List of VAT tax-liable goods of 0%, 5% and 10%

The VAT tax rate is the payable tax rate per unit of tax-liable goods and services. The VAT tax rates include three levels: 0%, 5%, and 10%.

1. Goods liable to the tax rate of 0%

In accordance with Article 9, Circular No. 219/2013/TT-BTC, the 0% tax rate applies to exported goods and services; construction and installation of works overseas and in non-tariff zones; international transportation; and goods and services not liable to VAT except for the case cases ineligible for the 0% tax rate.

Exported goods and services are goods and services sold and provided
to overseas organizations and individuals and consumed outside Vietnam; sold and provided to organizations and individuals in non-tariff zones; or provided to foreign customers in accordance with law.


Subjects of tax rate of 0%

Conditions of tax rate of 0%


Exported goods include:

- Goods exported abroad, including those exported under entrustment contracts;

- Goods sold into non-tariff zones under the Prime Minister’s regulations; goods sold to duty-free shops;

- Sold goods that are delivered and received outside Vietnam;

- Spare parts used for repair and maintenance of vehicles, machinery, and equipment for foreign parties and consumed outside Vietnam;

- Cases regarded as exportation under the law:

+ Intermediary processed goods under commercial law regarding international goods trading and goods trading and processing agency with
foreign parties.

+  On-spot exports as prescribed by law.

+ Goods exported for sale at overseas fairs and exhibitions

- Having a contract on sale or processing of exported goods; or contract on export entrustment;

- Having documents of via-bank payment for exported goods, and other documents prescribed by law;

- Having customs declarations, particularly for the sale of goods that are delivered and received outside Vietnam, the business establishment (the seller) must have documents proving such delivery and receipt, e.g., a goods purchase contract signed with the overseas seller;  Goods sale contract signed with the purchaser; documents proving that goods are delivered and received outside Vietnam such as: Commercial invoice according to international practices, bill of lading, packing list, and certificate of origin, etc.; via-bank payment documents: Viabank payment document of the business establishment for the overseas seller, and via-bank payment document of the purchaser for the business establishment. 


Exported services include:

- Services provided directly to overseas organizations and individuals and consumed outside Vietnam; or provided directly to organizations or individuals in non-tariff zones and consumed in non-tariff zones.

Overseas individuals are foreigners not residing in Vietnam and Vietnamese residing overseas and not present in Vietnam during the provision of services.  Organizations and individuals in non-tariff zones are those with business registration and other cases specified by the Prime Minister.

In case services are provided both inside and outside Vietnam while service contracts are signed between two taxpayers present in Vietnam or having resident establishments in Vietnam, the 0% tax rate applies only to the value of services provided outside Vietnam, except in the case of provision of insurance services for imported goods in which the 0% tax rate applies to the whole contractual value.

In case it is impossible to determine the value of services provided in Vietnam under the contract, the taxed price shall be determined based on the percentage (%) of expenses arising in Vietnam to total expenses. Service providers being taxpayers in Vietnam must have documents proving that services are provided outside Vietnam.

- Having a service provision contract with an organization or individual overseas or in a non-tariff zone;

- Having documents of via-bank payment for exported services and other documents prescribed by law;

Particularly for aircraft and seagoing ship repair services provided to foreign organizations and individuals, to be eligible for the 0% tax rate, aircraft and seagoing ships must, apart from meeting the above conditions on contract and payment documents, go through the import procedures upon their entry into Vietnam and export procedures upon completion of repair.


International transportation covers transportation of passengers, luggage, and cargo on international routes from Vietnam to overseas or vice versa or from an overseas place to another, regardless of whether means of transport are available.  In case an international transportation contract covers domestic routes, international transportation also covers such domestic routes.

For example: Transportation company X in Vietnam, which has ships for international transportation, transports cargo from Singapore to the Republic of Korea.  Turnover from such transportation is turnover from international transportation.

- Having a lawful contract on the carriage of passengers, luggage, and cargo between the carrier and carriage lessee along international routes from Vietnam to abroad or vice versa or from one to overseas location.

 For carriage of passengers, the carriage contract is the ticket.  International transportation businesses shall comply with regulations on transportation.

Having documents on via-bank payment or other methods of payment regarded as via-bank payment.  Having documents on direct payment, for carriage of individual passengers.


