Chapter II
VALUE-ADDED TAX
Article 8. Point a Clause 8 Article 4 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance on providing guidance on implementation of the Law on Value-added tax and Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government on providing guidance on implementation of the Law on Value-added tax (hereinafter referred to as Circular No. 219/2013/TT-BTC) shall be amended as follows:
“a) Credit extension services including:
- Grant loans;
- Discount or rediscount negotiable instruments and other valuable papers;
- Issue the bank guarantee;
- Grant finance lease;
- Issue credit card.
In case the credit institutions collect the charges relating to credit card issuance, the fees for credit extension services (issuance fees) charged from the clients such as prepayment penalties, late payment fees, debt rescheduling, management of loans and other fees in the process of credit extension shall be not subject to VAT.
The normal card transaction fees not in the process of credit extension such as, PIN regeneration fees, transaction invoice’s copy issuance fees, refund claiming fees, fees for replacement of lost cards, fees for cancellation of credit card, credit card conversion fees and other fees shall be subject to VAT.
- Carry out domestic factoring; or international factoring to permitted banks;
- Sell collateral for loans by credit institutions or competent judgment-executing agencies, or borrowers sell the collateral themselves by delegation of lenders to repay the secured loans, in particular:
+ The sold collateral for loans is an asset in secured transactions which is registered with competent agencies as prescribed in regulations of law on registration of secured transactions.
+ Collateral for loans shall be handled as prescribed in regulations of law on secured transactions.
If the person having the collateral is still unable to pay the debt by the deadline and has to transfer the asset to the credit institution for handling in accordance with law, the parties shall carry out procedures for transfer of the security asset under regulations.
In case a credit institution receives collateral instead of receiving repayment from its debtors, it shall record such collateral as an increase in its asset value serving its business operation as prescribed. In case an institution sells its assets serving its business operation and such assets are subject to VAT, the institution must declare and pay VAT as prescribed.
Example 3: In March 2014, Company A (a business entity that pays VAT using credit-invoice method) puts its production lines and machinery as collateral for a 1-year loan granted by Bank B (due on March 31, 2015). On March 31, 2015, Company A becomes insolvent so that it must transfer its collateral to Bank B. The procedures for transferring collateral shall be conducted as prescribed in regulations of law on handling with collateral. If Bank B sells such collateral to recover the its debts, that collateral shall be not subject to VAT.
Example 3a: In December 2014, Company B (a business entity that pays VAT using credit-invoice method) puts its workshops and land use rights (hereinafter referred to as land) as collateral for a 1-year loan granted by Commercial Bank C, (due on March 31, 2015). Commercial Bank C and Company B had registered secured transactions (a mortgage on its workshop and land) with competent agencies. On December 15, 2016, Company B becomes insolvent and Commercial Bank C grants a discharge of B’s mortgage in writing in order that Company B sells its workshops to repay debt. In January 2017, if Company B sells its workshops, the sold workshops shall not be subject to VAT.
- Provision of credit information services provided by units affiliated to the State bank to credit institutions which use in credit extension operations prescribed in regulations of Law on the State bank.
Example 4: X is a unit affiliated to the State bank and permitted to provide credit information services. In 2014, X concludes a service contract with multiple commercial banks for serving credit extension operations and other operations of commercial banks, its revenue from the services serving credit extension operation shall be not subject to VAT, and its revenue from the services serving other operations of commercial banks not prescribed in regulations of Law on the State bank shall be subject to VAT at 10%.
- Other credit extension methods prescribed in corresponding regulations of law".
Article 9. Clause 3 Article 14 of Circular No. 219/2013/TT-BTC shall be amended as follows:
“3. The input VAT on fixed assets, machinery, and equipment, including the input VAT on the lease of these assets, machinery, and equipment, and other input VAT relating to assets, machinery, and equipment such as warranty or repair shall be not deducted and shall be included in costs of fixed assets or the deductible expense prescribed in Law on corporate income tax and other documents providing guidance on implementation in the following cases: specialized fixed assets used for the manufacture of weapons and military equipment for security and defense; fixed assets, machinery, equipment of credit institutions, reinsurers and life insurers, securities companies, medical facilities, training institutions; civil aircraft and yachts not used for commercial cargo transport, passenger transport, tourism, or hotel operation.
With regard to fixed assets being cars with fewer than 9 seats (except for cars used for cargo transport, passenger transport, tourism, or hotel operation; cars used for display and test drive by car dealers) whose value are over VND 1.6 billion (not including VAT), the input VAT amount in proportion to the amount in excess of VND 1.6 billion shall not be deducted.”
Article 10. Point c Clause 3 Article 15 of Circular No. 219/2013/TT-BTC shall be amended as follows:
“c) With regard to purchase of goods/services under an instalment plan or deferred payment plan that is valued at VND 20 million or above, the business entities shall declare and deduct the input VAT according to the sale contract, VAT invoice, and bank transfer receipt. If the bank transfer receipt is not available because the payment is not due, the business entities may declare and deduct input VAT”.
If the bank transfer receipt is not available, the business entities must declare and decrease the deducted VAT in proportion to value of goods or services without bank transfer receipt in the tax period incurred the cash payment (including cases in which tax authorities and regulatory bodies had decision on inspection in the tax period during the declared and deducted VAT is incurred)."
Tìm kiếm
Thông tư 151/2014/TT-BTC hướng dẫn thi hành Nghị định 91/2014/NĐ-CP sửa đổi, bổ sung một số điều tại Nghị định quy định về thuế do Bộ trưởng Bộ Tài chính ban hành (Bản Word)
Thông tư 151/2014/TT-BTC hướng dẫn thi hành Nghị định 91/2014/NĐ-CP sửa đổi, bổ sung một số điều tại Nghị định quy định về thuế do Bộ trưởng Bộ Tài chính ban hành (Bản Pdf)
