Decree 181/2025/ND-CP detailing the Law on Value-Added Tax

DECREE

Detailing a number of articles of the Law on Value-Added Tax

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Pursuant to the Law on Organization of the Government dated February 18, 2025;

Pursuant to the Law on Value-Added Tax dated December 26, 2024;

Pursuant to the Law on Amending and Supplementing a Number of Articles of the Law on Bidding, Law on Investment in the Form of Public-Private Partnership, Customs Law, Law on Value-Added Tax, Law on Import Duty and Export Duty, Law on Investment, Law on Public Investment, and Law on Management and Use of Public Properties dated June 25, 2025;

At the proposal of the Minister of Finance;

The Government promulgates the Decree detailing a number of articles of the Law on Value-Added Tax.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree details regulations on taxpayers specified in Clauses 1, 4, and 5 Article 4, and regulations on taxpayers in case foreign suppliers provide services to purchasers being Vietnam-based business organizations and applying the tax credit method defined in Clause 4 Article 4, non-taxable objects specified in Article 5, taxable price specified in Article 7, time for determining value-added tax (VAT) specified in Clause 2 Article 8, tax rates specified in Clauses 1 and 2 Article 9, tax credit method specified in Article 11, direct tax calculation method specified in Clause 1 Article 12, input value-added tax credit specified in Article 14, and value-added tax refund specified in Article 15 of the Law on Value-Added Tax.

Article 2. Subject of application

Subjects of application of this Decree include:

1. Taxpayers specified in Article 3 of this Decree.

2. Tax administration offices under the law on tax administration.

3. Other relevant organizations and individuals.

Article 3. Taxpayers

Regulations on taxpayers shall comply with Article 4 of the Law on Value-Added Tax. A number of cases are detailed as follows:

1. Taxpayers prescribed at Clause 1, Article 4 of the Law on Value-Added Tax include:

a) Organizations established and registered for business in accordance with the Law on Enterprises, the Law on Cooperatives, and other specialized laws.

b) Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, people’s armed forces units, non-business organizations and other organizations.

c) Foreign-invested enterprises and foreign parties to business cooperation contracts under the Law on Investment; foreign organizations and individuals conducting business activities in Vietnam without establishing legal entities in Vietnam.

d) Export processing enterprises conducting other business activities in accordance with the law on management of industrial parks and economic zones.

dd) Households and individuals engaged in production and business; independent business groups.

e) Other organizations and individuals engaged in production and business activities.

2. Taxpayers prescribed at Clauses 4 and 5, Article 4 of the Law on Value-Added Tax include:

a) Foreign suppliers without Vietnam-based permanent establishments that conduct e-commerce business or digital platform-based business activities with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers); organizations that are managers of foreign digital platforms that make tax deduction and tax payment on behalf of foreign suppliers; business organizations in Vietnam applying the value-added tax calculation method of deducting tax on services purchased from foreign suppliers without Vietnam-based permanent establishments through e-commerce channels or digital platforms that make tax deduction and tax payment on behalf of foreign suppliers. The tax deduction and tax payment on behalf of foreign suppliers of the taxpayers defined in this Point shall comply with the law regulations on tax administration.

b) Taxpayers specified in Clause 5, Article 4 of the Law on Value-Added Tax that are organizations managing e-commerce exchanges and organizations managing digital platforms with the payment functions shall comply with the Government's Decree No. 117/2025/ND-CP dated June 9, 2025, prescribing tax administration for business activities on e-commerce platforms and digital platforms by households and individuals.

Article 4. Non-taxable objects

Regulations on non-taxable objects shall comply with Article 5 of the Law on Value-Added Tax. A number of cases are detailed as follows:

1. Crop, forest and livestock production products, and reared and fished aquaculture products that have not yet been processed into other products or have just undergone preliminary processing and are sold by producing and fishing organizations and individuals, and those at the stage of importation. In which, products preliminarily processed by ordinary methods are those which have only been cleaned, sun-dried, heat-dried, peeled, milled, crushed into fragments, ground into fragments, husked, pitted, stemmed, cut, ground, polished, glazed, separated into parts, deboned, minced, skinned, mashed, rolled thin, salted, hermetically sealed, cold-preserved (frozen or chilled), preserved with sulfur dioxide, impregnated with preservative chemicals, soaked in sulfur solution or another preservative solution or otherwise ordinarily preserved.

In cases it cannot be determined, based on the production process of crop, forest and livestock production products, and reared and fished aquaculture products provided by the taxpayers, the Ministry of Agriculture and Environment shall be responsible for determining whether they have not yet been processed into other products or have just undergone preliminary processing and are sold by producing and fishing organizations and individuals, and those at the stage of importation in accordance with law regulations.

2. Houses classified as public assets sold by the State to current tenants. In which, the houses classified as public assets shall comply with the housing law.

3. Transfer of land use rights as defined by the law on land.

4. The following financial, banking, securities trading and commercial services:

a) Credit extension services in accordance with the law on credit institutions, and charges specified in loan agreements concluded between the Government of Vietnam and foreign lenders.

b) Loan provision services provided by taxpayers other than credit institutions.

c) Securities trading, including securities brokerage; securities dealing; securities issuance underwriting; securities investment consultancy; management of securities investment funds; and management of securities investment portfolio in accordance with the law on securities.

d) Capital transfer, including transfer of part or the whole of the capital amount invested in other economic organizations (regardless of whether new legal persons are established or not), securities transfer, transfer of capital contribution rights and other forms of capital transfer as specified by law regulations, including also the case of selling enterprises to other enterprises for production and business, and purchasing enterprises inheriting all rights and obligations of selling enterprises in accordance with law regulations. Capital transfer specified at this Point does not include the transfer of investment projects and asset sale.

dd) Selling debts, including sale of payables and receivables, sale of deposit certificates among the taxpayers other than credit institutions.

e) Foreign currency trading.

g) Derivative products in accordance with the laws on credit institutions, securities, and commerce, including interest rate swapping; forward contracts; futures contracts; options contracts; and other derivative products.

h) Sale of collateral of debts of Government-established organizations with 100% charter capital held by the State and having the function of debt trading to deal with non-performing loans of Vietnamese credit institutions.

The Ministry of Finance shall detail regulations on securities trading services and securities transfer specified at Points c and d of this Clause.

5. Funeral services cover renting of funeral homes, hearses and cars, various forms of disposition of remains, grave removal and care and must be provided by establishments with the function of providing funeral services.

6. Renovation, repair and construction of cultural-historical relics, beauty spots, cultural, artistic, public service and infrastructure works and houses for social policy beneficiaries which are funded by people’s contributions or humanitarian aid (accounting for 50% or more of the total capital amount for the works; in cases the amount funded by people’s contributions or humanitarian aid accounts for under 50% of the total capital amount for the works, the entire value of such works shall be subject to value-added tax). In which:

a) People’s contributions includes contributed and donated amounts from organizations and individuals.

b) Cultural-historical relics, beauty spots defined in this Clause shall comply with the law regulations on cultural heritage.

c) Public service and infrastructure works mean the works not serving for the business purposes and not subject to fee collection. The works specified at this Point shall comply with Point 2, Section I and Section III of Appendix I issued together with the Government's Decree No. 06/2021/ND-CP dated January 26, 2021, detailing a number of provisions on quality management, construction and maintenance of construction works.

d) Social policy beneficiaries defined in this Clause include people with meritorious service as prescribed by the law on people with meritorious service; social protection beneficiaries enjoying allowances from the state budget; members of poor households or households living just above the poverty line; and other cases as prescribed by law.

7. Teaching and vocational training activities in accordance with the laws on education and vocational education. In case educational and vocational training institutions have other charges and revenues through authorized collection and spending, these charges and revenues are not liable to value-added tax; goods and services provided by organizations and individuals to the educational and vocational training institutions are subject to value-added tax in accordance with regulations.

8. Publication, import and distribution of newspapers, journals, bulletins, special issues, political books, textbooks, teaching materials, law books, techno-scientific books, books serving external information activities, books printed in ethnic minority languages, and propaganda paintings, pictures and posters, including those in the forms of audio or visual tapes or disks or e-data; money and money printing activities. In which:

a) Political books are books disseminating the political line of the Party and the State, serving specific political themes or topics, serving anniversaries or traditional days of organizations, levels, sectors and localities; statistic books; books about good people and good deeds; and books of speeches, research and theoretical articles of Party and State leaders.

b) Textbooks are books used for teaching and learning at the levels from preschool to upper secondary school (including reference books for teachers and pupils relevant to contents of education curricula).

c) Teaching materials are books used for teaching and learning in universities, colleges, professional secondary and vocational training schools.

d) Law books are books of legal documents of the State.

dd) Techno-scientific books are books introducing and guiding scientific and technical knowledge directly related to production and various scientific and technical branches.

e) Books printed in ethnic minority languages include also bilingual books in Vietnamese and an ethnic minority language.

g) Public communication and mass agitation pictures, photos and posters are pictures, photos, posters, leaflets and brochures used for public communication and mass agitation purposes, slogans, leaders’ pictures, the Party’s flag, the national flag, the Youth Union’s flag, the Young Pioneers League’s flag.

h) Books serving external information activities, in which the external information shall comply with the Government’s Decree No. 72/2015/ND-CP dated September 7, 2015, on management of external information activities.

9. Mass transit by bus, tramcar and inland waterway vehicle operating within provinces, in urban areas, and on neighboring inter-provincial routes with designated pick-up and drop-off points.

10. Machinery, equipment, parts and supplies which cannot be manufactured at home and need to be imported for direct use in scientific research and technological development; machinery, equipment, spare parts, special-purpose vehicles and supplies which cannot be manufactured at home and need to be imported for prospecting, exploring and developing oil and gas fields; airplanes, helicopters, gliders, oil rigs, ships and boats which cannot be manufactured at home and need to be imported for formation of enterprises’ fixed assets or which are hired from foreign partners for production and business activities or for lease. In which:

The Ministry of Finance shall promulgate the list of machinery, equipment and supplies which can be produced at home, identifying those which cannot be produced at home and need to be imported to directly serve scientific research and technological development; the list of machinery, equipment, spare parts, special-use means of transport and supplies which can be produced at home for identifying those which cannot be produced at home and need to be imported for prospecting, exploring and developing oil and gas fields; and the list of aircraft, helicopters, gliders, derricks and ships which can be produced at home for identifying those which cannot be produced at home and need to be imported to create fixed assets of enterprises or hired from abroad for production, business or lease.

11. Goods imported as humanitarian aid or non-refundable aid; goods and services sold to foreign organizations or individuals or international organizations for use as humanitarian aid or non-refundable aid to Vietnam. In which:

a) Goods imported as humanitarian aid or non-refundable aid are aid goods in accordance with the law regulations on receipt, management, and use of humanitarian aid and non-refundable aid.

b) For goods and services purchased domestically for humanitarian aid, non-refundable aid to Vietnam, a foreign organization or individual, or international organization must send to the goods seller a document clearly stating its/his/her name and the quantity or value of the purchased goods and/or services and containing written certification of competent agencies or units receiving such humanitarian aid, non-refundable aid. The agencies and units receiving humanitarian aid and non-refundable aid are responsible for providing confirmation as requested by foreign organizations and individuals or international organizations.

12. Goods transferred out of border gate or transited via the Vietnamese territory; goods temporarily imported for re-export; goods temporarily exported for re-import; raw materials imported for the production or processing of goods for export under contracts signed with foreign parties; goods and services traded between foreign countries and non-tariff zones and among non-tariff zones. Goods imported from abroad by financial leasing companies and transported directly into non-tariff areas for financial leasing to businesses in non-tariff areas. Non-tariff areas shall comply with the law regulations on import duty and export duty.

13. Technology transfer in accordance with the Law on Technology Transfer; assignment of intellectual property rights in accordance with the Law on Intellectual Property; software products and software services as specified by laws on information technology, digital technology industry, and relevant laws. In case of technology transfer or assignment of intellectual property rights accompanied with machinery and equipment transfer, the value of transferred technology or assigned intellectual property rights must be separated for determination of non-taxable objects; in case such value cannot be separated, value-added tax will be imposed on the entire value of the contract.

