Uni 20-02-2014 - Guidance on VAT for agricultural, forestry and aquatic products

Official letter No.385/BTC-CST in guidance of VAT for products of cultivation and husbandry, aquaculture, fishing which are not yet processed into other products or normally processed as follows:

• If these products are self-produced, self-fished or imported by organizations, individuals, they will not be imposed on VAT
• If business households, enterprises, cooperatives  and other economic organizations paying VAT under the direct method to VAT must declare, calculate, pay VAT with ratio of 10% to revenue for commercial business activities.
• Enterprises, cooperatives paying tax VAT under the deduction method do not have to declare, calculate, pay VAT when they sell these products to enterprises, cooperatives paying tax VAT under the deduction method for commercial business activities. In case, they sell to households, business individuals and other organizations, individuals , they must declare, calculate, pay VAT with 5% tax rate