Are household businesses in growth stimulants for animals in disadvantaged areas in Vietnam eligible for a 5% VAT rate?
Are household businesses in growth stimulants for animals in disadvantaged areas in Vietnam eligible for a 5% VAT rate?
Pursuant to Clause 2, Article 10 of Circular 219/2013/TT-BTC (amended by Clause 6, Article 1 of Circular 26/2015/TT-BTC), regulations are as follows:
5% Tax Rate
- Clean water used for production and domestic purposes, excluding bottled, canned drinking water, and other types of beverages subject to a 10% tax rate.
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- Ores for fertilizer production; pesticides and livestock, plant growth stimulants include:
a) Ores for fertilizer production are ores used as raw materials for fertilizer production, such as Apatite ores used for phosphorus fertilizer production, peat used for biofertilizer.
b) Pesticides include plant protection drugs according to the List of plant protection drugs issued by the Ministry of Agriculture and Rural Development and other pesticides.
c) Livestock and plant growth stimulants.
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According to the regulation, livestock and plant growth stimulants are eligible for a 5% tax rate, not differentiating between disadvantaged areas or other regions.
Thus, household businesses in disadvantaged areas in growth stimulants for animals are eligible for a 5% VAT rate.
Are household businesses in growth stimulants for animals in disadvantaged areas in Vietnam eligible for a 5% VAT rate? (Image from the Internet)
Are goods with a contract signed in Vietnam but the point of delivery received abroad eligible for a 0% VAT rate in Vietnam?
Pursuant to Point a, Clause 1, Article 9 of Circular 219/2013/TT-BTC, regulations are as follows:
0% Tax Rate
- The 0% tax rate applies to exported goods and services; construction and installation activities overseas and in free trade zones; international transportation; goods and services not subject to VAT when exported, excluding cases where the 0% tax rate does not apply as guided in Clause 3 of this Article.
Exported goods and services are those sold, supplied to organizations, individuals abroad and consumed outside Vietnam; sold, supplied to organizations, individuals in free trade zones; goods and services provided for foreign customers as prescribed by law.
a) Exported goods include:
- Goods exported abroad, including outsourcing exports;
- Goods sold into free trade zones according to regulations of the Prime Minister of the Government of Vietnam; goods sold to duty-free shops;
- Goods sold where the delivery, receipt point is outside Vietnam;
- Spare parts, materials for repairing, maintaining vehicles, machinery for foreign parties and consumed outside Vietnam;
- Cases considered as export according to law:
+ Goods processed for onward transfer according to the commercial law on international goods trading activities and agency activities in purchasing, selling, processing goods with foreign countries.
+ Goods exported on the spot as prescribed by law.
+ Goods exported for sale at fairs, exhibitions abroad.
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Thus, according to the regulation, exported goods are eligible for a 0% VAT rate, specifically goods sold where the delivery, receipt point is outside Vietnam are eligible for this rate, even if the contracts between the parties are signed within Vietnam's territory.
Is the real estate auction service currently eligible for a VAT reduction in Vietnam?
Pursuant to Clause 1, Article 1 of Decree 72/2024/ND-CP regulations on subjects eligible for VAT reduction are specifically as follows:
VAT Reduction
- VAT reduction applies to groups of goods, services currently subject to a 10% tax rate, except for the following groups of goods, services:
a) Telecommunications, financial, banking, securities, insurance activities, real estate business, metals and fabricated metal products, mining products (except coal mining), coke, refined petroleum, chemical products. Details in Appendix I issued with this Decree.
b) Products and services subject to special consumption tax. Details in Appendix II issued with this Decree.
c) Information technology according to the law on information technology. Details in Appendix III issued with this Decree.
d) VAT reduction for each type of goods, services specified in Clause 1 of this Article applies uniformly at the stages of import, production, processing, and commercial business. For coal mining products sold (including cases where coal is mined then screened, classified in a closed process before sale) subject to VAT reduction. Coal products in Appendix I issued with this Decree, at stages other than mining and selling, are not subject to VAT reduction.
Major corporations implementing a closed process before sale are also subject to VAT reduction for coal mining products sold.
Cases of goods, services specified in Appendices I, II, and III issued with this Decree subject to non-VAT or a 5% VAT rate according to the VAT Law shall follow the VAT Law and are not eligible for VAT reduction.
- VAT reduction level
a) Business establishments calculating VAT by the credit method shall apply an 8% VAT rate for goods, services specified in Clause 1 of this Article.
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The real estate auction service is specified in Appendix I, code 6820200, in the list of goods and services not eligible for VAT reduction, so the principle still applies a 10% VAT rate.