14. Exported products that are mined natural resources or minerals and have not been processed into other products, and exported products that are mined natural resources or minerals and have been processed into other products in line with the State’s orientations for not promoting export or restricting export of natural resources and raw minerals as defined in the List (Appendix I and Appendix II) issued together with this Decree.

If it is necessary to adjust the exported products in the List (Appendix I, Appendix II) to suit the socio-economic context in each period, the Ministry of Finance shall coordinate with relevant ministries in reporting to the Government for consideration and decision.

For exported products that are mined natural resources and minerals and have been processed into other products and are encouraged for export, have their high added value as determined and proposed by the Ministry of Industry and Trade, the Ministry of Finance shall assume the prime responsibility for, and coordinate with relevant ministries in, reporting to the Government for consideration and decision.

15. Imported goods, for the following cases:

a) Gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations or people’s armed forces units within the import duty-free quota in accordance with the law on import duty and export duty.

b) Presents and gifts within the import duty-free quota in accordance with the law on import duty and export duty that are given by foreign organizations and individuals to Vietnamese individuals; belongings of foreign organizations or individuals within diplomatic immunity quotas, and movable assets within the import duty-free quota in accordance with the law on import duty and export duty.

c) Goods within the import duty-free luggage quota in accordance with the law on import duty and export duty.

d) Goods imported as support and donations for the prevention, control and remediation of consequences of catastrophes, disasters, epidemics and wars that are goods used support and donations and received by ministries, ministerial-level agencies, People's Committees of provinces and cities, and the Vietnam Fatherland Front Committees of provinces and cities. The receiving agencies or organizations shall be responsible for issuing written confirmations of receipt as requested by the supporting or sponsoring organizations and individuals.

dd) Goods on the list of goods bought, sold or exchanged by border residents in accordance with law regulations to serve their production and consumption and within the import duty-free quota in accordance with the law on import duty and export duty.

e) Vestiges, antiquities and national treasures in accordance with the law on cultural heritage that are imported by competent state agencies, including authorized and entrusted import cases.

16. Establishments trading goods and services not subject to value-added tax as specified in this Article are not entitled to deduct or reclaim input value-added tax for goods and services being non-taxable objects, except for cases of application of 0% tax rate as specified in Clause 1 Article 9 of the Law on Value-Added Tax.

Chapter II

TAX BASES AND TAX CALCULATION METHODS

Section 1

TAXABLE PRICE

Article 5. Taxable price for sold goods and services and imported goods

1. For goods and services sold by business establishments, the taxable price is the selling price exclusive of value-added tax. For excise tax-liable goods and services, the taxable price is the selling price inclusive of excise tax but exclusive of value-added tax; for environmental protection tax-liable goods, the taxable price is the selling price inclusive of environmental protection tax but exclusive of value-added tax; for excise tax- and environmental protection tax-liable goods, the taxable price is the selling price inclusive of excise tax and environmental protection tax but exclusive of value-added tax.

2. For imported goods, the taxable price is the dutiable value of imported goods in accordance with the law on import duty and export duty plus import duty plus taxes being additional import duties under law regulations on import duty and export duty and foreign trade management (if any), plus excise tax (if any) and plus environmental protection tax (if any).

a) For imported goods eligible for import duty exemption, the taxable price is the dutiable value of imported goods.

b) For imported goods eligible for import duty reduction, the taxable price is the dutiable value of imported goods plus (+) the import duty determined at the payable duty rate after subtracting the reduced amount.

c) In case the imported goods subject to value-added tax and eligible for import duty exemption has any change in the use purposes of goods and such leads to the import duty payment, the supplementary value-added tax amount on the amount of import duty due is required.

Article 6. Taxable price for goods and services used for barter, internal consumption or donation, goods and services used for sales promotion

1. For goods and services used for barter, internal consumption or donation, the taxable price is the price for calculation of value-added tax on goods and services of the same or equivalent kinds at the time of barter, consumption or donation. In which, the goods and services used for internal consumption are those issued from stock or supplied by a business establishment for its own consumption, not including:

a) Goods and services used to continue the production or business process of the business establishment such as goods issued from stock for transfer within the establishment’s warehousing system, issued as supplies or semi-finished products for further manufacture and business within a single business establishment.

b) Goods and services issued from stock or supplied by the business establishment for its own production and business activities (including fixed assets self-constructed or self-produced by the business establishment).

c) An asset transferred between its dependent cost-accounting units; an asset transferred upon its split, separation, consolidation, merger or transformation; a fixed asset currently in use for which depreciation has been made according to its book value that is transferred between a business establishment and a member unit in which the business establishment owns 100% of capital or between member units wholly owned by a business establishment to serve the production or provision of products or services liable to value-added tax; or an asset contributed as capital to an enterprise.
 A business establishment having such assets must make an asset transfer order, enclosed with a dossier on the origin of the assets. Such assets must be accompanied with a written record of the contribution of capital for production and business; a joint-venture or association contract; an asset valuation record made by the contributed capital delivery and receipt council set up by capital contributors (or a valuation document issued by a functional organization according to law), enclosed with a dossier on the origin of such assets.

The business establishment with goods and services specified at Points a, b, and c of this Clause do not have to calculate value-added tax on them.

2. For goods and services used for sales promotion in accordance with the commercial law, the taxable price is determined as zero (0); except for cases where goods are sold or services are provided at prices lower than the previous goods sale or service provision prices, applied during the period of sales promotion (promotion form of price reduction), in such cases, the taxable price is the reduced selling price applied during the registered or notified period of sales promotion in accordance with the commercial law on trade promotion activities. The forms of sales promotion for goods and services where the taxable price is zero (0) or the taxable price of goods and services sold does not include the value of goods and services used for sales promotion are defined specifically as follows:

a) For sales promotion in the form of free provision of sample goods or services for customers’ trial use, the taxable price for these sample goods or services is zero (0).

b) For sales promotion in the form of presentation of goods as gifts to customers or free provision of services, the taxable price for these gifted goods or services is zero (0).

c) For sales promotion in the form of sale of goods or provision of services accompanied with vouchers, the taxable price of the goods or services does not include the value of the vouchers.

d) For sales promotion in the form of sale of goods or provision of services together with contest entry forms for selecting prize winners according to announced rules and prizes (or other similar forms of contest and prize awarding), the taxable price of the goods or services does not include the value of the winning goods or services from the contest entry forms (if any).

dd) For sales promotion in the form of sale of goods or provision of services accompanied by participation in luck-based sale promotion programs for winning prizes according to announced rules and prizes, the taxable price of the goods or services does not include the value of the goods or services used for awarding prizes.

e) For sales promotion in the form of organization of frequent customer programs under which rewards are given to customers based on the quantity or value of goods or services purchased by customers expressed in the form of customer cards or coupons acknowledging the goods or service purchase or other forms, the taxable price does not include the value of the customer cards or coupons acknowledging the goods or service purchase or other forms.

In cases of sale of goods or provision of services as defined in this Clause but not compliance with the regulations on sales promotion of the commercial law, the taxable price shall be determined as for gifted or donated goods as specified in Clause 1 of this Article.

Article 7. Taxable price for lease of property, goods processing, and construction and installation

1. For lease of property, the taxable price is the rental amount exclusive of value-added tax. In which:

a) The rental amount is the rental rates defined in the contract on asset lease.

b) In case of asset lease subject to periodical rental payment or advance rental payment for the lease period, the taxable price is the rental paid periodically or in advance, exclusive of value-added tax.

2. For goods processing, the taxable price is the processing price, exclusive of value-added tax. The processing price is the VAT-exclusive processing price under the processing contract, consisting of remuneration, costs of fuel, auxiliary materials and other expenses for the processing.

3. For construction and installation activities, the taxable price is the value of the handed-over work, work item or job, including the value of materials, machinery and equipment, exclusive of value-added tax. If construction or installation activities do not cover materials, machinery or equipment, the taxable price is the construction or installation value, excluding the value of materials, machinery or equipment.

Article 8. Taxable price for real estate business activities

For real estate business activities, the taxable price is the real estate selling price, exclusive of value-added tax, minus land use levy or land rental remitted into the state budget (the land price to be deducted). The land price to be deducted for value-added tax calculation in a number of cases is specified as follows:

1. In cases where the State allocates land or leases land with collection of land use levy and lease land with one-off payment of land rental for the entire lease period (through or not through auction), changes land use purposes, recognizes land use rights, adjusts land allocation decisions, adjusts land lease decisions, adjusts a detailed master plan, extends land use period, adjusts land use period, or converts from land lease with annual rental payment to land lease with one-off rental payment for the entire lease period, the land price to be deducted for value-added tax calculation is the land use levy and land rental paid once for the entire lease term, calculated according to the Government's Decree on land use levy and land rental (without deducting the amounts of, compensation, support and ground clearance that the land user has advanced (if any)).

2. In case business establishments acquire the real estate being land use rights from organizations or individuals, the land price to be deducted for value-added tax calculation upon transfer is the land use levy or land rental remitted into the state budget for the land area or parcel transferred, exclusive of the value of infrastructure. Business establishments may credit input value-added tax on infrastructure (if any).

3. In case business establishments receive land use rights as contributed capital from organizations or individuals, the land price to be deducted for value-added tax calculation is the land use levy or land rental remitted into the state budget.

4. In case business establishments implement build-transfer (BT) contracts and make payment in land fund, the land price to be deducted for value-added tax calculation is the value of the land fund used for payment as stipulated by the law on investment in the form of public-private partnership.

5. In case establishments trading in construction and commercial operation of infrastructure facilities or construction of houses for sale, transfer or lease, the taxable price is the amount collected according to the project implementation progress or payment progress written in the contract minus (-) the land price to be deducted specified in Clause 1, 2, 3 or 4 of this Article in proportion to the ratio (%) of the collected amount to the total contractual value.

6. In case a business establishment builds multi-story houses for many households or condominiums for sale, the to-be-subtracted land price per 1m² of housing equals the land price to be subtracted under Clauses 1, 2, 3 and 4 of this Article divided by (:) the number of square meters of the floor area, excluding the area under common use such as corridor, staircase, basement and underground construction works.

7. In cases a business establishment acquiring the real estate or receiving land use rights as contributed capital from organizations or individuals as specified in Clauses 2 and 3 of this Article cannot determine the land use levy or land rental remitted to the state budget, the taxable price shall be the real estate transfer price exclusive of value-added tax.

Article 9. Taxable price for goods trading or service agency and brokerage with commission, goods and services for which invoices indicating payment prices may be used

1. For goods trading and service agency and brokerage with commission, the taxable price is the commission on these activities, exclusive of value-added tax, except for cases not subject to calculation of value-added tax, including:

a) Turnover from goods and services for which the business establishment acts as a sale agent, and commissions for acting as a sale agent selling goods at prices fixed by principal establishments for such services as post, telecommunications, lottery tickets and air, car, train and boat tickets; international transport agents; for acting as agents for aviation and maritime services enjoying the value-added tax rate of 0%; for acting as insurance sale agents.

b) Turnover from goods and services not liable to value-added tax and commissions for acting as a sale agent of goods and services not liable to value-added tax.

2. For goods and services for which invoices indicating payment prices inclusive of value-added tax may be used, the taxable price shall be determined according to the following formula:

Article 10. Taxable price for casino, prize-earning video games, and betting

1. For casino and prize-earning video games, the taxable price is the proceeds from such activities minus the amount of money exchanged and returned to customers and not yet used up and the prize paid to customers (if any), inclusive of excise tax but exclusive of value-added tax. In which, the collected amount is the sum received from exchanging tokens for players at counters, gaming tables, and the amount collected from prize-winning video game machines.

2. For betting, the taxable price is the amount earned from the sale of betting tickets minus the prizes paid to customers (if any), including excise tax, excluding value-added tax.

