From July 1, 2025, what is the value-added tax rate for educational and teaching equipment in Vietnam?
From July 1, 2025, what is the value-added tax rate for educational and teaching equipment in Vietnam?
Based on Clause 2, Article 9 of the Value Added Tax Law 2024 stipulating the tax rates:
Article 9. Tax Rates
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- The tax rate of 5% is applied to the following goods and services:
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e) Products made from jute, sedge, bamboo, rattan, leaves, straw, coconut shells, water hyacinths, and other handicraft products made from agricultural waste; carded and combed cotton; newsprint;
g) Offshore fishing vessels; specialized machinery and equipment used for agricultural production as prescribed by the Government of Vietnam;
h) Medical equipment as prescribed by law on the management of medical equipment; preventive and curative medicines; pharmaceutical substances, and raw materials used for the production of preventive and curative medicines;
i) Equipment used for teaching and learning, including models, drawings, boards, chalk, rulers, compasses;
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According to the above regulation, the VAT rate for teaching and learning equipment, including models, drawings, boards, chalk, rulers, compasses, is 5%.
From July 1, 2025, what is the value-added tax rate for educational and teaching equipment in Vietnam? (Image from Internet)
Who has to pay value-added tax in Vietnam?
Based on Article 4 of the Value Added Tax Law 2024 stipulating taxpayers:
Article 4. Taxpayers
- 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 producing and trading in Vietnam, purchasing services (including services attached to goods) from foreign organizations without a permanent establishment in Vietnam, or individuals not residing in Vietnam, except in cases prescribed in Clauses 4 and 5 of this Article; organizations producing and trading in Vietnam purchasing goods and services to carry out oil and gas exploration, development, and exploitation activities from foreign organizations without a permanent establishment in Vietnam, or individuals not residing in Vietnam.
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VAT taxpayers include:
[1] Organizations, households, and individuals producing and trading goods and services subject to value-added tax.
[2] Organizations and individuals importing goods subject to value-added tax (hereinafter referred to as importers).
[3] Organizations and individuals producing and trading in Vietnam, purchasing services (including cases involving services attached to goods) from foreign organizations without a permanent establishment in Vietnam, or individuals not residing in Vietnam, except where [4] [5] applies.
Organizations producing and trading in Vietnam that purchase goods and services for conducting oil and gas exploration, development, and exploitation activities from foreign organizations without a permanent establishment in Vietnam, or individuals not residing in Vietnam.
[4] Foreign suppliers without a permanent establishment in Vietnam engaging in e-commerce, digital platform-based business with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers);
Organizations as foreign digital platform managers implementing the deduction, substitute tax obligation payment of the foreign supplier.
Business organizations in Vietnam applying the deduction method for calculating VAT purchasing services from foreign suppliers without a permanent establishment in Vietnam through e-commerce or digital platforms implement deduction, substitute tax obligation payment of the foreign supplier.
[5] Organizations acting as managers of e-commerce platforms, and digital platforms with payment functionalities, implement tax deduction, substitute payment, and declare taxes deducted for business households and individuals on these e-commerce platforms and digital platforms.
Which medical services in Vietnam are not subject to value-added tax?
Based on Clause 10, Article 5 of the Value Added Tax Law 2024, the following medical services are not subject to VAT:
- Examination and treatment services, disease prevention services for humans, family planning services, health care services for convalescence, and rehabilitation for patients.
- Elderly and disabled care services.
- Patient transportation, services for renting hospital rooms, and patient beds from medical facilities.
- Testing, scanning, and imaging services.
- Blood and blood products used for patients.
Additionally, elderly and disabled care services include healthcare, nutrition, and organizing cultural, sports, recreational, and physiotherapy activities and rehabilitation for the elderly and disabled.
Note: If in the package of medical services regulated by the Ministry of Health there is the use of curative medicine, then revenue from curative medicine is also not subject to VAT.
