How to calculate the value-added tax (VAT) taxable prices of goods sold by installment in Vietnam in 2025?

How to calculate the value-added tax (VAT) taxable prices of goods sold by installment in Vietnam in 2025?

Pursuant to Point dd, Clause 1, Article 7 of the Law on Value-Added Tax 2024 (effective from July 1, 2025) stipulated as follows:

Tax Base Price

1. The tax base price is determined as follows:

a) For goods, services sold by a business establishment, it is the sale price excluding VAT; for goods and services subject to special consumption tax, it is the sale price including special consumption tax but excluding VAT; for goods subject to environmental protection tax, it is the sale price including environmental protection tax but excluding VAT; for goods subject to both special consumption tax and environmental protection tax, it is the sale price including both taxes but excluding VAT;

b) For imported goods, it is the import tax calculation value as per the law on export tax, import tax, plus import tax, any supplementary import taxes according to law (if any), special consumption tax (if any), and environmental protection tax (if any);

c) For goods and services used for exchange, internal consumption, given as gifts, the VAT base price is the value of similar or equivalent goods and services at the time these activities occur.

For promotional goods and services as per trade regulations, the tax base price is determined as zero (0);

d) For asset leasing activities, it is the rental amount excluding VAT.

In case of leases payable in periodic installments or advance payment for lease period, the tax base price is the lease payment per period or advance payment excluding VAT;

dd) For goods sold on an installment or deferred basis, the price is calculated as the one-time payment price excluding VAT, without including installment or deferred interest;

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Thus, according to the above regulation, the VAT taxable prices of goods sold by installment is the one-time payment price excluding VAT for those goods, not including installment or deferred interest.

How to calculate the value-added tax (VAT) taxable prices of goods sold by installment in Vietnam in 2025? (Image from the Internet)

What is the time for determining value-added tax in Vietnam from July 1, 2025?

Pursuant to Article 8 of the Law on Value-Added Tax 2024 (effective from July 1, 2025) regarding the determination of value-added tax point from July 1, 2025 as follows:

- The point for determining value-added tax is regulated as follows:

+ For goods, it is the point where ownership or usage rights of goods are transferred to the buyer or the time for issuing the invoice, regardless of whether the money is collected;

+ For services, it is the time for completion of service provision or the time for issuing the service invoice, regardless of whether the money is collected.

- The point for determining value-added tax for the following goods and services is stipulated by the Government of Vietnam:

+ Exported goods, imported goods;

+ Telecommunication services;

+ Insurance business services;

+ Electricity supply, electricity production, clean water activities;

+ Real estate business activities;

+ Construction, installation, and petroleum activities.

What are prohibited acts in deduction and refund of tax in Vietnam under the Law on Value-Added Tax 2024?

Pursuant to Article 13 of the Law on Value-Added Tax 2024 (effective from July 1, 2025) stipulating the prohibited acts in deduction and refund of tax as follows:

- Buying, selling, organizing advertisements, brokering for buying, selling invoices.

- Creating fictitious transactions for the sale of goods, provision of services, or transactions that do not conform to the law.

- Issuing invoices for goods sold, services provided during the period of business suspension, except for invoices issued for contracts signed before the business suspension notice.

- Using illegal invoices, documents, or unlawfully using invoices, documents as per the regulations of the Government of Vietnam.

- Failing to submit electronic invoice data to the tax authorities as prescribed.

- Tampering with, misusing, unauthorized accessing, or destroying information systems about invoices, documents.

- Giving, receiving, brokering bribes or conducting other acts related to invoices, documents for tax deduction, tax refund, tax appropriation, evasion of value-added tax.

- Colluding, covering up; connecting between tax officials, tax authorities and businesses, importers, between businesses, importers in the use of illegal invoices, documents to benefit from tax deductions, refunds, appropriating taxes, evading value-added tax.