Accounting for sales and evaluation business results in TOYOTA motor vietnam, ltd

Academy of Finance

Graduation thesis
DECLARATION

I hereby declare that this thesis is my own work and effort and that has not been
submitted anywhere for any award. Where other sources of information have been used,
they have been acknowledged.
The data and results described in the thesis are derived from the actual situation of the
practice company.
Hanoi, 30 April, 2015
Student

Trần Thị Ngọc Ánh

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ACKNOWLEDGEMENT

Firstly, I would like to express my very great thankfulness to all lecturers in English for
Finance and Accounting Faculty at Academy of Finance for their professional guidance
and valuable support.
Especially, I would like to show my deep gratitude to my research supervisor, Ms. Cao
Phuong Thao, for her patient guidance, enthusiastic encouragement and useful critiques
during the planning and development of my graduation thesis and for her assistance in

keeping my progress on schedule.
I also want to thank TOYOTA motor Vietnam, Ltd for giving me permission to
commence this thesis in the first instance, to do the necessary research work and to use
departmental data. I have furthermore to thank the former Vice Director and Finance
Manager as well as all seniors at TOYOTA motor Vietnam, Ltd who gave and confirmed
this permission and encouraged me to go ahead with my thesis.
Especially, I would like to give my special thanks to my family whose patient love
enabled me to complete this work and my friends from Foreign Language Faculty for all
their help, support, interest and valuable hints.
Finally, because of limitation of time and knowledge, mistakes are unavoidable, so I wish
to receive more contribution and suggestions to make my thesis better.

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ABSTRACT

In the modern economic world, especially when the number of bankrupt enterprises is
rising, accounting for sales and business results has become more and more important to
every company in general, and TOYOTA motor Vietnam in particular. Therefore, I
choose the topic “Accounting for sales and Evaluation of business results in TOYOTA
motor Vietnam, Ltd” for my graduation thesis. It will point out the importance of having
an effective accounting department for sales and business results.
The main content is reflected in three chapters. The first chapter is about the literature
review for every company, mainly showing what accounts are involved in calculating

business results, its definitions and accounting entries. In chapter 2, by taking a scenario
in TOYOTA motor Vietnam, Ltd, the thesis focuses in a real accounting practice for sales
and business results. From that, chapter 3 shows the company’s strengths and weaknesses
and suggests some solutions to improve the current accounting system in TOYOTA motor
Vietnam, Ltd.
In conclusion, the thesis has already been complete in comparison with proposed
objectives and targets in the introduction.

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LIST OF ABBREVIATIONS

No.
1
2
3
4
5
6
7
8
9
10
11

Abbreviations
Acc
COGs
Deprec
Dept
TMV
IS
No.
P&L
Q’ty
VAS
VAT

Full Phrase
Account
Cost of goods sold
Depreciation
Department
Toyota motor Vietnam
Income statement
Number
Profit and Loss
Quantity
Vietnamese Accounting Standard
Value Added Tax

LIST OF CHARTS & SAMPLES
Flowcharts
1. Flowchart 01 – Accounting entry for COGS under perpetual inventory method (for

sales through agents)

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2. Flowchart 02 – Accounting entry for COGS under periodic inventory method (for sales
through agents)
3. Flowchart 03 – Accounting entry for COGS under perpetual inventory method (for
direct sales)
4. Flowchart 04 – Accounting entry for COGS under periodic inventory method (for
direct sales)
5. Flowchart 05 – Accounting entry for direct sales (for company applying
deduction/subtraction VAT method)
6. Flowchart 06 – Accounting entry for direct sales (for company applying direct VAT
method)
7. Flowchart 07 – Accounting entry for sales through agents
8. Flowchart 08 – Accounting entry for trade discount
9. Flowchart 09 – Accounting entry for sales returns
10. Flowchart 10 – Accounting entry for sales allowances
11. Flowchart 11 – Accounting entry for tax payables
12. Flowchart 12 – Accounting entry for selling expenses
13. Flowchart 13 – Accounting entry for administration expenses
14. Flowchart 14 – Accounting entry for financial expenses
15. Flowchart 15 – Accounting entry for financial incomes

