Which types of textbooks are exempt from VAT in Vietnam?

Which types of textbooks are exempt from VAT in Vietnam?

According to Clause 15, Article 4 of Circular 219/2013/TT-BTC regarding subjects exempt from VAT as follows:

Subjects Exempt from VAT

…

15. Publishing, importing, distributing newspapers, magazines, specialized bulletins, political books, textbooks, curricula, books of legal texts, scientific-technical books, books printed in minority languages, and propaganda, promotional pictures, posters, including audio, video tapes, discs, electronic data; money, money printing.

Newspapers, magazines, specialized bulletins, include the activity of transmitting newspaper pages, magazines, specialized bulletins.

Political books are those that propagate the political issues of the Communist Party and the State, serving political tasks, themes, topics, anniversary days, traditional days of organizations, levels, sectors, and localities; types of statistical books, publicizing good people and good deeds; books printing speeches, theoretical research of leaders of the Communist Party and the State.

Textbooks are books used for teaching and learning at all levels from preschool to high school (including reference books for teachers and students suitable for the educational program content).

Curricula are books used for teaching and learning in universities, colleges, professional secondary schools, and vocational training.

Books of legal texts are those printing the legal documents of the State.

Scientific-technical books are those intended to introduce, guide scientific and technical knowledge directly related to production and fields of science, technology.

Books printed in minority languages include bilingual books in common and minority scripts.

Propaganda, promotional pictures, posters are pictures, posters, flyers, leaflets serving the purpose of propaganda, promotion, slogans, leader photos, Communist Party flags, National flags, Youth Union flags, Team flags.

...

Therefore, the activity of publishing textbooks for all levels from preschool to high school (including reference books for teachers and students suitable with the content of the education program) will not be subject to VAT.

Which types of textbooks are exempt from VAT in Vietnam? (Image from the Internet)

Which entities are value-added tax payers in Vietnam?

Pursuant to Article 3 of Circular 219/2013/TT-BTC, organizations and individuals producing, trading goods, services subject to value-added tax in Vietnam, regardless of the industry, form, business organization (hereinafter referred to as business establishments) and organizations, individuals importing goods, purchasing services from abroad subject to value-added tax (hereinafter referred to as importers) include:

- Business organizations established and registered under the Enterprise Law 2020, Cooperative Law 2023, and other specialized business laws;

- Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, people's armed forces units, public service organizations, and other organizations;

- Enterprises with foreign invested capital and foreign parties participating in business cooperation under the Investment Law; foreign organizations, individuals doing business in Vietnam without establishing a legal entity in Vietnam;

- Individuals, households, independent business groups, and other entities engaged in production, business, import activities;

- Organizations, individuals conducting business in Vietnam purchasing services (including services associated with goods) from foreign organizations without a permanent establishment in Vietnam, individuals abroad who are non-residents in Vietnam, the purchasing organizations, individuals are the taxpayers, except for cases that do not require declaration, calculation, and payment of value-added tax as instructed in Clause 2, Article 5 of Circular 219/2013/TT-BTC.

Regulations on permanent establishments and non-resident entities follow the law on corporate income tax and personal income tax.

- Branches of export processing enterprises set up to purchase and sell goods, and activities directly related to purchasing and selling goods in Vietnam in compliance with the law on industrial parks, export processing zones, and economic zones.

When is the time for determining value-added tax in Vietnam?

Based on Article 8 of Circular 219/2013/TT-BTC, the time of determining value-added tax is as follows:

- For the sale of goods, it is the time of transfer of ownership or the right to use the goods to the buyer, regardless of whether or not payment is collected.

- For the provision of services, it is the time of completion of the service provision or the time of issuing the service invoice, regardless of whether or not payment is collected.

For telecommunications services, it is the time of completing data reconciliation on telecommunication connection service charges per the economic contract between telecommunications businesses, but no later than 2 months from the month the telecommunication service charge arises.

- For electricity and clean water supply activities, it is the date of recording the consumption index on the meters for billing.

- For real estate business, infrastructure construction, house building for sale, transfer, or lease, it is the time of collection according to the project progress or payment progress in the contract. Based on the collected amount, the business establishment declares the output VAT generated in that period.

- For construction, installation, including shipbuilding, it is the time of acceptance, handover of the construction, work item, volume of construction, installation completed, regardless of whether or not payment is collected.

- For imported goods, it is the time of customs declaration registration.