VI
EN
Draft of applying VAT on fertilizers
Table Of Contents
Table Of Contents
According to Vietnam's Tax Law 71 of 2015, fertilizers are not subject to VAT. However, this leads to the fact that input materials are not entitled to VAT refund, which increases the domestic production cost significantly. In addition, fertilizers produced in Vietnam are also subject to an export tax of 5%. Meanwhile, fertilizer importers to Vietnam are both entitled to VAT refund in the host country, not subject to import tax, and not subject to VAT when imported into Vietnam, so they have a complete advantage, compared with domestic enterprises.
Therefore, according to the representative of the Ministry of Industry and Trade, the amendment of Tax Law 71 is essential to help Vietnam reduce its dependence on fertilizer imports, creating favorable conditions for domestic fertilizer production to develop.
Recently, in the 10th session of the 14th National Assembly, the Ministry of Finance has submitted a draft resolution to convert fertilizers from non-taxable to a value-added tax of 5%, and expected at the end of the meeting in 2021, the National Assembly will discuss the above.
Vinacontrol is an inspection organization authorized by the Ministry of Agriculture and Rural Development to carry out State inspection of imported fertilizer quality in accordance with the Government's Decree 84/2019/ND-CP dated November 14, 2019, on fertilizer management.
Vinacontrol is also appointed as an organization testing and certifying fertilizer conformity under a decision of the Ministry of Agriculture and Rural Development.
For more details: http://www.vinacontrol.com.vn/cat/Nang_luc