16. Flowchart 16 – Accounting entry for other expenses
17. Flowchart 17 – Accounting entry for other incomes
18. Flowchart 18 – Accounting entry for business result
Samples
1. Sample 01- General journal of COGs (Acc 632)
2. Sample 02- General ledger of COGs (Acc 632)
3. Sample 03- Delivery order
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4. Sample 04- VAT invoices
5. Sample 05- General journal of Revenue (Acc 511)
6. Sample 06- General ledger of Revenue (Acc 511)
7. Sample 07- Telecommunication service invoice (VAT)
8. Sample 08- General journal of Selling expenses (Acc 641)
9. Sample 09- General ledger of selling expenses (acc 641)
10. Sample 10- Nguyet Anh restaurant invoice
11. Sample 11- General journal of Administration expenses (Acc 642)
12. Sample 12- General ledger of Administration expenses (Acc 642)
13. Sample 13- General ledger of Net income (Acc 911)
14. Sample 14- Income Statement

TABLE OF CONTENT
PART I: INTRODUCTION……………………………………………………………1

1. Rationale…………………………………………………………………………1
2. Aims of the study………………………………………………………………...1

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3. Subject and scope of the study…………………………………………………...2
4. Introduction of the main content…………………………………………………2

PART II: MAIN CONTENT…………………………………………………………..3
CHAPTER I: LITERATURE OVERVIEW………………………………………….3
1.1 Overview ……………………………………………………………………………3
1.1.1 Characteristics of goods …………………………………………………………...3
1.1.2 Managerial requirements………………………………………………………….4
1.1.3 Functions of accounting for sales and business results……………………………4
1.1.4 Methods of sales…………………………………………………………………..5
1.2 Accounting entries for sales and business results………………………………...7
1.2.1 Accounting for Cost of Goods Sold (COGS)………………………………………7
1.2.2 Accounting for Sales and Sales Deductions……………………………………….7
1.2.3 Accounting for Selling and Administration expenses…………………………….19
1.2.4 Accounting for Financial Expenses and Incomes …………………………………24
1.2.5 Accounting for Other Expenses and Incomes and Corporate Income Tax
Expense………………………………………………………………………………….29
1.2.6 Accounting for business results……………………………………………………33

1.3 Preparing financial statements ……………………………………………………35
1.4 Systems of Accounting forms ……………………………………………………..35
1.5 Computerized accounting for sales and business results ………………………..37
CHAPTER II: CURRENT SITUATION OF ACCOUNTING FOR SALES AND
EVALUATION OF BUSINESS RESULTSS IN TOYOTA MOTOR VIETNAM,
LTD……………………………………………………………………………………39
2.1. Overview about TOYOTA motor Vietnam, Ltd ………………………………39
2.1.1. History …………………………………………………………………………..39
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2.1.2. Business field and products ……………………………………………………..40
2.1.3. Organizational structure…………………………………………………………41
2.1.4. Characteristics of accounting department ……………………………………….42
2.2. Current situation of accounting for sales and business results in TOYOTA
motor Vietnam, Ltd…………………………………………………………………….45
2.2.1. List of main products……………………………………………………………..46
2.2.2. Main selling method at TOYOTA motor Vietnam, Ltd ………………………….47
2.2.3 Current situation of accounting for sales and business results……………………48
2.2.3.1 Accounting for Cost of Goods Sold (COGS) ………………………………..….48
2.2.3.2 Accounting for Sales and Sales Deductions …………………………………….52
2.2.3.3 Accounting for Selling and Administration Expenses…………………………..57
2.2.3.4 Accounting for Business results………………………………………………….61
2.2.3.5 Income Statement …………………………………………………………..……63

2.3 General conclusion about accounting performance for sales and business results
in TOYOTA motor Vietnam, Ltd ……………………………………………………64
CHAPTER III: SOME SUGGESTION FOR IMPROVING THE ACCOUNTING
SYSTEM FOR SALES AND BUSINESS RESULTS IN TOYOTA MOTOR
VIETNAM, LTD………………………………………………………………………65
3.1 Evaluation of accounting for sales and business results in TOYOTA motor
Vietnam, Ltd……………………………………………………………………………65
3.1.1 Strong points ……………………………………………………………………...65
3.1.2 Weaknesses ………………………………………………………………………66
3.2 Importance and requirements for improving the accounting system for sales and
business results. ………………………………………………………………………..68
3.2.1 Importance ………………………………………………………………………..68
3.2.2 Requirements ……………………………………………………………………...68
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3.2.3 Orientation…………………………………………………………………………69
3.3 Some suggestions for improving the accounting system for sales and business
results in TOYOTA motor Vietnam, Ltd…………………………………………….70
PART III: CONCLUSION…………………………………………………………….75
References
Appendixes

