Value-Added Tax Rates According to the Current Law

To be specific, according to Clause 3, Article 1 of the amended Value-Added Tax Law of 2013, which amends and supplements Article 8 of the 2008 Value-Added Tax Law, the value-added tax rates are regulated as follows:

- The 0% tax rate applies to exported goods and services, international transportation, and goods and services not subject to value-added tax as stipulated in Article 5 of the 2008 Value-Added Tax Law when exported, except for the following cases:- Technology transfer and intellectual property transfer abroad;- Reinsurance services abroad;- Credit granting services;- Capital transfer;- Derivative financial services;- Postal and telecommunications services;- Exported products that are raw resources and minerals that have not been processed into other products as stipulated in Clause 23, Article 5 of the 2008 Value-Added Tax Law.

Exported goods and services are those consumed outside Vietnam, in non-tariff zones; goods and services provided to foreign customers as regulated by the Government of Vietnam.

- The 5% tax rate applies to the following goods and services:- Clean water for production and daily living;- Fertilizers; ores for the production of fertilizers; pesticides and growth stimulants for livestock and crops;- Animal feed for livestock, poultry, and other domestic animals;- Services of digging, dredging canals, ditches, ponds, and lakes for agricultural production; cultivation, care, and pest control for plants; preliminary processing and preservation of agricultural products;- Cultivated, livestock, and seafood products that have not been processed, except for products stipulated in Clause 1, Article 5 of the 2008 Value-Added Tax Law;- Semi-processed rubber latex; semi-processed resin; nets, ropes, and fibers for knitting fishing nets;- Fresh food; unprocessed forestry products, except for wood, bamboo shoots, and products stipulated in Clause 1, Article 5 of the 2008 Value-Added Tax Law;- Sugar; by-products in sugar production, including molasses, bagasse, filter mud;- Products made from jute, sedge, bamboo, nipa palm, leaves, straw, coconut shell, coconut husk, water hyacinth, and other handicraft products made from materials sourced from agriculture; semi-processed cotton; newsprint;- Machinery and equipment specifically used for agricultural production, including plows, harrows, transplanting machines, seeders, threshers, harvesters, combine harvesters, agricultural product harvesters, pesticide spraying machines or containers;- Medical equipment and tools, medical absorbent cotton, sanitary gauze; disease prevention and treatment drugs; pharmaceutical and medicinal products used as materials for the production of disease treatment and prevention drugs;- Teaching and learning aids, including models, drawings, boards, chalk, rulers, compasses, and specialized devices and tools for teaching, research, and scientific experiments;- Cultural, exhibition, sports, and exercise activities; performing arts, film production; importing, distributing, and screening films;- Children's toys; all kinds of books, except for books stipulated in Clause 15, Article 5 of the 2008 Value-Added Tax Law;- Science and technology services as regulated by the Science and Technology Law;- Sale, lease, or lease-purchase of social housing as regulated by the Housing Law.

- The 10% tax rate applies to goods and services not falling into the aforementioned categories.

For further amended and supplemented details, refer to: Amended Value-Added Tax Law of 2013, effective January 1, 2014, amending and supplementing some articles of the 2008 Value-Added Tax Law.

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