Maximum limit on value of goods and services used for promotion

The maximum limit on the value of goods and services used for promotion is an important factor in implementing promotional programs in Vietnam. This regulation not only helps traders comply with legal requirements but also ensures fairness in the market, avoiding acts of taking advantage of promotions for unfair competition. In this article, Long Phan will provide specific regulations on promotional limits, maximum discounts and related regulations.

Regulations on maximum limit on value of goods and services used for promotion

Material value used to promote a unit of goods or services

According to the provisions of Clause 1, Article 6 of Decree 81/2018/ND-CP, the material value used to promote a unit of goods or services must not exceed 50% of the price of the unit of goods or services before promotion, except for some promotional cases as prescribed in Article 92 of the Law on Commercial 2005. This is to ensure that the promotional value is not too large compared to the actual value of the goods and services being promoted. promotion.

Total value of goods and services used for promotion

In a promotion program, the total value of goods and services used for promotion must not exceed 50% of the total value of the goods and services being promoted. However, this does not apply in cases of promotions in the form specified in Clauses 8 and 9, Article 92 of the Law on Commercial, Article 8 and Clause 2, Article 9 of Decree 81/2018/ND-CP.

The value of goods and services used for promotion is calculated in the following cases:

• In case the trader does not directly produce, import or provide services: The value is calculated according to the price paid by the trader when purchasing goods or services used for promotion or the market price of those goods or services at the time of program announcement.
• In case the trader directly produces, imports or provides services: Value is calculated by the production cost or import price of the goods or services used for promotion.

CSPL: Clause 2, Article 6, Decree 81/2018/ND-CP.

Limits on the value of goods and services in centralized promotion programs

According to the provisions of Clause 3, Article 6 of Decree 81/2018/ND-CP on limits of value of goods and services in centralized promotion programs as follows:

• In cases where centralized promotions are organized, the maximum limit can be up to 100%.
• In addition, this limit also applies to promotional programs taking place on special occasions such as holidays, New Year, or promotional campaigns under the direction of the Government.

Regulations on centralized promotional programs

According to the provisions of Clause 5, Article 6 of Decree 81/2018/ND-CP, the centralized promotion program includes:

• Centralized promotional programs of state agencies: State agencies (central and provincial levels) have the right to issue decisions to organize centralized promotional programs to implement national and local economic development policies. The state encourages the organization of these programs, and all traders have the right to participate.
• Promotions on holidays and New Year: Promotions on Lunar New Year last 30 days right before the first day of the lunar year. For other holidays and New Year, the promotional period must not exceed the holiday period according to the provisions of labor law.

Maximum discount for promoted goods and services

Pursuant to Article 7 of Decree 81/2018/ND-CP, the maximum discount for goods and services must not exceed 50% of the value of those goods and services before the promotion period. However, in concentrated promotions, the maximum discount can reach 100%. Applying this discount helps create fairness among merchants and avoid unfair competition.

• Promotions on holidays can be extended according to the provisions of labor law, but must not exceed the holiday period.
• In particular, the maximum discount limit does not apply when conducting promotions for products subject to price stabilization by the State, fresh food products or in cases where the enterprise goes bankrupt, dissolves or changes production and business lines.

Consulting services on promotional programs at Long Phan

Long Phan provides detailed consulting services on promotional programs and how to apply regulations. Our services include:

• Consulting on regulations on organizing promotional programs.
• Assist customers in preparing all necessary documents to register for promotional programs with state agencies.
• Consulting on detailed information about maximum limits on the value of promoted goods and services.
• Consulting on legal forms of promotion according to regulations.
• Support consulting on maximum discounts for products and services in promotional programs.
• Advise on resolution measures when disputes arise.

With regulations on the maximum limit on value of goods and services used for promotions, merchants need to pay attention to complying with current legal regulations to avoid risks. If you have any questions about implementing the promotion program, or need support, please contact us via the hotline 0906735386 for specific and timely advice.