- The Ministry of Finance is drafting a decree to clarify cases exempt from VAT declaration and payment.
- Products from self-produced or caught crops, forests, livestock, and aquaculture that are unprocessed or only simply processed are not subject to VAT.
- If these products are not self-produced or caught, they are subject to a 5% VAT rate.
- Two VAT calculation methods are specified: deduction for enterprises/cooperatives (unless annual revenue is under 1 billion VND), and direct calculation for individuals/households.
- The draft details what constitutes “simple processing” and assigns the Ministry of Agriculture and Environment to determine product status if unclear.
Source: baochinhphu.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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