Agricultural exports troubled by VAT **If the input is one word or a very short phrase**, return **ONLY its literal translation in English** **DO NOT describe it, explain it, or expand on it** Xuất khẩu Exports

Last weekend, the Vietnam Food Association (VFA) and the Vietnam Coffee - Cocoa Association (VICOFA) jointly submitted a document to the Prime Minister recommending that rice and coffee be removed from the list of goods subject to a 5% value-added tax (VAT) under the new regulations of the VAT Law effective from July 1. This regulation is causing significant capital and procedural pressure for businesses.

Export of Vietnamese agricultural products faces unreasonable and cumbersome regulations

Mr. Do Ha Nam, Chairman of the Board of Directors of Intimex Corporation - a "big player" in the agricultural export sector with an annual turnover of over 1 billion USD, proposed eliminating the VAT refund procedure for export goods.

Instead, these items should be issued a 0% VAT invoice from the outset. Since, in essence, export goods are not subject to VAT, having to pay a 5% tax and then go through the refund procedure is an unreasonable and cumbersome regulation.

Mr. Nam pointed out that the concerns faced by export businesses are the freezing of capital, causing cash flow blockages due to the enormous amount of VAT that must be paid in advance.