Công văn 12848/BTC-CST năm 2015 về thuế giá trị gia tăng đối với máy móc, thiết bị chuyên dùng cho sản xuất nông nghiệp do Bộ Tài chính ban hành

The Ministry of Finance has received Official Dispatches on request for guidance on VAT on specialized machinery and equipment for agricultural production from a number of tax authorities, customs authorities and enterprises. Consequently, the Ministry of Finance provides guidelines as follows:

Pursuant to Clause 1 Article 3 of the Law No. 71/2014/QH13 on amendments to the Laws on taxation; Clause 1 Article 3 of the Government's Decree No.12/2015/ND-CP dated February 12, 2015 on guidelines for Law on amendments to the Laws on taxation and the Decrees on taxation; and Clause 2 Article 1 of the Circular No. 26/2015/TT-BTC dated February 27, 2015 of the Ministry of Finance on guidelines for VAT and tax administration in the Government's Decree No.12/2015/ND-CP dated February 12, 2015 and amendments to the Circular No. 39/2014/TT-BTC of the Ministry of Finance on invoices and services, “machinery and specialized equipment serving agricultural production” are not subject to VAT.

Pursuant to Clause 1 Article 3 of Decree No. 12/2015/ND-CP and Clause 2 Article 1 of Circular No. 26/2015/TT-BTC, regulations on specialized machinery and equipment for agricultural production are specified as follows:

“Specialized machinery and equipment for agricultural production includes: tractor; harrowing machine; milling machine; sowing machine; rootdozer; field leveling device; seeding machine; transplanter; sugarcane planting machine; rice-sowing machine; tiller, cultipacker, fertilizer spreader, pesticide sprayers; machine for harvesting rice, corn, sugarcane, coffee, cotton; machine for harvesting tubers, fruits, roots; tea-cutting machine, tea-picking machines; threshing machine; corn peeling machine; soybean crusher; peanut huller; coffee huller, equipment for preparing coffee, wet rice; dryer for agricultural products (rice, corn, coffee, pepper, cashew nut...), and aquaculture products; machine for collecting, loading sugarcane, straw on the field; machine for egg incubating and hatching ; forage harvester; straw, grass baler; milking machine, and other specialized machines."

Clause 1 Article 3 of Decree No. 12/2015/ND-CP has prescribed as follows: "The Ministry of Finance take charge and cooperate with the Ministry of Agriculture and Rural Development in providing guidelines for other specialized machines in agricultural production that are not subject to VAT as prescribed in this Clause”.

On April 27, 2015, the Ministry of Finance has sent Official Dispatch No. 5634/BTC-CST to consult with the Ministry of Agriculture and Rural Development on a number of specialized machinery and equipment for agricultural production that are not particularly identified as prescribed in Clause 1 Article 3 of Decree No. 12/2015/ND-CP and Clause 2 Article 1 of Circular No. 26/2015/TT-BTC.

After considering the consultation of the Ministry of Agriculture and Rural Development specified in Official Dispatch No. 4247/BNN-TC dated June and checking documents on types of machinery and equipment sent by tax authorities, customs authorities and enterprises, the Ministry of Finance provides guidelines as follows:

1. Other types of specialized machinery and equipment for agricultural production that are not subject to VAT include:

- Machine/equipment for supplying food and water, collecting eggs and cleaning; machinery/equipment for caring livestock and poultry; machinery/equipment for artificial insemination of livestock and poultry; milk analyzer; packaging machine of roughage material; machine/equipment for livestock waste treatment, livestock environmental remediation.

- Paddle wheel aerator; turbine aerator; automatic feeding machine used in aquaculture;

- Combine harvester-thresher;

- Power tiller/scarifier;

- Hand tractor;

- Electronic vegetable harvesting machine, electronic flower sorter/grader;

- Cashew nut sorting machine;

- Heating or cooling equipment for livestock and poultry;

- Machinery and equipment for producing animal feed, bran silo, conveyor system of material and spare parts thereof being machinery or equipment (grinding, mixing, pelleting machine, silo, conveyor system) used for processing of livestock and poultry feed;

- Agricultural machine (internal combustion engine) used in agricultural production such as: as motivation for pumping water, irrigation and drainage; pesticide sprayer;

- Tea-leaf crushing machine/tea pitcher machine;

- Whitening machine; rice huller/husker; paddy separator; rice polishing machine; coffee polishing machine; rice cleaner; white mortar; destoner; thickness grader; husk aspirator; dust filter; automatic weigher; control feeder; length grader; rotary shifter; bran shifter; closed discharge valve; husk shifter; rice mixer; husk furnace; dryer; sesame husker; assembly line; devices used for dryer systems, rice mill;

- Rice seedling tray;

2. Spare parts imported for assembly of machinery and equipment serving agricultural production:

Spare parts imported for assembly of specialized machinery and equipment for agricultural production shall be classified according to the List of Vietnam’s exports and imports issued together with Circular No. 103/2015/TT-BTC dated July 1, 2015 of the Ministry of Finance, HS annotation, supplementary explanatory notes (SEN) of ASEAN Harmonized Tariff Nomenclature (AHTN), rules of classification of goods and Circular No. 14/2015/TT-BTC dated January 30, 2015 of the Ministry of Finance on guidelines for classification of goods, and analysis for classification of goods; analysis for quality inspection, food safety inspection for food for exported and imported products.

Pursuant to the rules 2a of Appendix II issued together with Circular No. 103/2015/TT-BTC dated July 1 of the Ministry of Finance: “An incomplete or unfinished product shall be classified into a group of products if it has basic characteristics of such products when it is completed or finished. A product, whether disassembled or assembled, shall be classified into a group of products if it has basic characteristics of such good when it is completed.

According to the above rule, an imported component is determined as a spare part of a specialized machine or equipment for agricultural production and has the same HS code with such machine or equipment, that component shall be not subject to VAT.

For example:

- Spare parts imported for assembly of a combine harvester-thresher with HS 84335100 include: chassis; engine; transmission part; threshing drum; grain pan; control panel; harvesting wheel; rubber tracks; the chassis lid, roof, operator seat, attached tool box. All above spare parts shall be used to assemble a complete combine harvester-thresher. Those spare parts are designed for assembly of combine harvester-thresher for agricultural purpose only. They shall not be subject to VAT consequently.

- Spare parts imported for assembly of a cultivator with HS 84322900 include: tiller Rotary, handlebar, supporting bar, rotary cover, latches, hood sides, bracket, blade scarifying. All above spare parts shall be used to assemble a cultivator used for the agricultural purpose only. They shall not be subject to VAT consequently.

- With regard to spare parts and equipment imported for assembly of pesticide sprayer (including spraying piece, sucker, spray lance, piston, nozzle, strap), if they are not treated as spare parts of pesticide sprayer as prescribed in the rule 2a prescribed in Appendix II issued together with Circular No. 103/2015/TT-BTC, they do not have the same HS code as the pesticide sprayer, so that they are subject to VAT consequently.

3. Difficulties related to specialized machinery and equipment for agricultural production unlisted as prescribed in Clause 2 Article 1 of Circular No. 26/2015/TT-BTC and Point 1 of this Official Dispatch shall be reported to General Department of Taxation and the Ministry of Finance for consideration.

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This document is handled by Dữ Liệu Pháp Luật . Document reference purposes only. Any comments, please send to email: [email protected]