- The Ministry of Finance has proposed amendments to the VAT Law to address practical obstacles faced by businesses, especially in the agricultural sector.
- Current VAT regulations require enterprises to pay 5% input VAT on agricultural products, causing capital stagnation and inefficiency, particularly for exporters.
- Imported agricultural and aquatic products are VAT-exempt, creating unfair competition with domestic producers.
- Animal feed is VAT-exempt, but input VAT cannot be deducted or refunded, raising costs for manufacturers and livestock farmers.
- The proposed amendments aim to exempt certain transactions from VAT and allow full deduction of input VAT, reducing administrative burdens and supporting business recovery, without affecting state budget revenue.
Source: vietnamnews.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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