MoF responds to VAT policy on stone products

VCN - The Ministry of Finance has sent a written response to Binh Minh Import-Export and Investment Joint Stock Company on the VAT policy on polished round stone products, coating Na2CO3 and NaOH used for interior and exterior decoration to replace paint products in the construction industry.
Vietnam’s taxman says VAT collection related to L/Cs lawful Vietnam’s taxman says VAT collection related to L/Cs lawful
Avoiding taking advantage and fraud of value added tax Avoiding taking advantage and fraud of value added tax
Hanoi: Successfully destroy the line of illegal trading VAT invoice Hanoi: Successfully destroy the line of illegal trading VAT invoice

The MoF stated for the period before January 1, 2014, Clause 6, Article 1 of Decree 121/2011/ND-CP dated December 27, 2011 of the Government amending and supplementing the Government's Decree 123/2008/ND-CP dated December 8, 2008 details and guides the implementation of the VAT Law. Specifically, unprocessed natural resources and minerals specified in Clause 23, Article 5 of the Law on Value-Added Tax are natural resources and minerals not yet processed into other products.

The Ministry of Finance will assume the prime responsibility for and coordinate with agencies in guiding the determination of exploited natural resources and minerals not yet processed into other products mentioned in this clause.

Clause 23, Article 4 of Circular 06/2012/TT-BTC dated 11/01/2012 of the Ministry of Finance guiding implementation of Decree 123/2008/ND-CP dated December 8, 2008 and Decree 121/2011/ ND-CP amending and supplementing articles of Decree 123/2008/ND specifies objects not subject to VAT. Accordingly: “Exported products being unprocessed exploited natural resources, minerals. Unprocessed exploited natural resources, minerals are natural resources, minerals having not been processed into other products, including minerals being filtered, selected, grinded, crushed, processed for content increase, or natural resources being cut and split.”

Also, Clause 3, Article 9 of Circular 06/2012/TT-BTC guides: "Export products are exploited natural resources and minerals that have not been processed into other products" and are not entitled to the tax rate of 0% upon export.”

2030-5749-unnamed-12
Customs officers inspect exported limestone product

Based on the above regulations and the opinions of the Ministries of Science and Technology, Industry and Trade, and Construction, the Ministry of Finance has issued Official Letter No. 15906/BTC-CST dated November 18, 2013 to reply in detail for firms.

For the period from January 1, 2014 to before July 1, 2016, Clause 11 Article 3 of Decree 209/2013/ND-CP dated December 18, 2013 of the Government on non-VAT subjects provides that: “Export products being exploited natural resources and minerals not yet processed into other products. The Ministry of Finance shall assume the prime responsibility for, and coordinate with relevant agencies in providing specific guidance on determining the exploited natural resources and minerals not yet processed into other products stated in this clause.”

Clause 23, Article 4 of Circular 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding non-VAT subjects says: “Exported natural resources that are not processed into other products. The natural resources that are not processed into other products include the minerals that have been filtered, grinded, refined, or the resources that have been cut and split.”

Also, Clause 3, Article 9 of Circular 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance stipulates: “Exported products as exploited natural resources and minerals that have not been processed into other products” and do not enjoy tax rate of 0% upon export.

Therefore, from January 1, 2014 to before July 1, 2016, the VAT policy on exported resources and minerals under provisions of Decree 209/2013/ND-CP and Circular 219/2013/TT-BTC is no different from Decree 121/2011/ND-CP and Circular 06/2012/TT-BTC.

For the period from July 1, 2016, Clause 1, Article 1 of Law No. 106/2016/QH13 amending and supplementing the VAT Law, the Law on Special Consumption Tax and the Law on Tax Administration defines: “Exports that are raw natural resources or minerals which have not been processed into other products; exports that are goods processed from natural resources or minerals where the total value of natural resources or minerals plus energy costs makes up at least 51% of the product price,” and are not subject to VAT.

According to the Ministry of Finance, Clause 4, Article 1 of Decree 100/2016/ND-CP dated July 1, 2016 amending and supplementing Decree 209/2013/ND-CP; Clause 1, Article 1 of Decree 146/2017/ND-CP dated December 15, 2017, effective from February 1, 2018, amending and supplementing Clause 11 Article 3 of Decree 209/2013/ND-CP which is amended and supplemented at Decree 100/2016/ND-CP; and Point c, Clause 1, Article 1 of Circular 130/2016/TT-BTC dated August 12, 2016; Article 1 of Circular 25/2018/TT-BTC dated March 16, 2018 of the Ministry of Finance also provide specific guidance on non-VAT subjects.

Therefore, the Ministry of Finance proposes enterprises base on the above regulations and guidelines, export products and their actual production process of export products to perform exports.

By Nu Bui/ Huyen Trang

Related News

MoF Steering Committee 389 launches a peak campaign against smuggling during Lunar New Year 2025

MoF Steering Committee 389 launches a peak campaign against smuggling during Lunar New Year 2025

VCN - In the coming time, smuggling and trade fraud activities is forecast to take place complicatedly, especially before, during and after the Lunar New Year 2025.
Stimulate production and business, submit to the National Assembly to continue reducing 2% VAT

Stimulate production and business, submit to the National Assembly to continue reducing 2% VAT

VCN - Reducing value added tax (VAT) has an impact on the decrease of state budget revenue but also stimulates production and promotes business activities, thereby contributing to creating more revenue for the state budget.
Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

Abolishing regulations on tax exemption for small-value imported goods must comply with international practices

VCN - The Ministry of Finance said that the abolition of regulations on tax exemption for imported goods valued at less than VND1 million must comply with international practices in the context of the growing trend of cross-border e-commerce activities.
Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

Ensure harmony of interests of “3 parties” when applying 5% VAT on fertilizers

VCN - In the short term, applying 5% VAT on fertilizers may increase selling prices, but in the long term, farmers will benefit from this policy. When the fertilizer manufacture is deducted input tax, it will help reduce investment cost and production cost.

