Revoke the License to trade gold without electronic invoices

The gold business license needs to become a stricter management tool, which was one of the important instructions at the government meeting on monetary and fiscal policy on the afternoon of May 16. To stabilize domestic gold prices, Prime Minister Pham Minh Chinh requires gold and silver businesses to seriously implement Decree 24/2012/ND-CP on the management of gold business activities and convert electronic invoices. before June 15, 2024, or the license will be revoked. In the following article, Viet An Law will inform you about the regulations related to revoke the License to trade gold without electronic invoices.

Gold trading requirements must have electronic invoices

Vietnam’s gold market situation in the first half of 2024

• Gold prices fluctuate continuously due to world geopolitical influences, leading to low supply and increased demand for hoarding by people. Gold prices once reached a peak exceeding 92 million VND/tael in May 2024, the highest level ever, the difference in world gold prices is nearly 20 million VND/tael.
• The State Bank has issued many measures to stabilize the market such as increasing supply through auctions of large amounts of gold bars, requiring review and amendment of Decree 24/2012/ND-CP on gold business management, and increasing Strengthen inspection, supervision, and strictly handle violations in the gold market.

Content of the Government’s instructions

Requiring gold trading to have electronic invoices is one of the executive orders to narrow the difference in domestic and international gold bar prices that is heating up in the first half of 2024. There are many cases of gold speculation and trading gold at small establishments without invoices has led to a skyrocket of gold prices without control. Therefore, managing gold and silver trading activities through electronic invoices is an effective measure to make gold trading transactions transparent.

The requirement for electronic invoices has been put forward many times by the Government in the context of precious metal trading transactions being often small, with insufficient invoices and documents, and lacking transparency. However, strong measures such as revoking licenses have not been applied.

Revoke the License to trade gold without electronic invoices

According to the provisions of the Law on Tax Administration, from July 1, 2022, businesses and business households must implement electronic invoices. Although statistics from the General Department of Taxation show that currently, 100% of businesses operating in the gold business use electronic invoices, it is not possible to control local small business households. Many small businesses do not have invoices, people pay cash directly and pay taxes by installments. This situation occurs on a large scale, causing tax revenue loss.

The newly issued requirement imposes the obligation of businesses trading in gold to connect electronic invoices with tax authorities before June 15, which is 1 month after the request is issued. If the above requirements are not met, the inspector will review and revoke the issued gold trading license (if any) according to regulations or force it to stop operations and apply sanctions to the authority’s illegal gold trading facility.

Current types of Gold Business Licenses

According to the provisions of Decree 24/2012/ND-CP on gold business management, gold business is a business line. Types of licenses in this field include:

• Certificate of eligibility for gold jewelry and fine art production activities;
• License to import raw gold;
• Business license to trade gold bars.

Although buying and selling gold jewelry and fine arts (excluding gold bars) does not require a license, entities conducting business activities must have legal status, that is, be established under legal regulations and business registration of buying and selling gold jewelry and fine arts in the Business Registration Certificate as prescribed in Article 8 of Decree 24/2012/ND-CP.

For gold bar trading activities, Article 11 of Decree No. 24/2012/ND-CP requires conditions to be granted a License for businesses (not credit institutions) as follows:

Content of guidance on fiscal and monetary policies to stabilize the gold market

• Ministries and branches must thoroughly increase revenues and save budget expenditures; Research the issuance of Government bonds to invest in infrastructure and social housing.
• Monetary policy management agencies need to operate appropriately, control inflation, and not let exchange rates affect the macroeconomy.
• The banking industry is required to reduce costs and administrative procedures to lower lending interest rates by 1-2%, achieving a credit increase of 5-6% in the second quarter of 2024. Accordingly, attracting market cash flow to reduce gold prices.

The above requirements of the Government have created peace of mind for people in stabilizing the gold market, controlling inflation, and promoting credit growth in the current extremely volatile world economic context.

Legal consulting and tax accounting services of Viet An Law

With many years of experience in providing business establishment services and post-establishment services, including electronic invoice registration for businesses, Viet An Law is trusted by clients to use comprehensive services for establishing a business. Viet An Law Firm has a focal point of cooperation with many reputable electronic invoice providers, along with which clients will receive free advice related to the process of using invoices and declaring tax compliance. In addition, Viet An Law Firm – Tax Agent also provides services for businesses such as:

• Consulting, preparing documents, supporting declaration and payment of value-added tax, personal income, corporate income, and license tax for businesses;
• Complete documents and account for arising operations related to taxes, import and export, and debt situation for the business;
• Quarterly and annual tax settlement services for businesses;
• Prepare annual financial statements;
• Support consulting on auditing annual financial statements for businesses that are required to have financial statements audited;
• Full tax accounting service;
• Business representatives work directly with tax authorities;
• Register a bank account, and register to pay taxes electronically;
• Register to use electronic invoices;
• Register depreciation of fixed assets;
• Payroll preparation services, consulting on completing tax records and tax books under accounting standards and legal regulations;
• Consulting on financial strategic planning, balancing reasonable costs in business operations of the enterprise;
• Review and re-check all records, tax declaration books, and financial reports;
• Review and check original documents and legal documents of the enterprise’s operations;
• Regular and comprehensive legal consulting services for businesses;
• Services for applying for business licenses for conditional occupations;
• Services for registration, adjustment, and extension of intellectual property protection documents for businesses;
• Register to adjust Investment Registration Certificate, Enterprise Registration Certificate, Business License, and Work Permit for foreign workers.

If your business has difficulty declaring, implementing tax procedures, or company legal issues, please contact Viet An Law Firm – Tax Agent for quick support and comprehensive consulting services, the most exactly!