From January 1, 2026, will goods in national reserves sold by the national reserve agency be subject to value-added tax in Vietnam?

From January 1, 2026, will goods in national reserves sold by the national reserve agency be subject to value-added tax in Vietnam?

Based on Clause 25, Article 5 of the Value-Added Tax Law 2024 (effective from July 1, 2025), which stipulates exemptions from the tax as follows:

Non-taxable goods and services

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23. Export products which are resources, minerals extracted without being processed into other products and export products which are resources, minerals extracted and processed into other products according to the List prescribed by the Government of Vietnam in line with the state’s orientation on discouraging and restricting the export of raw resources and minerals.

24. Artificial products used to replace parts of the human body, including products as long-term implants in the human body; crutches, wheelchairs, and other specialized tools for the disabled.

25. Goods and services of households, individual production, and business units with an annual revenue of 200 million dong or less; assets of organizations, individuals not engaged in business, not tax payers of value-added tax selling; goods in national reserves sold by the national reserve agency; fees and charges collected in accordance with the law on fees and charges.

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Additionally, Article 18 of the Value-Added Tax Law 2024 stipulates as follows:

Enforcement

1. This law shall take effect from July 1, 2025, except as prescribed in Clause 2 of this Article.

2. The provision on the revenue level of households, individuals engaged in production and business activities not subject to tax under Clause 25 Article 5 of this Law and Article 17 of this Law shall take effect from January 1, 2026.

3. The Value-Added Tax Law No. 13/2008/QH12 which has been amended and supplemented by Law No. 31/2013/QH13, Law No. 71/2014/QH13 and Law No. 106/2016/QH13 shall cease to have effect from the effective date of this Law.

Based on the two aforementioned provisions, it can be concluded that from January 1, 2026, goods in national reserves sold by the national reserve agency will be exempt from value-added tax.

From January 1, 2026, will goods in national reserves sold by the national reserve agency be subject to value-added tax in Vietnam? (Image from Internet)

What is the taxable price in Vietnam from July 1, 2025?

According to Clause 1, Article 7 of the Value-Added Tax Law 2024 (effective from July 1, 2025), the taxable price is determined as follows:

- For goods and services sold by business entities, the tax base is the selling price exclusive of value-added tax; for goods and services subject to special consumption tax, the base is the selling price inclusive of special consumption tax but exclusive of value-added tax; for goods subject to environmental protection tax, the base is the selling price inclusive of environmental protection tax but exclusive of value-added tax; for goods subject to both special consumption tax and environmental protection tax, the base is the selling price inclusive of these taxes but exclusive of value-added tax;

- For imported goods, it is the dutiable value for import duties as prescribed by the law on export and import taxes plus import duties and any additional import taxes as prescribed (if any), plus special consumption taxes (if any) and environmental protection taxes (if any);

- For exchanged, internally consumed, gifted, or donated goods and services, the tax base is the value of similar goods and services at the time these activities arise.

For promotional goods and services in accordance with commercial law, the tax base is zero (0);

- For leasing activities, the tax base is the rental amount excluding value-added tax.

In cases where rent is paid on a periodic basis or prepaid for a leasing period, the tax base is the rental amount for each period or the prepaid rental amount excluding value-added tax;

- For goods sold on installment or deferred payment, the tax base shall be the selling price on a one-time payment basis excluding value-added tax of such goods, not including installment or deferred interest;

- For processing of goods, the tax base is the processing fee excluding value-added tax;

- For construction and installation activities, it is the value of handed-over works or work items performed excluding value-added tax. In case of construction and installation without input materials, machinery, equipment, the tax base is the construction and installation value excluding the value of materials, machinery, and equipment;

- For real estate business activities, it is the real estate selling price excluding value-added tax, deducting land levy or land rent paid into the state budget (deductible land price). The Government of Vietnam prescribes the determination of this deductible land price in accordance with the law on land;

- For agency and brokerage activities in goods and services trading enjoying commission, it is the commission amount obtained from these activities excluding value-added tax;

- For goods and services using invoices stating that the payable amount includes value-added tax, the tax base is determined according to the following formula:

Price excluding value-added tax = Payment amount / (1 + tax rate of goods, services (%))

- For casino, reward-based electronic gaming, and betting services, it is the amount of money collected from these activities subtracting the returnable balance and the prize payouts (if any), inclusive of special consumption tax, exclusive of value-added tax;

- For production, business activities including electricity production of Vietnam Electricity Group; transportation, loading, unloading; tourism services according to package tours; pawn services; value-added tax applicable books sold at release price (cover price); printing activities; agency services for inspection, indemnity settlement, third-party indemnity claim, indemnity processing at 100% enjoy wages or commission, the tax base is the sale price excluding value-added tax. The Government of Vietnam regulates the tax base for the production and business activities specified in this point.

Note: The tax base for such goods and services includes surcharges and additional fees that the business entity is entitled to.

Which goods and services are subject to value-added tax in Vietnam from July 1, 2025?

According to the provisions of Article 4 of the Value-Added Tax Law 2024 (effective from July 1, 2025), the goods and services subject to value-added tax are goods and services used for production, business, and consumption in Vietnam, except for non-taxable goods and services as stipulated in Article 5 of the Value-Added Tax Law 2024.