What is value added tax?

Subjects of value added tax are goods and services used for production, business and consumption in Vietnam, except for those not subject to tax under the Law on Value Added Tax and legal documents guiding implementation.

Value-added tax payers are organizations and individuals producing and trading goods and services subject to value-added tax and organizations and individuals importing goods subject to value-added tax.

VAT rate:

1.The 0% tax rate applies to goods and services exported and international transport

2. The tax rate of 5% applies to the following goods and services:

a) Clean water for production and daily life;

b) Ores for fertilizer production; pesticides and growth stimulants for animals and plants;

c) Services of digging, embankment, and dredging canals, ditches, ponds and lakes for agricultural production; cultivating, tending and preventing pests and diseases for plants; preliminary processing and preservation of agricultural products;

d) Unprocessed cultivation, husbandry and aquaculture products, except for products specified in Clause 1, Article 5 of this Law;

e) Preliminary processed rubber latex; preliminary processing resin; nets, ropes and fibers for making fishing nets;

g) Fresh food; unprocessed forest products, except for timber, bamboo shoots and products specified in Clause 1, Article 5 of this Law;

h) Road; by-products in sugar production, including molasses, bagasse, and sludge;

i) Products of jute, sedge, bamboo, leaves, straw, coconut shell, coconut skull, water hyacinth and other handicraft products made from agricultural raw materials; semi-processed cotton; newsprint;

k) Medical equipment and instruments; medical sanitary cotton and bandages; medicine for disease prevention and treatment; pharmaceutical chemical products, medicinal materials that are raw materials for the production of curative medicines and preventive medicine;

l) Teaching aids used for teaching and learning, including models, drawings, boards, chalks, rulers, compasses, and specialized equipment and tools for teaching, research and experimentation. scientific experiment;

m) Cultural activities, exhibitions, gymnastics and sports; performing Arts; make a film; film import, distribution and screening;

n) Children's toys; books of all kinds, except for the books specified in Clause 15, Article 5 of this Law;

o) Scientific and technological services according to the provisions of the Law on Science and Technology;

q) Sell, lease, or lease purchase social housing in accordance with the Law on Housing.

3. The tax rate of 10% applies to other goods and services that are not subject to the taxable 0% and 5% taxable group.