What are regulations on the taxable prices of goods sold by installment in Vietnam from July 1, 2025?

What are regulations on the taxable prices of goods sold by installment in Vietnam from July 1, 2025?

Based on Point (đ), Clause 1, Article 7 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the regulation on tax prices is as follows:

Taxable prices Price

1. The taxable prices price is stipulated as follows:

a) For goods and services sold by business establishments, the sale price excludes VAT; for goods and services subject to special consumption tax, the sale price includes special consumption tax but excludes VAT; for goods subject to environmental protection tax, the sale price includes environmental protection tax but excludes VAT; for goods subject to both special consumption tax and environmental protection tax, the sale price includes both taxes but excludes VAT;

b) For imported goods, the import tax value is determined according to the law on export and import tax, plus import tax and additional import taxes according to regulations (if any), plus special consumption tax (if any) and environmental protection tax (if any);

c) For goods and services used for exchange, internal consumption, gifting, donation, the VAT calculation price is the same as similar or equivalent goods and services at the time these activities arise.

For goods and services used for promotion under the Commercial Law, the taxable prices price is determined as zero (0);

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

In cases where the rent payment is periodic or upfront for the lease term, the taxable prices price is the rent paid for each period or upfront for the lease term excluding VAT;

dd) For goods sold on an installment, deferred payment basis, the tax price is calculated based on the one-time sale price excluding VAT for that product, not including installment or deferred payment interest;

e) For outsourced goods, it is the outsourcing cost excluding VAT;

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Thus, according to the above regulation, the taxable prices price for goods sold by installment from July 1, 2025, is based on the one-time sale price excluding VAT for that product, not including installment or deferred payment interest.

What are regulations on the taxable prices of goods sold by installment in Vietnam from July 1, 2025? (Image from the Internet)

When is the VAT determined for goods sold by installment in Vietnam?

Based on Article 8 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the determination of the VAT timing is regulated as follows:

Timing for VAT Determination

1. The timing for VAT determination is stipulated as follows:

a) For goods, it is the time of transfer of ownership or use rights of goods to the buyer, or the time of issuing the invoice, irrespective of whether money has been received or not;

b) For services, it is the time of completing the service provision or the time of issuing the service invoice, irrespective of whether money has been received or not.

2. The timing for VAT determination for the following goods and services is prescribed by the Government of Vietnam:

a) Exported and imported goods;

b) Telecommunications services;

c) Insurance business services;

d) Electricity supply activities, electric and clean water production;

dd) Real estate business activities;

e) Construction, installation, and oil and gas activities.

Thus, the timing for VAT determination for goods sold by installment is when the ownership or use rights of the goods are transferred to the buyer, or the time of issuing the invoice, irrespective of whether money has been received or not.

Which entities are VAT payers in Vietnam?

Based on Article 4 of the Law on Value-Added Tax 2024, the VAT taxpayers include:

(1) Organizations, households, and individuals producing or trading goods and services subject to VAT.

(2) Organizations and individuals importing goods subject to VAT.

(3) Organizations and individuals producing or trading in Vietnam purchasing services (including services associated with goods) from foreign organizations without a permanent establishment in Vietnam, non-resident individuals abroad, except for cases (4), (5);

Organizations producing or trading in Vietnam purchasing goods and services to carry out oil and gas exploration, field development and exploitation activities from foreign organizations without a permanent establishment in Vietnam, non-resident individuals abroad.

(4) Foreign suppliers without a permanent establishment in Vietnam engaged in e-commerce, digital platform-based business with organizations, individuals in Vietnam;

Foreign digital platform managing organizations implementing withholding and paying tax obligations on behalf of foreign suppliers;

Business organizations in Vietnam applying the VAT deduction method purchasing services from foreign suppliers without a permanent establishment in Vietnam via e-commerce or digital platforms performing tax obligations on behalf of foreign suppliers.

(5) Organizations managing e-commerce exchanges, digital platforms with payment functions performing withhold, pay replacement, declare taxes withheld for business households, individual traders on e-commerce platforms, digital platforms.

(6) The Government of Vietnam details (1), (4), (5); prescribes taxpayers in case foreign suppliers provide services to business organizations in Vietnam applying the tax deduction method specified in (4)

*Note: Law on Value-Added Tax 2024 is effective from July 1, 2025, except for the following provisions:

Regulations on the turnover level of households, individuals producing, trading subject to tax exemption at Clause 25, Article 5 of the Law on Value-Added Tax 2024 and Article 17 of the Law on Value-Added Tax 2024 are effective from January 1, 2026.