Thanh Hoa Provincial Tax Department has an open letter to businesses, organizations, households and individuals trading in imported agricultural products in Thanh Hoa province regarding the implementation of tax policies in the field of trading in imported agricultural products.

According to current regulations on value added tax (VAT), for imported agricultural products which are unprocessed crops, livestock, aquatic products, and seafood products imported into the domestic market to serve production, trade, and consumption, VAT declaration is made as follows:

- For enterprises and cooperatives paying VAT by the deduction method:

+ In case of selling agricultural products to enterprises and cooperatives in the commercial business stage, it is not necessary to declare and pay VAT.

+ In case of selling imported agricultural products to other entities such as households, business individuals and other organizations and individuals, it is necessary to declare and pay VAT at the tax rate of 5%.

- For households, business individuals, enterprises, cooperatives and other economic organizations paying VAT according to the direct calculation method on VAT when selling imported agricultural products in the commercial business stage, declare and pay VAT at a rate of 1% on revenue.

However, through inspection and review, the tax authority discovered that there were still cases where enterprises generated large agricultural import value but left their business addresses; enterprises declared revenue from goods and services sold that was not commensurate with actual purchases and imports; there was a phenomenon of roundabout buying and selling for the purpose of making illegal profits; only declared sales to customers who were enterprises in the commercial business stage, which was not true in reality, in order to avoid having to declare and pay VAT...

Incomplete and inaccurate declaration of actual sales revenue of imported agricultural products when determining tax obligations is a violation of the law according to the provisions of the Tax Administration Law No. 38/2019/QH14, Decree on administrative sanctions for tax and invoice violations No. 125/2020/ND-CP...

Thanh Hoa Provincial Tax Department requests enterprises, organizations, households and individuals trading in imported agricultural products in Thanh Hoa province to review and declare in accordance with reality and current legal regulations. In case the Taxpayer does not comply with the Tax Law, the Tax authority will coordinate with relevant agencies (Customs, Market Management...) to exchange information and conduct inspections and examinations according to their authority. If the Taxpayer is found to have violated the Tax Law, it will be handled according to regulations. In case there are signs of criminal offenses according to the Penal Code, the Tax authority will transfer the file to the investigation agency, conduct investigation and handle.

For any problems, you can contact the functional departments of tax authorities at all levels for guidance and answers. With the goal of providing professional services to taxpayers, Thanh Hoa Provincial Tax Department will create the most favorable conditions for organizations and individuals to properly implement tax policies and laws.

Thanh Hoa Tax Department