What is the VAT rate applicable to teaching and learning equipment in Vietnam from July 1, 2025?

What is the VAT rate applicable to teaching and learning equipment in Vietnam from July 1, 2025?

Based on point i, clause 2, Article 9 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the VAT rate is stipulated as follows:

Tax Rate

...

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

a) Clean water for production and consumption, excluding bottled, canned, and other beverages;

b) Fertilizers, ores for fertilizer production, pesticides, and growth stimulants for livestock as prescribed by law;

c) Services of digging, dredging canals, ditches, ponds for agricultural production; cultivating, caring for, controlling pests for plants; preliminary processing, preserving agricultural products;

d) Products of cultivation, planted forests (excluding wood, shoots), livestock, aquaculture, capturing not yet processed into other products or only through ordinary preliminary processing, excluding products specified in clause 1, Article 5 of this Law;

đ) Rubber latex in the forms of crepe, sheets, threads; nets, ropes, and threads for fishing nets weaving;

e) Products made of jute, rush, bamboo, rattan, leaves, straw, coconut shells, water hyacinth, and other handicraft products produced using agricultural byproducts; ginned cotton fiber, newspaper;

g) Vessels to exploit aquatic products in sea areas; machinery and equipment specially used for agricultural production as stipulated by the Government of Vietnam;

h) Medical equipment according to the law on management of medical equipment; preventive, curative medicines; pharmaceutical substances, medicinal materials are raw materials for the production of preventive medicines, curative medicines;

i) Equipment for teaching and learning including models, drawings, boards, chalk, rulers, compasses;

k) Traditional, folk performing art activities;

l) Toys for children; various types of books, except books specified in clause 15, Article 5 of this Law;

m) Science and technology services as stipulated by the Law on Science and Technology;

n) Sale, lease, lease-purchase of social housing as stipulated by the Housing Law.

...

Thus, from July 1, 2025, the equipment for teaching and learning, including models, drawings, boards, chalk, will apply a VAT rate of 5%.

What is the VAT rate applicable to teaching and learning equipment in Vietnam from July 1, 2025? (Image from the Internet)

Vietnam: How many VAT calculation methods are there from July 1, 2025?

Based on Article 10 of the Law on Value-Added Tax 2024 there are 2 methods of calculating VAT as follows:

- Tax deduction method

- Direct calculation method

What are regulations on credit-invoice method in Vietnam from July 1, 2025?

According to Article 11 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the credit-invoice method is regulated as follows:

(1) The credit-invoice method is regulated as follows:

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

- Output VAT is the total VAT of goods and services sold as recorded on the VAT invoice.

- VAT of goods and services sold as recorded on the VAT invoice is the taxable price of the taxable goods and services sold multiplied by their respective VAT rate.

- In the case of using invoices that record a payment price that already includes VAT, the output VAT is determined as the payment price minus the taxable price determined according to point k, clause 1, Article 7 of the Law on Value-Added Tax 2024;

- Deductible input VAT is the total VAT recorded on VAT invoices of purchased goods and services, tax payment documents for imported goods, or tax payment documents in the case of purchasing services regulated at clauses 3 and 4, Article 4 of the Law on Value-Added Tax 2024, and meeting the conditions stipulated in Article 14 of the Law on Value-Added Tax 2024.

(2) The credit-invoice method applies to business establishments that fully comply with the accounting, invoice, and document policies as prescribed by law on accounting, invoice, and documents, including:

- Business establishments with annual revenue from goods sale and service provision of 1 billion VND or more, except households and individuals engaged in production and business activities;

- Business establishments voluntarily applying the tax deduction method, except households and individuals engaged in production and business activities;

- Organizations and foreign individuals providing goods and services for oil and gas exploration, development, and extraction activities that pay tax under the deduction method, declared, deducted, and paid in lieu by the Vietnamese side.