From July 1, 2025, which exported goods and services are entitled to a 0% value-added tax rate in Vietnam?

From July 1, 2025, which exported goods and services are entitled to a 0% value-added tax rate in Vietnam?

Pursuant to Clause 1, Article 9 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), exported goods and services subject to a 0% value-added tax rate include:

- Exported goods include:

+ Goods sold from Vietnam to organizations or individuals abroad and consumed outside Vietnam.

+ Goods sold from mainland Vietnam to organizations in tax-free zones and consumed within these zones to directly serve export production activities.

+ Goods sold in isolated areas for individuals (foreigners or Vietnamese) who have completed exit procedures.

+ Goods sold at duty-free shops.

- Exported services include:

+ Services provided directly to organizations or individuals abroad and consumed outside Vietnam.

+ Services provided directly to organizations in tax-free zones and consumed within these zones to directly serve export production activities.

- 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 agencies for international transportation.

+ Construction and installation activities abroad or in tax-free zones.

+ Digital content products delivered to foreign parties with documentation proving consumption outside Vietnam as prescribed by the Government of Vietnam.

+ Spare parts and materials for repairing and maintaining vehicles, machinery, and equipment for foreign parties and consumed outside Vietnam.

+ Goods processed for further export as per legal regulations.

+ Goods and services subject to no value-added tax when exported, except for cases where the 0% tax rate is not applicable as specified in point d, Clause 1, Article 9 of the Law on Value-Added Tax 2024.

From July 1, 2025, which exported goods and services are entitled to a 0% value-added tax rate in Vietnam? (Image from Internet)

Which exported goods are subject to value-added tax in Vietnam under the new regulations?

Based on Article 3 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the scope of goods subject to value-added tax is defined as follows:

Taxable Objects

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.

Moreover, following the provisions in Article 5 of the Law on Value-Added Tax 2024 (effective from July 1, 2025) regarding non-taxable objects.

Thus, from July 1, 2025, exported goods subject to value-added tax are those used for production, business, and consumption in Vietnam, except for the following cases that are exempt from value-added tax:

- Temporary import for re-export goods.

- Temporary export for re-import goods.

- Exported goods that are natural resources or minerals extracted but not processed into other products, and exported goods that are natural resources or minerals extracted and processed into other products according to the list prescribed by the Government of Vietnam, aligning with the state policy of discouraging and limiting the export of raw natural resources and minerals.

Which entities are value-added taxpayers in Vietnam under the new regulations?

Pursuant to Article 4 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the obligation to pay value-added tax is as follows:

- Organizations, households, and individuals producing and trading in taxable goods and services (hereinafter referred to as business establishments).

- Organizations and individuals importing goods subject to value-added tax (hereinafter referred to as importers).

- Organizations and individuals conducting business in Vietnam that purchase services (including those related to goods) from foreign organizations without a permanent establishment in Vietnam, and individuals abroad who are non-residents in Vietnam, except as specified in Clauses 4 and 5 of Article 4 of the Law on Value-Added Tax 2024; organizations conducting business in Vietnam that purchase goods and services to carry out oil and gas exploration, development, and exploitation activities of foreign organizations without a permanent establishment in Vietnam, and individuals abroad who are non-residents in Vietnam.

- Foreign suppliers without a permanent establishment in Vietnam conducting e-commerce business, digital platform business transactions with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers); organizations managing foreign digital platforms perform tax withholding and payment obligations on behalf of the foreign suppliers; organizations conducting business in Vietnam applying the method of credit-invoice to calculate value-added tax on services purchased from foreign suppliers without a permanent establishment in Vietnam through electronic commerce channels or digital platforms that perform tax withholding and payment obligations on behalf of the foreign suppliers.

- Organizations managing e-commerce trading floors, digital platforms with payment function perform tax withholding and payment, declare the withheld amount for business households, and individual businesses on e-commerce trading floors, digital platforms.