Are pesticide sprayers subject to value added tax in Vietnam?

Are pesticide sprayers subject to value added tax in Vietnam?

Based on Clause 3a, Article 4 of Circular 219/2013/TT-BTC, supplemented by Clause 2, Article 1 of Circular 26/2015/TT-BTC, which regulates the subjects not subject to VAT as follows:

Subjects not subject to Value Added Tax

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3a. Fertilizers include organic and inorganic fertilizers such as: phosphate fertilizers, nitrogen fertilizers (urea), NPK fertilizers, mixed nitrogen fertilizers, phosphate fertilizers, potash; microbiological fertilizers and other types of fertilizers;

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Machines and specialized equipment used for agricultural production include: plowing machines; harrowing machines; milling machines; row markers; root levelers; field leveling equipment; seed planters; rice transplanters; sugarcane planters; mat rice seedling production systems; soil tillers, ridge formers, seed broadcasters, fertilizer sprayers; pesticide sprayers; rice, corn, sugarcane, coffee, cotton harvesters; root, tuber, and fruit harvesters; tea pruners and pickers; rice threshers; husked corn pickers and peelers; corn shellers; soybean threshers; peanut shellers; coffee hullers; wet rice and coffee pre-processing machines; agricultural dryers (rice, corn, coffee, pepper, cashew...), aquaculture, straw, chaff collectors; hatch and incubate machines for poultry eggs; grass harvesters, straw balers, grass balers; milkers and other specialized machines.

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Furthermore, according to guidance in Official Dispatch 3469/CT-TTHT of 2020 on VAT rates as follows:

Based on Point 2 of Circular No. 1677/BTC-TCT dated January 29, 2016, of the Ministry of Finance guiding VAT for specialized machinery and equipment used in agricultural production.

“The Ministry of Agriculture and Rural Development or the Departments of Agriculture and Rural Development in provinces and municipalities certify other specialized machines and equipment used in agricultural production not guided in Clause 2, Article 1 of Circular No. 26/2015/TT-BTC dated February 27, 2015, of the Ministry of Finance, Point 1 of Official Dispatch No. 12848/BTC-CST dated September 15, 2015, and Point 1 of this dispatch according to the principle: machines, equipment, and synchronized components for assembly into machinery and equipment used in agriculture and cannot be used for other purposes are specialized machinery and equipment used in agricultural production that are not subject to VAT according to the provisions of Clause 1, Article 3 of Law No. 71/2014/QH13 dated November 26, 2014, amending and supplementing several provisions of the Tax Laws.”

Based on the above regulations:

- pesticide sprayers are specialized machinery and equipment used in agricultural production not subject to VAT.

- Machines and sprayers not guided in Clause 2, Article 1 of Circular No. 26/2015/TT-BTC, if certified by the Ministry of Agriculture and Rural Development or the Departments of Agriculture and Rural Development in provinces and municipalities as specialized machinery used in agricultural production, are exempt from VAT. If there is no certification from the Ministry or Departments, the standard VAT rate of 10% applies.

Therefore, pesticide sprayers identified as specialized machinery and equipment used in agricultural production are not subject to value added tax.

Are pesticide sprayers subject to value added tax in Vietnam? (Image from Internet)

Which pesticides are permitted for use in Vietnam?

Based on regulations in Clause 1, Article 1 of Circular 09/2023/TT-BNNPTNT regarding the List of pesticides permitted for use in Vietnam, including:

(1) Pesticides used in agriculture:

- Insecticides: 712 active ingredients with 1725 commercial names.

- Fungicides: 683 active ingredients with 1561 commercial names.

- Herbicides: 260 active ingredients with 791 commercial names.

- Rodenticides: 08 active ingredients with 43 commercial names.

- Growth regulators: 60 active ingredients with 178 commercial names.

- Insect attractants: 08 active ingredients with 08 commercial names.

- Molluscicides: 31 active ingredients with 152 commercial names.

- Adjuvants (spreaders): 05 active ingredients with 06 commercial names.

(2) Termiticides: 16 active ingredients with 23 commercial names.

(3) Forest product preservatives: 07 active ingredients with 08 commercial names.

(4) Warehouse disinfectants: 03 active ingredients with 09 commercial names.

(5) Chemicals used for golf courses:

- Fungicides: 02 active ingredients with 02 commercial names.

- Herbicides: 01 active ingredient with 01 commercial name.

- Growth regulators: 01 active ingredient with 01 commercial name.

(6) Seed treatment chemicals:

+ Insecticides: 10 active ingredients with 16 commercial names.

(7) Post-harvest agricultural product preservatives:

+ 01 active ingredient with 01 commercial name.

See details of the List of pesticides permitted for use in Vietnam in Appendix I issued with Circular 09/2023/TT-BNNPTNT.

Which pesticides are prohibited in Vietnam?

Based on regulations in Clause 2, Article 1 of Circular 09/2023/TT-BNNPTNT regarding the List of pesticides prohibited for use in Vietnam, including:

(1) Insecticides and forest product preservatives: 23 active ingredients.

(2) Fungicides: 06 active ingredients.

(3) Rodenticides: 01 active ingredient.

(4) Herbicides: 01 active ingredient.

See details of the List of pesticides prohibited for use in Vietnam in Appendix II issued with Circular 09/2023/TT-BNNPTNT.