Nội dung toàn văn Official Dispatch No. 11613/BTC-TCT dated 2014 about VAT on cotton products
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MINISTRY OF FINANCE |
SOCIALIST REPUBLIC OF VIETNAM |
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No.
11613/BTC-TCT |
Hanoi, August 19, 2014 |
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To: |
- Provincial
Department of Taxation of provinces |
The Ministry of Finance has received inquiries from some companies about VAT on cotton products.
Pursuant to Clause 1 Article 5 of the Law on Value-added, the following commodities are not subject to VAT:
“1. Farming, breeding, aquaculture products and have not been processed into other products of have only been preprocessed and are sold by the producers or catchers at importation stage.”
Clause 2i Article 8 of the Law on Value-added on commodities subject to 5% VAT:
“2. 5% tax is applied to the following commodities and services:
…
i) Products made of jute, sedge, bamboo, rattan, coconut shells, hyacinth, and handicraft products made of raw materials derived from agriculture; preprocessed cotton, newsprint;”
Pursuant to Clause 1 Article 4 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance on commodities not subject to VAT.
Pursuant to Clause 5 Article 5 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance on the cases in which VAT is exempt.
Pursuant to Clause 9 Article 10 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance on 5% VAT and the regulations mentioned above, VAT shall be applied to cotton products as follows:
Cotton products that have been picked, stripped, peeled, filtered, and packed into bales (natural cotton that has not been carded or combed) are not subject to VAT when sold according to Clause 1 Article 4 and Clause 5 Article 5 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance.
Cotton products that have been carded or combed (preprocessed) are subject to 5% VAT according to Clause 9 Article 10 of Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance.
Provincial Department of Taxation of provinces, Provincial Customs Departments of provinces shall request local companies concerned to implement this Dispatch. Any difficulty that arises during the implementation should be reported to the Ministry of Finance, General Department of Taxation for timely guidance./.
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PP THE MINISTER |
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