What is Sub-entry 1701?

What is Sub-entry 1701?

According to Point b, Clause 1, Article 4 of Circular 324/2016/TT-BTC, sub-entry (also known as economic content code - ECC) is a detailed classification of the Entry, used to classify the detailed state budget revenue and expenditure according to management subjects in each Entry.

According to Appendix 3 of the List, the sub-entry issued together with Circular 324/2016/TT-BTC, supplemented by Clause 5, Article 1 of Circular 93/2019/TT-BTC, Sub-entry 1701 is regulated as follows:

Thus, Sub-entry 1701 is Value Added Tax on domestically produced and business goods (including services in the oil and gas sector).

What is Sub-entry 1701? (Image from the Internet)

Summary of 5 sub-entry codes for value-added tax in Vietnam in 2024

According to Point b, Clause 1, Article 4 of Circular 324/2016/TT-BTC, sub-entry (also known as economic content code - ECC) is a detailed classification of the Entry, used to classify the detailed state budget revenue and expenditure according to management subjects in each Entry.

Based on Appendix 3 of the List, the sub-entry issued together with Circular 324/2016/TT-BTC, the value-added tax sub-entries for 2024 are as follows:

View the entire chapter code details: Here

What is the current value-added tax rate in Vietnam?

According to Article 8 of the Law on Value Added Tax 2008 (amended by Clause 3, Article 1 of the Law amending the Law on Value Added Tax 2013, Article 1 of the Law amending the Law on Value Added Tax, the Law on Special Consumption Tax, and the Law on Tax Administration 2016, Article 3 of the Law amending the Laws on Taxation 2014) and Decree 72/2024/ND-CP regulating the VAT rate as follows:

(1) The 0% tax rate applies to exported goods and services, international transportation, and goods and services not subject to value-added tax stipulated in Article 5 of the Law on Value Added Tax 2008 when exported, except for the following cases:

- Transfer of technology, transfer of intellectual property rights abroad.

- Reinsurance services abroad;

- Credit granting services;

- Capital transfer;

- Derivative financial services;

- Postal and telecommunications services;

- Export products stipulated in Clause 23, Article 5 of the Law on Value Added Tax 2008.

Exported goods and services are goods and services consumed outside of Vietnam, in non-tariff zones; goods and services provided to foreign clients according to the regulations of the Government of Vietnam.

(2) The 5% tax rate applies to the following goods and services:

- Clean water for production and living purposes;

- Ores for fertilizer production; pest control chemicals and growth stimulants for livestock, and crops;

- Canal, ditch, pond, and lake excavation and dredging services serving agricultural production; planting, nurturing, pest control for plants; preliminary processing, preservation of agricultural products;

- Unprocessed agricultural, forestry, seafood products, except for products stipulated in Clause 1, Article 5 of this Law;

- Preliminary processed rubber latex; preliminary processed rosin; nets, rope for netting, and twine for fishing nets;

- Fresh food; unprocessed forest products, except for wood, bamboo shoots, and products stipulated in Clause 1, Article 5 of the Law on Value Added Tax 2008;

- Sugar; by-products from sugar production, including molasses, bagasse, mud residue;

- Products made of jute, rush, bamboo, rattan, leaves, straw, coconut shells, coconut fiber, water hyacinth, and other handicraft products made from agricultural by-products; pre-processed cotton; newsprint;

- Medical equipment and instruments, sanitary bandages; preventive and curative medicines; pharmaceutical products, and medicinal herbs used as raw materials for the production of curative medicines;

- Teaching and learning tools, including models, diagrams, boards, chalk, rulers, compasses, and specialized equipment and instruments for teaching, research, and scientific experiments;

- Cultural, exhibition, physical training and sports activities; art performances, film production; import, distribution, and screening of films;

- Children's toys; books of all kinds, except for books stipulated in Clause 15, Article 5 of the Law on Value Added Tax 2008;

- Scientific and technological services according to the Law on Science and Technology.

- Sale, leasing, leasing purchase of social housing according to the Housing Law.

(3) The 8% tax rate applies to certain goods and services with reduced VAT (from 10% to 8%) according to Decree 72/2024/ND-CP.

(4) The 10% tax rate applies to goods and services not subject to the 0%, 5%, and 8% tax rates.

Thus, depending on the taxable subject, the applicable Value Added Tax rates from July 1, 2024, will be 0%, 5%, 10%, or 8%.