales promotion.

+ Clause 6 and Clause 10 Article 100 stipulate prohibited acts in sales promotion as follows: 

“Article 100. Prohibited acts in sales promotion

6. The sales promotion aims to sell poor-quality goods or harms the environment, human health and other community benefits.

10. Values of promotional goods/services exceed the maximum permissible ones or discount levels of promoted goods/services are higher than the highest discount levels prescribed in Clause 4 Article 94 hereof."

+ Article 101 stipulates the registration of sales promotion and reporting on sales promotion results to regulatory authorities of commerce as follows:

“Article 101. Registration of sales promotion and reporting on sales promotion results to regulatory authorities of commerce

1. Traders are required to carry out registration of their sales promotion before implementing any sales promotion programs and submit reports on sales promotion results to regulatory authorities of commerce upon termination of their sales promotion programs.

2. The Government shall stipulate the registration of sales and reporting on sales promotion results by traders to regulatory authorities of commerce.”

- Pursuant to the Government’s Decree No. 37/2006/ND-CP dated April 04, 2006 elaborating the Law on Commerce regarding trade promotion:

+ Article 6 stipulates highest discount levels of promoted goods/services as follows:

“Article 6. Highest discount levels of promoted goods/services   

The maximum discount of the promoted good or service shall not exceed 50% its price offered before the sales promotion”.

+ Article 9 stipulates the sale of goods and supply of services at discounted prices as follows:

- “Article 9. Sale of goods and supply of services at discounted prices

1. If the sales promotion is done in the form of price discount, discounts on promoted goods/services given at any times during the sales promotion period must comply with provisions in Article 6 hereof.

2. Any discounts on goods/services whose prices are governed by the State are not allowed.

3. Selling or supplying goods or services whose price bracket or floor prices are set by the State at discounted prices which are lower than their floor prices are not allowed.

4. Total duration of sales promotion in the form of price discount on goods or services of a brand or type shall not exceed 90 (ninety) days in a year; total duration of a sales promotion program shall not exceed 45 (forty) days.

5. Taking advantage of this form of sales promotion to dump goods or services is prohibited."

+ Clause 1 and Clause 2 Article 15 stipulate notification of sales promotion as follows: 

“Article 15. Notification of sales promotion

1. At least 7 (seven) business days before a sales promotion program, the trader that plans to do sales promotion in the forms prescribed in Section 2 of this Chapter must notify his/her/its sales promotion program in writing to the Department of Trade of province or city where that sales promotion program will be implemented.

2. Information about the sales promotion program to be notified includes:

a) Name of the sales promotion program; 

b) Location of the sales promotion program; places where goods are sold under the sales promotion program;

c) Form of sales promotion;

d) Promoted goods/services and promotional goods/services;

dd) Times of beginning and terminating the sales promotion program;  

e) Customers of the sales promotion program; 

g) Prize structure and total value of prizes awarded in the sales promotion program.”

- Clause 1 Article 20 stipulates suspension of sales promotion as follows: 

“Article 20. Suspension of sales promotion  

1. A regulatory authority of commerce is entitled to suspend the entire or a part of a trader's sales promotion program if one of the following violations is committed:

The trader commit violations against regulations in Article 100 of the Law on Commerce and Article 4 hereof; 

b) The trader fails to follow or improperly or inadequately following contents in the rules of the sales promotion program registered with a competent regulatory authority of commerce.”

Pursuant to the abovementioned regulations:  

Your Company is entitled to implement sales promotion programs in the form of sale of goods at discounted prices if your Company's sales promotion programs are not considered as prohibited acts in sales promotion as prescribed in Article 100 of the Law on Commerce No. 36/2005/QH11 and price discounts given by your Company do not exceed the highest discount levels prescribed in Article 6 of Decree No. 37/2006/ND-CP. Your Company must carry out registration of sales promotion programs and report on results of such programs to the competent regulatory authority of commerce (provincial Department of Industry and Trade) as prescribed.

For any further queries, your Company should contact the local Department of Industry and Trade for specific guidance.

For your information and compliance./.

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This document is handled by Dữ Liệu Pháp Luật . Document reference purposes only. Any comments, please send to email: [email protected]