What is the VAT rate for trading growth stimulants for livestock in Vietnam?
What is Livestock?
Pursuant to the provisions in Clause 6, Article 2 of the Law on Animal Husbandry 2018, livestock are defined as mammals with four legs that have been domesticated and raised by humans.
What is the VAT rate for trading growth stimulants for livestock in Vietnam?
According to the provisions in Clause 2, Article 10 of Circular 219/2013/TT-BTC (amended by Clause 6, Article 1 of Circular 26/2015/TT-BTC) regulating subjects to a 5% tax rate as follows:
5% Tax Rate
....
2. Ores for fertilizer production; pest control drugs and growth stimulants for livestock and plants include:
a) Ores for fertilizer production are ores used as raw materials for fertilizer production, such as apatite ores used for phosphate fertilizers, mud used for biological fertilizers;
b) Pest control drugs include plant protection drugs as prescribed in the List of Plant Protection Drugs issued by the Ministry of Agriculture and Rural Development and other pest control drugs;
c) Growth stimulants for livestock*, plants.*
...
According to the above regulations, businesses engaged in the production and trading of growth stimulants for livestock will be subject to a 5% VAT rate.
What is the VAT rate for trading growth stimulants for livestock in Vietnam? (Image from the Internet)
Where do businesses producing and trading growth stimulants for livestock pay VAT in Vietnam?
Based on the provisions in Article 20 of Circular 219/2013/TT-BTC regarding where VAT is paid as follows:
Article 20. Place of Tax Payment
1. Taxpayers declare, pay VAT at the locality where production and business activities take place.
2. Taxpayers declaring and paying VAT by the credit method with dependent cost-accounting production facilities located in provinces or central cities different from the province or city where the head office is located must pay VAT at the locality where the production facility is located and where the head office is located.
3. In cases where enterprises and cooperatives applying the direct method have production facilities situated in provinces different from where their head offices are located or conduct itinerant sales in other provinces, they shall declare and pay VAT at a percentage on sales for revenues arising out of province at the locality where the production facility or itinerant sales are located. Enterprises and cooperatives are not required to pay VAT at a percentage on sales at the head office for out-of-province revenues that have already been declared and paid.
4. If a telecommunications service business operates postpaid telecommunications services in a province or city different from where its head office is located and establishes a dependent accounting branch following the credit method to engage in such services at that province, the business shall declare and pay VAT for postpaid telecommunications services as follows:
- Declare VAT on all revenues from postpaid telecommunications services with the tax authority directly managing the head office.
- Pay VAT at the locality where the head office is located and at the locality where the dependent accounting branch is situated.
The VAT amount payable at the locality where the dependent accounting branch is situated is determined at a rate of 2% (for postpaid telecommunications services subject to a 10% VAT rate) on revenue (excluding VAT) from postpaid telecommunications services at the locality where the dependent accounting branch is situated.
5. VAT declaration and payment shall be conducted in accordance with the provisions of the Law on Tax Administration and guiding documents.
Hence, businesses producing and trading growth stimulants for livestock shall declare and pay VAT at the locality where production and business activities take place, except in the following cases:
+ Taxpayers declaring and paying VAT by the credit method with dependent cost-accounting production facilities based in provinces or central cities different from where the head office is located must pay VAT at both the locality where the production facility is located and the locality of the head office.
+ Enterprises or cooperatives applying the direct method with production facilities in provinces different from where their head offices are located or conducting itinerant sales in other provinces must declare and pay VAT at a percentage on sales for revenues arising in those provinces at the locality where the production facility or itinerant sales are situated.
Enterprises or cooperatives are not required to pay VAT at a percentage on sales at the head office for out-of-province revenues that have been declared and paid.
