Value Added Tax

Law on Value Added Tax No. 48/2024/QH15

NATIONAL ASSEMBLY
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Law No.: 48/2024/QH15

SOCIALIST REPUBLIC OF VIETNAM
Independence – Freedom – Happiness
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LAW

VALUE ADDED TAX

 

Pursuant to the Constitution of the Socialist Republic of Vietnam;

The National Assembly promulgates the Law on Value Added Tax.

 

Chapter I

GENERAL PROVISIONS

 

Article 1. Scope of regulation

This Law regulates taxable and non-taxable subjects, taxpayers, basis and method of tax calculation, deduction and refund of value added tax.

Article 2. Value added tax

Value added tax is a tax calculated on the added value of goods and services arising in the process from production, circulation to consumption.

Article 3. Taxable entities

Goods and services used for production, business and consumption in Vietnam are subject to value added tax, except for those specified in Article 5 of this Law .

Article 4. Taxpayers

  1. Organizations, households and individuals producing and trading goods and services subject to value added tax (hereinafter referred to as business establishments) .
  2. Organizations and individuals importing goods subject to value added tax (hereinafter referred to as importers).
  3. Organizations and individuals engaged in production and business in Vietnam that purchase services (including services attached to goods) from foreign organizations that do not have permanent establishments in Vietnam, and individuals abroad who are non-residents in Vietnam, except for the cases specified in Clauses 4 and 5 of this Article; Production and business organizations in Vietnam purchasing goods and services to conduct oil and gas exploration, development and exploitation activities from foreign organizations without permanent establishments in Vietnam, and individuals abroad who are non-residents in Vietnam.
  4. Foreign suppliers without a permanent establishment in Vietnam that conduct e-commerce business or business based on digital platforms with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers); organizations that are managers of foreign digital platforms that deduct and pay tax obligations on behalf of foreign suppliers; business organizations in Vietnam that apply the value-added tax calculation method of deducting tax on purchased services from foreign suppliers without a permanent establishment in Vietnam through e-commerce channels or digital platforms that deduct and pay tax obligations on behalf of foreign suppliers.
  5. The organization is the manager of an e-commerce trading floor or a digital platform with the function of making payments, deducting, paying taxes on behalf of, and declaring deducted taxes for business households and individuals doing business on e-commerce floors or digital platforms.
  6. The Government shall detail Clauses 1, 4 and 5 of this Article; and provide regulations on taxpayers in cases where foreign suppliers provide services to buyers that are business organizations in Vietnam and apply the tax deduction method prescribed in Clause 4 of this Article.

Article 5. Non-taxable entities

  1. Products of crops , planted forests , livestock, aquaculture, and fishing that have not been processed into other products or have only undergone normal preliminary processing by organizations and individuals that produce, catch, and sell them and are at the import stage.
  2. Animal breeding products according to the provisions of the law on animal husbandry , plant breeding materials according to the provisions of the law on cultivation.
  3. Animal feed according to the provisions of the law on animal husbandry; aquatic feed according to the provisions of the law on aquatic products .
  4. Salt products are produced from seawater, natural rock salt, refined salt, iodized salt whose main ingredient is sodium chloride (NaCl).
  5. Housing is public property sold by the State to tenants.
  6. Irrigation and drainage; plowing and harrowing; dredging of canals and ditches in fields for agricultural production; agricultural product harvesting services.
  7. Transfer of land use rights.
  8. Life insurance, health insurance, student insurance, other insurance services related to people; livestock insurance, crop insurance, other agricultural insurance services; insurance of ships, boats, equipment and other necessary tools directly serving fishing; reinsurance; insurance of oil and gas works, equipment, oil tankers of foreign nationality hired by oil and gas contractors or foreign subcontractors to operate in Vietnamese waters, overlapping waters that Vietnam and countries with adjacent or opposite coasts have agreed to place under a common exploitation regime .
  9. The following financial, banking, securities and commercial services:
  10. a) Credit granting services according to the provisions of law on credit institutions and fees Okay be specific in the Loan Agreement of the Government of Vietnam with the Foreign Lender;
  11. b) Lending services of taxpayers that are not credit institutions;
  12. c) Securities business includes securities brokerage, securities trading, securities underwriting, securities investment consulting, securities investment fund management, and securities investment portfolio management in accordance with the provisions of the law on securities;
  13. d) Capital transfer includes the transfer of part or all of the capital invested in another economic organization (regardless of whether or not a new legal entity is established), the transfer of securities, the transfer of capital contribution rights and other forms of capital transfer as prescribed by law, including the case of selling an enterprise to another enterprise for production and business purposes and the purchasing enterprise inherits all rights and obligations of the selling enterprise as prescribed by law. Capital transfer as prescribed in this point does not include the transfer of investment projects or the sale of assets;
  14. d) Debt sale includes sale of payables and receivables;
  15. e) Foreign exchange trading;
  16. g) Derivative products as prescribed by the law on credit institutions, the law on securities and the law on commerce, including: interest rate swaps; forward contracts; futures contracts; call and put option contracts and other derivative products ;
  17. h) Selling collateral assets of debts of organizations in which the State owns 100% of the charter capital and established by the Government with the function of buying and selling debts to handle bad debts of Vietnamese credit institutions.
  18. The following medical and veterinary services:
  19. a) Medical services include: medical examination, treatment, disease prevention services for people, family planning services, health care services, rehabilitation services for patients; services for taking care of the elderly and disabled; patient transportation, services for renting hospital rooms and beds of medical facilities; testing, screening, and radiography; blood and blood products for patients .

