Shall VAT apply to imported fresh beef for individual consumers in Vietnam?

Shall VAT apply to imported fresh beef for individual consumers in Vietnam?

Based on Clause 5, Article 5 of Circular 219/2013/TT-BTC as follows:

Cases where declaration and payment of VAT are not required

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5. Companies and cooperatives that pay VAT according to the deduction method when selling agricultural, livestock, aquatic, or marine products that have not been processed into other products or only undergone ordinary preliminary processing to enterprises, cooperatives in the commercial business stage are not required to declare and pay VAT. On the VAT invoice, state the selling price as the price without VAT; the tax rate and VAT lines are not entered and are crossed out.

In case companies and cooperatives that pay VAT according to the deduction method sell agricultural, livestock, or aquatic products that have not been processed into other products or only undergone ordinary preliminary processing to other entities like households, business individuals, and other organizations or individuals, they must declare and pay VAT at a rate of 5% as guided in Clause 5, Article 10 of this Circular.

Households, business individuals, companies, cooperatives, and other economic organizations that pay VAT using the direct method based on VAT when selling agricultural, livestock, or aquaculture products not processed into other products or only underwent ordinary preliminary processing in the commercial business stage must declare and pay VAT at a rate of 1% on revenue.

Example 19: Food Company B, a business entity paying VAT using the deduction method, buys rice directly from the organizations or individuals who grow and sell it; at the purchase stage, rice bought from the growers is VAT-free.

If Food Company B sells rice to Import-Export Company C, Company B is not required to declare or pay VAT for the amount of rice sold to Company C.

If Food Company B sells rice to Company TNHH D (a company producing noodles), Food Company B is not required to declare or pay VAT for the rice sold to Company TNHH D.

On the VAT invoice issued to Company C and Company D, Food Company B must clearly indicate that the selling price does not include VAT; the tax rate and VAT lines are not entered and are crossed out.

When Food Company B sells rice directly to consumers, it must declare and pay VAT at the tax rate of 5% as guided in Clause 5, Article 10 of this Circular.

Example 20: Company TNHH A, a business entity paying VAT using the deduction method, buys unprocessed coffee from farmers and then sells this coffee to Business Household H; revenues from selling coffee to Household H apply a 5% tax rate.

Example 21: Mr. X's household buys tea leaves from tea-growing households and sells them to Mr. Y's household; Mr. X must calculate and pay VAT at a rate of 1% on the revenue from selling tea leaves to Mr. Y.

In case unprocessed or ordinarily processed agricultural, livestock, aquaculture products are sold to a company or cooperative and the invoice has been issued, declared, and VAT calculated, both seller and buyer must adjust the invoice not to declare or pay VAT as guided in this section.

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Thus, it can be seen that when importing fresh beef for individual consumers, the business must declare and pay value-added tax at a rate of 5%.

Shall VAT apply to imported fresh beef for individual consumers in Vietnam? (Image from the Internet)

What is the deadline for submitting value-added tax for enterprises after the 2024 tax deferral in Vietnam?

Based on Clause 1, Article 4 of Decree 64/2024/ND-CP which regulates the VAT deferral (excluding import value-added tax) for businesses and organizations as follows:

- Extend the tax payment deadline for the value-added tax amount payable (including tax amounts allocated to other provincial localities where the taxpayer's head office is located, and taxes paid according to each occurrence) of the tax period from May to September 2024 (for monthly VAT declaration) and the tax period of quarter II, 2024, and quarter III, 2024 (for quarterly VAT declaration) for businesses and organizations mentioned in Article 3 of this Decree.

The extension period is 5 months for VAT in May 2024, June 2024, and quarter II of 2024; it is 4 months for VAT in July 2024; it is 3 months for VAT in August 2024; it is 2 months for VAT in September 2024 and quarter III of 2024.

The extension period at this point is calculated from the end date of the VAT payment deadline as prescribed by tax management laws.

