Overview of regulations 

According to Clause 5, Article 5 of Circular 219/2013/TT-BTC, as detailed in Circular 80/2021/TT-BTC, there are specific regulations for VAT declaration on agricultural production and business activities. This article will help you better understand how to declare VAT for these activities.

Cases where VAT declaration is exempted

• Unprocessed products: Businesses selling unprocessed or minimally processed agricultural products to other businesses (not commercial businesses) are exempt from VAT declaration.
• Invoice recording: On the invoice, the selling price is recorded as the price excluding VAT, and the lines for tax rate and VAT amount are crossed out.

Cases where VAT declaration is required

• Sales to other entities: If agricultural products are sold to households, individual businesses, or other organizations, individuals, VAT must be declared at a rate of 5%.
• Joint declaration: Agricultural production and business enterprises often jointly declare VAT with their other business activities on Form 01/GTGT.

How to declare VAT

• Form 01/GTGT: This is a general declaration form for all business activities, including agricultural production and business.
• Key indicators:
  • Indicators [23a], [24a]: Used to declare the input VAT of imported goods and services.
  • Indicators [30], [31], [32a]: Used to declare output VAT, depending on the buyer.

Corporate income tax declaration

• Declaration method: Businesses can choose to declare corporate income tax using the revenue-expense method (Form 03/TNDN) or the direct proportion of revenue method (Form 04/TNDN).
• Joint declaration: Similar to VAT, businesses often jointly declare corporate income tax for agricultural production and business activities with other business activities.

Note

• Regulatory changes: Tax regulations may change over time, so businesses should regularly update themselves on the latest information.
• Professional advice: If you have any questions, please consult with accounting experts or tax authorities for specific guidance.

References

• Decree No. 126/2020/ND-CP
• Circular No. 80/2021/TT-BTC
• Clause 5, Article 5 of Circular 219/2013/TT-BTC
• Decree No. 209/2013/ND-CP
• Tax and accounting websites
• Tax forums and discussion groups