Elderly and disabled care services include medical and nutritional care and organization of cultural, sports, entertainment, physical therapy and rehabilitation activities for the elderly and disabled.

In case the medical treatment service package as prescribed by the Ministry of Health includes the use of medicine, the revenue from medicine included in the medical treatment service package is also not subject to value added tax;

  1. b) Veterinary services include: medical examination, treatment and disease prevention services for pets.
  2. Funeral services.
  3. Maintenance, repair and construction activities using capital contributed by the people and humanitarian aid capital (accounting for 50% or more of the total capital used for the project) for historical – cultural relics, scenic spots, cultural and artistic works, public service works, infrastructure and housing for social policy beneficiaries.
  4. Teaching and vocational training activities according to the provisions of law on education and vocational education.
  5. Radio and television broadcasting using state budget funds.
  6. Publishing, importing, distributing newspapers, magazines, newsletters , special issues , political books, textbooks, teaching materials, legal documents, science and technology books, books serving foreign information, books printed in ethnic minority languages and propaganda pictures, photos, posters, including in the form of audio or video tapes or discs, electronic data; money, printing money .
  7. Public passenger transport by bus, train, inland waterway .
  8. Machinery, equipment, spare parts, and supplies that cannot be produced domestically and need to be imported for direct use in scientific research and technological development activities; machinery, equipment, spare parts, specialized means of transport, and supplies that cannot be produced domestically and need to be imported for exploration and development of oil and gas fields; airplanes, helicopters, gliders, drilling rigs, and ships that cannot be produced domestically and need to be imported to create fixed assets of enterprises or rented from foreign countries for use in production, business, or leasing.
  9. Defense and security products according to the list issued by the Minister of National Defense and the Minister of Public Security ; imported products and services serving the defense and security industry according to the list issued by the Prime Minister.
  10. Imported goods in case of humanitarian aid, non-refundable aid. Goods and services sold to foreign organizations, individuals, international organizations for humanitarian aid, non-refundable aid to Vietnam.
  11. Goods in transit through Vietnam; temporarily imported and re-exported goods; temporarily exported and re-imported goods; imported raw materials for production and processing of export goods under production and processing contracts signed with foreign parties; goods and services traded between foreign countries and non-tariff zones and between non-tariff zones.

Imported goods from abroad of the financial leasing company are transported directly into the duty-free zone to lease finance to enterprises in the duty-free zone.

  1. Technology transfer in accordance with the Law on Technology Transfer; transfer of intellectual property rights in accordance with the Law on Intellectual Property; software products and software services in accordance with the law .
  2. Gold in bars or pieces that have not been processed into fine art products, jewelry or other products at the import stage.
  3. Export products are resources and minerals that have not been processed into other products and Export products are resources and minerals that have been mined and processed into other products according to the List prescribed by the Government. consistent with the state’s orientation on discouraging exports and restricting exports of raw resources and minerals .
  4. Artificial products used to replace human body parts, including products that are long-term implants in the human body ; crutches, wheelchairs and other specialized tools for the disabled .
  5. Goods and services of households and individuals producing and trading with annual revenue of VND 200 million or less; assets sold by organizations and individuals not doing business and not paying value added tax; national reserve goods sold by national reserve agencies; fees and charges according to the provisions of law on fees and charges.
  6. Imported goods in the following cases:
  7. a) Gifts to state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, and people’s armed forces units within the import tax exemption limit according to the provisions of law on export tax and import tax;
  8. b) Gifts within the import tax exemption limit according to the provisions of the law on export tax and import tax of foreign organizations and individuals for Vietnamese individuals ; belongings of foreign organizations and individuals according to diplomatic immunity standards and movable assets within the import tax exemption limit according to the provisions of the law on export tax and import tax;
  9. c) Goods within the import tax-free baggage standards according to the provisions of law on export tax and import tax;

d ) Imported goods to support and sponsor the prevention, control and overcoming of consequences of disasters, natural disasters, epidemics and wars according to Government regulations ;

