Uncle proposed to impose VAT on gold trading activities based on revenue.

12/03/2024 12:04 Nhat Linh Print article

ANTD.VN - Many localities have proposed imposing value-added tax (VAT) on gold and silver trading and processing activities based on revenue, instead of directly calculating on added value, to avoid loss of state budget revenue.

The Ministry of Finance said it is drafting a revised Law on Value Added Tax. According to Article 12 of the draft Law on Tax, value added tax (VAT) must be paid for the purchase, sale, and processing of gold, silver, and precious stones according to the method of direct calculation on added value. The added value of the purchase, sale, and processing of gold, silver, and precious stones is determined by the selling price minus the corresponding purchase price.

Commenting on this regulation, Quang Nam province proposed that the drafting committee stipulate a rate (%) on revenue specifically for the business activities of buying, selling, and processing gold, silver, and precious stones (not applying the rate of commercial and service business activities).

Địa phương lo thất thu thuế nếu tính thuế VAT dựa trên giá trị gia tăng

Localities worry about tax loss if VAT is calculated based on value added

Quang Nam Province believes that gold, silver, and precious stones are special goods that are both goods and means of payment, making it difficult to control prices. Transactions in buying and selling gold, silver, and precious stones are often small-scale transactions without sufficient invoices or input documents.

The difference between the selling price and the purchase price of gold, silver and precious stones at a given time is not high. Therefore, applying the direct method on the added value is difficult to manage, leading to loss of state budget revenue.

Similarly, Can Tho province also recommended that taxes for this sector should be calculated using the direct method based on revenue or the lump-sum tax method prescribed in the Law on Tax Administration.

The reason, according to the province, is that in reality, in tax management for businesses trading in gold, silver, and precious stones, the tax authority has not yet had measures to manage the purchase price, because people who come to sell gold often do not have invoices, and businesses themselves make a list according to market prices to calculate the corresponding purchase price.

“This purchase price is often close to the selling price, leading to low added value, the value added tax payable in this case is not true to reality, leading to tax loss and incorrect regulations on invoices and documents to serve as a basis for recording in accounting books according to regulations” – Can Tho province stated the current situation.

However, on the side of the drafting agency, the Ministry of Finance believes that the above proposals are inappropriate. The Ministry of Finance believes that there is no basis to set a rate for the business activities of buying, selling, and processing gold, silver, and precious stones. In addition, the revenue from this activity is very large, accordingly, the Ministry proposes to keep it as drafted, unchanged.

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