1. VAT Declaration for Imported Agricultural Products

For input VAT:

According to Clause 1, Article 1 of Circular No. 26/2015/TT-BTC dated February 27, 2015, issued by the Ministry of Finance, regulations on non-taxable VAT subjects state:

“1. Products from farming (including agro-forestry products), breeding, and aquaculture that are produced, caught, sold, or imported and are not processed into other products (hereinafter referred to as unprocessed) or have only been preprocessed.

Preprocessed products are those that have only been cleaned, dried, husked, grinded, milled, threshed, split, cut, salted, put in cold storage (cooled or frozen), preserved with sulfur dioxide, sulfur solution, or other solutions, and other common means of preservation.”

According to this regulation, imported wheat is not subject to VAT at the import stage, helping to reduce costs and increase competitiveness.

For output VAT:

According to Decree No. 126/2020/ND-CP dated October 19, 2020, of the Government and Circular No. 80/2021/TT-BTC dated September 29, 2021, of the Ministry of Finance;

According to Clause 5, Article 5 of Circular No. 219/2013/TT-BTC dated December 31, 2013, issued by the Ministry of Finance, guiding the implementation of the Law on Value-Added Tax and Decree No. 209/2013/ND-CP dated December 18, 2013, of the Government, stipulates:

“Article 5. Cases of exemption declaring and paying VAT

5. A company or cooperative that pays VAT using credit-invoice method and sells unprocessed or preprocessed farming, breeding, aquaculture products to another company or cooperative for commercial purposes shall be exempt from declaring and paying VAT. The selling price on the VAT invoice is VAT-exclusive price, the line of tax rate must be left blank and crossed out.

A company or cooperative that pays VAT using credit-invoice method and sells unprocessed or preprocessed farming, breeding, aquacultural products to other entities such as business households, businesspeople, other organizations or other individuals has to declare and pay 5% VAT according to Clause 5 Article 10 of this Circular.

Based on this guidance, if the company is using credit-invoice method, imports wheat and then sells it to a noodle production company, there is no need to declare and pay VAT. However, when selling to business households, the company must declare and pay VAT at a rate of 5%.

Guidance on VAT declaration:

For a company that imports wheat and then sells it to noodle production companies and other small businesses, the taxpayer does not declare separately for agricultural-related activities but declares them together on the VAT declaration forms.

Specifically:

For VAT declaration: Companies applying the VAT deduction method will declare using Form 01/GTGT, issued along with Circular No. 80/2021/TT-BTC. Specifically:

• For input VAT from imported goods and services, taxpayers declare in indicators [23a], [24a], which are related to imported goods and services;
• For output VAT from imported goods and services, taxpayers declare in indicators [30], [31], or [32a], depending on the buyer’s category under legal regulations.

2. Corporate Income Tax (CIT) Declaration

For CIT: Depending on the tax declaration method registered with the tax authority:

• If the taxpayer declares under the Revenue – Expense method, they use Form 03/TNDN, issued along with Circular No. 80/2021/TT-BTC;
• Or under the direct ratio on revenue method, they use Form 04/TNDN, issued along with Circular No. 80/2021/TT-BTC.

Van Le