Aviation and maritime services provided directly to overseas organizations or through agents, including:

Aviation services eligible for the 0% tax rate:  Provision of in-flight meals; takeoff and landing; apron; aircraft security and protection; security screening of passengers, luggage and cargo; luggage conveyors in airport terminals; ground technical and commercial services; aircraft protection; aircraft pushback and towing; aircraft piloting; aerobridge lease; flight operations; transportation of flight crews, stewards and passengers within aprons; cargo loading and tally; and passenger service for international flights from Vietnamese airports (passenger service charges).

- Maritime services eligible for the 0% tax rate:  Seagoing ship towing; maritime piloting; maritime salvage; piers and floating wharves; loading and unloading; mooring and unmooring; opening and closing of hatch covers; cargo hold cleaning; tally and forwarding; and registration.

For aviation and maritime services:

- The 0% tax rate applies to aviation services at international airports, airfields and international air cargo terminals which satisfy the following conditions:

+ Having a service provision contract with, or a service provision request by, an overseas organization or a foreign airline.

+ Having documents on via-bank payment or other modes of payment regarded as via-bank payment.  For provision of services to a foreign organization or a foreign airline on an irregular, unscheduled and noncontractual basis, having documents on direct payment of such organization or airline.

The above conditions on contracts and payment documents do not apply to the provision of services to passengers on international flights departing from Vietnamese airports (passenger service charges).

- The 0% tax rate applies to maritime services at seaports that satisfy the following conditions:

+ Having a service provision contract with, or a service provision request by, an overseas organization or a shipping agent;

+ Having documents of via-bank payment of an overseas organization or a shipping agent, or other methods of payment regarded as via-bank payment


Other goods and services include:

- Construction and installation of works overseas or in non-tariff zones;

- Goods and services not liable to VAT upon exportation, except the cases ineligible for the 0% tax rate; Repair of aircraft and seagoing ships for foreign organizations and individuals.


Note: Cases ineligible for the 0% tax rate include:

- Offshore reinsurance; offshore transfer of technologies or intellectual property rights; offshore capital transfer, credit extension or securities investment; derivative financial services; outbound post and telecommunications services (including post and telecommunications services provided to organizations and individuals in non-tariff zones; and provision of prepaid mobile phone cards with codes and par value overseas or in non-tariff zones);

Exported products being unprocessed natural resources or minerals; cigarettes, alcohol and beer ineligible for the 0% tax rate in accordance with the regulations prescribed in Clause 23, Article 4, Circular No. 219/2013/TT-BTC which is amended, supplemented by Article 1, Circular No. 25/2018/TT-BTC that are imported then exported; and goods and services provided to individuals without business registration in non-tariff zones, except other cases provided by the Prime Minister cigarettes, alcohol and beer that are imported then exported are not subject to output VAT upon export, but they are not entitled to input VAT credit.

- Petrol and oil sold to domestically purchased automobiles of businesses in non-tariff zones;

- Automobiles sold to organizations and individuals in non-tariff zones

- Services provided to organizations and individuals in non-tariff zones, including:  lease of houses, halls, offices, hotels, warehouses and storage yards; transportation of employees; catering services (except the provision of industrial meals and catering services in non-tariff zones);

- The following services provided in Vietnam to overseas organizations and individuals are ineligible for the 0% tax rate:

+ Sports competitions, art, cultural and recreational performances, conferences, hotels, training, advertising and travel;

+ Online payment;

+ Services attached with the sale, distribution, and consumption of products and goods in Vietnam.

2. Goods liable to the tax rate of 5%

Pursuant to Article 10, Circular No. 219/2013/TT-BTC, goods, and services have a tax rate of 5%, including:


Names of goods and services


Clean water for production and life, excluding bottled drinking water and other beverages subject to a tax rate of 10%.


Fertilizers; ores for fertilizer production; pesticides and plant and animal growth stimulants, including:

- Fertilizers which are organic and inorganic fertilizers such as phosphorus fertilizer, nitrate fertilizer (urea), NPK, mixed nitrate, phosphate, potassium; microbial fertilizers and other fertilizers;

- Ores for fertilizer production which are those used as materials for fertilizer production such as apatite for phosphorus fertilizer production, humus for microbial fertilizer production.

- Pesticides which include plant protection drugs.


