Uni 09-06-2014 - Guidance on VAT for cultivation, aquaculture products

According to official letter No.7062/BTC-TCT:

• From 1 Jan 2014, enterprises, cooperatives paying tax under deduction method, selling cultivation, aquaculture products which are not processed into other products or little –processed, applied to 5% VAT tax rate and their fresh and raw food at the stage of commercial operation will not have to declare, calculate and pay VAT. For example:

1. Raw shrimp (unprocessed into other products or little -processed) - clean – keep a whole body or without head, peeled, belly cut, straighten pressed - classified blisters - vacuum - frozen.
2. Fresh squid - cleaned - classified - cut, placed face - frozen - packed - sold.
3. Fillet fish; shrimp, frozen fish.
4. Fresh Cashew - exposure - raw cashew - ready, attractive, cutting - drying - peeled silk - Fumigation - Crating.
5. Paddy - milled into rice - rice polished.

• Defects, byproducts of cultivation, aquaculture products such as; defected rice, husk; shrimp head; shrimp shells; fish head; fishbone; offal and waste obtained after being slaughtered from animals; fresh fat; ... at the stage of commercial operation must not be declared, calculated and paid VAT