Latest guidance on VAT declaration method for gold, silver and gem business establishments in Hanoi?
- According to which method should enterprises trading in gold, silver and gems declare and pay value-added tax?
- How to calculate value-added tax that gold, silver and gem-trading enterprises must pay according to current regulations?
- The latest guidance of the Hanoi Tax Department on the method of declaring value added tax for gold, silver and gem business establishments in the locality?
According to which method should enterprises trading in gold, silver and gems declare and pay value-added tax?
Pursuant to Clause 4, Article 12 of Circular 219/2013/TT-BTC (amended by Clause 3, Article 3 of Circular 119/2014/TT-BTC) as follows:
“Article 12. Tax deduction method
...
4. Other cases:
a) In case a business establishment has activities of buying, selling and processing gold, silver and precious stones, the business establishment must separately account this activity to pay tax by the method of direct calculation on added value towards the end of the year. referred to in Article 13 of this Circular.
b) For an enterprise that is paying VAT by the credit method and has established a branch (including a branch established from an investment project of the enterprise), if the branch is subject to separate VAT declaration according to According to the provisions of law on tax administration, the tax calculation method of the branch shall be determined according to the tax calculation method of the operating enterprise. In case the branch does not directly sell goods, does not generate revenue or the branch is located in the same province or city where the enterprise's head office is located, but does not make separate declarations, the tax declaration shall be concentrated at the head office. corporate headquarters.
c) For other newly established enterprises and cooperatives that do not fall into the cases guided in Clause 3 of this Article, the direct calculation method shall apply as guided in Article 13 of this Circular.
d) At the end of the first calendar year since its establishment, if the enterprise or cooperative has a turnover of 1 billion VND or more according to the method determined in Clause 2 of this Article and fully implements the accounting, invoices and vouchers according to the provisions of the law on accounting, invoices and documents, the tax credit method will continue to apply; if the enterprise or cooperative fails to achieve a turnover of one billion dong or more but still fully implements the accounting, invoice and voucher regime in accordance with the law on accounting, invoices and vouchers, may voluntarily register to continue applying the tax credit method under the guidance at Point a, Clause 3 of this Article. After the first calendar year since its establishment, enterprises and cooperatives shall stably apply the tax calculation method for 2 consecutive years.”
Accordingly, for enterprises doing business in buying, selling, and making gold, silver and anemone stones, they must pay value-added tax by the method of calculating directly on added value.
Latest guidance on VAT declaration method for gold, silver and gem business establishments in Hanoi?
How to calculate value-added tax that gold, silver and gem-trading enterprises must pay according to current regulations?
Pursuant to Clause 1, Article 13 of Circular 219/2013/TT-BTC (amended by Clause 4, Article 3 of Circular 119/2014/TT-BTC) as follows:
“Article 13. Method of calculating directly on added value
1. The payable VAT amount by the method of calculating directly on VAT is equal to the added value multiplied by the value added tax rate applicable to the purchase, sale and processing of gold, silver and gems.
The added value of gold, silver and precious stones is determined by the payment price of sold gold, silver and precious stones minus (-) the payment price of purchased gold, silver and gems respectively.
The payment price of sold gold, silver and gems is the actual selling price stated on the sale invoice of gold, silver and precious stones, including the processing fee (if any), value-added tax and additional charges. additional fees and charges that the seller is entitled to.
The payment price of purchased gold, silver, and gems is determined by the value of purchased or imported gold, silver, and gems, inclusive of VAT, used for trading and processing gold, silver, and precious stones to be sold for similar purposes. response.
In case in the tax period a negative added value (-) of gold, silver and precious stones arises, it shall be offset against the positive added value (+) of gold, silver and precious stones. In case there is no positive added value (+) or positive added value (+) is not enough to offset negative added value (-), it is carried over to subtract from the next period's added value. five. At the end of the calendar year, negative (-) added value is not carried forward to the next year”.
Thus, for enterprises trading in gold, silver and gems, the payable value-added tax amount will be calculated by the added value multiplied by the value-added tax rate applicable to the purchase and sale of goods. , processing gold, silver, precious stones.
The latest guidance of the Hanoi Tax Department on the method of declaring value added tax for gold, silver and gem business establishments in the locality?
On June 3, 2022, the Hanoi Tax Department issued Official Letter 25531/CTHN-TTHT in 2022 guiding the declaration and calculation of value added tax with the following contents:
- In case the Company has activities of buying and selling gold, silver and precious stones, the Company must separately account this activity to pay tax by the method of direct calculation on added value as guided in Article 13 of this Circular. Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance.
For business activities of buying and selling other products and goods (other than gold, silver, and gems), the Company calculates and pays VAT according to the deduction method as guided in Article 12 of Circular No. 219/ 2013/TT-BTC dated December 31, 2013 of the Ministry of Finance.
Suggest that the Company base on the actual situation and compare with relevant regulations to comply with regulations.
Thus, if the Company trades in gold, silver and gems in Hanoi, the Company must separately account this activity to pay tax by the method of direct calculation on added value. For business activities of other products (other than gold, silver, gems), VAT shall be calculated and paid by the credit method.
LawNet