Official Dispatch No. 1757/CCT-TTTBTK on Value Added Tax Rate

GENERAL DEPARTMENT OF TAXATION TIEN GIANG TAX DEPARTMENT No: 1757/CCT-TTTBTK Re: Value Added Tax (VAT) Rate

SOCIALIST REPUBLIC OF VIETNAM Independence - Freedom - Happiness My Tho, December 12, 2024

 

To:	Phuong Nha TG Private Enterprise, Tax Code: 1201478366. Address: 160A Le Loi Street, Ward 1, My Tho City, Tien Giang Province.

The My Tho City Tax Sub-Department received Official Letter No. 03/2024/PN dated December 5, 2024, from Phuong Nha TG Private Enterprise (hereinafter referred to as "the enterprise") regarding VAT policy. After reviewing the enterprise's request, the Tax Sub-Department provides the following response:

According to Clause 1, Article 4 of Circular No. 219/2013/TT-BTC dated December 31, 2013, issued by the Ministry of Finance on VAT regulations, as amended by Article 1 of Circular No. 26/2015/TT-BTC dated February 27, 2015, regarding VAT-exempt goods and services:

“7. Agricultural products (including planted forest products), livestock, aquaculture, and seafood that have not been processed into other products or have only undergone basic processing by the organization or individual that produces or catches them and at the import stage are not subject to VAT.

Basic processing includes cleaning, drying, peeling, milling, hulling, grinding, dehusking, cutting, salting, refrigeration (chilling or freezing), sulfur dioxide preservation, chemical preservation to prevent spoilage, sulfur soaking, or other common preservation methods. ”

According to Clause 5, Article 5 of Circular 219 regarding cases not required to declare and pay VAT:

“5. Enterprises and cooperatives applying the credit-invoice method of VAT calculation that sell unprocessed or minimally processed agricultural, livestock, aquaculture, and seafood products to other enterprises or cooperatives for commercial business purposes are not required to declare and pay VAT. On VAT invoices, the sale price is stated as a VAT-exclusive price, and the VAT rate and VAT amount should be left blank or crossed out. ”

As per the guidelines in Official Dispatch No. 7062/BTC-TCT dated May 29, 2014, from the Ministry of Finance:

“7. By-products and residual products from agricultural, livestock, aquaculture, and seafood products, such as broken rice, rice husks, shrimp heads, shrimp shells, fish heads, fish bones, animal intestines, slaughterhouse by-products, fresh fat, etc., at the commercial business stage are also not required to declare and pay VAT. ”

According to Appendix V issued under Decision No. 1450/QD-TCT dated October 7, 2021, as amended and supplemented by Clause 17 of the Appendix issued under Article 1 of Decision No. 1510/QD-TCT dated September 21, 2022, of the General Department of Taxation regarding the VAT rate schedule:

Based on these regulations, enterprises and cooperatives applying the credit-invoice method of VAT calculation that sell unprocessed or minimally processed agricultural, livestock, aquaculture, and seafood products to other enterprises or cooperatives for commercial business purposes are not required to declare and pay VAT. On VAT invoices, the sale price should be stated as a VAT-exclusive price, and the VAT rate and VAT amount should be marked as "KKKNT" (not required to declare VAT).

The enterprise is requested to contact Kyokuyo Vina Foods Co., Ltd. - Long An Branch to issue invoices and declare and pay taxes in accordance with regulations.

The My Tho City Tax Sub-Department informs the enterprise to comply with the legal provisions cited in this document.

Recipients: - As above; - Online information portal; - Archives: VT, TTTBTK.

ON BEHALF OF THE DIRECTOR DEPUTY DIRECTOR       Trần Hiếu Nghĩa

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