Are livestock and plant varieties subject to value-added tax in Vietnam?

Are livestock and plant varieties subject to value-added tax in Vietnam?

Based on Clause 2, Article 5 of the Law on Value-Added Tax 2008 which stipulates as follows:

Non-taxable objects

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2. Products that are breeding livestock, plant varieties, including breeding eggs, breeding animals, crops, seeds, semen, embryos, genetic materials.

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Thus, products that are livestock and plant varieties are not subject to value-added tax.

Are livestock and plant varieties subject to value-added tax in Vietnam? (Image from the Internet)

How is the value-added tax calculated for real estate trading in Vietnam?

Based on Clause 1, Article 7 of the Law on Value-Added Tax 2008, amended by Clause 2, Article 1 of the Amended Law on Value-Added Tax 2013 which regulates the taxable price as follows:

Taxable price

1. The taxable price is defined as follows:

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c) For goods and services used for exchange, internal consumption, gifting, the taxable price is the value-added tax calculation price of similar or equivalent goods and services at the time these activities occur;

d) For leasing property, the rental amount excluding value-added tax.

In cases of periodic rental payments or advance payment, the taxable price is the rental amount paid periodically or in advance excluding value-added tax;

In cases of periodic rental payments or advance payments for a leasing term, the taxable price is the rental amount paid periodically or in advance excluding value-added tax;

For renting machinery, equipment, and vehicles from abroad which are not produced domestically for lease, the taxable price is the rental amount minus the rental payment to foreign entities.

dd) For goods sold on installment purchase, deferred payment is calculated at the one-time selling price excluding value-added tax, excluding installment interest, deferred interest;

e) For processing goods, the processing price excluding value-added tax;

g) For construction, installation activities, it is the value of the work, construction items, or portions of work handed over without value-added tax. In cases of construction, installation excluding materials, machinery, and equipment, the taxable price is the construction, installation value without the value of materials, machinery, and equipment;

h) For real estate trading, it is the selling price of real estate excluding value-added tax, minus the land use right transfer price or land rent payable to the state budget;

i) For agency, brokerage activities receiving commissions for goods and services sales, it is the commission received from these activities excluding value-added tax;

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Thus, for real estate trading, the value-added tax is calculated based on the selling price of real estate excluding value-added tax, minus the land use right transfer price or land rent payable to the state budget.

What is the tax rate applicable to clean water for production and daily life in Vietnam?

According to Clause 2, Article 8 of the Law on Value-Added Tax 2008, supplemented by Clause 3, Article 1 of the Amended Law on Value-Added Tax 2013, amended and abolished by Clauses 2, 3 Article 3 of the Law Amending Tax Laws 2014, the following is stipulated:

Tax rate

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2. The tax rate of 5% applies to the following goods and services:

a) Clean water for production and daily life;

“b) Ores used for fertilizer production; pest control substances and growth stimulants for livestock and plants;

d) Services of dredging and scouring canals, ponds for agricultural production; cultivation, care, pest control for plants; primary processing, preservation of agricultural products;

đ) Unprocessed agricultural, forestry products, and aquatic products, excluding products specified in Clause 1, Article 5 of this Law;

e) Processed rubber sap; processed resin; nets, net string, and thread for weaving fishing nets;

g) Fresh foodstuffs; unprocessed forest products, excluding timber, bamboo shoots, and products specified in Clause 1, Article 5 of this Law;

h) Sugar; by-products in sugar production, including molasses, bagasse, and mud cake;

i) Products made from jute, sedge, bamboo, rattan, thatch, straw, coconut shell, grain husk, water hyacinth, and other handicraft products made from agricultural by-product materials; processed cotton; newspaper;

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Thus, according to the above regulations, clean water used for production and domestic activities will be subject to a tax rate of 5%.