Are imported gold bars and gold bullions subject to value-added tax in Vietnam?

Who has the right to import gold bars and gold bullion in Vietnam?

According to the provisions of Clauses 2 and 3, Article 3 of Decree 24/2012/ND-CP, gold bars and bullion are defined as follows:

Glossary of Terms

In this Decree, the following terms are defined as follows:

...

2. Gold bullion refers to gold that is formed into bars, stamped with letters and numbers indicating weight, quality, and the marks of enterprises and credit institutions authorized to produce by the State Bank of Vietnam (hereinafter referred to as the State Bank) or gold bullion produced by the State Bank during each period.

3. Raw gold refers to gold in the form of blocks, bars, grains, bullion, and other forms of gold.

...

Based on Clause 3, Article 4 of Decree 24/2012/ND-CP, the principles for gold management are specified as follows:

Management Principles

...

3. The State maintains a monopoly on the production of gold bullion, the export of raw gold, and the import of raw gold for the production of gold bullion.

...

Additionally, Clause 2, Article 2 of Decision 1623/QD-NHNN in 2012 stipulates:

Principles for Organizing Gold Bullion Production

...

2. The State Bank assigns Saigon Jewelry Company Limited - SJC (hereinafter referred to as SJC Company) to process gold bullion in accordance with the regulations of this Decision.

...

Thus, only the State holds the exclusive right to import raw gold for the production of gold bars and bullion. The Saigon Jewelry Company Limited - SJC, is the company entrusted by the State to process gold bullion.

Are imported gold bars and gold bullions subject to value-added tax in Vietnam? (Image from the Internet)

Are imported gold bars and gold bullions subject to value-added tax in Vietnam?

Based on Clause 22, Article 4 of Circular 219/2013/TT-BTC, the entities not subject to value-added tax (VAT) are specified as follows:

Entities Not Subject to VAT

...

21. Technology transfer as stipulated by the Law on Technology Transfer; transfer of intellectual property rights as stipulated by the Law on Intellectual Property. In cases where a contract for technology transfer or transfer of intellectual property rights includes the transfer of machinery and equipment, the entity not subject to VAT is calculated on the part of the technological and intellectual property rights transferred; if not separated, VAT is calculated on the entire technology value, intellectual property rights transferred along with machinery and equipment.

Computer software includes software products and software services as prescribed by law.

22. Gold imported in the form of bars, bullion, and types of gold not yet crafted into fine art products, jewelry, or other products.

Gold in the form of bars, bullion, and types of gold not yet crafted is determined according to the provisions of the law on management and trading of gold.

...

According to the above regulations, imported gold bars and bullion are entities not subject to value-added tax.

How to determine the location for submitting value-added tax in Vietnam?

According to Article 20 of Circular 219/2013/TT-BTC, the determination of the location for submitting value-added tax is as follows:

- Taxpayers declare and submit VAT at the locality where production and business activities take place.

- Taxpayers who declare and submit VAT using the credit method and have dependent accounting production facilities located in provinces or cities directly under the Central Government different from the province or city where the main office is located must submit VAT at the locality where the production facility is and at the locality where the main office is located.

- In cases where enterprises or cooperatives apply the direct method and have production facilities in provinces or cities different from where the main office is located or conduct mobile sales outside the province, such enterprises or cooperatives declare and submit VAT as a percentage on revenue for revenue arising outside the province at the locality where the production facility or mobile sales take place. Enterprises and cooperatives are not required to submit VAT as a percentage on revenue at the main office for revenue arising outside the province that has already been declared and submitted.

- In the case of telecommunications service businesses with postpaid telecommunications services in localities of provinces or cities directly under the Central Government different from where the main office is located and have established dependent accounting branches submitting VAT using the credit method that also participate in providing postpaid telecommunications services in that locality, such telecommunications service businesses declare and submit VAT for postpaid telecommunications services as follows:

+ Declare VAT on the revenue of postpaid telecommunications services for the entire business to the tax authority that directly manages the main office.

+ Submit VAT at the locality where the main office is located and at the locality with the dependent accounting branch.

+ The VAT amount to be submitted at the locality with the dependent accounting branch is determined at a rate of 2% (for postpaid telecommunications services subject to VAT with a tax rate of 10%) on the revenue (excluding VAT) of postpaid telecommunications services at the locality where the dependent accounting branch is located.

- VAT declaration and submission are implemented according to the provisions of the Law on Tax Administration and the guiding documents for implementing the Law on Tax Administration.