New Regulations Proposed on Cases Exempt from VAT Declaration and Payment

• 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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