VAT

1 Not required to declare VAT 2 Non-taxable 3 Taxable

No sales of goods/services Agriculture related

Direct method
Credit method
Purchased+consumed outside VN Social purposes related

Output VAT - Creditable input VAT

Sales by non-business org/individual Comply with international
practices/commitments
Output VAT
Creditable input VAT
1
2

Un(pre)processed agricultural products

Paid for by the State
Taxable revenue Tax rate Production/ trading of taxable
(VAT exclusive)
Commissions earned by agents selling at goods/ services
a fixed price Financial services, banking,
securities services 0%: exportation
Goods & services
Proper supporting document

Transfer of LUR and tech transfer 5%: essential things

Construction & installation
Non-cash payment

Gold, natural resources 10%: common

Others (casino, books,etc)

G&S of bz individuals with annual

income ≤ VND 100 mil

Others (ex: duty-free goods)

 Compensation (except: compensation by goods/services)

1 No sales of goods and services Capital contribution by assets

Transfer of investment projects which

Transfer investment project/asset
produces taxable G & S

Transfer of depreciated in-use assets

Repair of of vehicles, machinery, equipment

Advertising, marketing, trade promotion

Brokering sale of G&S to abroad

2 Certain services purchased and consumed outside VN
Training
1 Not required to declare & pay VAT

International postal and telecommunications services

Lease on foreign satellite transmission lines and frequency bands

3 Sales by non-business organisations or individuals Individual sell assets

Seller: Company/Cooperative declare VAT under credit method

4 Unprocessed or preprocessed agricultural products
Buyer: Companies/collectives at trading phase

Principal: set the price

5 Commissions earned by agents selling at a fixed price
Agents: earn commission
 Loan

Bank guarantee
Unprocessed or Preliminarily-processed products

5 Financial services, banking, securities services Finance lease

Breeds of livestock, plant varieties 1 Agriculture related

Issuance of credit cards

Services for agriculture, Salt

Income from liquidation of collateral by credit institution

Insurance & reinsurance

Education and vocational training

Transfer of land use rights

Publish newspapers, magazines, political books, textbooks; money printing

6 Transfer of LUR and technology transfer Technology transfers
Medical and veterinary services 2 Social purposes related

Computer software
Maintenance of zoos, flower gardens, parks, street greeneries, public lighting
Funeral services

Public passenger transport

Imported gold in form of bullions, pieces and not fashioned
Humanitarian aid or non-refundable Gold, natural resource
Non-taxable objects
7
2
Exported products that are unprocessed, exploited from natural
resources and minerals

Goods transited through Vietnam’s territory

Goods temporarily imported/ exported

8 G&S of bz individuals with annual income ≤ VND 100 mil
3 Comply with international practices

Raw materials imported for manufacturing or export

processing under contracts with foreign partners

G&S traded between foreign and non-tariff zone, or among

non-tariff zones Imported goods which cannot be manufactured in Vietnam

Artificial products used as substitutes for organs

State-owned houses sold to tenants

Audio and video broadcasting funded by government budget 4 Paid for by the State 9 Others Duty-free goods at duty-free shops

Weapons and specialized vehicles serving national defense Goods in national reserve sold by national reserve authorities

Bomb/mine clearance
 Taxable
Credit method
3

1 Output VAT 2 Creditable input VAT

1 Taxable revenue 2 Tax rate 1 Conditions to credit input VAT

Used for production/ trading of taxable goods/ services

VAT - exclusive 1 0% 2 5% 3 10% 1

General Supported by proper documents

Common G/S Include SST, environment tax & import duty
2
to Overseas/ Non-tariff zone 1 Agriculture related All other G&S
Sale contract
Include discount/ price deduction 3 Non-cash payment for G/S with value ≥ 20 mil (inclusive VAT)
Export goods Goods forwarded for further processing Growth stimulants; ores for fertilizer production; pesticides...
1

Document Non-cash payment evidence

2 Principles to credit input VAT
Used as gifts, donations, substitute for wages VAT – exclusive price of the equivalent G&S Deemed exportation On-spot export
Services of digging, embanking and dredging canals
Customs declarations
G&S used for production/ trading of non-taxable G&S Not creditable
Goods for overseas fairs/exhibitions
Invitation to art performances, fashion
shows, beauty pageants... permitted by 0 Certain services for cultivation
1 Exported goods and services
competent authorities G&S used for production/ trading of VAT taxable G&S
Service contract
Unprocessed or preliminary processed products at trading stage
For business purpose 0 provided & consumed overseas/ non-tariff zone Document G&S used for the production/ trading of not required to declare VAT G&S

