New VAT Law Creates Cash Flow Crisis for Vietnamese Agricultural Exporters

New VAT law effective July 1 creates barriers for agro-forestry-fishery exporters instead of delivering promised breakthrough reforms
Agricultural products like rice, coffee and raw seafood now face 5 percent VAT rate after previously being exempt from taxation
Exporters struggle with lengthy VAT refund processes taking up to six months while payments from international buyers also take equally long
Unclear definitions of preliminary processing lead to inconsistent interpretations and delays in VAT filings across different sectors
Industry leaders warn that tied up capital from delayed refunds severely affects cash flow, competitiveness and sustainable development of strategic agricultural sectors

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.