Latest News

Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax procedures and policies for the business community.
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

VCN - Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes. These include updates on authority, methods of asset exploitation in agencies and units, plans for leasing, joint ventures, and partnerships in public service units, as well as centralized procurement procedures.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

VCN - Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year. These efforts aim to promptly address challenges, resolve obstacles, and facilitate import-export activities. Such meetings offer an opportunity for the Customs authority and the business community to exchange, share insights, and find solutions to enhance operational quality and efficiency.
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - Promoting negotiations on customs commitments within the framework of free trade agreements (FTAs) plays an important role in facilitating import and export activities. These commitments not only help optimize the customs clearance process but also minimize costs and risks for businesses, opening up great opportunities for Vietnamese goods to access deeper into the international market.

More News

Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - To perfect the policy on customs procedures, inspection and supervision, enterprises and associations have contributed many ideas from practical activities. Thereby, the Drafting Committee (General Department of Customs) has more perspectives to build policies to meet the goal of facilitating trade and ensuring state management of customs.
Review of VAT exemptions for imported machinery and equipment

Review of VAT exemptions for imported machinery and equipment

VCN - The General Department of Vietnam Customs has directed provincial and municipal customs departments to review, inspect, and address issues related to the implementation of VAT exemption policies for specialized machinery and equipment used in agricultural production.
Customs tightens oversight on e-commerce imports

Customs tightens oversight on e-commerce imports

VCN - The General Department of Vietnam Customs has issued new directives to enhance the management of imported goods transacted through e-commerce platforms, addressing ambiguities and ensuring consistent enforcement across provincial and municipal customs departments.
Bringing practical experience into customs management policy

Bringing practical experience into customs management policy

VCN - At the workshop to collect opinions from Southern Customs units on the draft Decree amending and supplementing Decree 08/2015/ND-CP dated January 21, 2015 of the Government; the draft Circular amending and supplementing Circular 38/2015/TT-BTC dated March 25, 2015 and Circular 39/2018/TT-BTC dated April 20, 2018 of the Minister of Finance, organized by the General Department of Customs last weekend, many Southern Customs units contributed specific contents from practical operations in the locality.
Businesses anticipate new policies on customs procedures and supervision

Businesses anticipate new policies on customs procedures and supervision

VCN - With this year’s import-export turnover estimated at nearly US$800 billion and forecasting to surpass this milestone next year, the business community holds high expectations for upcoming amendments and supplements to customs management, procedures, and supervision policies. These changes are expected not only to facilitate trade but also to enhance state management efficiency and support economic development.
Do exported foods need iodine supplementation?

Do exported foods need iodine supplementation?

VCN - Currently, Vietnamese processed food products, including seafood products, have been exported to more than 160 countries, and no country has yet required that "salt used in food processing must be salt with added iodine".
Amendments to the Value-Added Tax Law passed: Fertilizers to be taxed at 5%

Amendments to the Value-Added Tax Law passed: Fertilizers to be taxed at 5%

VCN - With the majority of National Assembly deputies voting in favor, the National Assembly officially approved the revised Value-Added Tax (VAT) Law during its afternoon session on November 26, 2024, as part of the 8th session's agenda.
Proposal to change the application time of new regulations on construction materials import

Proposal to change the application time of new regulations on construction materials import

VCN - To comply with the circular on quality management of construction materials, many businesses importing this item are complaining about difficulties and asking for an extension of the implementation time.
Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

Ministry of Finance proposed to reduce VAT by 2% in the first 6 months of 2025

VCN - In order to promote the early recovery and development of production and business activities, contributing back to the State budget, the Ministry of Finance proposed to continue reducing 2% of VAT on groups of goods and services currently subject to a tax rate of 10% in the first 6 months of 2025.
Read More

Your care

Latest Most read
Resolve problems related to tax procedures and policies for businesses

Resolve problems related to tax procedures and policies for businesses

VCN - Immediately after the end of the Dialogue Conference between the Ministry of Finance and enterprises on tax and customs policies and administrative procedures in 2024, the General Department of Customs proactively removed obstacles related to tax pr
New regulations on procurement, exploitation, and leasing of public assets

New regulations on procurement, exploitation, and leasing of public assets

Decree No. 114/2024/ND-CP, which amends and supplements certain articles of Decree No. 151/2017/ND-CP detailing the implementation of the Law on Management and Use of Public Assets, introduces significant changes.
Actively listening to the voice of the business community

Actively listening to the voice of the business community

Recognizing the Customs-business relationship as a long-term partnership, the Customs authority has organized hundreds of dialogues with businesses since the beginning of the year
Step up negotiations on customs commitments within the FTA framework

Step up negotiations on customs commitments within the FTA framework

VCN - In addition to promoting negotiations on customs commitments within the framework of FTAs ​​under negotiation, the General Department of Customs actively supports businesses to effectively utilize commitments in signed FTAs, especially CPTPP, EVFTA,
Proposal to amend regulations on goods circulation

Proposal to amend regulations on goods circulation

VCN - The Vietnam Association of Maritime Agents, Brokers and Services has proposes to amend and supplement regulations related to the transport of goods subject to customs supervision.
Mobile Version