Asia Au Import-Export Trade Development and Investment Joint Stock Company (Hanoi) trades in natural rubber, technical standard rubber, also known as block rubber or rubber nuggets. This is a preliminarily processed natural rubber latex product of a mixed category that is subject to VAT at the rate of 5%.

(On February 19, 2019, the Company sent a request for VAT refund to Nam Tu Liem Tax Department of Hanoi. City However, the tax refund application has not been accepted due to the need to re-determine the high latex. Does natural rubber mean “Exported products are natural resources, mined minerals have not yet been processed into other products or have been processed into other products but the total value of natural resources and minerals plus energy costs accounts for 51% of production costs of products or more are processed from natural resources or minerals; exported products are goods processed from natural resources, minerals have the total value of natural resources and minerals plus energy costs. Amount accounts for 51% of the production cost of products processed from natural resources and minerals as stipulated in Article 1 of Circular 130/2016 / TT-BTC.

Through the receiving and responding system to the recommendations of enterprises, Asia Au Import Export Trade Development and Investment Joint Stock Company would like to ask,  whether the above natural rubber products are eligible for tax refund under the provisions of Circular 130/ 2016 / TT-BTC?

Through the receiving and responding system to the recommendations of enterprises, the Asia Au Import Export Trade Development and Investment Joint Stock Company asked if the above natural rubber products are eligible for tax refund as prescribed in Circular 130 / 2016 / TT-BTC?

Regarding this issue, the General Department of Taxation - Ministry of Finance has the following opinions:

In Article 1 of the Government's Decree No. 100/2016 / ND-CP dated July 1, 2016; Article 1 of the Government's Decree No. 146/2017 / ND-CP dated December 15, 2017 stipulates: “Natural resources and minerals specified in this Clause are natural resources and minerals originating in the country, including: Minerals metal; non-metal minerals; crude oil; natural gas; coal gas".

According to Clause 6, Article 10 of Circular No. 219/2013 / TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the 5% VAT rate:“6. Pre-processing rubber latex such as crepe rubber latex, rubber sheet noodles, latex, resin prepared; nets, ropes and yarns for knitting fishing nets including fishing nets, fibers, type ropes dedicated to knitting fishing nets irrespective of production material.”.

Pursuant to the above regulations and guidance, natural resources and minerals specified in Clause 23, Article 5 of the Law on VAT are domestic natural resources and minerals including: Metallic minerals; non-metal minerals; crude oil; natural gas; coal gas.

Preliminary processed rubber latex such as sticky flag latex, sheet latex, vermicelli, and nuggets are subject to VAT at the tax rate of 5%. In case the company exports preliminarily processed rubber latex, if it meets the regulations on VAT refund for exported goods, VAT will be refunded according to regulations.