What is the tax rate applicable to rubber latex in the form of nuggets in Vietnam from July 1, 2025?

What is the tax rate applicable to rubber latex in the form of nuggets in Vietnam from July 1, 2025?

According to Point (dd), Clause 2, Article 9 of the Law on Value Added Tax 2024 (effective from July 1, 2025), a specific regulation on the tax rate of 5% is provided as follows:

Tax Rate

...

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

....

c) Services such as excavation, dredging of canals, ditches, lakes serving agricultural production; planting, caring, pest control for crops; preliminary processing, preservation of agricultural products;

d) Products of planted crops, planted forests (excluding timber, bamboo shoots), livestock, aquaculture, caught fish not yet processed into other products or only through ordinary preliminary processing, except for the products specified in Clause 1, Article 5 of this law;

đ) Rubber latex products such as crepe rubber, rolled rubber, rubber latex in the form of nuggets, rubber latex in the form of nuggets; nets, twine, and yarn for weaving fishing nets;

e) Products made from jute, sedge, bamboo, rattan, leaves, straw, coconut shells, coir, water hyacinth, and other handicraft products made from agricultural by-products; cotton fibers after rough combing, fine combing; newsprint;

...

Therefore, according to the above regulation, the tax rate applicable to rubber latex in the form of nuggets from July 1, 2025, is 5%.

What is the tax rate applicable to rubber latex in the form of nuggets in Vietnam from July 1, 2025? (Image from Internet)

How to calculate the value-added tax price in Vietnam from July 1, 2025?

According to Article 7 of the Law on Value Added Tax 2024 (effective from July 1, 2025), specific provisions on the calculation of value-added tax price are as follows:

[1] The taxable price is determined as follows:

- For goods, services sold by business establishments, it is the selling price excluding value-added tax; for goods, services subject to special consumption tax, it is the selling price including special consumption tax but excluding value-added tax; for goods subject to environmental protection tax, it is the selling price including environmental protection tax but excluding value-added tax; for goods subject to both special consumption and environmental protection taxes, it is the selling price including both but excluding value-added tax;

- For imported goods, it is the import tax base price as per the regulations on export and import taxes plus import duties, any additional import duties, any special consumption tax (if applicable), and environmental protection tax (if applicable);

- For goods and services used for exchange, internal consumption, gifts, donations, it is the taxable price of similar goods, services at the time of the activities. For promotional goods, services as per trade law, the taxable price is set to zero (0);

- For asset leasing, it is the rental amount excluding value-added tax. If leasing payments are made periodically or in advance, the taxable price is the periodic or prepaid rental amount excluding value-added tax;

- For installment, deferred payment sales, it is the price excluding value-added tax, not including interest;

- For processing services, it is the processing fee excluding value-added tax;

- For construction, installation activities, it is the value of works, items not including materials, equipment if unprovided, excluding value-added tax;

- For real estate business, it is the selling price excluding value-added tax, subtracting land levy or rent to the state budget (land value deducted). The Government of Vietnam regulates the determination of deductible land value in accordance with land law;

- For agency, brokerage for goods/services commission-based, it is the commission amount excluding value-added tax;

- For goods, services with invoiced payment including value-added tax, the taxable price is determined by the formula:

- For casino services, electronic gaming, betting, it is the revenue post any unutilized cash exchange or winnings, including special consumption tax, but excluding value-added tax;

- For production, business activities include Vietnam Electricity production; transport, loading; travel services; pawn; taxable books sold at publication price; printing; assessment, compensation, third-party recovery, 100% commission indemnity, it is the selling price excluding value-added tax. The Government of Vietnam regulates taxable prices for these activities.

[2] Taxable prices for goods, services defined in Clause 1, Article 7 Law on Value Added Tax 2024 include surcharges and additional fees entitled to business owners.

What is the time to determine VAT in Vietnam from July 1, 2025?

According to Article 8 of the Law on Value Added Tax 2024 (effective from July 1, 2025), specific provisions on the timing for identifying VAT are as follows:

[1] The timing to identify value-added tax is specified as follows:

- For goods, it is the time of transfer of ownership or right to use goods to the buyer or the time of invoice issuance, regardless of payment status;

- For services, it is the completion time of service provision or the time of invoice issuance, regardless of payment status.

[2] Timing for identifying value-added tax for the following goods, services is regulated by the Government of Vietnam:

- Exported and imported goods;

- Telecommunication services;

- Insurance business services;

- Electricity supply, production, clean water operations;

- Real estate business activities;

- Construction, installation, and petroleum operations.