According to Decree 181/2025/NĐ-CP dated 01 July 2025, providing detailed guidance on the Value-Added Tax (VAT) Law No. 48/2024/QH15, the current VAT system comprises four main categories: non-taxable goods and services, 0% VAT, 5% VAT, and 10% VAT. Understanding each category enables businesses to declare VAT accurately and minimise tax risks during operations.
I. Non-VAT Taxable Goods and Services
This group includes goods and services that are not included in the
VAT taxation scope. Businesses are not required to calculate output VAT and are not eligible for input VAT credit/refund (except export cases subject to 0%).
Key categories include:
1. Unprocessed agricultural, forestry, and aquatic products
- Self-raised, cultivated, or caught products; plant and animal breeds; livestock feed and aquaculture feed.
- Salt is produced from seawater or natural salt mines.
2. Agricultural support services
Irrigation, ploughing, dredging of canals, harvesting services, etc.
3. Land use right transfer
4. Insurance relating to individuals, agriculture, fishing vessels, and reinsurance
5. Financial, banking, and securities services
Credit provision and lending activities.
- Securities trading and capital transfer.
- Debt trading, foreign currency trading, and derivatives.
6. Healthcare and veterinary services
Medical examination and treatment, maternity services, nursing and rehabilitation, elderly/disabled care, and veterinary services.
7. Education, training, and vocational teaching
8. Culture – Media – Publishing
Publication of newspapers, magazines, textbooks, legal books, and books printed in ethnic minority languages.
9. Certain public transportation activities
Passenger transportation by bus, tram, or inland waterway.
10. Imported goods under special duty-exempt circumstances
Gifts, humanitarian aid, duty-free luggage, antiques and artifacts, etc
11. Other cases
- Software, technology transfer, and intellectual property transfer.
- Gold bullion and unprocessed gold.
- Business households/individuals with annual revenue below VND 200 million.
II. VAT Rate of 0%
Applicable to exported goods and services and specific cases directly serving export activities. Includes:
- Exported goods; goods sold to and consumed within non-tariff zones.
- Exported services consumed outside Vietnam or within non-tariff zones.
- International transportation; aviation and maritime services for international transport; construction and installation of works overseas.
- Digital content products are consumed abroad.
Not subject to 0% VAT:
- Technology transfer and IP transfer abroad.
- Credit provision, capital transfer, reinsurance, and derivatives.
- Postal and telecommunications services; imported tobacco, alcohol, and beer re-exported.
- Fuel supplied to non-tariff zones; cars sold to organizations/individuals in non-tariff zones.
III. VAT Rate of 5%
Applicable to essential goods and services serving production and daily life.
Key categories include:
- Clean water for production and domestic use (excluding bottled/packaged drinking water).
- Fertilizers, ores for fertilizer production, plant protection chemicals, and growth stimulants.
- Agricultural services (excavation, dredging, farming, preliminary processing, preservation of agricultural products).
- Natural rubber latex, fishing nets, and certain handicraft products derived from agriculture.
- Medical equipment, medicines, and herbal materials.
- Teaching and learning equipment.
- Traditional arts, children’s toys, books (excluding those classified as non-taxable).
- Science and technology services.
- Social housing (sale/lease/lease purchase).
IV. VAT Rate of 10%
The standard VAT rate applicable to all goods and services not classified as non-taxable and subject to 5%.
This includes services supplied by foreign providers without a permanent establishment in Vietnam through e-commerce and digital platforms.
Accurate VAT classification is a key responsibility of businesses and accountants to avoid additional tax arrears and penalties. Our firm provides professional tax and accounting consulting services, supporting VAT rate determination, documentation review, and tax optimisation in accordance with prevailing regulations.