Article 11. Taxable price for certain other production and business activities

For production and business activities including power production activities of the Vietnam Electricity; transportation, loading and unloading services; tourist services in the form of tours; pawning service; books subject to value-added tax sold at the distribution price (cover price); printing activities; services of assessment agency, agency for indemnity consideration, agency for claiming compensations from third parties and agency for handling of wholly compensated goods for remuneration or commission, the taxable price is the VAT-exclusive selling price. In which:

1. For power production activities of the Vietnam Electricity:

a) For electricity produced by hydropower plants acting as dependent cost-accounting units of the Vietnam Electricity or power generation corporations, the taxable price for determination of the payable value-added tax amount in the locality where such a plant is located equals 35% of the average electricity retail price exclusive of value-added tax in accordance with the laws on electricity and price.

b) For electricity produced by thermal power plants acting as dependent cost-accounting units of the Vietnam Electricity or power generation corporations, the taxable price for determination of the payable value-added tax amount in the locality where such a plant is located is the electricity selling price written in invoices under electricity purchase and sale contracts applicable to the thermal power plant. In case of unavailability of electricity purchase and sale contracts applicable to thermal power plants, the taxable price is the average electricity retail price exclusive of value-added tax in accordance with the laws on electricity and price.

c) For electricity produced by power production plants (except hydropower and thermal power) acting as dependent cost-accounting units of the Vietnam Electricity or power generation corporations, the taxable price for determination of the payable value-added tax amount in the locality where such a plant is located is the electricity selling price exclusive of value-added tax set by the competent state agency for each type of power generation. In case of unavailability of the electricity selling price set by the competent state agency for each type of power generation as specified at this Point, the taxable price is the average electricity retail price exclusive of value-added tax in accordance with the laws on electricity and price.

2. For transportation, loading and unloading services, the taxable price is the freight or loading and unloading charge rate exclusive of value-added tax, regardless of whether establishments directly provide transportation, loading and unloading services or outsource such services.

3. For tourist services in the form of tours under contracts signed with tourists at a package price (inclusive of meals, accommodation and transportation), this package price is regarded as the price inclusive of value-added tax.

The taxable price shall be determined according to the following formula:

In case the package price covers inbound and outbound air fares, expenses for meals, accommodation and sight-seeing and some other expenses incurred abroad (provided they are accompanied with lawful documents), the sum of money collected from tourists to cover these expenses may be subtracted from the taxable price (turnover). The input value-added tax for package tourist activities may be wholly credited under regulations.

4. For pawning service, the taxable price is the amount receivable from this service exclusive of value-added tax. The amount receivable from this service includes the interest receivable from pawn loans and other proceeds from the sale of pawned articles (if any). In case the amount receivable from this service includes value-added tax, the taxable price shall be determined according to the following formula:

5. For a VAT-liable book sold at the distribution price (cover price) under the Publication Law, this sale price shall be determined as the VAT-inclusive price. For a book sold at a price other than the cover price, value-added tax shall be calculated based on the sale price exclusive of value-added tax.

6. For printing activities, the taxable price is the printing cost exclusive of value-added tax. If a printing establishment performs printing contracts with payment prices covering printing and paper costs, the taxable price also includes the printing and paper costs exclusive of value-added tax.

7. For the services of assessment agency, agency for indemnity consideration, agency for claiming compensations from third parties and agency for handling of wholly compensated goods for remuneration or commission, the taxable price is the earned VAT-exclusive remuneration or commission amount.

Article 12. Taxable price for international telecommunication Services

For international telecommunication services, the taxable price is the price of providing international telecommunication services, excluding value-added tax. If a business establishment incurs connection services with a telecommunication network abroad, the taxable price may exclude the amounts collected from customers to cover these connection charges. The business establishment must separate the connection charges with foreign telecommunication networks to determine the taxable price. If this separation is not possible, the taxable price shall be the entire contract value, excluding value-added tax.

Article 13. Taxable price for services provided by foreign organizations and overseas individuals

For services provided by a foreign organization without a Vietnam-based permanent establishment or an overseas individual who is a non-resident in Vietnam (hereinafter collectively referred to as foreign contractor, foreign sub-contractor) with turnover arising in Vietnam that has not fully complied with the regimes of accounting, invoices, and documents, and not including foreign suppliers specified in Clause 4, Article 4 of the Law on Value-Added Tax, the taxable price is the entire turnover received by the foreign contractor or foreign sub-contractor from provision of services, or services combined with goods subject to value-added tax, without deducting any payable taxes, including any expenses paid on behalf of the foreign contractor or foreign sub-contractor by the Vietnamese party (if any). The Ministry of Finance shall detail this Article.

Article 14. Principles for determination of the taxable price

1. The taxable price of goods and services specified in this Section:

a) Covers revenues and surcharges earned by business establishments in addition to goods and service prices.

b) Does not include revenues unrelated to the sale of goods or provision of services by the business establishments, such as revenues of monetary compensation (including compensation for land and assets on land when land is recovered under decisions of competent state agencies), bonuses, recovery from third parties in insurance activities, collected amounts on behalf of others, remuneration from state agencies for performance of collection and payment activities on behalf of state agencies, and financial revenues.

2. In case a business establishment offers a commercial discount for customers (if any), the taxable price is the discounted price excluding value-added tax.

3. If a business establishment has calculated value-added tax but the taxable price is changed according to the conclusion of a competent state agency in accordance with relevant law regulations, the taxable price shall be determined according to such competent state agency’s conclusion.

Section 2

TIME OF VALUE-ADDED TAX DETERMINATION

Article 15. Time of value-added tax determination for exported goods and imported goods

1. For exported goods, the time of value-added tax determination is determined by the seller, but no later than the next working day from the date the goods enjoy customs clearance in accordance with the law on customs.

2. For imported goods, the time of value-added tax determination is the time of import duty and export duty determination in accordance with the law regulations on import duty and export duty.

Article 16. Time of value-added tax determination for certain other goods and services

1. For telecommunications services (including value-added telecommunications services):

a) For telecommunications services (including value-added telecommunications services), which require to check connection data among service business establishments, the time of value-added tax determination shall be the time of completion of checking data on service charges under economic contracts among service business establishments, but no more than 02 months from the month of arising the connection service charges.

b) For telecommunications services (including value-added telecommunications services) provided in a certain period, the time of value-added tax determination shall be the time of completion of checking data among parties (except for the cases specified at Point a of this Clause), but not later than the 7^th of the month following the month when the provision of services arises or no more than 7 days from the end of the conventional period. The conventional period shall be used as a basis for calculating the quantity of services under the agreement between the service provider and the buyer.

c) For telecommunications services (including value-added telecommunications services) provided through the sale of prepaid cards, charging of roaming charge, the time of value-added tax determination shall be the time of sale of prepaid cards, charging of roaming charge.

2. For activities of selling electricity:

a) For activities of selling electricity of electricity generation companies, the time of value-added tax determination shall be determined on a basis of the time of checking payment data among power system operation units and the electricity market, power generation units and power buyers in accordance with the Ministry of Industry and Trade's regulations or power purchase contracts guided and approved by the Ministry of Industry and Trade, but not later than the last day of the time limit for tax declaration and payment, for the month when the tax obligations generates according to the law on tax administration. For activities of selling electricity of electricity generation companies involved in the Government’s underwriting commitment about the payment time, the time of value-added tax determination shall be in accordance with the Government’s underwriting, the Ministry of Industry and Trade’s guidance and approvals, and power purchase contracts signed between the electricity buyer and seller.

b) For activities of selling electricity (except for the cases defined at Point a of this Clause), the time of value-added tax determination shall be the time of completion of checking data among parties, but not later than the 7^th of the month following the month when the provision of electricity arises or not more than 7 days from the end of the conventional period. The conventional period shall be used as a basis for calculating the quantity of electricity under the agreement between the goods seller or the electricity provider and the buyer.

3. For clean water supply activity, the time of value-added tax determination shall be the time of completion of checking data among parties, but not later than the 7^th of the month following the month when the provision of water arises or no more than 7 days from the end of the conventional period. The conventional period shall be used as a basis for calculating the amount of water supplied under the agreement between the water provider and the buyer.

4. For insurance business activities, the time of value-added tax determination shall be the time when insurance revenue is recognized in accordance with the law on insurance business.

5. For real estate trading, infrastructure construction or building of houses for sale, transfer or lease:

a) In case the ownership or use right has been transferred: the time of value-added tax determination shall be the time of transferring goods ownership or use rights to the buyer, regardless of whether money has been collected or not.

b) In case the ownership or use right has not been transferred yet: If the payment is made according to the project implementation schedule or the payment schedule specified in the contract, the time of value-added tax determination shall be the date of payment or the date as agreed in the contractual payment agreement.

6. For construction and installation activities, including shipbuilding, the time of value-added tax determination shall be the time of takeover test and handover of the completed work, work item or construction or installation volume or the handed-over portion of work, regardless of whether money has been collected.

7. For activities of oil and gas:

a) For activities of searching, surveying, exploiting and processing crude oil, the time of value-added tax determination for sale of crude oil, condensate and products made from crude oil (including activities of underwriting in accordance with the Government’s commitment) shall be the time when the buyer and seller define the official selling prices, regardless the payment is made or not.

b) For activities of selling natural gas, associated gas and coal gas that is transmitted by gas pipelines to the buyer, the time of value-added tax determination shall be the time when the buyer and seller define the gas volume delivered of the month, but not later than the last day of the time limit for tax declaration and payment, for the month when the tax obligations generates according to the law on tax administration.

Section 3

TAX RATES

Article 17. Tax rate of 0%

The 0% tax rate applies to goods and services specified in Clause 1 Article 9 of the Law on Value-Added Tax. In which:

1. Exported goods include:

a) Goods sold from Vietnam to overseas organizations and individuals and consumed outside Vietnam.

b) Goods sold from Vietnam to organizations in non-tariff areas and consumed in non-tariff areas to directly serve export production activities.

c) Goods sold in isolation areas to individuals (foreigners or Vietnamese) who have completed exit procedures; and goods sold at duty-free shops. Isolation areas and duty-free shops shall be determined in accordance with the Government’s Decree No. 68/2016/ND-CP dated July 1, 2016, prescribing conditions on trading of duty-free goods, operation of warehouses, storing yards, and places for customs clearance, goods gathering and customs inspection and supervision (which was amended and supplemented by the Government’s Decree No. 67/2020/ND-CP dated June 15, 2020).

2. Exported services include:

a) Services provided directly to overseas organizations and individuals and consumed outside Vietnam. In which, overseas individuals must satisfy the condition of being outside Vietnam during the period of service provision.

b) Services directly provided to organizations in non-tariff areas and consumed in non-tariff areas to directly serve export production activities, including: services directly provided to organizations in non-tariff areas and consumed in non-tariff areas to directly serve export production activities; transportation services; and services supplied to export processing enterprises (container lifting and lowering services at ports, factories, warehouses; loading, unloading, and handling services at factories, ports, airports, and related arising costs such as documentation charges, telex release charges, seal charges, handling charges, packing charges). Organizations in non-tariff zones are organizations with business registration.

3. Other exported goods and services, including: international transportation; lease of transportation vehicles used outside the territory of Vietnam; services of aviation and maritime sectors that are provided directly or via agents for international transportation; construction and installation of structures in foreign countries or non-tariff areas; digital information contents provided to foreign partners accompanied with dossiers and documents proving their consumption outside Vietnam; spare parts and supplies for repair or maintenance of vehicles, machinery or equipment of foreign partners which are consumed outside Vietnam; goods processed for export in accordance with law regulations; and goods and services not subject to value-added tax upon export, except cases not eligible for the tax rate of 0% as specified in Clause 4 of this Article. In which:

a) International transportation covers transportation of passengers, luggage and cargo along 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.

b) Services of aviation sector, including: 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; aircraft ship repair service; underground fueling services for international flights. The 0% tax rate applies to aviation services at international airports, airfields and international air cargo terminals.

c) Services of maritime sector, including: 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; repair of seagoing ships. The 0% tax rate applies to maritime services performed within the port areas.

d) Digital information contents provided to foreign partners are contents and information including text, data, images, and audio in digital form, stored and transmitted in the network environment, identified in accordance with the law regulations on information technology. A business establishment supplying digital information contents must have records and documents proving consumption outside Vietnam, such as: Information about the residency status of the foreign parties (organizations or individuals) abroad (payment address, delivery address, head office address, home address, or similar information declared by the purchasing organizations or individuals to the business establishment providing services in Vietnam); information about the access of the foreign organizations or individuals, such as information about the country calling code of it/his/her SIM card, IP address, location of the fixed telephone line, or other similar information of the organizations or individuals purchasing the goods or services.