Services of digging, embanking and dredging canals, ditches, ponds and lakes for agricultural production; cultivating and tending plants and preventing and controlling pests; and preliminarily processing and preserving agricultural products (except dredging intra-field canals and ditches).

Services of preliminary processing and preservation of agricultural products, including sun-drying, heat-drying, peeling, pitting, slicing, grinding, freezing, salting and other ordinary methods of preservation.


Cultivation, husbandry, aquatic and marine products which are unprocessed or preliminarily processed and preserved (in the forms not liable to VAT) at the stage of commercial business, except the cases not requiring VAT declaration and payment.

Unprocessed farm produce guided in this Clause includes paddy, rice, maize, potato, cassava and wheat.


Preliminarily processed latex in the forms of crepe, sheet, strip or granule; preliminarily processed pine resin; nets, net ropes and cords for weaving fishing nets, including fishing nets, assorted cords and ropes for exclusive use in weaving fishing nets, regardless of their production materials.


Fresh and raw foods at the stage of commercial business; unprocessed forest products at the stage of commercial trading, except timber, bamboo shoots and the products in the cases not eligible to VAT

Fresh and raw foods are those which have been neither cooked nor processed into other products, but have only been preliminarily processed by cleaning, peeling, slicing, freezing or sun-drying, and still remain fresh and raw, such as cattle and poultry meat, shrimps, crabs, fishes, and other aquatic and marine products.  Seasoned food is subject to the 10% tax rate.

Unprocessed forest products are forest products exploited from natural forests and of the groups of:  bamboo and rattan of various kinds, mushrooms, Jew’s ear fungus; roots, leaves, flowers, medicinal plants, plant resins, and other forest products.


Sugar and by-products in sugar production, including molasses, bagasse and dregs.


Products made of jute, rush, bamboo, rattan, leaves, straw, coir, coconut shells, water hyacinth, and other handicraft products made of raw materials from agricultural production are those made of or processed from jute, rush, bamboo, rattan and leaves as main raw materials, such as Jute strings made of bamboo or coir; curtains and blinds made of bamboo of various kinds, bamboo brooms, conical hats; bamboo chopsticks; preliminarily processed cotton; newsprint paper.


Medical equipment and instruments, including special-use machinery and instruments for medical use, such as scanners and radiography machines of all kinds for medical examination and treatment; devices and instruments used exclusively in surgery and wound treatment; ambulances; blood-pressure, cardiac and vascular meters; blood transfusion instruments; syringes and needles; contraceptive devices and other special-use medical equipment as certified by the Ministry of Health;

Medical cotton, bandages, gauzes, and medical hygienic bandages; preventive and curative medicaments, including finished medicaments, materials for the manufacture of medicaments other than functional food; vaccines, medical biologicals, distilled water for preparation of injections and transfusion fluids; chemical supplies for testing and germicides for medical use; surgical
caps, clothes, masks, cloths, gloves, boots, shoe covers and tissues and gloves for medical use, breast implants, and dermal fillers.


Teaching and learning aids, including models, drawings, writing boards, chalks, rulers, compasses and other equipment and devices used for teaching and scientific research and experiment.


- Cultural, exhibition, physical training and sports activities; art performances; film production; film import, distribution and screening.

- Cultural, exhibition, physical training and sports activities, except revenues such as:  sales of goods, rentals of grounds and yards or booths at fairs or exhibitions;

- Art performance activities:  such as tuong (classical drama), cheo (traditional operetta), cai luong (reformed drama), singing, dancing, music, drama, circus; other art performances and services of organizing art performances of theaters or tuong, cheo, cai luong, singing, dancing, music, drama or circus troupes licensed by competent state agencies;

- Film production; film import, distribution and screening, except the products.


Children’s toys; books of various kinds, excluding those not liable to VAT


Science and technology services, which are activities serving or supporting scientific research and technological development; activities related to intellectual property; technology transfer, standards, technical regulations, metrology, product and goods quality, radiation and nuclear safety and atomic
energy; services on information, consultancy, training, retraining, popularization and application of scientific and technological achievements in socio-economic fields under science and technology service contracts provided in the Law on Science and Technology, excluding online games and entertainment services on the Internet.


Sale, lease or lease-purchase of social houses under the Housing Law.  Social houses are houses built by the State or organizations or individuals of different economic sectors and satisfying the criteria on domicile, sale price, rent, rent-purchase price, eligible persons, and conditions for purchase, rent or rent-purchase of social houses under the housing law.


