MINISTRY OF FINANCE
GENERAL DEPARTMENT OF TAXATION
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SOCIALIST REPUBLIC OF VIET NAM
Independence - Freedom – Happiness
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No. 2478/TCT/DTNN
Hanoi, August 09, 2004
 
OFFICIAL LETTER
ON VALUE ADDED TAX (VAT) RATES APPLICABLE TO PRODUCTS OF PLANTED FOREST TIMBER

 

To:
Cat Phu Joint-Venture Limited Liability Company
(Phuoc Trung, Phuoc Dong, Nha Trang, Khanh Hoa)
 
In reply to Official Letter No. 124/VT-2004 of July 16, 2004, of Cat Phu Joint-Venture Limited Liability Company on VAT rates applicable to products of planted forest timber, the General Department of Taxation hereby gives the following opinion:
Pursuant to the provisions of the Finance Ministry’s Circular No. 120/2003/TT-BTC of December 12, 2003, guiding the implementation of the Government’s Decree No. 158/2003/ND-CP of December 10, 2003, detailing the implementation of the VAT Law and the Law Amending and Supplementing a Number of Articles of the VAT Law:
- Cultivation products (including products of planted forest timber) unprocessed or preliminarily processed at the commercial business stage are subject to the VAT rate of 5%.
- If the company purchases planted forest timber, then processes such timber into chips, pulp, sawn timber or other products for sale on the market, the VAT rate of 10% shall apply.
The General Department of Taxation hereby notifies the company thereof for knowledge and implementation.
 
 
FOR THE GENERAL DIRECTOR OF TAXATION
DEPUTY GENERAL DIRECTOR


Pham Van Huyen