4. The cases not applying the 0% tax rate prescribed at Points b and d, Clause 1, Article 9 of the Law on Value-Added Tax include:

a) Offshore transfer of technologies or intellectual property rights.

b) Offshore reinsurance service.

c) Credit extension services.

d) Capital transfer.

dd) Derivative products.

e) Post and telecommunications services.

g) Exported products prescribed in Clause 14, Article 4 of this Decree.

h) Imported cigarette, liquor and beer for export.

i) Petrol and oil domestically purchased and sold to business establishments in non-tariff zones; automobiles sold to organizations and individuals in non-tariff zones.

k) Services provided in Vietnam to overseas organizations and individuals are as follows: Sports competitions, art, cultural and recreational performances, conferences, hotels, training, advertising and travel; services attached with the sale, distribution and consumption of products and goods in Vietnam; non-cash payment services.

l) 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).

5. Goods and services sold or supplied to organizations in non-tariff zones and consumed in non-tariff areas to directly serve export production activities defined in Clause 1 and Clause 2 of this Article are those consumed in non-tariff areas serving export production activities of organizations in non-tariff zones, and not serving the activities other than the export production activities, except for goods and services specified in Clause 4 of this Article.

6. The Ministry of Finance shall detail this Article when necessary to perform its state management functions.

Article 18. Conditions on application of the 0% tax rate

Exported goods and services applied the 0% tax rate defined in Article 17 of this Decree (except for some specific cases defined in Articles 27 and 28 of this Decree) must satisfy the following provisions:

1. For exported goods:

a) Having a contract on sale or processing of exported goods (for direct sale or processing cases); or contract on export entrustment (for cases of export entrustment).

b) Having non-cash payment document for exported goods.

c) Having customs declaration as prescribed.

2. For exported services, except for Clauses 3, 4 and 5 of this Article:

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

b) Having non-cash payment document for exported services.

3. For international transportation:

a) Having a lawful contract on 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 another overseas location in forms compliant with legal regulations. For carriage of passengers, the carriage contract is the ticket. International transportation businesses shall comply with regulations on transportation.

b) Having non-cash payment document. Having documents on direct payment, for carriage of individual passengers.

4. For aviation services:

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

b) Having non-cash payment document. For provision of services to a foreign organization or a foreign airline on an irregular, unscheduled and non-contractual basis, having documents on direct payment of such overseas organization or foreign airline.

The regulations on contracts and payment documents defined in this Clause do not apply to the provision of services to passengers on international flights departing from Vietnamese airports.

Particularly for aircraft repair services provided to foreign organizations and individuals, to be eligible for the 0% tax rate, aircraft must go through the temporary import procedures upon their entry into Vietnam and re-export procedures in accordance with regulations.

5. For maritime services:

a) Having a service provision contract with, or a service provision request by, an overseas organization or a shipping agent.

b) Having non-cash payment document of overseas organization or a shipping agent to the business establishment providing the service.

Particularly for seagoing ship repair services provided to foreign organizations and individuals, to be eligible for the 0% tax rate, seagoing ship must go through the temporary import procedures upon their entry into Vietnam and re-export procedures in accordance with regulations.

Article 19. Tax rate of 5%

The 5% tax rate applies to goods and services specified in Clause 2 Article 9 of the Law on Value-Added Tax. A number of cases are detailed as follows:

1. Fertilizers, ores for fertilizer production, pesticides and animal growth stimulators in accordance with law regulations, in which: Ores for fertilizer production are ores used as materials for fertilizer production such as Apatite ore for producing phosphorus-containing fertilizers, and humus for microbial fertilizer production; pesticides shall comply with the law regulations on plant protection and quarantine.

2. Services of digging, embanking and dredging canals, ditches, ponds and lakes for agricultural production; growing, tending, and controlling pests and insects for, plants; preliminary processing and preservation of agricultural products. In which, preliminary processing and preservation of agricultural products include the services of cleaning, sun-drying, heat-drying, peeling, milling, crushing into fragments, grinding into fragments, husking, pitting, stemming, cutting, grinding, polishing, glazing, separating into parts, deboning, mincing, skinning, mashing, rolling thin, salting, hermetically sealing, cold-preserving (frozen or chilled), preserving with sulfur dioxide, impregnating with preservative chemicals, soaking in sulfur solution or another preservative solution or otherwise ordinarily preserving.

3. Crop, forest (except timber and bamboo) and livestock production products, and reared and fished aquaculture products that have not yet been processed into other products or have just undergone preliminary processing, except for the products specified in Clause 1, Article 4 of this Decree.

4. Rubber latex in the form of crepe latex, sheet latex, vermicelli latex, and rice latex; nets, main ropes and fibers for making fishing nets. In which, nets, net ropes and cords for weaving fishing nets include fishing nets, assorted cords and ropes for exclusive use in weaving fishing nets, regardless of their production materials.

5. Products made of jute, rush, bamboo, leaf, straw, coconut, husks and shells and Eichhornia crassipes, and other handicrafts made of agricultural raw materials; carded and combed cotton fabrics; paper for newspaper printing. In which, products made of jute, rush, bamboo, leaf, straw, coconut, husks and shells and Eichhornia crassipes, and other handicrafts made of agricultural raw materials are those made of or processed from jute, rush, bamboo, rattan and leaves as main raw materials, such as jute carpets, jute yarns, jute bags, coir carpets, jute or rush mats, brooms, ropes and strings made of bamboo or coir; curtains and blinds made of bamboo of various kinds, bamboo brooms, conical hats; bamboo chopsticks.

6. Fishing vessels at sea; special-purpose machinery and equipment for agricultural production. In which, special-purpose machinery and equipment for agricultural production include tractor; harrowing machine; milling machine; sowing machine; root dozer; field leveling device; seeding machine; transplanter; sugarcane planting machine; rice-sowing machine; tiller, cultipacker, fertilizer spreader; pesticide sprayer; machine for harvesting rice, corn, sugarcane, coffee and cotton; machine for harvesting tubers, fruits and roots; tea-cutting machine, tea leaf-picking machine; rice threshing machine; corn peeling machine; soybean crusher; peanut huller; coffee huller; machine and equipment for preparing coffee, wet rice; dryer for agricultural products (rice, corn, coffee, pepper, cashew nut, etc.) and aquaculture products; machine for collecting and loading sugarcane and rice straw on the field; machine for poultry egg incubation and hatching; forage harvester; straw and grass baler; milking machine, and other special-purpose machinery.

The Ministry of Agriculture and Environment shall assuming the prime responsibility for, and coordinate with the Ministry of Finance in, providing guidance on other special-purpose machinery serving agricultural production that are eligible for the 5% tax rate specified in this Clause.

7. Medical equipment in accordance with the law on management of medical equipment; preventive and curative medicines; and medicinal substances and pharmaceuticals used as raw materials for the production of curative and preventive medicines. In which:

a) Medical equipment refers to equipment that has an import license or a certificate of registration for circulation or a document announcing the application standards for medical equipment in accordance with the law regulations on health, or according to the list of medical equipment for export and import whose goods codes are identified under the Vietnamese import, export nomenclature issued by the Minister of Health in accordance with the law regulations on management of medical equipment.

b) Preventive and curative medicines, including finished medicines, materials for manufacture of medicines other than functional food; vaccines; medical biologicals, distilled water for preparation of injections and transfusion fluids;

8. Traditional and folk performing art activities are those as defined by law regulations on performing arts and cultural heritage.

9. Children toys; books of all kinds, except the books specified in Clause 8, Article 4 of this Decree.

Section 4

TAX CREDIT METHOD

Article 20. Tax credit method

1. The payable value-added tax amount by the tax credit method is equal to the output value-added tax amount minus the creditable input value-added tax amount.

2. The output value-added tax amount equals the total value-added tax amount for goods or services sold as written on the added-value invoice.

The value-added tax amount of the goods and service sold that is indicated on an added-value invoice shall be equal to the taxable price of the sold goods or service subject to value-added tax multiplied by the value-added tax rate applicable to such goods or service.

If the invoice is written with the payment price inclusive of value-added tax, the output value-added tax is equal to the payment price minus the taxable price determined under Clause 2 Article 9 of this Decree.

3. The creditable input value-added tax amount is equal to the total value-added tax amount written in the value-added tax invoice on purchased goods or services and the document proving the payment of value-added tax on imported goods or document proving tax payment in cases of service purchase and and satisfying the credit conditions specified in Section 1, Section 2, Chapter III of this Decree. In which, the document proving tax payment in cases of service purchase shall comply with Point a, Clause 2, Article 3 of this Decree and Clause 3, Article 4 of the Law on Value-Added Tax.

Article 21. Subjects of application of tax credit method

The tax credit method applies to business establishments that fully comply with the accounting, invoice and document regimes in accordance with law regulations on accounting, invoices and documents, including:

1. Business establishments with annual turnover of VND 1 billion or more from selling goods and providing services, excluding production and business households and individuals. In which:

a) The business establishment shall itself determine its annual turnover by adding up the item “Total sales of goods and services liable to value-added tax” in the monthly value-added tax declarations of the tax periods from November of the preceding year to the end of October of the present year preceding the year for which the value-added tax calculation method is determined or in the quarterly value-added tax declarations of the tax periods from the fourth quarter of the preceding year to the end of the third quarter of the present year preceding the year for which the value-added tax calculation method is determined. The period of stable application of a certain tax calculation method is two consecutive years.

b) If a newly established business establishment operates in production and business for less than 12 months within the year, its estimated annual turnover is determined as follows: The total amount of the item “Total sales of goods and services liable to value-added tax” in the monthly value-added tax declarations of the tax periods of months with production and business activities divided by (:) number of months with production and business activities and multiplied (x) by 12 months. In case the turnover estimated as guided above is VND 01 billion or more, the business establishment shall apply the tax credit method. In case the turnover estimated as guided above is less than VND 01 billion, the business establishment shall apply the direct calculation method by the turnover in 2 years, unless it registers for voluntary application of the tax credit method.

c) In case the business establishment suspends its production and business activities for a whole year, the tax calculation method shall be determined based on the turnover of the year preceding the year of suspension of production and business activities. In case the business establishment suspends its production and business activities for a certain period of time in the year or the preceding year, its turnover shall be determined based on the number of months or quarters of actually doing production and business activities as guided for cases with production and business activities for less than 12 months defined at Point b of this Clause.

2. Business establishments that voluntarily apply the tax credit method, except for households and individuals engaged in production and business. In which:

a) Currently operating enterprises, cooperatives and unions of cooperatives that have an annual turnover of less than VND 1 billion from sale of VAT-liable goods and provision of VAT-liable services and fully observe the accounting, invoice and document regimes in accordance with the law regulations on accounting, invoices and documents.

b) Newly established enterprises under investment projects of operating business establishments which pay value-added tax by the tax credit method.

c) Newly established enterprises that carry out investments under investment projects approved by competent authorities are eligible for voluntary registration to apply the tax credit method.

d) Newly established enterprises, cooperatives and unions of cooperatives with investment projects that are not subject to approval by competent authorities under the law regulations on investment, but have an investment plan approved by the authorized person of the enterprise who made the investment decision, and are eligible for registration to apply the tax credit method.

dd) Newly established enterprises, cooperatives and unions of cooperatives that invest in, purchase, or receive capital contributions in the form of, fixed assets, machinery, equipment, tools, instruments, or have a lease contract for a business location.

e) Foreign organizations with Vietnam-based permanent establishments, and overseas individuals who are residents in Vietnam with revenue arising in Vietnam.

g) Other economic organizations that can account for input and output value-added tax, not including enterprises, cooperatives and unions of cooperatives

3. Foreign organizations and individuals providing goods or services for prospecting, exploration and development of oil and gas fields and extraction of oil and gas, that pay tax by the tax credit method and for which Vietnamese partners make tax declaration, credit and payment on their behalf.