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PART I: INTRODUCTION

1. Rationale
In this modern economic world with many newly established enterprises which follows a
more competitive economic environment, every company must be flexible and active in
their businesses, make as many profits as possible; else they will fall into bankruptcy. In
order to gain profits, they must realize the importance of sales and distribution phase
because of its creating incomes to offset incurred expenses, then determining the
profitability of the company. Besides, the very first objective of every enterprise is
making a profit, so calculating business results in general and sales revenue in particular
is very important in both forms of accuracy and timeliness. It’s the reason why efficient
and effective accounting management for sales and business results plays an important
role in the accounting system. TOYOTA motor Vietnam, Ltd is a manufacturer of
vehicles and automobile parts. This field is not new in Vietnam with competitive markets.
It is now one of leading companies in this field. Therefore, maintaining its current
position and being the market leader is more important than ever. From this situation,
TOYOTA motor Vietnam, Ltd must have a flexible and effective sales campaign with a
well-performed accounting system for sales and business results. Because of the
importance of accounting for sales and business results, I chose “Accounting for sales
and evaluation business results in TOYOTA motor Vietnam, Ltd” as my graduation thesis
topic.
2. Aims of the study
My study has three objectives:

Firstly, it is to contribute to the background theory of accounting for sales and business
results, which is done by pointing out definitions, accounts used and accounting entries
for each account related to determining business results in a manufacturing company.
Secondly, it is to illustrate how a company does accounting for sales and business results
by taking the scenario at TOYOTA motor Vietnam, Ltd as a case for study.

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Thirdly, it is to review the company’s achievements and limitations and to suggest
possible solutions to improve the accounting performance for sales and business results
in the future.
3. Subjects of the study
My study mainly focuses on sales, selling expenses, administration expenses, some other
related expenses and incomes, and net income – their definitions, accounts used to do
accounting and accounting entries. Besides, it is also about preparing accounting reports
in which net income and retained earnings are reflected.
4. Scope of the study
- Time: Accounting fiscal year from 1/4/2009 to 21/12/2012 (Quarter III of the fiscal year
form 1/4/2011 to 31/3/2012)
- Space: TOYOTA motor Vietnam, Ltd
5. Methodology
- The company uses the periodic accounting system, and the inventory costing method
applied is weighted average.

- The company is applying the deduction VAT method for VAT declaration and
calculation. Depreciation uses the straight line method
6. Organization of the study
Apart from the introduction, conclusion, references and documents attached, the main
content is divided into three chapters as follows:

CHAPTER I: Literature overview
CHAPTER II: Current situation of accounting for sales and business results in
TOYOTA motor Vietnam, Ltd
CHAPTER III: Some suggestions for improving the accounting system for sales
and business results in TOYOTA motor Vietnam, Ltd
PART II: MAIN CONTENT
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CHAPTER I: LITERATURE OVERVIEW
1.1 Overview
1.1.1 Characteristics of goods
In general, goods are finished products of the final manufacturing stage and have been
approved to be qualified to put in stock or sell. Different goods, in different types, have
some following characteristics:
- Goods are finished products of the final manufacturing stage by the manufacturer itself
or by outsourcing.
- Finished products are considered as goods only after being approved to be qualified.

- Goods have to be put into stock.
Goods includes finished goods, semi-finished goods (or work-in-process), materials and
services to customers. Among them, finished goods are the main products of a
manufacturing company.
To have more understanding, we must distinguish between finished goods and
products:
Items
Level of limit

Scope

Finished goods
Products
Finished goods are the final Products are results of
result of a certain
manufacturing and service
manufacturing process with providing process in
a certain technology in a
general.
company-scope.
The concept of product is larger than finished goods,
because products include both finished goods and semifinished goods

