What are 06 types of imports exempt from VAT in Vietnam according to new Law from July 1, 2025?

What are 06 types of imports exempt from VAT in Vietnam according to new Law from July 1, 2025?

Pursuant to Clause 26, Article 5 of the Value-Added Tax Law 2024 stipulating as follows:

- Gifts for state agencies, political organizations, socio-political organizations, socio-professional political organizations, social organizations, socio-professional organizations, and armed forces units within the duty-free import limits as regulated by the law on export and import taxes;

- Gifts within the duty-free import limits as regulated by the law on export and import taxes from foreign organizations or individuals to Vietnamese individuals; goods of foreign organizations or individuals according to diplomatic immunity standards and moving assets within the duty-free import limits as regulated by the law on export and import taxes;

- Goods within the duty-free import standards of luggage under the law on export and import taxes;

- imports for support, sponsorship for disaster, natural disaster, epidemic, and war recovery in accordance with the Government of Vietnam's regulations;

- Goods traded or exchanged across borders for production or consumption by border residents in the list of goods traded, exchanged by border residents as stipulated by law and within the duty-free import limits as regulated by the law on export and import taxes;

- Artifacts, antiques, national treasures as stipulated by the law on cultural heritage imported by a competent state authority.

What are 06 types of imports exempt from VAT in Vietnam according to new Law from July 1, 2025? (Image from the Internet)

What is the time for determining VAT in Vietnam from July 1, 2025?

Pursuant to Article 8 of the Value-Added Tax Law 2024 stipulating the time for determining VAT as follows:

- For goods, it is the time of transfer of ownership or use rights to the buyer or the time of issuing the invoice, regardless of whether the money has been collected or not;

- For services, it is the time of completion of service provision or the time of issuing the service provision invoice, regardless of whether the money has been collected or not.

*Note: the Government of Vietnam will regulate the time for determining value-added tax for the following goods and services:

- Exported goods, imports;

- Telecommunication services;

- Insurance business services;

- Electricity provision activities, electricity, and clean water production activities;

- Real estate business activities;

- Construction, installation, and petroleum activities.

What are regulations on places of VAT submission in Vietnam?

Pursuant to Article 20 of Circular 219/2013/TT-BTC regulating the place of VAT submission as follows:

(1) Taxpayers declare and submit VAT in the locality where production or business occurs.

(2) Taxpayers declaring and submitting VAT by the deduction method with dependent accounting production facilities located in a province or centrally-run city different from the one where the headquarters is located must submit VAT at the locality where the production facility is and at the locality where the headquarters is situated.

(3) Business enterprises, cooperatives applying the direct method have production facilities in provinces, centrally-run cities different from where their headquarters are situated, or have transient foreign sales activities must declare and submit VAT by a percentage on sales for revenue generated outside the province at the locality where the production facility or transient sales are located. Businesses, cooperatives do not have to submit VAT by percentage on sales at the headquarters for revenues generated outside the province where sales have been declared and submitted.

(4) In cases of telecommunications service businesses providing postpaid telecommunications services in a province or centrally-run city different from where the main headquarters is located and having established dependent accounting branches submitting VAT by the deduction method jointly participating in providing postpaid telecommunications services in that locality, the telecommunications service business performs VAT declaration and submission for postpaid telecommunications services as follows:

- Declare VAT for the revenue of postpaid telecommunications services for the entire business with the tax authority managing the main headquarters directly.

- Submit VAT at both the locality of the main headquarters and the locality where the dependent accounting branch is located.

The VAT amount to be submitted at the locality where the dependent accounting branch is located is determined by a rate of 2% (for postpaid telecommunications services subject to VAT at the rate of 10%) on revenue (exclusive of VAT) of postpaid telecommunications services at the locality where the dependent accounting branch is located.

(5) The declaration and submission of VAT shall comply with the provisions of the Tax Administration Law and legal guiding documents on implementing the Tax Administration Law.

*Note: Value-Added Tax Law 2024 is effective from July 1, 2025.