Internal use Non-cash payment evidence

2 Essential services
Export services Common G&S G&S used as gifts, donations, or substitute for wages
For non-business purpose VAT – exclusive price of the equivalent G&S 2 Creditable
Goods and services
Overseas 0%
1

Services provided both in VN & overseas

If cannot separate revenue, Medical equipment and instruments
Internal use
Free goods 0 allocate based on expense ratio
VN Normal tax rate
Clean water for production and life
Registered with authorities Sale at reduced price VAT – exclusive reduced price G&S used for advertising, promotion
From VN to aboard and vice versa Contract
International transportation transportation of passengers, luggage and cargo Document Teaching and learning aids
Used for advertising, promotion Coupon 0 2
If cannot separate input VAT for taxable and non-taxable
G&S used for production of both VAT taxable and non-taxable G&S
Both departure & arrival: overseas Non-cash payment evidence G&S, separated based on revenue ratio
3 Production activity
Not registered with authorities VAT – exclusive market price
Aviation services inflight meals, takeoff and landing, ... Insured portion Not creditable
Contract
Preliminary processed rubber latex Damaged goods
Asset rental VAT- exclusive rents 3 Aviation and maritime services Document
Maritime services Seagoing ship towing, Maritime piloting Non-cash payment evidence Uninsured portion Creditable
Raw fresh food at trading stage
Instalment payments/ deferred payment VAT – exclusive contract value (Exclude interest)
Construction and installation operations of export processing enterprises (EPE) Car ≤ 9 seats valued at > VND 1.6 billion Creditable up to VND160 mil
Sugar and by-products in sugar production
inclusive of building materials VAT-exclusive price inclusive of building materials
Construction and 4 Other objects Aircraft or sea-going vessel repair services provided to foreign organizations or individuals Premises (canteen, dormitory, medical station) in industrial park for employees’ use Creditable
2
installation Products made of jute, rush, bamboo, rattan, leaves...
exclusive of building materials VAT-exclusive price exclusive of building materials
Goods and services not subject to VAT upon export
4 Other activities

Agency, brokerage VAT - exclusive remunerations or commissions

Petrol & oil sold to domestically purchased automobiles of businesses in non-tariff zones
Cultural, physical training and sports activities, art performances...

Casino services and other prize games VAT - inclusive amount / (1 + tax rate) Automobiles sold to organizations and individuals in non-tariff zones
Science and technology services

Tourism services in form of tour package VAT – exclusive package price (Exclude international airfare) Leasing of houses, conference rooms, offices, hotels
Children’s toys; books of various kinds
3 Other cases
Sold at cover price Cover price / (1 + tax rate) Services bz organizations provide to entities operating in non-tariff zones Transportation of workers
Books Sale, lease or lease-purchase of social houses
Cases not subject to 0%
Not sold at cover price Selling price Food and beverage (except the industrial catering service & food and
beverage service)

Conditional sponsorship Cash receipt Tobacco and alcoholic beverages imported then re-exported
Receipt of cash incentive/ sponsorship
Sports competitions, art, cultural and recreational performances,
Unconditional sponsorship 0 conferences, hotels, training, advertising and travel

Certain services provided in Vietnam to overseas organizations and individuals Online payment

Services attached with the sale, distribution and consumption of

products and goods in Vietnam
4 VAT Refund

Definition arise when deductible input VAT > output VAT, company can claim refund from tax authorities

input VAT ≥ VND300 mil Refund

Normal cases (bz only exports)
input VAT < VND300 mil Carry forward
1 Having export revenue
Net input VAT = Input VAT for export sale - VAT payable of domestic sale
Bz both exports & sells domestically
Net input VAT ≥ VND300 mil Refund (not > 10% export revenue)

Investment project located in the same city

Eligible to VAT refund
New investment project located in another city

Having new investment project during

2
operation stage 1 During tax period

Declare separately
Record

1 VAT of investment project 2 VAT of normal business operations

2 At the end of tax period

Cases Offset

1 Input VAT of investment project 2 Net output VAT of normal business operations

Input VAT

< 300 mil ≥ 300mil

Carried forward VAT refund

3 New business establishment derived from an investment project

4 Corporate restructuring

5 Projects funded by non-refundable ODA, non-refundable aid, or humanitarian aid

6 A person provided with diplomatic immunity purchases goods and services in Vietnam for personal use

7 Foreigners and Vietnamese people residing abroad purchased goods in Vietnam and brought along upon departure