  1. d) Goods bought, sold and exchanged across the border to serve the production and consumption of border residents on the List of goods bought, sold and exchanged by border residents according to the provisions of law and within the import tax exemption limit according to the provisions of law on export tax and import tax;
  2. e) Relics, antiques, National treasures as prescribed by law on cultural heritage imported by competent state agencies.
  3. Business establishments trading in goods and services not subject to value added tax as prescribed in This is not deductible , Input value added tax shall not be refunded, except in cases where the 0% tax rate is applied as prescribed in Clause 1, Article 9 of this Law .
  4. The Government shall detail this Article. The Minister of Finance shall prescribe the dossier and procedures for determining entities not subject to value added tax as prescribed in this Article .

 

Chapter II

BASIS AND METHOD OF TAX CALCULATION

 

Article 6. Tax basis

The basis for calculating value added tax is the taxable price and tax rate.

Article 7. Taxable price

  1. Taxable price is specified as follows:
  2. a) For goods and services sold by business establishments, the selling price is the price excluding value added tax; for goods and services subject to special consumption tax, the selling price includes special consumption tax but does not include value added tax; for goods subject to environmental protection tax, the selling price includes environmental protection tax but does not include value added tax; for goods subject to special consumption tax and environmental protection tax, the selling price includes special consumption tax and environmental protection tax but does not include value added tax;
  3. b)For imported goods, the value for calculating import tax according to the provisions of the law on export tax, import tax plus import tax plus taxes which are additional import taxes according to the provisions of the law (if any), plus special consumption tax (if any) and plus environmental protection tax (if any);
  4. c) For goods and services used for exchange, internal consumption, gifts, and donations, the taxable price is the value added tax of the same or equivalent type of goods and services at the time these activities occur.

For goods and services used for promotion according to the provisions of the law on commerce, the taxable price is determined as zero (0);

  1. d) For asset leasing activities, the rental amount is exclusive of value added tax.

In case of leasing in the form of periodic rental payment or prepayment for the lease term, the taxable price is the rental amount paid periodically or prepaid for the lease term excluding value added tax;

  1. d) For goods sold by installment or deferred payment, the price is calculated based on the one-time selling price excluding value added tax of the goods, excluding installment or deferred interest;
  2. e) For goods processing, the processing price does not include value added tax;
  3. g) For construction and installation activities, the value of the project, project item or part of the work performed and handed over does not include value added tax. In case of construction and installation that does not include materials, machinery and equipment, the taxable price is the value of construction and installation excluding the value of materials, machinery and equipment;
  4. h) For real estate business activities, it is the real estate selling price excluding value added tax minus land use fee or land rent paid to the state budget (deductible land price). The Government shall stipulate the determination of the deductible land price prescribed in this point in accordance with the provisions of the law on land;
  5. i) For agency and brokerage activities of buying and selling goods and services for commission, the commission received from these activities does not include value added tax;
  6. k) For goods and services using invoices If the payment price includes VAT, the taxable price is determined according to the following formula:
Price does not include VAT = Payment price
1 + tax rate of goods and services (%)
  1. l) For casino business services , electronic games with prizes, and betting, the amount of money earned from these activities minus the amount returned to customers. Unused amount and bonus amount paid to customers (if any) , including special consumption tax, excluding value added tax ;
  2. m) For production and business activities including: electricity production activities of Vietnam Electricity Group; transportation, loading and unloading; tourism services in the form of travel; pawn services; books subject to value added tax sold at the correct published price (cover price); printing activities; appraisal agency services, compensation review agencies, third party claim agents, 100% compensation goods handling agents receiving wages or commissions, the taxable price is the selling price excluding value added tax. The Government shall prescribe the taxable price for production and business activities specified in this point.
  3. The taxable price for goods and services specified in Clause 1 of this Article includes surcharges and additional fees that the business establishment is entitled to.
  4. The Government shall detail this Article.