4. A newly established branch of an enterprise currently paying value-added tax using the tax credit method (including branches established from the enterprise's investment projects), which is required to file separate value-added tax declarations under law regulations on tax administration, shall determine its tax calculation method based on the tax calculation method of the operating enterprise.

Section 5

METHOD OF VALUE-ADDED TAX CALCULATION DIRECTLY BASED ON ADDED VALUE FOR PURCHASE, SALE OR PROCESSING OF GOLD, SILVER OR GEMS

Article 22. Method of value-added tax calculation directly based on added value for purchase, sale or processing of gold, silver or gems

1. The payable value-added tax amount by the method of direct calculation of tax on added value is equal to the added value multiplied by the value-added tax rate applied to gold, silver and gem purchase, sale and processing.

2. The added value of the activities of gold, silver or gem sale, purchase and processing shall be determined by the payment price of the sold gold, silver and gem minus the payment price of the corresponding purchased gold, silver and gem. In which:

a) The payment price of gold, silver or gem sold is the actual selling price written on the sale invoice, inclusive of the remuneration for processing (if any), value-added tax and surcharges enjoyed by the seller.

b) The payment price of gold, silver or gem purchased equals the value of gold, silver or gem purchased or imported, inclusive of value-added tax, which are used for purchase, sale or processing of gold, silver and gem sold.

3. A business establishment engaged in gold, silver or gem sale, purchase and fashioning activities shall separately account these activities so as to pay tax by the method of direct calculation on added value.

4. In a tax period, a negative (-) added value of gold, silver or gem, if any, shall be cleared against the positive (+) added value of gold, silver or gem. If there is no positive (+) added value or the positive (+) added value is insufficient for clearing the negative (-) added value, such negative (-) added value shall be carried forward for clearing against the added value of the subsequent period in the year. At the end of a calendar year, the negative (-) added value may not be carried forward to the subsequent year.

Chapter III
TAX CREDIT AND REFUND

Section 1

PRINCIPLES OF INPUT VALUE-ADDED TAX CREDIT

Article 23. Input value-added tax credit

1. Input value-added tax of goods and services used for the production and trading of goods and services liable for value-added tax may be wholly credited, including also the uncompensated input value-added tax on lost goods and services liable for value-added tax, goods exposed to natural loss in transportation due to their physic and chemical properties. Business establishments must have adequate dossiers and documents proving uncompensated losses for tax credit. In case the law provides for natural loss norms, business establishments may credit the input value-added tax amount for the quantity of goods actually subject to natural loss, provided it does not exceed the prescribed loss norm. The input value-added tax amount for the quantity of goods exceeding the loss norm is not creditable.

2. For input value-added tax on goods (including fixed assets), and services used for production and trading of goods and services both subject and not subject to value-added tax, only the amount of input value-added tax on goods or services used for the production and trading of goods or services subject to value-added tax may be credited. Business establishments shall separately account creditable and non-creditable input value-added tax amounts. In case it is impossible to separately account the creditable input value-added tax amount, such amount shall be calculated based on percentage of turnover from goods and services liable to value-added tax to total turnover from sold goods and services in the tax calculation period. In which:

a) The total turnover from sold goods and services includes turnover of goods and services subject to value-added tax; turnover of goods and services not subject to value-added tax; added value of the activities of gold, silver or gem sale, purchase and processing (except for the cases of negative (-) added value and the turnover from the goods and services specified in Clause 2 Article 40 of this Decree (if any). For the activities of foreign currency trading and securities trading, turnover is the difference between the selling price and the buying price (unless the difference is negative (-)).

b) For investment projects in production and trading of goods and services both subject and not subject to value-added tax, the input value-added tax amount for fixed assets in the capital construction investment phase may be temporarily credited at the percentage (%) of turnover of goods and services subject to value-added tax to the total turnover of goods and services sold under production and business plans of the business establishments. The temporarily credited tax amount shall be adjusted based on the percentage (%) of turnover of goods and services subject to value-added tax to the total turnover of goods and services sold within three years from the first year in which turnover is generated. If, after adjustment of the creditable value-added tax, the already refunded value-added tax amount (if any) is reduced, the difference in value-added tax due to the downward adjustment must be remitted to the state budget in accordance with the law regulations on tax administration. The business establishments shall not be subject to sanctioning of tax-related administrative violations regarding the difference in value-added tax due to the downward adjustment.

3. Input value-added tax on goods or services sold to organizations or individuals using humanitarian aid or non-refundable aid may be wholly credited.

4. Input value-added tax on goods or services used for prospecting, exploration and development of oil and gas fields may be wholly credited.

5. Input value-added tax amount arising in a month or quarter is declared and credited upon determination of the payable tax amount of that month or quarter, regardless of whether relevant goods or services have been delivered for use or remain in stock. The input value-added tax amount that has not been fully credited in a month or in a quarter may have those amounts credited in the subsequent month or quarter.

6. Business establishments detecting errors or omissions in the declaration and credit of input value-added tax may make declaration before tax offices or competent agencies announce decisions on tax examination and inspection as follows:

a) Taxpayers shall make additional declaration in the month or quarter in which the incorrect input value-added tax amount arises if the tax declaration in such month or quarter results in an increase in the tax payable or a decrease in the tax refundable of such month or quarter; the taxpayers must fully pay the increased amount of tax payable or have the corresponding refunded tax recovered and remit any late payment interests (if any) to the state budget.

b) Taxpayers shall make declaration in the month or quarter in which the incorrect input value-added tax amount is detected, if the tax declaration in the month or quarter in which the incorrect input value-added tax amount arises leads to a decrease in the payable tax amount or merely leads to an increase or a decrease in the creditable value-added tax amount to be carried forward to the subsequent month or quarter.

7. Input value-added tax amount for goods (including goods purchased or goods self-produced by the business establishments) that the business establishments use for gifting, donation, sales promotion, or advertising is creditable.

8. The value-added tax amounts already paid under customs offices’ tax assessment decisions may be wholly credited, except cases of fraud and tax evasion sanctioned by customs offices.

9. If a business establishment assigns its project management board or branch to directly execute and manage an investment project, declare value-added tax for the investment project, and the business establishment pay certain expenses on behalf of the project management board or branch, the project management board or branch may credit the input value-added tax based on value-added invoices issued under the name of the business establishment.  The business establishment is not allowed to credit input value-added tax for value-added invoices that its project management board or branch has already declared and credited.

10. Business establishments that pay value-added tax by the method of direct tax calculation and then change to pay tax by the tax credit method may credit value-added tax on purchased goods and services arising from the first declaration period of paying tax by the tax credit method.

11. Business establishments which pay value-added tax by the tax credit method and then change to pay tax by the method of direct tax calculation may include the value-added tax amount for goods and services purchased in the period of tax payment by the tax credit method that has not been fully credited in the final tax period before the conversion of tax calculation method in the expenses for calculation of enterprise income tax, or in the historical costs of these fixed assets in accordance with law regulations on enterprise income tax, except for the value-added tax amount for goods or services purchased each time with a value of VND 5 million or more and without non-cash payment documents.

12. For goods and services changed from those not subject to value-added tax to taxable objects under the Law on Value-Added Tax, business establishments may only declare and credit input value-added tax for goods and services used for the production and business of goods and services subject to value-added tax that arise from July 1, 2025.

13. Input value-added tax on fixed assets, machinery and equipment may not be credited in the following cases:

a) Fixed assets, machinery and equipment used exclusively for production of national defense and security products.

b) Fixed assets, machinery and equipment of credit institutions, reinsurance businesses, life insurance businesses, securities businesses, medical examination and treatment establishments and training institutions.

c) Airplanes, helicopters, civilian gliders, and yachts not used for cargo and passenger transportation, tourist or hotel business.

The non-creditable provision in this Clause also includes the input value-added tax on lease of these fixed assets, machinery, and equipment and the costs of repairing them (if any).

14. Corporations’ or business groups’ offices that are not directly engaged in business operations and subsidiary administrative and non-business units such as hospitals, clinics, sanatoriums, institutes, training establishments, etc., which are not value-added tax payers, shall not be entitled to input value-added tax credit for goods and services purchased for their operations. When these units also deal in goods and services liable to value-added tax, they shall separately register, declare and pay value-added tax for such business of goods and services liable to value-added tax.

15. Business establishments that fail to comply with the provisions on tax credit of Sections 1 and 2 Chapter III of this Decree, and have invoices and documents made from prohibited acts specified in Article 13 of the Law on Value-Added Tax are not entitled to value-added tax credit.

16. Business establishments may account the non-creditable input value-added tax amount in expenses for enterprise income tax calculation or in the historical costs of fixed assets in accordance with the law regulations on enterprise income tax, except for the value-added tax amount for goods or services purchased each time with a value of VND 5 million or more and without non-cash payment documents.

Article 24. Input value-added tax credit for certain special cases

Input value-added tax credit for certain special cases defined at Point a Clause 1 Article 14 of the Law on Value-Added Tax shall be carried out as follows:

1. Regarding goods and services that form fixed assets to serve employees:

a) Input value-added tax on goods and services which form fixed assets serving laborers within production or business premises, and houses and healthcare stations for workers in industrial parks, may be wholly credited.

b) In case business establishments rent houses for workers in industrial parks, the value-added tax on such rental may be credited under regulations. In case business establishments build or purchase houses outside industrial parks for their workers working in industrial parks, the value-added tax on these houses may be wholly credited. Houses for workers defined at this Point must comply with conditions for houses for workers in industrial parks under the law regulations on housing.

c) In case foreign specialists remain employees and under the management of overseas enterprises, and receive salaries and other benefits from overseas enterprises during their work in Vietnam under contracts between these overseas enterprises and Vietnam-based business establishments which state that Vietnam-based business establishments shall pay housing expenses for foreign specialists during their work in Vietnam, the value-added tax amount on house rentals for foreign specialists paid by Vietnam-based business establishments may be credited. In case Vietnam-based business establishments employ foreign specialists to work as managers in Vietnam and pay them salaries in Vietnam under signed labor contracts, the Vietnam-based business establishments may not credit the value-added tax amount on house rentals paid for these foreign specialists.

2. In case the assets contributed as capital are brand-new, have not been used, and have lawful invoices accepted by the capital delivery and receipt council, the value of contributed capital is that indicated in the invoices inclusive of value-added tax. The capital recipient may credit value-added tax amounts indicated in the invoices on purchase of the contributed assets.

3. For goods and services purchased through authorization, business establishments may credit value-added tax on the goods and services purchased through authorization to other organizations or individuals named in the purchase invoices, including the following cases:

a) Insurance businesses that authorize insured parties to repair assets and pay insured parties corresponding indemnities under insurance policies for the expenses for asset repair and replaced supplies and spare parts with value-added invoices indicating the insured parties’ names, may credit value-added tax amounts corresponding to the indemnities paid according to the value-added invoices indicating the insured parties’ names. For indemnities valued at VND 05 million or higher, insurance businesses shall make non-cash payment of them to the insured parties.

b) Before establishing an enterprise, its founders make a written authorization for an organization or a person to pay some expenses for the purchase of goods, materials, and other costs related to such establishment. The enterprise may credit input value-added tax according to value-added invoices indicating the name of the authorized organization or person and shall pay that organization or person by non-cash payment method for invoices valued at VND 5 million or higher.

4. For fixed assets being passenger cars of 9 seats or under (excluding automobiles used for cargo or passenger transportation or for tourist or hotel business; automobiles used as samples and for test drive for automobile business) which are valued at more than VND 1.6 billion (exclusive of value-added tax), the input value-added tax amount for the value exceeding VND 1.6 billion may not be credited.

5. For business establishments which organize closed production, centralized cost-accounting and use products not subject to value-added tax in different stages for production of goods subject to value-added tax, the input value-added tax amount in all stages may be wholly credited.

