Is it necessary for a computer training center to pay value-added tax?

According to the provisions of Clause 13, Article 4 of Circular 219/2013/TT-BTC, the subjects not subject to VAT are prescribed as follows:

Teaching and vocational training according to legal regulations, including foreign language teaching, computer training; teaching dance, singing, painting, music, drama, circus, physical education, sports; childcare and teaching other vocations aimed at improving cultural levels, professional knowledge, and career skills.

In the case of educational institutions from preschools to high schools that charge meal fees, transportation fees for picking up and dropping off students, and other fees in the form of collection and disbursement on behalf of, these meal fees, transportation fees for picking up and dropping off students, and other collection and disbursement fees on behalf are also subjects not subject to tax.

Revenue from dormitories of students, learners; training activities (including organizing exams and issuing certificates in the training process) provided by training institutions are subjects not subject to VAT. In the case where training institutions do not directly organize training but only organize exams and issue certificates in the training process, the activity of organizing exams and issuing certificates is also not subject to tax. In the case of providing exam and certification services not within the training process, it is subject to VAT.

Example 7: Training Center X is assigned by the competent authority the task of training to issue practicing certificates for insurance agents. Training Center X assigns the training task to Unit Y to execute, Training Center X organizes the exam and issues insurance agent practicing certificates; therefore, the activity of organizing exams and issuing certificates by Training Center X is not subject to VAT.

In your case, the IT center is not subject to VAT.

According to Clause 3, Article 11 of Circular 96/2015/TT-BTC, it is stipulated as follows:

The preferential tax rate of 10% throughout the operational period applies to:

a) The income portion of enterprises from activities of private investment in the fields of education - training, vocational training, healthcare, culture, sports, and environment, forensic appraisal (hereinafter collectively referred to as socialization fields).

The list of types, criteria for scale, and standards of enterprises implementing socialization is executed according to the list prescribed by the Prime Minister of the Government of Vietnam.

Thus, the IT center will be subject to a 10% CIT rate throughout the operational period.

Respectfully!