In which cases are imported goods exempt from value added tax in Vietnam?
In which cases are imported goods exempt from value added tax in Vietnam?
Pursuant to Article 5 of the Value-added Tax Law 2024, imported goods are not subject to value-added tax in the following cases:
- Goods imported as humanitarian aid or non-refundable aid. Goods and services sold to foreign organizations and individuals, and international organizations for humanitarian aid or non-refundable aid to Vietnam.
- Goods imported from abroad by a financial leasing company transported directly into a non-tariff zone for financial leasing to enterprises in the non-tariff zone.
- Goods imported in the following cases:
+ Gifts to government agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, and armed forces units within the import duty exemption limits as stipulated by the law on export and import duties.
+ Gifts, presents within the import duty exemption limits as stipulated by the law on export and import duties from foreign organizations and individuals to Vietnamese individuals; items owned by foreign organizations and individuals qualifying for diplomatic immunity and moving property within the import duty exemption limits as stipulated by the law on export and import duties.
+ Goods within the duty-free luggage standards under the regulations of the law on export and import duties.
+ Goods imported for support and sponsorship for disaster, natural disaster, disease, and war prevention and recovery as regulated by the Government of Vietnam.
+ Goods traded and exchanged across the border to serve the production and consumption of border residents, which fall under the List of goods traded and exchanged by border residents according to the law, and within the import duty exemption limits as stipulated by the law on export and import duties.
+ Artifacts, antiques, and national treasures as regulated by the law on cultural heritage imported by a competent state authority.
In which cases are imported goods exempt from value added tax in Vietnam? (Image from Internet)
Which goods and services in Vietnam are liable to the value-added tax rate of 5%?
According to Clause 2, Article 9 of the Value-added Tax Law 2024, the 5% value-added tax rate applies to the following goods and services:
- Clean water for production and living purposes, excluding bottled water, canned water, and other non-alcoholic beverages.
- Fertilizers, ores for fertilizer production, plant protection drugs, and livestock growth stimulants as regulated by law.
- Services for digging, dredging canals, ditches, lakes for agricultural production; cultivating, caring, and pest control for crops; preliminary processing and preservation of agricultural products.
- Plant products, planted forests (excluding wood, bamboo shoots), livestock, aquaculture, and wild-caught aquatic products not processed into other products or only through ordinary preliminary processing, excluding plant products, planted forests, livestock, aquaculture, and wild-caught aquatic products not processed into other products or only through ordinary preliminary processing by organizations and individuals self-produced, caught, and sold at the importation stage.
- Rubber latex in crêpe form, sheet form, block form, crumb form; nets, knitting lines, and threads for knitting fishing nets.
- Products made from jute, sedge, bamboo, rattan, leaves, straw, coconut husks, coconut shells, water hyacinth, and other handicraft products produced from agricultural residual materials; cotton fiber that has been combed and carded; newsprint.
- Fishing boats at sea; specialized machinery and equipment for agricultural production as regulated by the Government of Vietnam.
- Medical equipment as regulated by the law on medical device management; medicines for disease prevention and treatment; pharmaceutical substances and herbal materials for drug production for disease prevention and treatment.
- Equipment used for teaching and learning, including models, drawings, boards, chalk, rulers, compasses.
- Traditional and folk performing arts activities.
- Children's toys; books of all kinds, except political books, textbooks, teaching materials, legal document books, scientific and technical books, books serving external information, books printed in ethnic minority languages, and propaganda paintings, photos, and posters, including those in the form of audio tapes or discs, video tapes or discs, electronic data; money, printing money.
- Science and technology services.
- Sale, lease, and lease purchase of social housing.
Do importers in Vietnam have to pay value-added tax on imported goods?
Pursuant to Article 4 of the Value-added Tax Law 2024, the tax payers are:
Article 4. Tax Payers
- Organizations, households, and individuals producing and trading goods and services subject to value-added tax (hereinafter referred to as business establishments).
- Organizations and individuals importing goods subject to value-added tax (hereinafter referred to as importers).
- Organizations and individuals operating in Vietnam purchasing services (including cases of purchasing services associated with goods) from foreign organizations without a permanent establishment in Vietnam, and individuals abroad who do not reside in Vietnam, except as provided for in Clauses 4 and 5 of this Article; organizations operating in Vietnam purchasing goods and services for activities related to oil and gas search, exploration, field development, and exploitation from foreign organizations without a permanent establishment in Vietnam, and individuals abroad who do not reside in Vietnam.
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According to the above regulation, organizations and individuals importing goods must pay value-added tax on imported goods in accordance with the regulation.