1.1.2 Managerial requirements for accounting for sales and business result
Sales are the transfer of the goods usage right attached with the decision-making power
from the seller to the buyer. In addition, sales are recognized when the customer makes
payment or agrees to pay.
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Sales are in the final stage of a business process. It is the transfer of capital form, from
capital in products to capital in monetary or in payment. Therefore, the faster the sales
process happens, the shorter the business cycle is, the faster the capital turnover is, and
the more profit it brings to the company. When a sales takes place, the company gains
revenue and other incomes which are the total economic benefits for the company in the
accounting period. Besides, some expenses must be paid, which decreases the economic
benefits of the company in the same period. These expenses include out-of-pocket money
and deductions such as discounts. After a sales process, the company must determine the
business result, by comparing incomes with expenses. Afterwards, the net income will be
allocated effectively as targeted and as regulated. If the company only has one revenue
gain and one expense payment, it does not need any sales management. However, almost
all companies have more than one transaction each day. Therefore, in order to be well
managed, the company must have a single department to record, track, and report all of
the sale transactions daily. From these requirements, accounting for sales and business
result is established.
1.1.3 Functions of accounting for sales and business result
In order for requirements of managing goods, sales, determination of business result and
division of net income to be met, accounting for sales and business result has to execute
some following missions of:
Fully, timely, accurately reflecting and recording occurred transactions and movements of
each type of goods and products under quantity, quality, model and value;
- Fully, timely, accurately reflecting and recording sales, sales deductions and expenses of
each business activity, as well as following and supervising customers’ receivables;
- Accurately calculating and reporting results of each transaction;

- Monitoring the implementation of state obligations and division process of business
result;
- Interpreting accounting reports to information users. Accounting information must be
accurate, easy-to-read and useful.
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Therefore, accounting for sales and business result must follow current regulated
accounting standards, as well as be adaptable with the current status of the company’s
accounting system. Besides, if carried out effectively, these above professions will put a
hand into increasing the accounting productivity in general. Thanks to that, accounting
information will be helpful for directors and managers in making sound decisions, which
will raise the business profitability.
1.1.4 Methods of sales
Sales are the process of delivering goods to customers. There are two typical methods of
sales, including direct sales and sales through agents (consignment sales).
1.1.4.1 Direct sales:
Direct sales are the method of delivery to the buyer directly at the warehouse of the
enterprise. Goods when delivered to customers must be paid or agreed to pay. After this
package of goods is brought out of stock, the seller company will lose the ownership
power of such goods. This method includes whole sales and retail sales.
- Whole sales: is the method of delivery of goods to manufacturing and/or trading
companies to put into the producing process as input materials or to consigned for sales
or sell directly. Therefore, the wholesalers are very various, such as domestic or foreign

or join-venture manufacturers, traders, or even private enterprises. Characteristics of
whole sales:
•

The most typical characteristic is that goods are still in distribution phase, not in
consumption.

•

Secondly, goods are often bought in large quantity and in different kinds of
payment. Before a sale, the buyer will assign someone to be at the seller’s
warehouse. During the sales, the assigned person will check the quantity, quality,
model and value of the goods package, and sign in related vouchers and invoices.
After that, when the buyer pays or agrees to pay (with valid documents and
signatures), the buyer will record the transaction as sales revenue as well as state
obligations (such as output VAT).

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•

Graduation thesis

Accountants use VAT Invoices, Sales Contract and Delivery Orders set by the
company. This VAT Invoice may have 3 or 5 Copies (Liens) dependent on the
company’s requirements.

- Retail sales: is the method of delivery of goods directly to the end consumers – the final
destination of the distribution phase. The retailers are all Vietnamese citizens or
foreigners, regardless of their class and nationality. Characteristics of retail sales:
•

Goods are in consumption phase, not in distribution. The value of goods is being
implemented.

•

Retail goods are often bought in small quantity, and with immediate payment,
usually in cash.

1.1.4.2 Sales through agents (Consignment sales)
It is the method of delivery through the channel of agents. Different from direct sales,
after the package of goods is brought out of stock, it still belongs to the company and is
not considered to be in consumption phase. The company only records sales revenue
when the agent reports to sell such goods. When goods are sold, the company must pay
commissions for the agent which is considered as a selling expense. Sales of goods on
consignment for agents are recorded as sales revenue only when:
- The company has received money payment from the customers;
- The customer has received his package of goods and agrees to pay;
- The customer has advanced the amount of purchase payment of the package of goods;
- The package of goods on consignment is paid via bank.