3. Goods liable to the tax rate of 10%

Pursuant to Article 11, Circular No. 219/2013/TT-BTC, the 10% tax rate applies to goods and services not eligible for the VAT tax rate of 0%, 5%.

The VAT rates of 5%, 10% apply uniformly to each type of goods or service at the stages of importation, manufacture, processing and commercial business.

For example:

- If garments are subject to the 10% tax rate, they are subject to this tax rate at all the stages of importation, production, processing, and commercial business.

- Scraps and defective products recovered for recycling and reuse when being sold, are subject to the VAT rate applicable to corresponding goods items.

An establishment that trades in different goods or provides different services subject to different VAT rates shall declare VAT at the rate applicable to each type of goods or services. If unable to do so, the establishment shall calculate and pay VAT at the highest rate applicable to the goods or services it produces, trades in or provides.

In the course of implementation, if there arises any case involving the application of a VAT rate according to the Preferential Import Tariff which is unconformable to this Circular, this Circular will apply.  For cases involving the application of different VAT rates to the same type of imported and homemade goods, local tax offices and customs offices shall report them to the Ministry of Finance for timely guidance on uniform application.

List of VAT tax-liable goods of 0%, 5% and 10% (Illustration)

4. List of goods not liable to VAT

(1) Products of cultivation (including products from planted forests) and husbandry, reared and fished aquatic and marine products which have not yet been processed into other products or have only been preliminarily processed by ordinary methods then sold by producing or fishing organizations or individuals themselves and at the stage of importation.

Enterprises and cooperatives sell unprocessed or preliminarily processed cultivation, husbandry or aquatic products to other enterprises and cooperatives for commercial purposes do not have to declare, calculate and pay VAT but having credited input value-added tax credit.

(2) Products being animal breeds and plant varieties, including breeding eggs and animals, seedlings, seeds, seeding twigs and tubers, semen, embryos and genetic materials at the stages of rearing, importation and trading.

(3) Water irrigation and drainage; soil plowing and harrowing; intra-field canal and ditch dredging for agricultural production; services of harvesting farm produce.

(4) Input VAT on goods, services and fixed assets serving manufacture of: fertilizers, special-use machinery and equipment for agricultural production, offshore fishing ships, feeds for cattle, poultry, aquatic animals, and other animals;

(5) Salt products made from seawater, natural rock salt, refined salt and iodized salt, the principal component of which is sodium chloride (NaCl).

(6) State-owned houses sold by the State to their current tenants.

(7)  Transfer of land use rights.

(8) Life insurance, health insurance, student insurance and other insurance services related to humans; livestock insurance, crop insurance and other agricultural insurance services; insurance for ships, boats and other equipment and gears necessary for fishing; reinsurance.

(9) The following financial, banking and securities trading services:

- Credit extension services in the following forms: loan provision; discount and rediscount of negotiable instruments and other valuable papers; bank guarantee; financial leasing; issuance of credit cards, domestic factoring; international factoring and other forms in accordance with law provisions.

- Loan services of taxpayers other than credit institutions;

- Securities trading: covering securities brokerage, securities dealing, securities issuance underwriting, securities investment consultancy, securities depository, securities investment fund, and securities investment company management, securities investment portfolio management, market organization services provided by stock exchanges or securities trading centers, services involving securities registered or deposited at Vietnam Securities Depository, provision of margin loans, advance payment for securities sale and other securities trading activities specified by the securities law.

-  Capital transfer includes Covering the transfer of part or the whole of capital amounts invested in other economic organizations, transfer of securities, transfer of the capital contribution right and other forms of capital transfer provided by law;

- Debt sale;

- Foreign currency trading;

- Derivative financial services, including: Interest rate swap, forward contracts, future contracts, foreign exchange put and call options and other derivative financial services provided by law;

- Sale of security assets for debts of government-established organizations of which the State owns 100% charter capital for handling nonperforming loans of Vietnamese credit institutions.

(10) Healthcare and animal health services, including medical examination and treatment and disease prevention for humans and livestock, birth control, convalescence and functional rehabilitation for patients.


Conclusion: VAT tax rates include 0%, 5%, 10%; different tax rates cause the payable tax amount. 

(2 rated)
For further support, please call 19006192


See more