Section 2

CONDITIONS FOR INPUT VALUE-ADDED TAX CREDIT

Article 25. Invoices and documents

A business establishment must have lawful value-added invoices of purchased goods or services or documents of value-added tax payment at the importation stage or documents on value-added tax payment for foreign parties in accordance with Point a, Clause 2, Article 14 of the Law on Value-Added Tax (including documents of value-added tax payment at a percentage of turnover on behalf of the foreign parties).

Article 26. Non-cash payment documents

A business establishment must have documents of non-cash payment for purchased goods and services (including imported goods) valued at VND 5 million or more, inclusive of value-added tax. In which:

1. Non-cash payment documents are documents proving the non-cash payment in accordance with the Government’s Decree No. 52/2024/ND-CP dated May 15, 2024 on non-cash payment, except for documents on the buyer depositing cash into the seller's account.

2. A number of special cases prescribed at Point b, Clause 2, Article 14 of the Law on Value-Added Tax include:

a) For goods and services purchased by clearing their value against that of sold goods and services or by goods borrowing, which is specified in the contract, there must be a written record of comparison of figures and certification by the two parties of such clearing or borrowing. In case of debt clearing through a third party, there must be a written record of debt clearing by the three parties as a basis for tax credit.

b) For goods and services purchased by liabilities clearing such as money borrowing and lending or liabilities clearing through a third party, which is specified in the contract, there must be a borrowing or lending contract established in writing earlier and a document on money transfer from the lender’s account to the borrower’s, for a money loan, including also the case of clearing the value of purchased goods and services against the amount the seller supports the buyer or asks the buyer to make payment on its behalf.

c) In case purchased goods and services are paid by non-cash payment method by an authorized third party (including also the case in which the seller requests the buyer to make non-cash payment to a third party designated by the seller), the payment to the third party authorized or designated by the seller must be specified in a written contract and the third party must be a legal person or organization currently operating in accordance with law regulations.

d) If goods and services are purchased through payment by shares or bonds, and this payment method is specifically defined in the contract, a written purchase contract established beforehand is required.

dd) In case after the methods of payment defined at Points a, b, c and d of this Clause are applied and the remaining value of VND 05 million or higher is paid in cash, tax may be credited only upon availability of non-cash payment documents.

e) In case purchased goods and services are paid by the non-cash payment method into the third party’s account at the State Treasury to implement coercive measures of collecting money or property being held by other organizations and individuals (under competent state agencies’ decisions), the input value-added tax corresponding to the amount transferred into the third party's account at the State Treasury is creditable.

g) For goods and services purchased on deferred payment or in installments with a value of VND 05 million or more, business establishments shall make credit of input value-added tax for these goods and services based on written goods and service purchase contracts, added-value invoices and non-cash payment documents. If non-cash payment documents are not yet available because the payment time defined in contract or contract annex is not due, business establishments may still make credit of input value-added tax. If non-cash payment documents are unavailable by the payment time defined in contract or contract annex, business establishments shall declare and reduce input value-added tax amounts already credited for the value of goods and services without non-cash payment documents in the tax period in which the payment obligation arises according to the contract or contract annex.

h) For imported goods or services valued at below VND 5 million upon each importation; purchased goods or services valued at below VND 5 million according to VAT-inclusive prices written on their invoices upon each purchase; and importers’ imports being gifts and sample goods for which no payment is required from overseas organizations and individuals, non-cash payment documents are not required for purchased goods and services.

i) For goods and services purchased for the production and business of goods and services subject to value-added tax are paid for using non-cash payment method by an authorized individual being an employee of the business establishment under its financial provisions or internal regulations, and subsequently the business establishment reimburses the employee via non-cash payment, the input value-added tax is creditable.

3. A business establishment which purchases goods or services valued at less than VND 05 million from the same taxpayer but makes many purchases in the same day with the total value of VND 05 million or more is entitled to tax credit only when it produces non-cash payment documents.

Article 27. Conditions for input value-added tax credit for exported goods and services

For exported goods and services, in addition to the conditions prescribed in Articles 25 and 26 of this Decree, the business establishment must also have: a contract signed with a foreign party on goods sale or processing or service provision; a goods sale or service provision invoice; a non-cash payment document; a customs declaration form on exported goods (except for the cases where the customs declaration forms are not required in accordance with the law regulations on customs); a packing list, a bill of lading, and goods insurance documents (if any). In which:

1. Regarding the contract on goods sale or processing or service provision signed with the foreign party (the importing party): For export consignment, export consignment contracts and written records of liquidation of export consignment contracts (if contracts have terminated) or written records of periodical comparison of liabilities between the export consignor and consignee, clearly stating the quantity and category of products, the value of goods already exported under consignment; the serial number and date of the export contract signed between the export consignee and the foreign party; the serial number and date of, and the sum of money indicated in, the document of non-cash payment made by the export consignee to the foreign party; the serial number and date of, and the sum of money indicated in, the document of payment made by the export consignor to the export consignee; the serial number and date of the export consignee’s customs declaration for the exported goods.

2. Regarding the customs declaration form of exported goods: The declaration on completion of customs procedures in accordance with the law on customs.

3. Regarding the non-cash payment document: Document on the transfer of money from the account of the importer (or the bank serving the importer) to the account bearing the name of the business establishment (the exporter) opened at a bank according to the mode of payment agreed under the contract and the bank’s regulations. Payment document means the credit note of the exporter’s bank of the amount received from the importer’s bank account. In case of deferred payment, the agreement thereon must be stated in the export contract or an export contract annex, and when the payment is due, the exporter must have a non-cash payment document. In case of export consignment, there must be a document of non-cash payment made by the foreign party to the consignee and the export consignee must have a non-cash payment document for exports to the consignor. In case direct payment is made by the foreign party to the export consignor, the export consignor must have a non-cash payment document and this mode of payment must be stated in the contract. In case the exporter sells the importer's receivables to a third party (the buyer of the receivables) abroad, there must be a non-cash payment document from the third party (the buyer of the receivables). Such payment must be defined in the export contract and the contract for purchase of receivables with the overseas third party. The exporter must provide a written commitment and explanation for any discrepancy between the payment amount and the amount payable under the export contract, consistent with the contract for purchase of receivables. Except for certain cases where non-cash payment document requirements do not apply, as follows:

a) The payments for exported goods or services are cleared against foreign loans and the business establishment satisfies all the following conditions, procedures and dossiers: Loan contract (for financial loans of a term of under 1 year); or loan registration certificate of the State Bank of Vietnam (for loans of a term of over 1 year); non-cash payment document for transfer into Vietnam by the foreign party. The mode of payment for exported goods or services by clearing against foreign loans must be stated in the export contract; the foreign party’s written certification of the loan clearing; any difference between the value of exported goods or services and the foreign loan must shown in non-cash payment documents.

b) The exporter uses payments for exported goods or services as capital contributions to an overseas importer and this business establishment satisfies all the following procedures and dossier requirements: It has a capital contribution contract; the use of payments for exported goods or services as capital contribution to an overseas importer is stated in the export contract; in case the contributed capital amount is smaller than the revenues from exported goods, the difference must be shown in a non-cash payment document.

c) The foreign party authorizes a third party that is an overseas organization or individual to make payment, the authorized payment is stated in the export contract (or a contract annex or contract modification note, if any).

d) The foreign party requests a third party being a Vietnam-based organization to clear liabilities with the foreign party by making non-cash payment of the amount payable by the foreign party to the exporter, and such request is stated in the export contract (or a contract annex or contract modification note, if any) and there is a payment document being the credit note of the exporter’s bank of the amount received from the third party’s account, at the same time, the exporter must have the written record of comparison of liabilities certified by the foreign party and the third party.

dd) The foreign party (the importer) authorizes a third party being an overseas organization or individual to make payment; the third party requests a Vietnam-based organization (the fourth party) to clear liabilities with the third party by making non-cash payment of the amount payable by the importer to the exporter; and the exporter must satisfy all the conditions and dossier requirements as follows: The export contract (or a contract annex or contract modification note, if any) provides the authorized payment and clearing of liabilities between parties; the payment document is the bank’s credit note of the amount received from the fourth party’s account by the exporter; the note of comparison of liabilities certified by involved parties (between the exporter and importer and between the overseas third party and Vietnam-based fourth party).

e) The foreign party authorizes its Vietnam-based representative office to make payment to the exporter’s account and this authorized payment is provided in the export contract (or a contract annex or contract modification note, if any).

g) The foreign party (except foreign individual) makes payment from its current deposit account opened at a credit institution in Vietnam and this payment is stated in the export contract (or a contract annex or contract modification document, if any). The payment document is the credit note of the exporter’s bank of the amount received from the current account of the foreign purchaser that has signed the contract.

h) The non-cash payment is the case in which the foreign party is a private enterprise, the payment is made through the private enterprise owner’s current account opened a Vietnam-based credit institution and such payment is stated in the export contract (or a contract annex or contract modification note, if any). If the foreign purchaser is a private enterprise entering Vietnam through international border gates with a passport, carrying foreign currency cash or Vietnamese Dong cash to deposit into the current account of the private enterprise's owner opened at a Vietnam-based credit institution, the purchaser must make a customs declaration at the border gate when exiting or entering in Vietnam, as guided by the State Bank of Vietnam.

i) In case the foreign party makes non-cash payment but the paid amount indicated in the non-cash payment document does not match the amount payable under the contract or contract annex: If the paid amount indicated in the non-cash payment document is less than the amount payable under the contract or contract annex, the business establishment shall clearly state the reason such as bank transfer charges, discount as a result of goods’ poor quality or deficient quantity (in this case, a written agreement on discount between the importer and exporter is required); if the paid amount indicated in the non-cash payment document is larger than the amount payable under the contract or contract annex, the business establishment shall clearly state the reason such as lump-sum payment for many contracts, payment advances, the business establishment shall undertake to take responsibility before law for the reasons given to the tax office and modification documents (if any).

k) In case the foreign party makes non-cash payment, but the non-cash payment document does not bear the name of the bank of payment stated in the contract, if the payment document indicates the names of the payer and payee, the export contract serial number and the payment value matching the signed export contract, such document is regarded as valid.

l) In case the business establishment exports goods or services to a foreign party (the second party) and concurrently imports goods or services from another foreign party or purchases goods or services from a Vietnam-based organization or individual (the third party); if the business establishment reaches agreement with the second party and the third party on the second party’s non-cash payment to the third party of the amount payable by the business establishment to the third party, the clearing of liabilities between the parties must be stated in the export, import or purchase contract (or contract annex or modification note, if any) and the business establishment must have the note of comparison of liabilities certified by the involved parties (between the business establishment and the second party, and between the business establishment and the third party).

m) In case goods exported to a country are rejected by the foreign party for objective reasons and the business establishment finds another purchaser in the same country as the original contracting purchaser to sell such goods shipment, the tax credit documents comprise the entire export dossier related to the export contract signed with the original purchaser (contract, customs declaration of exported goods, invoice), the business establishment’s written explanation about the discrepancy in the purchaser name (covering its commitment to taking responsibility for the truthfulness of information without any frauds), the entire export dossier related to the export contract signed with the new purchaser (contract, sale invoice, non-cash payment document in accordance with law and other documents, if any).

n) For business establishments sending guest workers abroad which collect money directly from these workers, receipts of cash amounts paid by these workers are required.

o) In case of exporting goods or services to repay the Government’s foreign debts, the bank’s certification that the exported goods shipment has been accepted by the foreign party for debt clearing or that the document set has been forwarded to the foreign party for debt clearing is required; the payment documents in this case shall comply with the Ministry of Finance’s guidance.

p) Payment for exported goods or services in kind means the case in which goods (including goods processed for export) or services are exported to the foreign party but the payment between the exporting business establishment and foreign party is made by clearing the value of exported goods or services or exported goods-processing charges against the value of goods or services purchased from foreign parties. Payment for exported goods or services in kind: The mode of payment for exported goods in kind is stated in the export contract; contract on goods or service purchase of the foreign party; the customs declaration of imported goods paid for exported goods or services; the foreign party’s written certification of the amount of clearing payment between the exported goods or services and the goods or services imported from the foreign party; in case a difference arises from the clearing of the value of exported goods or services against that of imported goods or services, such difference must be indicated in the non-cash payment documents.

