Fishery Products of Aquaculturists Sold Are Exempt from VAT

To be specific, Circular 117/2014/TT-BTC stipulates the following cases are not subject to value-added tax:

- Fishery products of organizations and individuals that are cultured, harvested, and sold;- Insurance for ships, boats, equipment, and other necessary tools directly serving the exploitation of marine resources.

Furthermore, Circular 117 also provides for cases where the owners of ships exploiting marine resources are eligible for value-added tax refunds for ships used in marine resource exploitation under the conditions for value-added tax deduction as follows:

- Ships used for the exploitation of marine resources are newly built or upgraded with a total main engine capacity of 400HP or more;- Possess a registration certificate for fishing vessels with a total main engine capacity of 400HP or more or a registration certificate for upgraded fishing vessels with a total main engine capacity of 400HP or more;- For newly built ships: Possess value-added tax invoices for purchasing ships with a total main engine capacity of 400HP or more or import tax payment receipts. In case of self-constructed ships, invoices for purchasing goods and services for shipbuilding activities must be available;- For upgraded ships:

- Possess invoices or a collection of invoices for goods and services serving ship upgrading activities;- Have non-cash payment receipts for purchases (including imported goods) worth twenty million VND or more, except in cases where the total value of goods and services purchased at each time according to the invoice is less than twenty million VND inclusive of value-added tax.

More details can be found in Circular 117/2014/TT-BTC, effective from August 21, 2014.

Thu Ba

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