The 0% VAT rate is an important policy designed to promote exports and support businesses participating in global supply chains. Under Decree 181/2025/NĐ-CP, which guides the VAT Law No. 48/2024/QH15, goods and services eligible for the 0% VAT rate must fall within the prescribed scope and meet all required documentation and conditions. This article provides a clear and practical summary of cases eligible for the 0% VAT rate and the conditions businesses must prepare.

I. CASES ELIGIBLE FOR THE 0% VAT RATE

According to Article 17 of Decree 181/2025/NĐ-CP, the 0% VAT rate applies to exported goods and services, comprising three main groups:

1. Exported Goods

Eligible cases include:

• Goods sold to organizations or individuals overseas and consumed outside Vietnam.
• Goods sold into non-tariff zones, consumed within these zones, and used directly for manufacturing exported products.
• Goods sold in isolated areas and duty-free shops to individuals who have completed exit procedures.

Isolated areas and duty-free shops are defined under Decree 68/2016/NĐ-CP and Decree 67/2020/NĐ-CP.

2. Exported Services

A service is considered exported when:

• It is provided directly to organizations or individuals overseas and consumed outside Vietnam.
• Individuals overseas must be physically outside Vietnam when consuming services.

Services provided to non-tariff zones include:

• Services directly supporting export production.
• Transportation, lifting, container handling, documentation fees, electricity fees for cargo handover, sealing fees, cargo handling fees, packaging fees, etc., when provided to export processing enterprises or entities in non-tariff zones with registered business activities.

3. Other Exported Goods and Services

Including:

• International transportation (passengers, luggage, cargo on international routes).
• Leasing of vehicles for use outside Vietnam.
• Aviation and maritime services are provided for international transportation.
• Construction and installation carried out overseas or within non-tariff zones.
• Digital content products consumed overseas (with proof required).
• Spare parts and materials used for repairing foreign-owned vehicles, consumed outside Vietnam.
• Goods processed under onward-processing arrangements for export.
• Goods/services classified as non-taxable when exported (excluding cases specified under Clause 4).

Sector-specific details:

• Aviation: in-flight meals, landing/take-off, security screening, conveyor belts, ground handling, engineering, maintenance, towing, aircraft marshalling, refuelling, etc., performed at international airports.
• Maritime: towing, pilotage, rescue, cargo handling, mooring/unmooring, hold cleaning, tallying, inspection, repair, etc., performed within port areas.
• Digital content products: must provide proof that the buyer is located overseas, such as IP address, billing address, or international SIM region.

II. CASES NOT ELIGIBLE FOR THE 0% VAT RATE

Certain activities, although provided to overseas entities, are not eligible for the 0% VAT rate, including:

• Technology transfer and IP transfer to overseas entities.
• Reinsurance services are provided overseas.
• Credit provision, capital transfer, and derivative products.
• Postal and telecommunications services.
• Imported tobacco, alcohol, and beer re-exported abroad.
• Fuel is sold into non-tariff zones; cars are sold to organizations within non-tariff zones.
• Services performed in Vietnam, such as:

• Art performances, sports tournaments, conferences, advertising, training, tourism and travel.
• Services related to the sale, distribution, or consumption of goods in Vietnam.
• Cashless payment services.

• Services provided to organizations in non-tariff zones, including office rental, warehousing, hotels, catering (except industrial catering), employee shuttle services, etc.

III. CONDITIONS FOR APPLYING THE 0% VAT RATE

Under Article 18 of Decree 181/2025/NĐ-CP, businesses only apply the 0% VAT rate when all required documentation is complete and valid.

1. Conditions for Exported Goods

Must include:

• Export sale/processing/entrusted export contract.
• Cashless payment documents.
• Customs declaration as prescribed.

2. Conditions for Exported Services

Except for specific cases:

• Service contract with organizations or individuals overseas or in non-tariff zones.
• Cashless payment documents.

3. Conditions for International Transportation

• International transportation contract or ticket (for passengers).
• Cashless payment (except direct payments by individual passengers).

4. Conditions for Aviation Services

• Service contract or service request from foreign airlines.
• Cashless payment or direct payment (for irregular services).
• Note: aircraft repair services require temporary import–re-export procedures.

5. Conditions for Maritime Services

• Service contract or service request from an overseas entity/ship agent.
• Cashless payment.
• Similar to aviation, vessel repair services require temporary import–reexport procedures.

The 0% VAT rate helps businesses reduce costs, increase competitiveness, and optimise cash flow in export activities. However, it is only applicable when the correct subjects and sufficient documentation requirements are met.

We provide review services for 0% VAT eligibility, documentation checks, contract preparation, and tax reconciliation to ensure compliance and avoid additional tax assessments.