- Before the implementation of Law No. 71/2014/QH13, fertilizer, machinery, and equipment for agricultural production were subject to a 5% VAT rate.
- Since January 1, 2015, these items have been exempt from VAT and not eligible for input VAT deduction.
- The current regulations have hindered the development and investment in domestic fertilizer production.
- There is a proposal to apply a 5% VAT rate on fertilizers to benefit farmers, the government, and businesses.
- Other countries prioritize agricultural inputs and fertilizers with preferential tax rates.
- A 5% tax rate on fertilizers is seen as reasonable and will not significantly increase fertilizer prices.
- Domestic production of fertilizers accounts for over 70% of the market share.
- The application of a 5% VAT rate will allow businesses to deduct input VAT.
Source: baochinhphu.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