The businesses and organizations eligible for the extension must prepare monthly and quarterly VAT declaration forms according to current laws, but they are not required to pay the VAT amount declared on the VAT declaration form.

The deadline for VAT payment for the extended periods is as follows:

The deadline for VAT payment for the tax period of May 2024 is no later than November 20, 2024.

The deadline for VAT payment for the tax period of June 2024 is no later than December 20, 2024.

The deadline for VAT payment for the tax period of July 2024 is no later than December 20, 2024.

The deadline for VAT payment for the tax period of August 2024 is no later than December 20, 2024.

The deadline for VAT payment for the tax period of September 2024 is no later than December 20, 2024.

The deadline for VAT payment for the tax period of quarter II, 2024 is no later than December 31, 2024.

The deadline for VAT payment for the tax period of quarter III, 2024 is no later than December 31, 2024.

Note: Decree 64/2024/ND-CP remains effective until December 31, 2024.

What are procedures for VAT deferral in Vietnam?

According to Article 5 of Decree 64/2024/ND-CP, procedures for the 2024 tax deferral are as follows:

[1] Taxpayers who directly declare and pay tax to tax authorities being eligible for the extension send a Request for Tax Payment Extension declaration initially or as a replacement when errors are found (electronically; directly to tax authorities or via postal service) following the Form in the Appendix issued with Decree 64/2024/ND-CP to the direct managing tax authority once for all tax and land rent arising in the extended tax periods, along with the submission of tax declaration dossiers monthly (or quarterly) as per tax management regulations.

In cases where the Request for Extension is not submitted together with the tax declaration dossiers monthly (or quarterly), the latest submission deadline is September 30, 2024. The tax authority will still extend the tax and land rent of previous arising periods before the submission of the Request for Extension.

If taxpayers have items eligible for extension under the management jurisdiction of multiple tax authorities, the tax authority directly managing the taxpayer is responsible for transmitting information and sending the Request for Extension to the relevant managing tax authorities.

[2] Taxpayers must determine and are responsible for ensuring their extension requests are aligned with eligible subjects under Decree 64/2024/ND-CP. If taxpayers send the Request for Extension to tax authorities after September 30, 2024, they will not receive a tax or land rent extension as per this Decree.

If taxpayers supplement their tax declaration of the extended tax period resulting in an increased payable amount and submit it to the tax authority before the end of the extended tax payment deadline, the extended tax amount includes the additional payable due to the supplemented declaration.

If taxpayers supplement their tax declaration of the extended tax period after the extended tax payment deadline has elapsed, the extension does not apply to the additional payable due to the supplemented declaration.

[3] The tax authority is not required to inform taxpayers of the acceptance of tax and land rent extension.

If during the extension period, the tax authority determines the taxpayer is not subject to the extension, the tax authority will issue a notification to the taxpayer regarding the non-extension, and the taxpayer must pay the full tax, land rent, and late payment charges for the extended period to the state budget.

If after the extension period, government authority inspections and audits reveal that the taxpayer is not eligible for the tax and land rent extension as specified in this Decree, the taxpayer must pay the remaining tax deficit, fines, and late payment penalties to the state budget.

[4] No late payment charges apply for tax and land rents extended within the extension timeline (including cases where taxpayers submit the Request for Extension to tax authorities after filing tax declaration dossiers, as stipulated in Clause 1, Article 5 of Decree 64/2024/ND-CP and where authorities upon check, determine the taxpayer’s extended amount increased).

If the tax authority initially calculated late payment (if any) for tax files subject to extension under regulation in this Decree, then the tax authority will adjust and remove the late payment fees.

[5] Investors in projects, construction work items funded by the state budget, and payments from the state budget for public construction of projects using ODA funds subject to VAT must submit notification from the tax authority of receipt of the Request for Extension or the Request with confirmation of submission from the tax authority when processing payments with the State Treasury.

The State Treasury will rely on documentation submitted by the investor to refrain from VAT deductions during the extension period. Once the extension ends, contractors must pay the full amount of extended taxes in compliance with regulations.