What is the VAT taxable price for goods and services subject only to environmental protection tax in Vietnam from July 1, 2025?
What is the VAT taxable price for goods and services subject only to environmental protection tax in Vietnam from July 1, 2025?
Based on Article 7 of the Law on Value-Added Tax 2024 (effective from July 1, 2025) which regulates the taxable price for goods and services subject only to environmental protection tax as follows:
Taxable Price
1. Taxable prices are specified as follows:
a) For goods and services sold by business establishments, the price is the selling price without value-added tax; for goods and 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 tax and environmental protection tax, it is the selling price including both special consumption tax and environmental protection tax but excluding value-added tax;*
b) For imported goods, it is the import duty taxable value according to the law on export, import tax plus import duty plus any additional import duties as prescribed by law (if any), plus special consumption tax (if any), and plus environmental protection tax (if any);
c) For goods and services used for internal exchange, consumption, gifting, donation, the taxable price is the value-added tax base of similar or equivalent goods and services at the time these activities occur.
For goods and services used for promotion according to trade law, the taxable price is determined as zero (0);
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Therefore, the taxable price for goods and services subject to environmental protection tax from July 1, 2025, is the selling price including environmental protection tax but excluding value-added tax.
What is the VAT taxable price for goods and services subject only to environmental protection tax in Vietnam from July 1, 2025? (Image from the Internet)
Which entities are the taxpayers in Vietnam according to the Law on Value-Added Tax 2024?
Based on Article 4 of the Law on Value-Added Tax 2024, the taxpayers are defined as follows:
(1) Organizations, households, individuals producing or trading goods and services subject to value-added tax (hereinafter referred to as business establishments).
(2) Organizations, individuals importing goods subject to value-added tax (hereinafter referred to as importers).
(3) Organizations, individuals producing or trading in Vietnam purchasing services (including cases of purchasing services with goods) from foreign organizations without a permanent establishment in Vietnam, individuals abroad who are non-residents in Vietnam, except as provided for in (4) and (5); organizations producing or trading in Vietnam purchasing goods, services to conduct oil exploration, field development, and extraction activities from foreign organizations without a permanent establishment in Vietnam, individuals abroad who are non-residents in Vietnam.
(4) Foreign suppliers without a permanent establishment in Vietnam engaged in e-commerce business, conducting business on digital platforms with organizations, individuals in Vietnam (hereinafter referred to as foreign suppliers); foreign platform managers deducting and paying on behalf of foreign suppliers’ tax obligations; business organizations in Vietnam applying the value-added tax calculation method that is the deduction method purchasing services from foreign suppliers without a permanent establishment in Vietnam through e-commerce or digital platforms deducting, paying on behalf of foreign suppliers’ tax obligations.
(5) Organizations that act as managers of e-commerce trading floors, managers of digital platforms with payment functions deducting, paying taxes on behalf, declaring deducted tax amounts for business households, business individuals on e-commerce floors, and digital platforms.
The Government of Vietnam specifies details for (1), (4), (5); provides regulations on the taxpayers in cases where foreign suppliers provide services to purchasers being business organizations in Vietnam applying the deduction method mentioned in (4).
The Law on Value-Added Tax 2024 is effective from July 1, 2025, except for provisions on the revenue level of households, individuals producing, or trading not subject to tax as stated in clause 25 Article 5 of the Law on Value-Added Tax 2024 and Article 17 of the Law on Value-Added Tax 2024 which are effective from January 1, 2026.
What are prohibited acts in VAT deduction and refund in Vietnam from July 1, 2025?
Based on Article 13 of the Law on Value-Added Tax 2024 (effective from July 1, 2025), the prohibited acts in deduction and refund include:
- Buying, giving, selling, organizing advertisement, brokering the sale of invoices.
- Creating fake transactions of buying and selling goods or providing services, or transactions not compliant with the law.
- Issuing invoices for selling goods, providing services during the period of temporarily ceased business operations, except for issuing invoices to customers to perform contracts signed before the announcement of business suspension.
- Using illegal invoices, documents or illegally using invoices, documents as prescribed by the Government of Vietnam.
- Failing to transmit electronic invoice data to the tax authorities as regulated.
- Altering, using for wrong purposes, unauthorized access, destruction of information systems related to invoices, documents.
- Offering, receiving, brokering bribery or performing other acts related to invoices, documents to be eligible for tax deduction, refund, tax appropriation, VAT evasion.
- Colluding, covering up; connecting between tax management officials, tax authorities and business establishments, importers, between business establishments, importers in using illegal invoices, documents or illegally using invoices, documents to be eligible for tax deduction, refund, tax appropriation, VAT evasion.
