How to determine the severance tax-liable prices for stones used as common construction materials in Vietnam?

What is the severance tax-liable price in Vietnam?

Pursuant to Clause 1, Article 6 of the 2009 Law on Severance Tax, the tax-liable price is the selling price per unit of the natural resource product of the exploiting organization or individual, excluding value-added tax.

Additionally, for cases where the selling price of natural resources has not been determined, the severance tax-liable prices is determined based on one of the grounds specified in Clause 2, Article 6 of the 2009 Law on Severance Tax as follows:

- The actual selling price on the regional market of the same type of natural resource unit but not lower than the tax-liable price determined by the People's Committee of the province or city directly under the Central Government (hereinafter collectively referred to as the provincial People's Committee);

- In cases where the exploited natural resource contains multiple different substances, the tax-liable price is determined according to the selling price per unit of each substance and the content of each substance in the exploited natural resource but not lower than the tax-liable price determined by the provincial People's Committee.

How to determine the severance tax-liable prices for stones used as common construction materials in Vietnam? (Image from the Internet)

How to determine the severance tax-liable prices in some cases in Vietnam?

The severance tax-liable prices in some cases is specified in Clause 3, Article 6 of the 2009 Law on Severance Tax as follows:

- For natural water used for hydropower production, it is the average commercial electricity selling price;

- For wood, it is the selling price at the delivery yard; if the selling price at the delivery yard has not been determined, the tax-liable price is based on the tax-liable price determined by the provincial People's Committee;

- For natural resources exploited and not consumed domestically but exported, it is the export price;

- For crude oil, natural gas, and coal gas, it is the selling price at the delivery point. The delivery point is the point agreed in the petroleum contract where crude oil, natural gas, and coal gas are transferred to the ownership of the parties participating in the petroleum contract.

How to determine the severance tax-liable prices for stones used as common construction materials in Vietnam?

Regarding the severance tax-liable prices, it is based on Clause 1 and Clause 4, Article 6 of the 2009 Law on Severance Tax:

- The severance tax-liable prices is the selling price per unit of the natural resource product of the exploiting organization or individual, excluding value-added tax.

- The provincial People's Committee specifies the tax-liable price for natural resources for which the selling price per unit of the natural resource product has not been determined, except for crude oil, natural gas, coal gas, and natural water used for hydropower production.

Additionally, at Clause 1, Point a, Point c, Clause 3, Article 6 of the Circular 152/2015/TT-BTC of the Ministry of Finance specifies:

- For the type of natural resource that determines the selling price per unit of the natural resource product:

The severance tax-liable prices is the selling price per unit of the natural resource product with the same grade and quality, excluding value-added tax, applicable to the entire volume of exploited natural resources in the month; the selling price of a unit of natural resource is calculated by dividing the total revenue (excluding VAT) of the type of natural resource sold by the total corresponding volume of natural resources sold in the month.

In the month where natural resources are exploited but there is no revenue from selling natural resources, the severance tax-liable prices is the average weighted unit tax price of the nearest previous month with revenue; if the average weighted unit tax price of the nearest previous month with revenue is lower than the severance tax-liable prices determined by the provincial People's Committee, the severance tax-liable prices determined by the provincial People's Committee applies.

- For natural resources exploited without being sold but processed before being sold (domestically or exported):

+ In the case of selling the natural resource product, the tax-liable price is the selling price per unit of the natural resource product (for domestic sales) corresponding to the volume of natural resources sold recorded on the sales documents or the customs value of the exported natural resource product (for export), excluding export tax, corresponding to the volume of exported natural resources recorded on export documents but not lower than the tax-liable price determined by the provincial People's Committee.

The customs value of the exported natural resource product follows the regulations on customs value for exported goods under the Customs Law and guiding documents and amendments, supplements (if any).

- In case the tax-liable price determined by the taxpayer is lower than the tax-liable price in the Price Table determined by the provincial People's Committee, the tax-liable price determined by the provincial People's Committee applies;

- In case the Price Table of the provincial People's Committee does not have a price for this type of product, the tax authority cooperates with relevant authorities to check and determine according to tax management law.

Based on the above regulations, the tax-liable price per unit of natural resources is the selling price per unit of each type of stone with the same grade, quality, and commercial value, excluding value-added tax. It is applied to the severance tax calculation for the entire volume of the same type of stone exploited in the month according to the guidance in Clause 1, Article 6 of the Circular 152/2015/TT-BTC.

The tax-liable price per unit of natural resources applies to each type of stone used as common construction material obtained from the crushing and grinding activities of the stone obtained after extraction, determined according to the guidance at Point a, Clause 3, Article 6 of the Circular 152/2015/TT-BTC mentioned above.

If the tax-liable price per unit of the stone type determined by the enterprise is lower than the tax-liable price per unit of the same type of stone determined by the provincial People's Committee, the tax-liable price per unit determined by the provincial People's Committee applies for declaring and paying severance tax according to the provisions in Clause 4, Article 6 of the 2009 Law on Severance Tax, guided in Point c, Clause 3, Article 6 of the Circular 152/2015/TT-BTC mentioned above.

Thus, based on the above regulations, depending on the model of exploitation, processing, and consumption of stone used as common construction materials, each month, enterprises exploiting and processing stone used as common construction materials shall declare and pay severance tax appropriate to the actual production and business activities of the unit.

Refer to Official Dispatch 3346/TCT-CS 2024 on determining the volume and tax-liable price for natural resources for stones used as common construction materials issued by the General Department of Taxation.