1.2 Accounting entries for sales and business result
1.2.1 Accounting for Cost of goods sold (COGS)
1.2.1.1 Definition

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Expense of finished goods and merchandise goods sold (shortly called cost of goods sold)
is the expense of goods determined at the time they are sold out. According to VAS 2 Inventory, cost of goods sold can be calculated by the following methods:
- Specific identification method
- Average expense method
- First-in, First-out method
- Last-in, First-out method
1.2.1.2 Calculating COGS
Cost of goods sold (COGS) = Expense of Goods out of stock+ Selling Expenses+
Administration Expenses
For manufacturing companies: The value of goods for sale from stock or finished goods
for direct sales not through warehouse is considered as cost of goods sold.
1.2.1.3 Accounting entries for Cost of goods sold (COGS)
For sales through agents (consignment sales)
•

Accounts used

 157 – Goods on consignment: This account reflects the current available amount

and changes of value of goods on consignment. The ending balance of this account
determines the volume of goods which are not in consumption (which means the

goods are in the agent’s stock).
 Others: 632 – Cost of goods sold, 156 – Finished goods…
•

Accounting entry

 For perpetual inventory method (see Flowchart 01)

Flowchart 01 – Accounting entry for COGS under perpetual inventory method (for
sales through agents)
Acc 156
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Acc 157
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(1)

(3)

Acc 331

Acc 632

(2)

(4)

Acc 133

Flowchart 01 explanations:
(1) Sales of finished goods from warehouse
(2) Sales of goods directly to agents not through warehouse
(3) Goods on consignment are returned back
(4) Cost of goods sold transferred to Acc. 632 at the end of the period
 For periodic inventory method (see Flowchart 02)

Flowchart 02 – Accounting entry for COGS under periodic inventory method
(for sales through agents)
Acc 157

Acc 632
(1)
(2)

Flowchart 02 explanations:
(1) The beginning balance of goods on consignment transferred to Acc. 632 at the
beginning of the period
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(2) The value of goods on consignment in the period but have not been sold ye
For direct sales
•

Account used

 632 – Cost of goods sold. This account reflects the value of goods and services

which were sold and afterwards, the transfer of ending balance to account 911 –
net income
 Others: 156 – Finished goods, 911 – Net income…
•

Accounting treatment

 For perpetual inventory method (see Flowchart 03)

Flowchart 03 – Accounting entry for COGS under perpetual inventory method
(for direct sales)
Acc 156

(2)

Acc 632

(1)
Acc 911

(3)
Flowchart 03 explanations:
(1) The amount of goods for direct sales from warehouse
(2) The value of goods on consignment in the period which are returned back to the
warehouse
(3) Cost of goods sold transferred to Acc 911 at the end of the period
 For periodic inventory method (see Flowchart 04)

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Flowchart 04 – Accounting entry for COGS under periodic inventory method (for
direct sales)
(3)
Acc 156

Acc 611

Acc 632

(1)

Acc 911
(5)

(4)
Acc 157, 151,…
(2)

(6)
Flowchart 04 explanations:
(1) The ending balance of finished goods in stock transferred to Acc 611
(2) The value of goods issued to sell in the period
(3) Transfer the value of goods in transit and goods on consignment
(4) At the end of the period, value of goods sold transferred to Acc 632
(5) Transfer cost of goods sold to Acc 911
(6) The value of goods return
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1.2.2 Accounting for Sales and Sales Deductions
1.2.2.1 Accounting for Sales
a. Sales revenue
Types of revenues: Sales revenue; Revenue from rendering services; Revenue from
deposit interest, selling copyrights, dividends, and distributed profit; and Revenue from
trading real estates.
Sales revenue is the gross inflow of economic benefits during the period arising in the
course of the ordinary activities of an entity when those inflows result in increases in

equity, other than increases relating to contributions from equity participants.
Net sales are determined by sales revenue after deducting sales deductions including
trade discounts, sale allowances, and sales returns.
b. Sales recognition principles
Sales revenue is recognized only when meeting all recognition conditions stipulated in
Vietnamese Accounting Standards (VAS) No. 14: Sales and other incomes.
Revenue from the sale of goods shall be recognized when all the following conditions
have been satisfied:
•

The entity has transferred to the buyer the significant risks and rewards of
ownership of the goods;

•

The entity retains neither continuing managerial involvement to the degree usually
associated with ownership nor effective control over the goods sold;

•

The amount of revenue can be measured reliably;

•

It is probable that the economic benefits associated with the transaction will flow
to the entity;

•

The expenses incurred or to be incurred in respect of the transaction can be

measured reliably.

c. Accounting vouchers and invoices used
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- VAT invoice
- Normal sales invoice
- Payment voucher of goods on consignment
- Other payment vouchers
d. Accounts used
- 511 – Revenue from sales of goods and rendering of services
- 512- Internal revenue
- 3331 – VAT payables
- 3387 – Deferred income
- Others: 111 – Cash on hand; 112 – Cash in bank; 131 – Account receivables…
e. Accounting entries
For direct sales
•

