What is the VAT rate for the trading of playing cards in Vietnam?

What is the VAT rate for the trading of playing cards in Vietnam?

Pursuant to Clause 1 Article 1 of the Decree 94/2023/ND-CP stipulating value-added tax (VAT) reduction as follows:

Value-added tax (VAT) reduction

1. VAT on goods and services that are currently subject to 10% VAT shall be reduced, except the following goods and services:

a) Telecommunication, financial activities, banking activities, securities, insurance, trading of real estate, metal and precast metal products, mining products (excluding coal mining), coke mining, refined oil, chemical products. Further details are provided in Appendix I enclosed herewith.

b) Goods and services subject to excise tax. Further details are provided in Appendix II enclosed herewith.

c) Information technology products and services as prescribed in the Law on information technology. Further details are provided in Appendix III enclosed herewith.

d) VAT on goods and services of specific type as specified in Clause 1 of this Article shall be reduced consistently in all stages, including import, production, processing and trading. Coal products mined for sale (including coal products mined and then washed, sieved and classified under a closed process before they are sold) are eligible for VAT reduction. Coal products in Appendix I enclosed herewith are not eligible for VAT reduction in any stages other than the mining stage.

Coal products produced under a closed process of economic corporations or groups shall be also eligible for VAT reduction.

In case any of the goods and services in Appendixes I, II and III enclosed herewith is not subject to VAT or is subject to 5% VAT in accordance with the Law on value-added tax, VAT on that good or service shall be paid in accordance with the Law on value-added tax and shall not be reduced.

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At the same time, in Appendix 2 of the List of goods and services subject to excise tax and not eligible for value-added tax reduction, issued with Decree 94/2023/ND-CP, the following provisions are specified:

Goods

a) Cigarettes, cigars, and other tobacco products for smoking, inhaling, chewing, snuffing, or sucking;

b) Alcohol;

c) Beer;

d) Cars with a capacity of fewer than 24 seats, including cars that transport both passengers and goods, with at least two seats and a fixed partition separating the passenger compartment from the cargo compartment;

e) Motorcycles with two wheels, three-wheeled motorcycles with an engine displacement exceeding 125 cm3;

f) Aircraft, yachts;

g) Various types of gasoline;

h) Air conditioners with a cooling capacity of less than 90,000 BTU;

i) Playing cards;

k) Gold and other precious metals.

...

As regulations above, playing cards are classified as goods subject to excise tax and are not eligible for a value-added tax reduction according to Decree 94/2024/ND-CP.

For businesses engaged in the trading of playing cards, they will not receive an 8% reduction in value-added tax. Therefore, they will be subject to a value-added tax rate of 10% for the trading of playing cards.

What is the VAT rate for the trading of playing cards in Vietnam? - Image from Internet

Which goods and services are currently subject to a 10% value-added tax in Vietnam?

Pursuant to Article 11 of the Circular 219/2013/TT-BTC stipulating tax rate of 10% as follows:

Tax rate of 10%

10% tax shall be levied on the goods and services that are not mentioned in Article 4, Article 9 and Article 10 of this Circular.

The rates of VAT mentioned in Article 10 and Article 11 shall be uniformly applied to the each type of goods and services, whether they are imported, manufactured, processed, or traded.

Example 50: 10% tax is levied on apparel. That means the tax rate is always 10% whether such apparel is imported manufactured, processed, or traded.

VAT on the products made of recycled wastes and scrap is the same as VAT on the wastes and scrap when they are sold.

If a taxpayer sells various goods and services that are subject to various rates of VAT, they must be sorted by VAT rates. Otherwise, the highest rate of VAT among which shall apply.

If the rate of VAT in the preferential import tariff schedule is found not conformable with this Circular, this Circular shall apply. If different rates of VAT are applied to the same kind of goods that are imported or manufactured in Vietnam, the local tax authority and customs authority must send a report to the Ministry of Finance for guidance.

The goods and services currently subject to a 10% value-added tax are those that do not fall under the cases of being exempt from value-added tax, having a 0% tax rate, or a 5% tax rate.

The 10% value-added tax rate is uniformly applied to each type of goods and services at various stages, including importation, production, processing, or commercial trading.

What is the excise tax rate for the trading of playing cards in Vietnam?

Pursuant to Article 7 of the Law on Excise Tax in 2008 (amended by Clause 4 Article 1 of the Law on amendments to the Law on Excise Tax in 2014) stipulating tax rates as follows:

As regulations above, the excise tax rate for the trading of playing cards in Vietnam is 40%.

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