The objects subject of 10% value-added taxes

In addition to goods and services subject to VAT rates of 0%, 5%, or non-taxable, goods and services subject to 10% tax rate are specified in Article 11 of Circular No.219 does not apply to goods and services specified in Articles 4, 9 and 10 of this Circular.

📌 With Article 4, Circular 219 is the regulation on non-taxable goods and services.

📌With Article 9 of Circular 219, which is the regulation on goods and services subject to 0% VAT.

📌With Article 10 of Circular 219, which is the regulation on goods and services subject to 5% VAT.

The VAT rates are mentioned in Articles 10 and 11 are uniform application to each type of goods and services at the stages of import, production, machining or commercial business.

For example, The garment is subject to a tax rate of 10%. the stage of import, production, machining, or commercial business still apply to the tax rate of 10%

Goods and services subject to the 10% VAT rate include:

⭐ Scraps and substandard products that are recovered for recycling and use. When sold are subject to the VAT rate according to the tax rates of sold items, scraps, and substandard products.

Note: Business premises about goods and services subject to the tax rate of 0%, goods and services subject to the tax rate of 5%, and goods and services subject to the 10% tax rate must declare VAT at each tax rate prescribed for each type of goods and services. If Business premises do not determine according to each tax rate, they must calculate and pay tax according to the highest tax rate of goods and services for which they carry out production and business activities.

⭐ During the implementation process, if there is a case that the VAT rate in the VAT rate table according to the import-export tax table, .which is not consistent with the guidance in Circular 219, the guidance in Circular 219 shall be followed. In case the applied VAT rate is not disunion for the same type of imported and domestically produced goods, the local tax authority and local customs office shall report to the Ministry of Finance for timely guidance on implementation.

However, some cases need to be noted and the 10% tax rate must be applied:

✅ Credit information service

✅Expenditures to support the implementation of promotions, marketing, and product displays

✅ Bottled water and other soft drinks subject to the 10% tax rate

✅ Internal consumption but not for production and business activities

✅ Food that has been seasoned with spices is subject to a tax rate of 10%.

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