For company applying deduction/subtraction VAT method (see Flowchart 05)

Flowchart 05 – Accounting entry for direct sales (for company applying
deduction/subtraction VAT method)

Acc 511

Acc 111, 112, 131,…
(1)
Acc 3331
(2)

Flowchart 05 explanations:
(1) Sales of goods (without VAT)
(2) VAT payable
•

For company applying direct VAT method (see Flowchart 06)

Flowchart 06 – Accounting entry for direct sales (for company applying direct VAT
method)
Acc 3331

Acc 511

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(2)

(1)

Flowchart 06 explanations:
(1) Sales of goods (with VAT)
(2) VAT payable
For sales through agents (see Flowchart 07)
Flowchart 07 – Accounting entry for sales through agents
Acc 511

Acc 111, 112, 131

Acc 331

(1)

Acc 641

(2)

Acc 3331

Flowchart 07 explanations:
(1) Sales of goods (with VAT)
(2) Sales commissions payable to agents (as selling expenses)
1.2.2.2 Accounting for Sales Deductions
a. Trade discount
- Definition: Trade discount is the amount of money that enterprise credited or paid to
customers who bought goods and services in large volume in accordance with the
agreement that the seller will give trade discount to the buyer.

- Accounts used
•

521 – Trade discount. This account has no beginning and ending balance.

•

Others: 111, 112, 131, 3331…

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- Accounting entry (see Flowchart 08)
Flowchart 08 – Accounting entry for trade discounts
Acc 111, 112, 131

Acc 521

(1)

Acc 511

(3)

Acc 3331
(2)
Flowchart 08 explanations:
(1) Value of trade discounts (without VAT)
(2) VAT payable of trade discounts
(3) At the end of the period, transfer the ending temporary balance of trade discounts to
Acc 511
b. Sales returns
- Definition: Sales return is the amount of goods sold which have subsequently been
returned due to the following reasons: breaching the commitment or the economic
contract, or in a wrong quantity, quality or specifications.
- Accounts used 531 – Sales return. This account reflects the volume of goods which are
returned due to the company’s mistakes. Account 531 has no balance. Others: 111, 112,
131….
- Accounting entry (see Flowchart 09)
Flowchart 09 – Accounting entry for sales returns
Acc 111, 112, 131

Acc 531
(1)

(5)

Acc 3331
(2)
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Acc 632

Acc 155, 156
(3)

Acc 111, 112, 131

Acc 641

Flowchart 09 explanations:
(1) Value of sales return (without VAT)
(2) VAT payable of sales return
(3) Put the volume of goods returned into warehouse
(4) Incurred selling expense of goods returned
(5) At the end of the period, transfer the ending temporary balance of sales return to Acc
511
c. Sales allowances
- Definition: Sales allowance is a reduction made when the goods are not the same
specifications as those mentioned in the economic contract.
- Accounts used:
532 – Sales allowances. This account only reflects the volume of sales allowances out of
the VAT invoice according to the agreement between sellers and buyers. Price deductions
written in VAT invoices are not considered as a sales allowance.
- Accounting entry (see Flowchart 10)

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Flowchart 10 – Accounting entry for sales allowances
Acc 111, 112, 131

Acc 532

(1)

Acc 511

(3)

Acc 3331
(2)

Flowchart 10 explanations:
(1) Value of sales allowances (without VAT)
(2) VAT payable of sales allowances
(3) At the end of the period, transfer the ending temporary balance of sales allowances to
Acc 511
c. Tax payables (VAT, Export Duty, Excise Duty)
- Definition:

VAT (Value Added Tax) is an indirect tax calculated on the added/increased value of
goods and services, arising in the production, distribution and consumption phases;
Export duty is calculated by Custom Office on the price written in the export contract at
the border gate, usually FOB (Free On Board) price and export duty rate. This price is
exchanged into Vietnamese Dong according to the average exchange rate in the interbank foreign exchange market, announced by SBV (State Bank of Vietnam) at the time of
exporting;
Excise duty (also called Special Consumption Tax) is levied on the profit of some special
types of goods and services stipulated by the Government in order to limit the
consumption speed because these goods and services are unnecessary or harmful to life
Trần Thị Ngọc Ánh- CQ49/51.01

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