Official Letter No. 3546/CT-CS dated 29 May 2026 issued by the Tax Department regarding VAT policy applicable to plantation timber subject only to ordinary preliminary processing

Effective from 01 January 2026, enterprises, cooperatives, and cooperative unions applying the VAT credit method that engage in the purchase and sale of plantation timber products subject only to ordinary preliminary processing shall not be required to declare, calculate, or pay Value Added Tax (VAT).

The above treatment shall also apply where such timber is purchased and subsequently undergoes additional processing stages, provided that the products sold are still classified as plantation timber subject only to ordinary preliminary processing.

The determination of whether timber qualifies as being subject only to ordinary preliminary processing shall be made in accordance with Decree No. 181/2025/ND-CP and Circular No. 84/2025/TT-BNNMT.

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