Rare metal Metaroid exports subject to export tax or value added tax?
Exported products are natural resources, are exploited minerals not subject to tax?
According to Article 5 of the Law on Value Added Tax 2008 (supplemented by Clause 1, Article 3 of the Law on Amendment of Tax Laws 2014), non-taxable objects are defined as follows:
"Article 5. Objects not subject to tax
...
9. Medical and veterinary services, including medical examination, treatment and prevention services for humans and animals.
10. Universal postal and telecommunications services and Internet according to the Government's program.
11. Services to maintain zoos, flower gardens, parks, street trees, public lighting; funeral services.
12. To maintain, repair and build with the people's contributions and humanitarian aid capital for cultural and artistic works, public service works, infrastructure and housing for children. social policy object.
13. Teaching and vocational training as prescribed by law.
14. Radio and television broadcasting with state budget capital.
15. Publishing, importing and distributing newspapers, magazines, specialized bulletins, political books, textbooks, textbooks, legal documents, scientific and technical books, books printed in ethnic script minorities and propaganda pictures, posters, even in the form of tapes or discs with audio, video or electronic data; money, print money.
16. Public transport of passengers by bus or tram.
17. Machinery, equipment, spare parts and supplies that cannot be produced at home and need to be imported for direct use in scientific research and technological development; machinery, equipment, spare parts, special-use means of transport and materials that cannot be produced at home and need to be imported to conduct prospecting, exploration and development of oil and gas fields; aircraft, drilling rigs and ships that cannot be produced at home and need to be imported to create fixed assets of enterprises or leased from abroad for use in production, business, lease or sublease.
18. Weapons and equipment used exclusively for national defense and security.
19. Goods imported in the case of humanitarian aid or non-refundable aid; gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, people's armed forces units ; gifts and gifts for individuals in Vietnam according to the levels prescribed by the Government; belongings of foreign organizations and individuals according to the standards of diplomatic immunity; carry-on items in the duty-free baggage allowance.
Goods and services sold to foreign organizations and individuals or international organizations for humanitarian aid or non-refundable aid to Vietnam.
20. Goods transshipped or transited through the Vietnamese territory; goods temporarily imported for re-export; goods temporarily exported or re-imported; raw materials imported for the production or processing of goods for export according to the production and export processing contracts signed with foreign parties; goods and services are traded between foreign countries and non-tariff zones and between non-tariff zones.
21. Technology transfer in accordance with the Law on Technology Transfer; transfer intellectual property rights in accordance with the Law on Intellectual Property; software.
22. Imported gold in bars and pieces that have not been processed into fine art products, jewelry or other products.
23. Exported products are exploited natural resources and minerals that have not been processed into other products.
24. Artificial products used to replace the patient's body parts; crutches, wheelchairs and other specialized equipment for the disabled.
25. Goods and services of business households and individuals with an annual turnover of one hundred million dong or less."
Thus, exported products that are natural resources and minerals that have not yet been processed into other products are not subject to tax.
Rare metal Metaroid exports subject to export tax or value added tax?
Subjection to VAT when exporting rare metal Metaroid (meteor)?
According to Official Dispatch 25542/CTHN-TTHT in 2022 of Hanoi Tax Department, the answer is:
- Pursuant to Circular 130/2016/TT-BTC dated 12/8/2016 detailing the implementation of the Law amending and supplementing a number of articles of the Law on Value Added Tax.
+ At Point c, Clause 1, Article 1, amending Clause 23, Article 4 of Circular 219/2013/TT-BTC on subjects not subject to VAT:
+ At Point c, Clause 1, Article 1, amending Clause 23, Article 4 of Circular 219/2013/TT-BTC on subjects not subject to VAT:
- Exported products are exploited natural resources and minerals that have not been processed into other products or have been processed into other products, but the total value of resources and minerals plus energy costs accounts for 51% of the production cost in manufacturing or more processed from natural resources and minerals; exported products are goods processed from natural resources and minerals with the total value of resources and minerals plus energy costs accounting for at least 51% of the production cost of products processed from natural resources, mineral.
+ Natural resources and minerals are domestic resources and minerals, including: Metallic minerals; non-metallic minerals; crude oil; natural gas; coalgas.
+ The determination of the ratio of the value of resources, minerals and energy costs to the cost is made according to the formula:
Proportion of the value of natural resources, minerals and energy costs to the production cost of products = Value of resources and minerals + energy costs/team
In there:
Value of natural resources and minerals is the cost of resources and minerals put into processing; for directly exploited natural resources and minerals, it is the direct and indirect costs of exploiting such resources and minerals; for natural resources and minerals purchased for processing is the actual purchase price plus the cost of bringing resources and minerals into processing.
Energy costs include: fuel, electricity, heat.
The value of natural resources, minerals and energy costs is determined according to the book value in accordance with the Summary of Product Cost Calculation.
Product manufacturing costs include: direct materials costs, direct labor costs and manufacturing overheads. Indirect costs such as selling expenses, administrative expenses, financial expenses and other costs are not included in the production cost of the product.
The determination of the value of natural resources, minerals, energy costs and production costs of products is based on the previous year's settlement; In case the newly established enterprise has not had the previous year's final settlement report, the investment plan shall be based on.
+ Enterprises producing products being natural resources and minerals (including directly exploiting or buying them for processing) with the total value of resources and minerals plus energy costs accounting for at least 51% of the production cost. When exporting products or more processed from natural resources or minerals, they are not subject to VAT.
In case an enterprise does not export but sells it to another enterprise for export, the enterprise purchasing these goods for export must declare VAT like products of the same type directly exported by the producer and must bear export tax as prescribed.”
Based on the above provisions, the Hanoi Tax Department has the following opinions: In case the company exports rare metal Metaroid (meteor) which is a resource or mineral or a commodity processed from natural resources and minerals. If the product (of domestic origin) meets the provisions of Point c, Clause 1, Article 1 of Circular 130/2016/TT-BTC dated August 12, 2016 of the Ministry of Finance, then this exported product is not subject to VAT.
Export goods include?
According to Point a, Clause 1, Article 9 of Circular 219/2013/TT-BTC, export goods include:
- Goods exported to foreign countries, including export entrustment;
- Goods sold into non-tariff zones according to the Prime Minister's regulations; goods sold to duty-free shops;
- Goods sold but the point of delivery and receipt of goods is outside Vietnam;
- Spare parts and supplies for repair and maintenance of vehicles, machinery and equipment for foreign parties and for consumption outside Vietnam;
- Cases that are considered to be exported according to the provisions of law:
+ Processed goods in transit according to the provisions of commercial law on international goods purchase and sale activities and goods purchase, sale and processing agency activities with foreign countries.
+ Goods exported on the spot as prescribed by law.
+ Goods for export for sale at overseas fairs and exhibitions.
View the full Official Dispatch: Here
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