Question:
Currently, our bank charges various fees related to credit services as follows:
Fee for borrowing collateral documents
Fee for confirming the original collateral documents, the documents with mortgage or pledge as requested by the customer.
Fee for confirming the original title deed of the car mortgaged at the bank.
Fee for confirming the credit balance in writing.
We would like to ask the tax department for advice on whether these fees are subject to VAT.
Answer:
Based on Article 8, Clause 4 of Circular No. 219/2013/TT-BTC dated December 31, 2013, issued by the Ministry of Finance (amended and supplemented in Point 3, Article 1 of Circular No. 26/2015/TT-BTC dated February 27, 2015, issued by the Ministry of Finance), which guides VAT for credit services and determines the entities exempt from VAT for credit services;
Based on Article 11 of Circular No. 219/2013/TT-BTC dated December 31, 2013, issued by the Ministry of Finance, which guides VAT and determines the VAT rate of 10%;
In principle, credit services not specified in Point 3, Article 1 of Circular No. 26/2015/TT-BTC are subject to a 10% VAT. Therefore, the following fees are subject to 10% VAT:
Fee for borrowing collateral documents
Fee for confirming the original collateral documents, the documents with mortgage or pledge as requested by the customer.
Fee for confirming the original title deed of the car mortgaged at the bank.
Fee for confirming the credit balance in writing.