Article 8. Time for determining value added tax

  1. The time for determining value added tax is specified as follows:
  2. a) For goods, it is the time of transfer of ownership or right to use the goods to the buyer. or the time of invoice, regardless of whether money has been collected or not;
  3. b) For services, it is the time of completion of service provision or the time of issuing an invoice for service provision, regardless of whether the payment has been collected or not.
  4. The time for determining value added tax on the following goods and services is prescribed by the Government:
  5. a) Export goods, import goods;
  6. b) Telecommunication services;
  7. c) Insurance business services;
  8. d) Electricity supply activities, electricity and clean water production activities ;
  9. d) Real estate business activities;
  10. e) Construction, installation and oil and gas operations .

Article 9. Tax rates

  1. The 0% tax rate applies to the following goods and services:
  2. a) Exported goods include: goods from Vietnam sold to organizations and individuals abroad and consumed outside Vietnam; goods from domestic Vietnam sold to organizations in duty-free zones and consumed in duty-free zones to directly serve export production activities; goods sold in quarantine areas to individuals (foreigners or Vietnamese) who have completed exit procedures; goods sold at duty-free shops;
  3. b) Export services include: services provided directly to organizations and individuals abroad and consumed outside Vietnam; services provided directly to organizations in duty-free zones and consumed in duty-free zones to directly serve export production activities;
  4. c) Other exported goods and services include: international transportation ; vehicle rental services used outside the territory of Vietnam; aviation and maritime services provided directly or through agents for international transportation ; construction and installation activities abroad or in duty-free zones; digital information content products provided to foreign parties and with records and documents proving consumption outside Vietnam according to Government regulations; spare parts and materials for repair and maintenance of vehicles, machinery and equipment for foreign parties and consumption outside Vietnam; goods processed for export according to law ; goods and services not subject to value added tax when exported, except for cases where the 0% tax rate specified in Point d of this Clause is not applicable;
  5. d) Cases not subject to the 0% tax rate include: technology transfer, transfer of intellectual property rights abroad; reinsurance services abroad; credit services; capital transfer; derivative products; postal and telecommunications services; export products specified in Clause 23, Article 5 of this Law; imported cigarettes, alcohol, and beer then exported ; gasoline and oil purchased domestically and sold to business establishments in duty-free zones; automobiles sold to organizations and individuals in duty-free zones.
  6. The tax rate of 5% applies to the following goods and services:
  7. a) Clean water for production and daily life does not include bottled water, jarred water and other soft drinks;
  8. b) Fertilizers, ores for fertilizer production, pesticides and animal growth stimulants as prescribed by law;
  9. c) Services of digging, dredging canals, ditches, ponds and lakes for agricultural production; growing, caring for, and preventing pests and diseases for plants; preliminary processing and preservation of agricultural products;
  10. d) Products of crops and planted forests (except wood, bamboo shoots), livestock, aquaculture, and fishing products that have not been processed into other products or have only undergone conventional preliminary processing, except for products specified in Clause 1, Article 5 of this Law;
  11. d) Rubber latex in the form of crepe latex, sheet latex, vermicelli latex, granular latex ; nets, ropes and fibers for knitting fishing nets;

shells , water hyacinth and other handicraft products made from recycled agricultural materials; carded and combed cotton ; newsprint;

  1. g) Fishing vessels in coastal areas; specialized machinery and equipment serving agricultural production according to Government regulations ;
  2. h) Medical equipment as prescribed by law on medical equipment management ; preventive and curative drugs; pharmaceutical ingredients and medicinal materials used as raw materials for the production of preventive and curative drugs;
  3. i) Equipment used for teaching and learning includes: models, drawings, boards, chalk, rulers, compasses;
  4. k) Traditional and folk performing arts activities;
  5. l) Toys for children; books of all kinds, except for books specified in Clause 15, Article 5 of this Law;
  6. m) Scientific and technological services as prescribed by the Law on Science and Technology;
  7. n) Sale, lease, and hire-purchase of social housing in accordance with the provisions of the Housing Law.
  8. The tax rate of 10% applies to goods and services not specified in Clause 1 and Clause 2 of this Article, including services provided by foreign suppliers without a permanent establishment in Vietnam to organizations and individuals in Vietnam via e-commerce channels and digital platforms.
  9. Business establishments trading in many types of goods and services with different value added tax rates (including those not subject to value added tax) must declare value added tax according to each tax rate prescribed for each type of goods and services; if the business establishment does not determine each tax rate, it must calculate and pay tax according to the highest tax rate of the goods and services that the establishment produces and trades.
  10. Products of crops, forests, livestock, aquaculture, and fishery that have not been processed into other products or have only undergone conventional preliminary processing and are used as animal feed or medicinal materials shall be subject to value-added tax according to the tax rates prescribed for products of crops, forests, livestock, and fisheries.

