Finance Ministry Proposes VAT Law Amendments to Unblock Trillions in Business Capital

• The Ministry of Finance is proposing amendments to the VAT Law to address bottlenecks in tax refunds and unblock capital for businesses, especially in agriculture.
• Current VAT regulations require businesses to prepay 5% input VAT on agricultural goods, causing capital immobilization and financial pressure, as refunds are delayed and loans do not cover this tax.
• The regulations create unfair treatment between domestic and imported agricultural products, and increase costs for animal-feed producers due to non-refundable input VAT.
• Delays in VAT refunds occur because buyers must wait for sellers to declare and pay tax, causing obstacles for exporters.
• The draft amendment proposes exempting commercial-stage agricultural products from VAT declaration and payment, allowing input VAT deduction, and aims to resolve financial pressures and improve business efficiency.

Source: vietnamnet.vn

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.

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