What is the taxable price for value-added tax on imported goods in Vietnam from July 1, 2025?

What is the taxable price for value-added tax on imported goods in Vietnam from July 1, 2025?

Based on point b, clause 1, Article 7 of the Value-Added Tax Law 2024 (effective from July 1, 2024), the taxable price for value-added tax on imported goods from July 1, 2025, is stipulated as follows:

Taxable price

1. The taxable price is stipulated as follows:

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

b) For imported goods, the taxable price is the customs value as prescribed by the law on export and import taxes, plus import tax, plus any additional import taxes per the legal provisions (if any), plus special consumption tax (if any), and plus environmental protection tax (if any);

c) For goods and services used for exchange, internal consumption, gifting, or donation, the taxable price is the value-added tax rate of goods and services of the same kind or equivalent at the time these activities occur.

For goods and services used for promotion as stipulated by the commercial law, the taxable price is determined as zero (0);

d) For property rental activities, the rental price excluding value-added tax. In cases where rental payment is made periodically or in advance for the rental term, the taxable price is the rental payment excluding value-added tax;

đ) For goods sold on installment or deferred payment, the taxable price is the one-time selling price excluding value-added tax, not including interest of the installment or deferred payment;

Therefore, based on the above regulations, the taxable price for value-added tax on imported goods from July 1, 2025, is the customs value as prescribed by the law on export and import taxes, plus import tax, plus any additional import taxes per the legal provisions (if any), plus special consumption tax (if any), and plus environmental protection tax (if any).

What is the taxable price for value-added tax on imported goods in Vietnam from July 1, 2025? (Image from the Internet)

What is the method of deducting value-added tax in Vietnam?

Based on clause 1, Article 11 of the Value-Added Tax Law 2024 (effective from July 1, 2024), the method of deducting value-added tax is stipulated as follows:

- The value-added tax payable according to the deduction method is the output value-added tax minus the deductible input value-added tax.

- The output value-added tax is the total value-added tax of goods and services sold, recorded on the value-added tax invoice.

The value-added tax of goods and services sold, recorded on the value-added tax invoice, is the taxable price of goods and services sold multiplied by the value-added tax rate of those goods and services.

In cases where an invoice records the payment price including value-added tax, the output value-added tax is determined by subtracting the taxable value-added amount determined according to point k, clause 1, Article 7 of the Value-Added Tax Law 2024.

- The deductible input value-added tax is the total value-added tax recorded on the value-added tax purchase invoice, the document of value-added tax payment for imported goods, or the tax document for purchasing services as stipulated in clauses 3 and 4, Article 4 of this Law and meets the conditions prescribed in Article 14 of the Value-Added Tax Law 2024.

When is the time of determining value-added tax on goods in Vietnam?

Based on point a, clause 1, Article 8 of the Value-Added Tax Law 2024 (effective from July 1, 2024), the time of determining value-added tax on goods is stipulated as follows:

Time of determining value-added tax

1. The time of determining value-added tax is stipulated as follows:

a) For goods, it is the time of transferring ownership or the right to use goods to the buyer or the time of issuing invoices, regardless of whether the payment has been received or not;

b) For services, it is the time of completing the service provision or the time of issuing service provision invoices, regardless of whether the payment has been received or not.

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

a) Exported goods, imported goods;

b) Telecommunication services;

c) Insurance business services;

d) Power and water supply activities;

đ) Real estate business activities;

e) Construction, installation, and petroleum activities.

Therefore, based on the above regulations, the time of determining value-added tax on goods is the time of transferring ownership or the right to use goods to the buyer or the time of issuing invoices, regardless of whether the payment has been received or not.