What is the VAT rate for preliminary processed rubber latex in Vietnam?
What is the VAT rate for preliminary processed rubber latex in Vietnam?
Based on 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, the specific tax rates are stipulated as follows:
Tax Rates
....
- A tax rate of 5% applies to the following goods and services:
a) Clean water for production and domestic use;
..
d) Services related to the reclamation and dredging of canals, trenches, ponds, and lakes serving agricultural production; planting, caring for, and pest prevention for crops; preliminary processing and preservation of agricultural products;
đ) Products from cultivation, livestock, and unprocessed aquatic products, excluding products stipulated in Clause 1, Article 5 of this Law;
e) Preliminary processed rubber latex; preliminary processed rosin; nets, ropes, and fibers for weaving fishing nets;
g) Fresh food; unprocessed forest products, excluding wood, bamboo shoots, and products stipulated in Clause 1, Article 5 of this Law;
h) Sugar; by-products in sugar production, including molasses, bagasse, and mud residue;
....
Thus, according to the above regulation, preliminary processed rubber latex is subject to a 5% value-added tax rate. ****
What is the VAT rate for preliminary processed rubber latex in Vietnam? (Image from the Internet)
How is the VAT price determined in Vietnam?
According to 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, and the exchange rate regulation in tax computation abolished by point c, Clause 2, Article 6 of the Law Amending Various Tax Laws 2014, the VAT computation price is specified as follows:
- For goods and services sold by production and business establishments, it is the selling price excluding value-added tax; for goods and services subject to special consumption tax, it is the selling price including special consumption tax but excluding value-added tax; for goods subject to environmental protection tax, it is the selling price including environmental protection tax but excluding value-added tax; for goods subject to both special consumption tax and environmental protection tax, it is the selling price including both taxes but excluding value-added tax;
- For imported goods, it is the import price at the border plus import tax (if any), plus special consumption tax (if any), and plus environmental protection tax (if any). The import price at the border is determined according to regulations on the taxable price of imported goods;
- For goods and services exchanged, consumed internally, or given away, it is the VAT computation price of the same or equivalent goods and services at the time these activities occur;
- For asset leasing activities, it is the rental amount excluding value-added tax.
- In cases of leasing by period payment or advance rental payment for a leasing term, the computation price is the rental paid for each period or in advance for the leasing term, excluding value-added tax;
In the case of leasing machinery, equipment, and vehicles from abroad that are not domestically produced for re-leasing, the computation price is deducted from the rent payable abroad.
- For goods sold under installment or deferred payment, it is the price calculated according to the one-time payment price excluding VAT, not including installment or deferred interest;
- For processing goods, it is the processing price excluding value-added tax;
- For construction and installation activities, it is the value of the project, project items, or work parts delivered excluding value-added tax. If construction and installation do not cover materials, machinery, and equipment, the computation price is the construction and installation value excluding the value of materials and equipment;
- For real estate business activities, it is the selling price of real estate excluding value-added tax, except for the value of land use rights or land rent payable to the state budget;
- For agency and brokerage activities in buying and selling goods and services on a commission basis, it is the commission earned from these activities excluding value-added tax;
- For goods and services using payment documents with prices that already include VAT, the computation price is determined by the following formula:
VAT-exclusive Price = Payment Price / (1 + Goods and Services Tax Rate (%))
- The VAT computation price for goods and services as stipulated in Clause 1, Article 7 of the VAT Law 2008 includes all surcharges and additional fees that the business establishment is entitled to.
Which entities are value-added taxpayers in Vietnam?
According to Article 4 of the Law on Value-Added Tax 2008, specific regulations on taxpayers are as follows:
The value-added taxpayer is any organization or individual producing or trading goods and services subject to value-added tax (referred to as a business establishment) and any organization or individual importing goods subject to value-added tax (referred to as the importer).
