Are rice and corn harvesters subject to VAT in Vietnam?

Are rice and corn harvesters subject to VAT in Vietnam?

The entities not subject to VAT are stipulated in Point 3a, Article 4 of Circular 219/2013/TT-BTC (as supplemented by Point 2, Article 1 of Circular 26/2015/TT-BTC) as follows:

Entities Not Subject to VAT

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3a. Fertilizers are organic and inorganic fertilizers such as: phosphate, urea, NPK, mixed nitrogen fertilizers, phosphate fertilizers, potassium; microbiological fertilizers and other types of fertilizers;

Feed for livestock, poultry, aquatic products, and other animal feeds, including products processed or unprocessed such as bran, meals, various oils, fish meal, bone meal, shrimp meal, and other feed for livestock, poultry, aquatic products, and other animals, feed additives (such as premix, active ingredients, and carriers) in accordance with Point 1, Article 3 of Decree No. 08/2010/ND-CP, February 5, 2010, by the Government of Vietnam on the management of animal feeds and Points 2 and 3, Article 1 of Circular No. 50/2014/TT-BNNPTNT, December 24, 2014, by the Ministry of Agriculture and Rural Development;

Offshore fishing boats with a main engine capacity of 90CV or more engaged in fishing or logistics services for fishing; specialized machinery and equipment for exploitation and preservation of products for fishing boats with a total main engine capacity of 90CV or more engaged in fishing or logistics services for fishing;

Specialized machinery and equipment for agricultural production include: plows; harrows; cultivators; line rippers; root cutters; field leveling devices; seeders; seed transplanters; sugar cane planters; carpet seedling production systems; tillers, banking machines, spreaders, manure fertilizers; plant protection sprayers, and pumps; harvesters for rice, corn, sugar, coffee, cotton; machines for harvesting roots, fruits, roots; tea pruners, tea harvesters; rice threshers; corn husking and threshing machines; corn threshers; soybean thrashers; peanut shellers; coffee peeling machines; pre-processing machines for wet coffee and rice; agricultural crop dryers (rice, corn, coffee, pepper, cashew, etc.), aquatic products; machines for collecting, transporting sugar cane, rice, straw in the field; incubators and brooding machines for poultry; grass harvesters and bale presses for straw, grass; milking machines and other specialized machines.

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Therefore, specialized machinery and equipment used for agricultural production, including rice and corn harvesters, are not subject to VAT.

Are rice and corn harvesters subject to VAT in Vietnam? (Image from the Internet)

Shall farmers declare VAT when selling rice and corn harvesters in Vietnam?

Cases not required to declare, calculate, and pay VAT are specified in Point 3, Article 5 of Circular 219/2013/TT-BTC as follows:

Cases Not Required to Declare, Calculate, and Pay VAT

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3. Organizations and individuals not engaged in business and not subject to VAT when selling assets.

Example 16: Mr. A, an individual not engaged in business, sells a 4-seat car to Mr. B for 600 million VND, then Mr. A is not required to declare, calculate, or pay VAT on the amount received from selling the car.

Example 17: Mr. E, an individual not engaged in business, mortgages a 5-seat car to VC Bank. When the due date for payment according to the contract arrives, Mr. E cannot make the payment to VC Bank, and the mortgaged car is sold at auction to recover the debt, then the amount received from the auction sale of the mortgage car is not required to declare, calculate, or pay VAT.

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Therefore, farmers (individuals not engaged in business) who wish to sell rice and corn harvesters to others are not required to declare, calculate, or pay VAT.

Is feed for livestock from corn subject to VAT in Vietnam?

According to the regulations in Point 3a, Article 4 of Circular 219/2013/TT-BTC (as supplemented by Point 2, Article 1 of Circular 26/2015/TT-BTC) as follows:

Entities Not Subject to VAT

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3a. Fertilizers are organic and inorganic fertilizers such as: phosphate, urea, NPK, mixed nitrogen fertilizers, phosphate fertilizers, potassium; microbiological fertilizers and other types of fertilizers;

Feed for Livestock, poultry, aquatic products, and other animal feeds, including products processed or unprocessed such as bran, meals, various oils, fish meal, bone meal, shrimp meal, and other feed for livestock, poultry, aquatic products, and other animals, feed additives (such as premix, active ingredients, and carriers) in accordance with Point 1, Article 3 of Decree No. 08/2010/ND-CP, February 5, 2010, by the Government of Vietnam on the management of animal feeds and Points 2 and 3, Article 1 of Circular No. 50/2014/TT-BNNPTNT, December 24, 2014, by the Ministry of Agriculture and Rural Development;*

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Therefore, feed for livestock made from corn is not subject to VAT.