Uni 05-06-2017 - Guidance on VAT of animal feeding and cultivated products

Official letter 2181/TCT-CS dated 24 May 2017 guiding VAT for animal feeding and cultivated products:

-          Wheat bran, powder wheat bran and soybean residue are products not subject to VAT. Input VAT of services used for commercial activities of non-taxable goods shall not be declared for deduction

-          Corn and soybean products (regardless of whether they are used as feeds or not) are unprocessed agricultural products which are not processed into other products or are only preliminarily processed by enterprises or cooperatives. It is not required to declare and pay VAT at the stage of commercial business. The input VAT of services used for trading activities of cases which are not required to declare and pay VAT shall be declared and withheld according to regulations.

-          Regarding the allocation of VAT: The company declaring VAT by the deduction method and having 0% tax-liable goods (exported coffee), the goods are not required to declare and calculate the VAT Corn and soybean seeds) and non-VAT goods (wheat bran, wheat bran and soybean residue) and cannot deduct deductible input VAT separately. The input value added in percentage (%) between the turnover subject to VAT, the turnover not to declare and pay VAT on the total turnover of the goods or services sold