Deducting VAT on agricultural machinery
![]() |
Photo by: T.Trang. |
On January 29, 2016 the official letter No.1677/BTC-TCT was enacted by the Ministry of Finance to the relative agencies in order to orient the operation on all sorts of machinery, equipment and other specialized services for agricultural production that were not identified in Circular No. 26/2015/TT-BTC.
According to the document, with cases of businesses that have declared, caculated and paid their VAT that matches the instruction of the 1677/BTC-TCT circular from January 1, 2015 to January 29, 2016, such businesses will not have to adjust anykind of tax-related activities.
Nonetheless, cases of businesses that import or purchased machines and any other devices for agriculture production that were declared, paid VAT in the importing process (or have paid VAT during the purchase), which come before January 29, 2016. Other businesses that on sell this equipment from January 29, 2016, must file their bills that have the record under the previous VAT taxation system and shall return and address the input VAT at the stage of import with the output VAT taxes that needs to be paid for the goods and other services instand of being returned directly to the State budget.
Therefore, the Ministry of Finance is sending out requests to the entire body of Customs, Tax departments of all provinces and cities to encourage the associated sectors and businesses to follow this new and improve offcial letter as detailed above.
Related News

Hai Phong Customs processes more than 1,500 declarations during 2025 Lunar New Year holiday
14:09 | 05/02/2025 Customs

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion
09:58 | 06/02/2025 Import-Export
Latest News

Flexible tax policy to propel Việt Nam’s economic growth in 2025
14:14 | 06/02/2025 Regulations

Brandnew e-commerce law to address policy gaps
18:44 | 29/01/2025 Regulations

From January 1, 2025: 13 product codes increase export tax to 20%
14:23 | 29/12/2024 Regulations

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025
13:46 | 28/12/2024 Regulations
More News

Proposal to reduce 30% of land rent in 2024
14:58 | 25/12/2024 Regulations

Resolve problems related to tax procedures and policies for businesses
13:54 | 22/12/2024 Regulations

New regulations on procurement, exploitation, and leasing of public assets
09:17 | 15/12/2024 Regulations

Actively listening to the voice of the business community
09:39 | 12/12/2024 Customs

Step up negotiations on customs commitments within the FTA framework
09:44 | 08/12/2024 Regulations

Proposal to amend regulations on goods circulation
13:45 | 06/12/2024 Regulations

Review of VAT exemptions for imported machinery and equipment
10:31 | 05/12/2024 Regulations

Customs tightens oversight on e-commerce imports
13:39 | 04/12/2024 Regulations

Bringing practical experience into customs management policy
13:48 | 03/12/2024 Regulations
Your care

Flexible tax policy to propel Việt Nam’s economic growth in 2025
14:14 | 06/02/2025 Regulations

Brandnew e-commerce law to address policy gaps
18:44 | 29/01/2025 Regulations

From January 1, 2025: 13 product codes increase export tax to 20%
14:23 | 29/12/2024 Regulations

Export tax rates of 13 commodity codes to increase to 20% from January 1, 2025
13:46 | 28/12/2024 Regulations

Proposal to reduce 30% of land rent in 2024
14:58 | 25/12/2024 Regulations