According to the production process, raw cashew nuts with shell only go through basic processing steps (peeling off the hard shell, keeping the shell intact), not roasted with salt, not marinated, not further processed, then exported directly.
Mr. Duong asked, what is the VAT rate applied to this product when sold domestically between businesses (in the production - export chain)? What documents, invoices and conditions need to be prepared to deduct and refund input VAT when businesses export abroad? What is the responsibility for issuing invoices and declarations between the processing factory (seller) and the exporting company (buyer)?
Regarding this issue, Dong Nai Provincial Tax Department has the following opinion:
Conditions for input VAT deduction
Pursuant to the Law on VAT No. 48/2024/QH15, effective from July 1, 2025:
Clause 1, Article 5 stipulates the following non-taxable subjects:
"1. Products of crops, planted forests, livestock, aquaculture, and fishing that have not been processed into other products or have only undergone conventional preliminary processing by organizations and individuals that produce, catch, and sell them, and are at the import stage".
Article 9 stipulates tax rates:
"... 2. The tax rate of 5% applies to the following goods and services:
d) Products of crops, planted forests (except wood and bamboo shoots), livestock, aquaculture, and fishing that have not been processed into other products or have only undergone conventional preliminary processing, except for products specified in Clause 1, Article 5 of this Law;
Clause 2 and Clause 3, Article 14 stipulate input VAT deduction:
"2. Conditions for input value added tax deduction are prescribed as follows:
a) Having a value-added invoice for purchasing goods and services or a document for paying value-added tax at the import stage or a document for paying value-added tax on behalf of a foreign party as prescribed in Clause 3 and Clause 4, Article 4 of this Law. The Minister of Finance shall prescribe the document for paying value-added tax on behalf of a foreign party;
b) Have non-cash payment documents for purchased goods and services, except for some special cases as prescribed by the Government ;
c) For exported goods and services, in addition to the conditions specified in Point a and Point b of this Clause, there must also be: a contract signed with a foreign party on the sale, processing of goods, and provision of services; invoices for the sale of goods and provision of services; non-cash payment documents; customs declaration for exported goods; packing list, bill of lading, and goods insurance documents (if any). The Government shall stipulate the conditions for deduction in the case of exporting goods through e-commerce platforms abroad and some other special cases.
3. Business establishments that do not satisfy the tax deduction regulations in Clause 1 and Clause 2 of this Article and the subjects and documents established from prohibited acts shall not be entitled to value added tax deduction.
VAT refund regulations
Article 15 stipulates VAT refund:
"9. Business establishments eligible for tax refund as prescribed in this Article must satisfy the following conditions:
a) Business establishments eligible for tax refunds as prescribed in Clauses 1, 2, 3 and 4 of this Article must be business establishments that pay value added tax according to the tax deduction method, establish and maintain accounting books and accounting documents according to the provisions of the law on accounting; have a deposit account at a bank under the tax code of the business establishment;
b) Satisfy the regulations on input value added tax deduction as prescribed in Clause 2, Article 14 and not fall under the cases prescribed in Clause 3, Article 14 of this Law;
c) The seller has declared and paid value added tax according to regulations for invoices issued to the business establishment requesting a tax refund.
Pursuant to Article 17 of Law No. 38/2019/QH14, amended by Clause 4, Article 6 of Law No. 56/2024/QH15, stipulating the responsibilities of taxpayers:
"2. Declare accurately, honestly, completely and submit tax dossiers on time; be legally responsible for the accuracy, honesty and completeness of tax dossiers and documents provided to tax authorities during the process of handling tax dossiers according to the provisions of tax law".
"... 4. Comply with the accounting, statistics and management regimes, and use invoices and documents as prescribed by law.
5. Record accurately, honestly and completely activities that give rise to tax obligations, tax deductions and transactions that require tax information to be declared.
6. Prepare and deliver invoices and documents to buyers according to the correct quantity, type, and actual payment value when selling goods and providing services according to the provisions of law...".
VAT refund application form
Pursuant to Article 28 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Minister of Finance stipulating the dossier for requesting VAT refund:
"A dossier requesting a value added tax refund according to the provisions of the law on value added tax (except for cases of value added tax refund according to international treaties; refund of input value added tax that has not been fully deducted when changing ownership, converting enterprises, merging, consolidating, dividing, separating, dissolving, going bankrupt, or ceasing operations shall comply with the provisions of Article 30 and Article 31 of this Circular) including:
1. Application for refund of state budget revenue according to form No. 01/HT issued with Appendix I of this Circular.
… 2. Relevant documents according to tax refund cases, specifically as follows:...".
Based on the above instructions:
In the case of Mr. Le Duong's company purchasing raw cashew nuts with shells from processing factories in Dong Nai province, this product meets the condition of being a crop product that has not been processed into other products or has only undergone normal preliminary processing by the self-producing organization, then it is not subject to tax according to the provisions of Clause 1, Article 5 of the Law on Value Added Tax No. 48/2024/QH15.
In case the above-mentioned raw cashew nuts with shell are not products specified in Clause 1, Article 5 of VAT Law No. 48/2024/QH15, the VAT rate of 5% shall be applied according to the provisions of Clause 2, Article 9 of this Law.
In case the company is eligible for VAT refund according to regulations, it must satisfy the conditions prescribed in Article 15 of VAT Law No. 48/2024/QH15.
VAT refund application dossier is implemented according to the provisions of Article 28 of Circular No. 80/2021/TT-BTC dated September 29, 2021 of the Minister of Finance.
Taxpayer's responsibilities as prescribed in Article 17 of Law No. 38/2019/QH14 are amended by Clause 4, Article 6 of Law No. 56/2024/QH15.
Dong Nai Provincial Tax Department informs Mr. Duong to know and comply with the regulations in legal documents.
Chinhphu.vn
Source: https://baochinhphu.vn/chinh-sach-thue-gtgt-doi-voi-san-pham-so-che-102250909103522183.htm
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