q) The export of goods to a bordering country under the law regulations on management of border trade with bordering countries must comply with the guidance of the Ministry of Finance and the State Bank of Vietnam.

r) In case of insolvency of the foreign party, the exporter shall make a written explanation and may use one of the following papers as the substitute for the non-cash payment document: The customs declaration of imports from Vietnam registered with a customs office of the country of importation (1 copy); or a lawsuit petition filed with a court or competent authority of the country in which the purchaser resides, together with such authority’s notice or written certification of acceptance of the lawsuit petition (1 copy); or a foreign court’s ruling on the exporter’s winning of the lawsuit (1 copy); or a foreign competent organization’s written certification (or notice) of the purchaser’s bankruptcy or insolvency (1 copy).

s) For inferior-quality exports subject to destruction, the exporter shall make a written explanation and may use the record of destruction (or a written certification of destruction) of goods overseas made by the agency conducting the destruction (1 copy), together with the document of non-cash payment for destruction expenses payable by the exporter or a paper proving the importer’s or third party’s responsibility for paying such expenses (1 copy) as the substitute for the non-cash payment document. When the importer has to carry out procedures for destruction overseas, the destruction record (or written certification of destruction) must indicate the importer’s name.

t) For lost exports, the goods exporter shall make a written explanation and may use one of the following papers as the substitute for the non-cash payment document: Written certification of the loss outside Vietnam by a relevant competent authority (1 copy); written record of the loss of goods during transportation outside Vietnam, clearly stating the cause (1 copy). A goods exporter that has received indemnities for exports lost outside Vietnam shall send the non-cash payment document of the received amount (1 copy).

u) Copies of the papers specified in this Clause must bear the true-copy certification by goods exporters. In case the language used in a third party’s documents or written certifications to replace non-cash payment documents is other than English or there is no English version, a notarized translation is required. If involved parties issue, use and store documents electronically, hard copies of those documents are required. Goods exporters shall take full responsibility for the accuracy of papers replacing non-cash payment documents in the cases defined in this Clause.

4. For goods sale or service provision invoices: Commercial invoices or value-added invoices as regulated by the law on invoices and documents.

Article 28. Conditions for input value-added tax credit for special goods and services

Conditions for input value-added tax credit in case of exporting goods via overseas e-commerce exchanges and a number of other particular cases, in addition to the conditions for input value-added tax credit specified in Articles 25 and 26 of this Decree, the goods exporter must have documents proving that the goods have been exported and sold outside Vietnam. In which:

1. For the cases of exporting goods via an overseas e-commerce exchange: the goods exporter must have documents proving that the goods have been exported and sold outside Vietnam such as: a contract signed with the manager of e-commerce exchange for sale of goods on an overseas e-commerce exchange (the sale transaction between the business establishment and the overseas buyer must fully comply with the regulations on contract conclusion with online ordering functions on overseas e-commerce exchanges in commercial law, e-commerce law, and e-transaction law); a sale invoice; a non-cash payment document (if the business establishment exporting goods authorizes an intermediary organization, such as managers of e-commerce exchanges to collect payment from overseas buyers, this authorized payment must be stated in the contract with the manager of e-commerce exchange); a customs declaration on completion of customs procedures in accordance with customs law when sending goods abroad; documents proving delivery to the overseas buyer; a packing list, a bill of lading, and goods insurance documents (if any).

2. For the cases of exporting goods already stored in overseas bonded warehouses: the goods exporter must have documents proving that the goods have been exported and sold outside Vietnam such as: an export contract for goods; an export consignment contract; sale invoice; non-cash payment document; declaration on completion of customs procedures in accordance with customs law when sending goods abroad; documents proving delivery to the overseas importer (declaration on completion of customs procedures upon exportation of goods for delivery to the buyer in the sending country or documents proving that the goods have been sold at a bonded warehouse); a packing list, a bill of lading, and goods insurance documents (if any).

3. For the cases of exporting goods at overseas fairs or exhibitions: the goods exporter must have documents proving that the goods have been exported and sold outside Vietnam such as: non-cash payment documents, if collecting and transferring home cash in foreign currencies of the countries where these trade fairs or exhibitions are organized, customs declarations of foreign-currency amounts from the goods sale transferred home and documents on remittance into banks in Vietnam are required.

4. For goods sold in isolation areas to individuals (foreigners or Vietnamese) who have completed exit procedures; and goods sold at duty-free shops: The business establishment must have documents proving that the goods have been sold in an isolation area or duty-free shop; a list of goods sold to departing customers in the isolation area or duty-free shop, using the form in Appendix III issued together with this Decree.

5. For digital information contents provided to foreign parties: The business establishment providing the service must have records and documents proving that the service was consumed outside Vietnam as defined at Point d, Clause 3, Article 17 of this Decree, and non-cash payment documents.

6. For intermediary processed goods for exportation being intermediary processed goods as prescribed in the commercial law and foreign trade management law: export processing contract and its annexes (if any) signed with the foreign party, clearly stating the goods recipient in Vietnam; value-added invoice clearly stating the processing charge and the quantity of processed goods delivered to the foreign party (at the price stated in the contract signed with the foreign party) and the name of the goods recipient designated by the foreign party; bill of delivery of intermediary processed products (referred to as delivery bill for short) with certifications of the deliverer and the recipient of intermediary processed products; payment for goods processed for foreign parties made not using cash in accordance with law regulations; customs declaration form under the law regulation on customs.

7. For the activities of construction and installation of works overseas or in non-tariff zones: a contract for construction and installation of works abroad or in a non-tariff zone; and non-cash payment documents in accordance with law regulations.

8. For goods and supplies exported by the business establishment to implement overseas construction projects, addition to Clause 7 of this Article, the business establishment must meet the following conditions: Customs declaration; exported goods and supplies conform with the list of goods exported for the implementation of an overseas construction project approved by the director of the Vietnamese enterprise implementing that project; export consignment contract (in case of export consignment).

9. If a business establishment has exported goods with a customs agency’s confirmation but lacks other procedures and dossiers related to the conditions for credit of input value-added tax according to regulations for specific cases in this Section, the input value-added tax for such goods shall not be credited, and the calculation of output value-added tax is not required. Specifically for intermediary processed goods, if the procedures and dossiers related to the conditions for credit of input value-added tax are not met according to regulations, then the value-added tax must be calculated and paid as for domestically consumed goods. For a business establishment providing exported services that does not meet the conditions for non-cash payment according to regulations, the input value-added tax for such goods is not credited, and the calculations of output value-added tax is not required.

Section 3

VALUE-ADDED TAX REFUND

Article 29. Tax refund for export activities

1. If in a month or a quarter, a business establishment exports goods or services and the input value-added tax amount for such exported goods or services not yet credited is VND 300 million or more, the business establishment shall be entitled to value-added tax refund on a monthly or quarterly basis, except for cases where imported goods are then exported to another country. In which:

a) The following business establishments are entitled to tax refund in some cases of export: For cases of export entrustment, business establishments having goods exported under entrustment; for intermediary processing, business establishments signing export processing contracts with foreign parties; for goods exported for the construction of works overseas, business establishments having goods exported for the construction of works overseas.

b) Imported goods subsequently exported to another country are goods imported by a business establishment from abroad into Vietnam and then directly exported or consigned for export, excluding goods that are imported raw materials for the production or processing of exported goods.

2. Business establishments that have concurrently exported goods or services and domestically consumed goods or services in a month or quarter shall separately account the input value-added tax amount used for production and business of exported goods or services. If it is impossible to separately account the input value-added tax amount for exported goods or services, such amount shall be determined according to the proportion of the turnover from exported goods or services to the total turnover from taxable goods and services in the tax refund period. The tax refund period shall be counted from the value-added tax calculation period in which tax refund has not been granted for the input value-added tax amount not yet fully credited to the tax calculation period in which a tax refund request is made. After the input value-added tax amount for exported goods or services (including the input value-added tax amount separately accounted and the input value-added tax amount determined according to the above-mentioned proportion) is cleared against the payable value-added tax amount for domestically consumed goods or services, if the remainder is VND 300 million or more, the concerned business establishment will be entitled to tax refund for such exported goods or services. The refundable value-added tax amount for exported goods and services must not exceed 10% of the turnover from exported goods and services in the tax refund period. The input value-added tax amount that has been determined for exported goods and services but has not been refunded because it exceeds 10% of the turnover of exported goods and services of the previous tax refund period shall be credited from the next tax period to determine the amount of value-added tax to be refunded for exported goods and services of the next tax refund period. The Ministry of Finance shall specify the method for determining the refundable value-added tax for exported goods and services.

Article 30. Tax refund for investment activities

1. In case a business establishment that has registered to pay value-added tax by the tax credit method has investment projects (new or expanded ones) in accordance with the law on investment (including also investment projects implemented in phases or involving multiple items, except for investment projects not involving formation of fixed assets of enterprises) that are currently in the investment phase, or projects on prospecting, exploration and development of oil and gas fields that are currently in the investment phase, and has the input value-added tax amount arising in the investment phase not yet entitled to tax refund, the business establishment shall clear such amount against the payable value-added tax amount for ongoing production and business activities (if any). After the clearing, if the amount of input value-added tax of investment projects that has not yet been fully credited is VND 300 million or more, business establishments will be entitled to value-added tax refund. In case an investment project has been completed (including also investment projects implemented in phases or multiple items with some implemented in phases and others already completed) while the business establishment has not yet carried out the procedures for the refund of value-added tax arising in the investment phase (for completed investment items or phases), the business establishment shall submit a dossier for value-added tax refund under regulations within 1 year since the date of completion of the investment project or phase/item. The date of completion of the investment project or the date of completion of the investment phase or investment item is the date of turnover generation of the investment project or the date of turnover generation of the investment phase or investment item. The turnover specified in this Article does not include revenue arising during the trial period, revenue from financial activities, and liquidation of raw materials of investment projects.

If a business establishment being the owner of an investment project establishes a new economic organization, or assigns a project management board or branch to directly implement and manage the investment project, the newly established economic organization, project management board, or branch shall be eligible for credit and refund of value-added tax for the investment project. The newly established economic organization, project management board, or branch must clear the input value-added tax amount for purchased goods and services used for the investment project against the value-added tax payable for the ongoing production and business activities of the business establishment, economic organization, or branch in the same tax calculation period (if any). After the clearing, if the amount of input value-added tax of investment projects that has not yet been fully credited is VND 300 million or more, business establishments will be entitled to value-added tax refund in accordance with this Article. When an investment project, investment phase, or investment item is completed, if the newly established economic organization, project management board, or branch does not continue to manage and operate the production and business activities, but instead the investment project owner directly manages and operates them, or assigns another business establishment to manage and operate them, the newly established economic organization, project management board, or branch must transfer the uncredited value-added tax amount of the investment project to the investment project owner or the business establishment assigned to manage and operate the production and business activities, for continuation of declaration and credit for production and business activities in the tax calculation period following the completion date of the investment project, or the investment phase or item.

If an investment project being in the investment phase whose production and business activities has not yet commenced must cease its operations, and no output value-added tax has arisen from the main production and business activities according to the investment project, the business establishment must remit the value-added tax amount that has been refunded for the investment project into the state budget in accordance with the law on tax administration; for any value-added tax amount that has not been refunded, the refund shall not be processed.

2. Value-added tax refund under Clause 1 of this Article shall be granted for investment projects of establishments engaged in sectors and trades subject to conditional business investment that fall into the following cases:

a) The investment projects are currently in the investment phase for which competent state agencies have granted permission for doing business in sectors or trades subject to conditional business investment in the form of license, certificate or written certification or approval in accordance with the law on investment and specialized laws;

b) The investment projects are currently in the investment phase for which, for the time being, it is not required to obtain competent state agencies’ permission for doing business in sectors or trades subject to conditional business investment in the form of license, certificate or written certification or approval in accordance with the law on investment and specialized laws;

c) The investment projects for which it is not required to obtain permission for doing business in sectors or trades subject to conditional business investment in the form of license, certificate or written certification or approval in accordance with the law on investment and specialized laws.