Waste, by-products, and scrap collected for recycling and reuse when sold are subject to tax rates according to the tax rates of the waste, by-products, and scrap sold.

  1. The Government shall detail Clauses 1 and 2 of this Article. The Minister of Finance shall prescribe the dossier and procedures for applying the 0% value added tax rate in Clause 1 of this Article.

Article 10. Tax calculation method

Methods for calculating value added tax include the tax deduction method and the direct calculation method.

Article 11. Tax deduction method

  1. The tax deduction method is prescribed as follows:
  2. a) The amount of value added tax payable under the tax deduction method is equal to the output value added tax minus the deductible input value added tax;
  3. b) Output value added tax is equal to the total value added tax of goods and services sold as recorded on the value added tax invoice.

Value added tax on goods and services sold recorded on value added invoices is equal to the taxable price of taxable goods and services sold multiplied by the value added tax rate of those goods and services.

Invoice usage cases If the payment price is recorded as the price including value added tax, the output value added tax is determined by the payment price minus the value added tax price determined according to the provisions at Point k, Clause 1, Article 7 of this Law;

  1. c) The deductible input value-added tax amount is equal to the total value-added tax amount stated on the value-added tax invoice for purchasing goods and services, the value-added tax payment document for imported goods or the tax payment document for the case of purchasing services specified in Clause 3, Clause 4, Article 4 of this Law and satisfy the conditions specified in Article 14 of this Law.
  2. The tax deduction method applies to business establishments that fully implement the accounting, invoice and voucher regimes in accordance with the provisions of the law on accounting, invoices and vouchers, including:
  3. a) Business establishments with annual revenue from selling goods and providing services of 1 billion VND or more, except for households and individuals engaged in production and business;
  4. b) Business establishments voluntarily apply the tax deduction method, except for households and individuals engaged in production and business;
  5. c) Foreign organizations and individuals providing goods and services to conduct oil and gas exploration, development and exploitation activities shall pay tax according to the tax deduction method declared, deducted and paid by the Vietnamese party on their behalf .
  6. The Government shall detail this Article.

Article 12. Direct calculation method

  1. The amount of value added tax payable according to the direct calculation method on added value is equal to the added value multiplied by the value added tax rate applicable to the activities of buying, selling, and crafting gold, silver, and precious stones.

Added value of buying, selling and manufacturing activities Gold, silver and precious stones are determined by the payment price of gold, silver and precious stones sold minus the payment price of gold, silver and precious stones purchased respectively.

In case a business establishment has activities of buying, selling, and processing gold, silver, and precious stones, the business establishment must account for these activities separately to pay tax according to the direct calculation method on added value.

  1. The amount of value added tax payable according to the direct calculation method based on revenue is equal to the percentage multiplied by the applicable revenue as follows:
  2. a) Applicable subjects include:

a1) Enterprises, cooperatives, and cooperative unions with annual revenue below the revenue threshold of VND 1 billion, except in cases of voluntary application of the tax deduction method prescribed in Clause 2, Article 11 of this Law;

a2) Households and individuals engaged in production and business, except for the cases specified in Clause 3 of this Article;

a3) Foreign organizations without permanent establishments in Vietnam, individuals Foreigners are non-residents in Vietnam. Revenue generated in Vietnam that has not fully implemented accounting, invoice and voucher regimes, excluding foreign suppliers specified in Clause 4, Article 4 of this Law;

a4) Other organizations, except for cases of tax payment using the tax deduction method prescribed in Clause 2, Article 11 of this Law;

  1. b) The percentage rate for calculating value added tax is specified as follows:

b1) Distribution and supply of goods: 1%;

b2) Services and construction without contracted materials: 5%;

b3) Production, transportation, services associated with goods, construction with contracted materials: 3%;

b4) Other business activities: 2%;

  1. c) Revenue for calculating value added tax is the total amount of sales of goods and services recorded on the sales invoice, including surcharges and additional fees that the business establishment is entitled to.
  2. Households and individuals engaged in production and business that do not implement or do not fully implement the accounting, invoice and voucher regimes as prescribed by law shall pay value added tax according to the lump-sum tax method prescribed in the Law on Tax Administration.
  3. The Government shall detail Clause 1 of this Article. The Minister of Finance shall detail the groups of goods and services subject to the percentage rate at Point b, Clause 2 of this Article.

