Seafood producers hit by VAT issues and import duties

Saturday, Oct 19, 2013 11:44

Total aquatic export turnover in the first 9 months rose 4.5 per cent against the corresponding period last year. — File Photo

HA NOI (Biz Hub) — Difficulties in the implementation of value-added tax (VAT) refunds and deductions have contributed to capital shortages at aquatic businesses.

This opinion was voiced by Truong Dinh Hoe, general secretary of the Viet Nam Association and Seafood Exporters and Producers (VASEP).

Meeting with the Ministry of Finance in Ha Noi earlier this week, Hoe said enterprises have faced high import taxes and administrative problems over VAT refunds for the purchase of input materials, which are then be used in the production of items for export.

He said there was no regulation stipulating the maximum time for tax agencies to verify VAT payment, thus making exporters wait for a long time for the tax refund.


Seafood sector enjoys strong growth

Figures released by VASEP showed that by the end of the third quarter, the country's seafood exports reached US$1.8 billion, increasing 12.5 per cent over the same period last year.

Shrimp exports have continued to increase from the second quarter while tra (catfish) became stagnant.

Total aquatic export turnover in the first nine months of the year rose 4.5 per cent against the corresponding period last year. — VNS

He added that aquatic exporters were required to pay VAT and import tax before implementing customs clearance.

He said this created a risk of them incurring tax debt within two months if their exported items were returned due to commercial barriers and packaging mistakes despite them paying VAT before.

Do Hoang Anh Tuan, Deputy Minister of Finance, said reports from provinces showed that some businesses have taken advantages of VAT refunds and reductions for tax evasion by purchasing goods in several localities.

Other businesses used illegal VAT invoices to apply for the tax reduction and refund to appropriate taxes.

Tuan said the ministry had asked tax agencies to investigate businesses with high tax risks to prevent tax fraud and losses to the State budget collection.

He also asked the General Department of Taxation to review the amended Law on Tax Management to crackdown harder on fraudsters. — VNS

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