Question:
Currently, my company purchases rice and seafood from producers, packages the rice, and freezes the seafood. We then sell these products to businesses (restaurants and hotels) and individuals (consumers). I have read Circular No. 219/2013 regarding VAT rates, but I don’t fully understand the language used in it. I would like to inquire specifically about our company’s situation: When our company sells to restaurants and hotels, what is the VAT rate? Is it 5%, or is it exempt from VAT?
Answer:
-Based on Clause 5, Article 5 of Circular No. 219/2013/TT-BTC dated December 31, 2013, issued by the Ministry of Finance, which provides guidance on VAT, it stipulates cases where VAT is not required to be declared or paid.
-According to these regulations:
- In the case where the company pays VAT through the method of deducting the sale of agricultural, livestock, aquatic products, or seafood that has not been processed into other products and is only minimally processed for sale to restaurants and hotels as businesses, there is no requirement to declare or pay VAT. On the VAT invoice, you should state the selling price without VAT, and do not include lines for the VAT rate and VAT amount, which should be left blank.
- In the case where the company sells agricultural, livestock, aquatic products, or seafood that has not been processed into other products and is only minimally processed for sale to restaurants and hotels operated by individual businesses, you are required to declare and pay VAT at a rate of 5% on the selling price without VAT.