 

Chapter III

TAX DEDUCTION, REFUND

 

Article 13. Prohibited acts in deduction, tax refund

  1. Buy, give, sell, organize advertising, broker the purchase and sale of invoices.
  2. Creating transactions to buy, sell goods, provide services that do not exist or transactions that do not comply with the provisions of law.
  3. Issue invoices for the sale of goods and provision of services during the period of temporary suspension of business operations, except for the case of issuing invoices to customers to perform contracts signed before the date of notification of temporary suspension of business operations .
  4. Using illegal invoices and documents, illegally using invoices and documents according to Government regulations.
  5. Not transferring electronic invoice data to tax authorities as prescribed.
  6. Falsifying, misusing, illegally accessing, or destroying the information system on invoices and documents.
  7. Give , receive, broker Bribery or other acts related to invoices and documents to obtain tax deductions, tax refunds, tax appropriation, and value added tax evasion.
  8. Collusion, cover up; Collusion between tax officials, tax authorities and businesses, importers, between businesses and importers in using illegal invoices and documents, illegally using invoices and documents to deduct taxes, get tax refunds, misappropriate tax money, and evade value added tax.

Article 14. Input value added tax deduction

  1. Business establishments paying value added tax according to the tax deduction method are entitled to deduct input value added tax as follows:
  2. a) Input value-added tax of goods and services used for production and trading of goods and services subject to value-added tax is fully deductible, including uncompensated input value-added tax of lost goods and services subject to value-added tax , goods that are naturally depleted due to physical and chemical properties during transportation;
  3. b) Input value added tax of goods and services used for both production and trading of taxable and non-taxable goods and services shall only be deducted for the input value added tax of goods and services used for production and trading of taxable goods and services. Business establishments shall separately account for deductible and non-deductible input value added tax; in case separate accounting is not possible, the deductible input value added tax shall be calculated based on the percentage between the revenue of taxable goods and services compared to the total revenue of goods and services sold;
  4. c) Input value-added tax on goods and services sold to organizations and individuals using humanitarian aid and non-refundable aid is fully deductible;
  5. d) Input value added tax on goods and services used for oil and gas exploration and development activities is fully deductible;
  6. d) Input VAT arising in the month , The amount of input VAT that has not been fully deducted in a month or quarter shall be deducted in the following month or quarter .

In case a business establishment discovers that the input value added tax declared or deducted is incorrect or incomplete, it may declare tax before the tax authority or competent authority announces the decision to conduct a tax audit or tax inspection as follows :

Taxpayers make additional declarations in the month or quarter in which the input value added tax is incorrect or incomplete. If tax declaration is made monthly or quarterly Incorrect or missing input VAT increase the amount of tax payable or reduce the amount of tax refunded; the taxpayer must pay the full amount of the increased tax payable or have the corresponding refunded tax recovered and pay late payment fees to the state budget (if any).

Taxpayers who declare in the month or quarter discover errors or omissions if the tax declaration is made in the month or quarter. Month, quarter of arising input value added tax is incorrect, missing reduce the amount of tax payable or only increase or decrease the amount of value added tax that can be deducted and carried forward to the following month or quarter ;

  1. e) For non-deductible input value-added tax, business establishments may include it in expenses for calculating corporate income tax or include it in the original price of fixed assets. according to the provisions of the law on corporate income tax, except for the value added tax of purchased goods and services without non-cash payment documents according to the Government’s regulations;
  2. g) The Government shall detail the deduction of input value-added tax for: goods and services forming fixed assets serving employees; cases of capital contribution in the form of assets; goods and services purchased under authorization for other organizations or individuals with invoices bearing the name of the authorized organization or individual; fixed assets being passenger cars with 9 seats or less; production and business establishments with closed production and centralized accounting.
  3. Conditions for input value added tax deduction are prescribed as follows:
  4. a) Having a value-added invoice for purchasing goods and services or a document proving the payment of value-added tax at the import stage or a document proving the payment of value-added tax on behalf of the foreign party as prescribed in Clause 3 and paragraph 4 Article 4 of this Law. The Minister of Finance shall prescribe documents for payment of value added tax on behalf of foreign parties;
  5. b) Have non-cash payment documents for purchased goods and services, except for some special cases as prescribed by the Government;
  6. c) For exported goods and services, in addition to the conditions specified in Points a and b of this Clause, there must also be: a contract signed with a foreign party on the sale, processing of goods, provision of services; invoices for the sale of goods and provision of services; non-cash payment documents; customs declaration for exported goods; packing list, bill of lading, goods insurance documents (if any). The Government regulates deduction conditions for cases of exporting goods through e-commerce platforms abroad and some other special cases.
  7. Business establishments that do not satisfy the tax deduction regulations in Clauses 1 and 2 of this Article and invoices and documents made from prohibited acts in this Law shall not be entitled to value added tax deduction.
  8. The Government shall detail this Article.

