THE MINISTRY OF FINANCE
Circular No. 65/2013/TT-BTC of May 17, 2013, amending and supplementing the Ministry of Finance’s Circular No. 06/2012/TT-BTC of January 11, 2012, guiding the implementation of a number of articles of the Law on Value-Added Tax and the Government’s Decrees No. 123/2008/ND-CP of December 8, 2008, and No. 121/2011/ND-CP of December 27, 2011
Pursuant to June 3, 2008 Law No. 13/2008/QH12 on Value-Added Tax;
Pursuant to November 29, 2006 Law No. 78/2006/QH11 on Tax Administration;
Pursuant to the Government’s Decree No. 123/2008/ND-CP of December 8, 2008, detailing and guiding a number of articles of the Law on Value-Added Tax;
Pursuant to the Government’s Decree No. 121/2011/ND-CP of December 27, 2011, amending and supplementing a number of articles of the Government’s Decree No. 123/2008/ND-CP of December 8, 2008, detailing and guiding a number of articles of the Law on Value-Added Tax;
Pursuant to the Government’s Decree No. 118/2008/ND-CP of November 27, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Finance;
At the proposal of the General Director of Taxation;
The Minister of Finance promulgates the Circular amending and supplementing a number of provisions of the Ministry of Finance’s Circular No. 06/2012/TT-BTC of January 11, 2012, guiding value-added tax, as follows:
Article 1. To amend and supplement a number of provisions of Circular No. 06/2012/TT-BTC
1. To amend and supplement Point a, Clause 8, Article 4, Chapter I, as follows:
“a/ Credit extension services include the following forms:
- Loan provision;
- Discount and rediscount of negotiable instruments and other valuable papers;
- Bank guarantee;
- Financial leasing;
- Issuance of credit cards;
- Domestic factoring; international factoring, for banks licensed to provide international payment;
- Other forms of credit extension under law.
Assets which are used to secure loans of VAT payers or assets the ownership of which has been transferred to lenders, when sold, are subject to VAT, except those not liable to VAT specified in Article 4 of this Circular.
Example 2: Limited Liability Company A mortgages its machinery and equipment chain to borrow a loan from Bank B. When the loan matures under the credit contract, as Company A is unable to repay the loan, Bank B sells the loan security asset (regardless of whether or not its ownership has been transferred to Bank B) to recover the loan. In this case, such asset is liable to VAT.”