3. A business establishment is not entitled to value-added tax refund but may carry forward the tax amount not yet credited of an investment project in accordance with the law on investment to the subsequent period in the following cases:

a) The investment project of the business establishment fails to sufficiently contribute the charter capital amount registered at the time of submitting tax refund dossiers.

b) The investment project of the business establishment doing business in sectors or trades subject to conditional business investment is carried out while fully satisfying the business conditions specified by the law on investment, except for cases defined in Clause 2 of this Article.

c) The investment project of the business establishment doing business in sectors or trades subject to conditional business investment that fails to fully maintain the satisfaction of business conditions in the course of operation are the investment project of the business establishment doing business in sectors or trades subject to conditional business investment which, in the operation duration, are subject to revocation of one of the following papers for permission of doing business in sectors or trades subject to conditional business investment: license, certificate or written certification or approval; or which, in the operation duration, fails to satisfy the conditions for conducting conditional business investment activities in accordance with the law on investment. For such project, the time for considering refusal of value-added tax refund shall be counted from the time the concerned business establishment has one of the above-mentioned papers revoked or from the time the competent state agency detects through inspection that the business establishment fails to satisfy the conditions for conducting conditional business investment activities.

d) Investment projects on extraction of natural resources and minerals (excluding projects on prospecting, exploration and development of oil and gas fields specified in Clause 1 of this Article) and investment projects on production of products that are natural resources and minerals extracted and processed into other products specified in Clause 14, Article 4 of this Decree.

Article 31. Tax refund for goods or provide services subject to the value-added tax rate of 5%

Business establishments that only produce goods or provide services subject to the value-added tax rate of 5% are entitled to value-added tax refund if the input value-added tax amount not yet fully credited is VND 300 million or more after 12 consecutive months or 4 consecutive quarters; If a business establishment produces goods or provides services subject to multiple value-added tax rates, the business establishment must separately account for the input value-added tax used for the production of goods or provision of services subject to the value-added tax rate of 5%. For input value-added tax used simultaneously for the production of goods or provision of services subject to the value-added tax rate of 5% and for the production of goods or provision of services subject to other multiple tax rates (including goods subject to the value-added tax rate of 5% in the phrase of commercial business), if separate accounting is not possible, the input value-added tax amount used for the production of goods or provision of services subject to the value-added tax rate of 5% shall be determined based on the ratio of turnover from the activities of producing goods or providing services subject to the value-added tax rate of 5% to the total taxable turnover of goods and services for the refund period. The tax refund period shall be counted from the value-added tax calculation period with the value-added tax rate of 5% in which tax refund has not been granted for the input value-added tax amount not yet fully credited to the tax calculation period in which a tax refund request is made. After the input value-added tax amount for the production of goods or provision of services subject to the value-added tax rate of 5% (including the input value-added tax amount separately accounted and the input value-added tax amount determined according to the above-mentioned proportion) is cleared against the payable value-added tax amount for the taxable goods and services, if the remainder is VND 300 million or more, the concerned business establishment will be entitled to input value-added tax refund for such production of goods or provision of services subject to the value-added tax rate of 5%. The Ministry of Finance shall define the method for determining the refundable value-added tax amount for activities involving the production of goods or provision of services subject to the value-added tax rate of 5%.

Article 32. Tax refund for business establishments upon dissolution or bankruptcy

Business establishments paying value-added tax by the credit method shall be entitled to value-added tax refund upon their dissolution or bankruptcy if they have overpaid value-added tax amounts or input value-added tax amounts not fully credited (except for the cases where the business establishments dissolve and cease the operation of investment projects as specified in Clause 1, Article 30 of this Decree). Business establishments must comply with the laws on dissolution, bankruptcy, and tax administration. In case a branch of an enterprise paying value-added tax under the tax credit method dissolves, or a cooperative group paying value-added tax by the tax credit method is transformed into a cooperative or a union of cooperatives, the enterprise, cooperative or union of cooperatives shall be entitled to inherit the overpaid value-added tax amounts or input value-added tax amounts not fully credited of the cooperative group or branch for tax credit and refund in accordance with regulations.

Article 33. Tax refund for goods purchased in Vietnam and carried upon exit

Foreigners and overseas Vietnamese (excluding air crew members as specified by aviation law, and ship crew members as defined by maritime law) that hold passports or international travel papers are entitled to refund of tax on goods purchased in Vietnam and carried upon exit. The dossier, procedures, refundable tax amount, and tax refund method for the case specified in this Clause are defined in Appendix IV issued together with this Decree.

Article 34. Tax refund for programs and projects using non-refundable official development assistance (ODA) or non-refundable aid, humanitarian aid

Value-added tax refund for programs and projects using non-refundable official development assistance (ODA) or non-refundable aid, humanitarian aid shall be regulated as follows:

1. Owners or principal contractors (including the principal contractors’ executive offices in Vietnam) of, or organizations designated by foreign donors to manage, programs and projects funded with ODA (including the donors’ representative offices or organizations designated by the donors to manage and implement programs and projects), shall be entitled to refund of the value-added tax amount already paid for goods and services purchased in Vietnam to serve these programs and projects.

2. Vietnam-based organizations that use monetary non-refundable aid or humanitarian aid of foreign organizations or individuals to purchase goods and services for non-refundable aid or humanitarian aid programs and projects in Vietnam are entitled to refund of the value-added tax amount already paid for these goods and services.

Article 35. Tax refund for goods and services purchased in Vietnam by persons entitled to diplomatic privileges and immunities

Persons entitled to diplomatic privileges and immunities in accordance with the law regulations on diplomacy who purchase goods or services in Vietnam for use are entitled to refund of the paid value-added tax amounts indicated in added-value invoices or payment documents indicating value-added tax-inclusive prices.

Article 36. Tax refund under treaties

Business establishments having decisions on value-added tax refund of competent agencies in accordance with law regulations and cases of value-added tax refund under treaties to which the Socialist Republic of Vietnam is a contracting party.

Article 37. Conditions for value-added tax refund

Business establishments entitled to value-added tax refund prescribed in this Section must satisfy the following conditions:

1. Business establishments entitled to value-added tax refund as prescribed in Articles 29, 30, 31 and 32 of this Decree must be those paying value-added tax by the tax credit method, make and archive accounting books and accounting documents in accordance with the law on accounting; and have deposit accounts at banks under their tax identification numbers.

2. Business establishments must satisfy the conditions on input value-added tax credit as specified in Section 2, Chapter III and do not fall into the cases specified in Clause 15, Article 23 of this Decree.

3. The fact that the seller has declared and paid value-added tax under regulations for invoices issued to the business establishment requesting a tax refund shall be determined as follows:

a) At the time the business establishment submits the tax refund dossier, the seller has submitted the value-added tax declaration dossier according to regulations and does not have any outstanding value-added tax debt for the tax calculation period corresponding to the tax calculation period belonging to the refund period of the business establishment requesting the tax refund.

b) At the time the business establishment submits the tax refund dossier, the tax administration agency shall, based on the processing results of the automatic information technology system, determine whether the seller has declared and paid value-added tax according to regulations.

c) If it is determined that the seller has not fully submitted the value-added tax declaration dossier for the tax period corresponding to the tax period belonging to the refund period of the business establishment (including the cases where the deadline for submitting the tax declaration dossier has not been due) or still has outstanding value-added tax debt for the tax calculation period corresponding to the tax calculation period belonging to the refund period, the business establishment shall not be eligible for a refund for the invoices corresponding to the tax calculation period for which the seller has not fully submitted the value-added tax declaration dossier or still has outstanding value-added tax debt.

4. At the time of submission of a tax refund dossier, the business establishment eligible for value-added tax refund that has the input value-added tax amount fully satisfying the conditions for tax refund as specified in this Section, and complies with the provisions on tax declaration in the law on tax administration, shall formulate a value-added tax refund dossier for each value-added tax refund case, and send it to the tax office competent to receive the dossier. Tax offices shall classify value-added tax refund dossiers to see which are eligible for tax refund before inspection, or subject to inspection before tax refund, and process value-added tax refund dossiers in accordance with the law on tax administration.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 38. Effect

1. This Decree takes effect on July 01, 2025.

2. This Decree replaces:

a) Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government, detailing and guiding a number of articles of the Law on Value-Added Tax.

b) Decree No. 49/2022/ND-CP dated July 29, 2022 of the Government, amending and supplementing a number of articles of the Government’s Decree No. 209/2013/ND-CP of December 18, 2013, detailing and guiding a number of articles of the Law on Value-Added Tax, which had a number of articles amended and supplemented under Decree No. 12/2015/ND-CP, Decree No. 100/2016/ND-CP and Decree No. 146/2017/ND-CP.

c) The regulations on identification of products with a total value of natural resources or minerals plus energy cost accounting for 51% or more of production costs defined at Point a Clause 1 Article 11 and Clause 2 Article 15 of the Government’s Decree No. 134/2016/ND-CP dated September 1, 2016, detailing a number of articles of, and measures to implement, the Law on Import Duty and Export Duty (as amended and supplemented in the Government’s Decree No. 18/2021/ND-CP dated March 11, 2021, amending and supplementing a number of articles of the Government’s Decree No. 134/2016/ND-CP of September 1, 2016, detailing a number of articles of, and measures to implement, the Law on Import Duty and Export Duty), Point b Clause 2 Article 4 and Form No. 14, Appendix II issued together with the Government’s Decree No. 26/2023/ND-CP dated May 31, 2023 on Export Tariff Schedule, Preferential Import Tariff Schedule, and List of commodities and their absolute, mixed, and out-of-quota import duty rates by the provisions in Appendix V issued together with this Decree.

3. To repeal the following regulations:

a) Article 2 of the Government’s Decree No. 91/2014/ND-CP dated October 1, 2014, amending and supplementing a number of articles of the decrees on taxes.

b) Article 3 of the Government’s Decree No. 12/2015/ND-CP dated February 12, 2015, detailing the implementation of the Law Amending and Supplementing a Number of Articles of the Tax Laws and amending and supplementing a number of articles of the decrees on taxes.

c) Article 1 of the Government’s Decree No. 100/2016/ND-CP dated July 1, 2016, detailing and guiding the implementation of a number of articles of the Law Amending and Supplementing a Number of Articles of the Value-Added Tax Law, the Excise Tax Law and the Tax Administration Law.

d) Article 1 of the Government’s Decree No. 146/2017/ND-CP dated December 15, 2017, amending and supplementing a number of articles of the Government’s Decree No. 100/2016/ND-CP of July 1, 2016, and Decree No. 12/2015/ND-CP of February 12, 2015.

4. In case legal normative documents mentioned herein are amended, supplemented or replaced, these amending, supplementing or replacing documents shall apply.

Article 39. Transitional provision

1. For investment projects that were initiated before July 1, 2025, and are still in the investment phase from the effective date of this Decree, the regulations on tax refund for investment activities in Article 30 of this Decree shall apply.

2. The regulations on value-added tax refund for the production of goods and provision of services subject to the value-added tax rate of 5%, as specified in Article 31 of this Decree shall apply to the uncredited input value-added tax used for the production of goods and provision of services subject to the value-added tax rate of 5% which arises from the effective date of this Decree.

3. Clause 3 Article 37 of this Decree shall apply to tax periods starting from July 2025 or Quarter 3, 2025.

Article 40. Responsibility of implementation

1. The Ministry of Finance shall define articles and clauses as assigned in this Decree and guide the implementation of this Decree according to its functions and duties, ensuring management requirements.

2. The Ministry of Finance shall provide specific regulations applicable to goods and services not falling within the scope of this Decree and the Law on Value-Added Tax.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies, chairpersons of provincial-level People’s Committees, and related agencies, organizations and individuals shall implement this Decree.

* All Appendices are not translated herein.