Article 15. Value added tax refund

  1. Tax refund for exports is regulated as follows:
  2. a) Business establishments that export goods and services in a month or quarter and have input value-added tax that has not been fully deducted of VND 300 million or more will be refunded value-added tax on a monthly or quarterly basis, except in the following cases: imported goods then exported to other countries ;
  3. b) In a month or quarter, a business establishment that has both exported goods and services and domestically consumed goods and services must separately account for the input value-added tax used for the production and trading of exported goods and services ; cases where separate accounting is not possible The input VAT amount of exported goods and services is determined based on the ratio of revenue from exported goods and services to total revenue from taxable goods and services of the tax refund period. The tax refund period is determined from the tax period with input VAT that has not been fully deducted continuously and has not been refunded until the tax period with a request for a tax refund.

value added tax amount of exported goods and services (including the input value added tax amount that can be accounted for separately and the input value added tax amount determined according to the above rate) if after offsetting with the value added tax amount payable on domestically consumed goods and services, the remaining value added tax amount is from 300 million VND or more, the business establishment will be refunded for exported goods and services. The refunded value added tax amount of exported goods and services shall not exceed 10% of revenue from exported goods and services of 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 revenue from exported goods and services of the previous tax refund period shall be deducted 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.

  1. Tax refund for investment is regulated as follows:
  2. a) Business establishments that have registered to pay value added tax according to the tax deduction method have investment projects (new investment projects, expansion investment projects) in accordance with the provisions of the law on investment (including investment projects divided into many investment phases or many investment items, except for investment projects that do not form fixed assets of the enterprise) in the investment phase. Or the project to search for, explore and develop an oil and gas field is in the investment phase and has input value-added tax arising during the investment phase but has not been refunded, the business establishment shall offset the input value-added tax amount . payable from ongoing production and business activities (if any) . After offset, if the input value added tax of the investment project has not been fully deducted from 300 million VND or more, the value added tax will be refunded.

In case the investment project has been completed ( including investment projects divided into multiple phases, investment items with phases, completed investment items) but the business establishment has not yet refunded the value added tax arising during the investment phase (investment items, completed investment phases), the business establishment shall submit application Refund of value added tax as prescribed within 01 year from the date of investment project or the date of completion of investment phase or investment item.

The date of completion of the investment project or the date of completion of the investment phase or item is the date of revenue generation of the investment project or the date of revenue generation of the investment phase or item. The revenue specified in this clause does not include revenue generated during the trial period, revenue from financial activities, and liquidation of raw materials of the investment project;

  1. b) Business establishments are not entitled to a value added tax refund but are allowed to carry forward the undeducted tax amount of the investment project according to the provisions of the law on investment to the next period in the following cases:

b1) The investment project of a business establishment does not contribute enough charter capital as registered at the time of submitting the tax refund dossier ; conducts business in a conditional investment and business line without meeting all business conditions as prescribed by law on investment or failure to maintain adequate business conditions during operation , Except for investment projects in the investment phase, according to the provisions of the law on investment and specialized laws, it is not required to request competent state agencies to issue business licenses for conditional investment and business lines ; investment projects according to the provisions of the law on investment and specialized laws do not require business licenses for conditional investment and business lines ;

b2) Investment projects on exploitation of resources and minerals (excluding projects on exploration and development of oil and gas fields specified in Point a of this Clause) and investment projects on production of products that are resources and minerals exploited and processed into other products specified in Clause 23, Article 5 of this Law.

  1. Business establishments that only produce goods and provide services subject to a value-added tax rate of 5%, if their input value-added tax amount that has not been fully deducted is from VND 300 million or more after 12 consecutive months or 04 consecutive quarters, will be refunded value-added tax; in case a business establishment produces goods and provides services subject to multiple value-added tax rates, it will be refunded tax according to the allocation rate prescribed by the Government.
  2. Business establishments that pay value added tax according to the tax deduction method are entitled to a value added tax refund upon dissolution or bankruptcy. There is excess VAT paid or input VAT that has not been fully deducted .

In case a cooperative group that pays tax according to the tax deduction method converts into a cooperative, the cooperative shall inherit the excess value added tax paid or the input value added tax that has not been fully deducted of the cooperative group to deduct and refund tax according to regulations.

