The tax rate on aquatic products is one of the important factors that directly affects the business and import-export activities of enterprises in the industry. With the goal of promoting production and export, the government has had preferential policies on tax rates, the most common of which are 0% and 5%. This article by BIOGENCY will update details on current regulations related to these two tax rates.
- Seafood products are not subject to tax.
- Conditions for aquatic products to be subject to a 0% tax rate
- Aquatic products are subject to a 5% tax rate.
- Tax transition provisions
Seafood products are not subject to tax.
Aquatic products that are not subject to value added tax are specified in detail in Article 5 of the Law on Value Added Tax. Specifically, aquaculture products that are not processed into other products or are only processed normally will not be subject to tax. This applies to organizations and individuals that produce, catch and sell at the import stage.
Conventional processing includes steps such as cleaning, cutting, drying, packaging or cold storage to maintain product quality. The Ministry of Agriculture and Rural Development is responsible for determining whether a product is subject to conventional processing based on the production process provided by the taxpayer. This helps ensure legal compliance and proper application of tax regulations.
Conditions for aquatic products to be subject to a 0% tax rate
Pursuant to Article 18 of Decree 181/2025/ND-CP , exported goods and services will enjoy a 0% tax rate if they meet specific conditions. For exported goods, businesses need to have a contract for the sale or processing of exported goods, or an export entrustment contract depending on the specific case. In addition, there must be non-cash payment documents and customs declarations according to current regulations.
For export services, enterprises must have service contracts with foreign organizations and individuals or in duty-free zones. In addition, non-cash payment documents are also required. For specialized maritime services, contracts must be signed with foreign organizations or shipping agents at the request of that foreign organization. Payment documents must be non-cash documents from foreign partners or from shipping agents providing the services.
Ship repair services provided to foreign partners are subject to a 0% tax rate. This only applies when the ship is brought into Vietnam under temporary import and re-export. This process must comply with current legal regulations.
Aquatic products are subject to a 5% tax rate.
According to Article 19 of the Law on Value Added Tax, the tax rate on aquatic products at 5% is applied to goods and services specified in Clause 2 of this Article. However, some specific cases have been specified in more detail. Aquatic products that are farmed and caught but have not been processed into other products or have only undergone normal preliminary processing, as specified in Clause 1, Article 4 of this Decree, will not be subject to tax.
Other products subject to a 5% tax rate include rubber latex, sheet latex, vermicelli latex, rice latex; nets, ropes and yarns for fishing nets. Nets, ropes and yarns specifically used for nets will not be distinguished by the raw materials used. In addition, machinery and equipment specifically used for agricultural and aquatic production, processing and drying of agricultural products are also subject to a 5% tax rate.
The Ministry of Agriculture and Environment, together with the Ministry of Finance, will issue detailed guidance on specialized machinery for agricultural production that enjoys a 5% tax rate. In addition, Decree 181/2025/ND-CP also specifically stipulates the principles, methods of calculating and deducting VAT. This document also clarifies how to determine the taxable price for goods and services sold, imported and promotional activities.
Tax transition provisions
VAT refunds for invoices submitted will apply to tax periods from July 2025 or the third quarter of 2025. For investment projects that started before July 1, 2025 and are still in progress when the Decree takes effect, tax refunds will be subject to Article 30. These provisions aim to ensure consistency and clarity in the application of tax policies to business and investment activities.
Article 31 of this Decree provides for VAT refunds for production activities of goods and services subject to a tax rate of 5%. This provision applies to input VAT amounts that have not been fully deducted, arising from the effective date of the Decree on July 1, 2025. In case the legal documents cited in the Decree are amended, supplemented or replaced, the new provisions shall apply.
The updated tax rates for aquatic products show the flexibility of tax policies to support the industry. Mastering these regulations not only helps businesses optimize production and business activities but also ensures compliance with the law.
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