  1. Foreigners and Vietnamese people residing abroad holding passports or valid international travel documents are entitled to tax refunds on goods purchased in Vietnam and brought with them when leaving the country.

The Government shall prescribe the dossier, procedures, amount of tax to be refunded, and method of tax refund for the cases specified in this clause.

  1. Value added tax refund for programs and projects using non-refundable official development assistance (ODA) capital or non-refundable aid, or humanitarian aid is regulated as follows:
  2. a) The program or project owner or main contractor, or organization designated by the foreign sponsor to manage the program or project using non-refundable ODA capital shall be refunded the value added tax paid for goods and services purchased in Vietnam to serve the program or project;
  3. b) Organizations in Vietnam that use non-refundable aid or humanitarian aid from foreign organizations or individuals to purchase goods and services for non-refundable aid or humanitarian aid programs or projects in Vietnam will be refunded the value added tax paid for those goods and services.
  4. Subjects entitled to diplomatic immunity and privileges according to the provisions of the law on diplomacy who purchase goods and services in Vietnam for use shall be refunded the value added tax paid as stated on the value added tax invoice or on the payment document stating the payment price including value added tax.
  5. Business establishments have a value-added tax refund decision from a competent authority in accordance with the provisions of law and in cases of value-added tax refund under international treaties of which the Socialist Republic of Vietnam is a member.
  6. Business establishments subject to tax refund regulations This Article must satisfy the following conditions :
  7. a) Business establishments eligible for tax refund According to the provisions of Clauses 1, 2, 3 and 4 of this Article , the business establishment must pay value added tax according to the tax deduction method and establishand keep accounting books and accounting documents according to the provisions of the law on accounting; have a deposit account at a bank according to the tax code of the business establishment ;
  8. b) Satisfy the regulations on input value added tax deduction as prescribed in Clause 2, Article 14 and not falling under the cases prescribed in Clause 3, Article 14 of this Law;
  9. c) The seller has declared and paid value added tax according to regulations for invoices issued to the business establishment requesting a tax refund .
  10. Taxpayers eligible for value added tax refund have input value added tax that fully meets the conditions. Refund tax according to the provisions of this Article and comply with the provisions on tax declaration according to the provisions of the law on tax administration, prepare value added tax refund dossiers for each case of value added tax refund and send them to the competent tax authority for receipt .

Tax authorities classify value-added tax refund dossiers as eligible for pre-refund or pre-refund inspection and process value-added tax refund dossiers according to the provisions of the law on tax administration .

  1. The Government shall detail this Article.

Article 16. Invoices and documents

  1. The purchase and sale of goods and services must have invoices and documents in accordance with the provisions of law and the following regulations:
  2. a) Business establishments applying the tax deduction method use value-added invoices . In case of selling goods and services subject to value added tax but the value added tax amount is not stated on the value added tax invoice, the output value added tax is determined by multiplying the payment price stated on the invoice by the value added tax rate, except for the case specified in Clause 2 of this Article;
  3. b) Business establishments applying the direct calculation method use sales invoices .
  4. For stamps, tickets, and cards that are pre-printed payment documents, the payment price of the stamp, ticket, or card includes value added tax.

 

Chapter IV

TERMS OF IMPLEMENTATION

 

Article 17. Amendment and supplement to Clause 1, Article 3 of the Law on Personal Income Tax No. 04/2007/QH12, which has been amended and supplemented by a number of articles under Law No. 26/2012/QH13 and Law No. 71/2014/QH13.

“1. Business income, including:

  1. a) Income from production and trading of goods and services;
  2. b) Income from independent practice of individuals with a license or practice certificate as prescribed by law.

Business income specified in this clause does not include income of households and individuals engaged in production and business with revenue. below prescribed in Clause 25, Article 5 of the Law on Value Added Tax .”

Article 18. Entry into force

  1. This Law comes into force from the date of July 1, 2025, except for the case specified in Clause 2 of this Article.
  2. The provisions on the revenue level of households and individuals engaged in production and business that are not subject to tax in Clause 25, Article 5 of this Law and Article 17 of this Law shall take effect from January 1, 2026.
  3. Law on Value Added Tax No. 13/2008/QH12, as amended and supplemented by a number of articles under Law No. 31/2013/QH13, Law No. 71/2014/QH13 and Law No. 106/2016/QH13, ceases to be effective from the effective date of this Law.

 

_________________________________________________________________________________

15th National Assembly of the Socialist Republic of Vietnam at its 8th session on November 26, 2024.

 

 

CHAIRMAN OF THE NATIONAL ASSEMBLY

Tran Thanh Man

 

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