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| Value added tax rate table from July 1, 2023. (Source: Internet) |
Pursuant to Article 8 of Consolidated Document 01/VBHN-VPQH dated April 28, 2016 on the Law on Value Added Tax, Resolution dated June 24, 2023 of the National Assembly on reducing value added tax on groups of goods and services from 10% to 8% (applied from July 1, 2023 to December 31, 2023), the table of value added tax rates from July 1, 2023 is implemented as follows:
1. Value added tax rate 0%
The 0% tax rate applies to exported goods and services, international transportation and goods and services not subject to value added tax when exported, except for the following cases:
- Technology transfer, transfer of intellectual property rights abroad.
- Overseas reinsurance services.
- Credit services.
- Capital transfer.
- Derivative financial services.
- Postal and telecommunications services.
- Export products are resources and minerals that have not been processed into other products; export products are goods processed from resources and minerals with the total value of resources and minerals plus energy costs accounting for 51% or more of the product cost.
Note: Exported goods and services are goods and services consumed outside Vietnam, in duty-free zones; goods and services provided to foreign customers according to Government regulations.
2. Value added tax rate 5%
The tax rate of 5% applies to the following goods and services:
- Clean water for production and daily life.
- Ore for fertilizer production; pesticides and growth stimulants for animals and plants.
- Services of digging, dredging canals, ditches, ponds and lakes for agricultural production; cultivating, caring for, and preventing pests and diseases for crops; processing and preserving agricultural products.
- Unprocessed agricultural, livestock and aquatic products, except for products specified in Clause 1, Article 5 of the Law on Value Added Tax.
- Raw rubber latex; raw pine resin; nets, twine and yarn for weaving fishing nets.
- Fresh food; unprocessed forest products, except for wood, bamboo shoots and products specified in Clause 1, Article 5 of the Law on Value Added Tax.
- Sugar; by-products in sugar production, including molasses, bagasse, sludge.
- Products made of jute, sedge, bamboo, leaves, straw, coconut shells, coconut shells, water hyacinth and other handicraft products made from recycled agricultural materials; pre-processed cotton; newsprint.
- Medical equipment and instruments; cotton, medical sanitary napkins; preventive and curative medicines; pharmaceutical and medicinal products as raw materials for the production of curative and preventive medicines.
- Teaching and learning aids, including models, drawings, boards, chalk, rulers, compasses and other specialized equipment and tools for teaching, research, and scientific experiments.
- Cultural activities, exhibitions, physical education and sports; performing arts; film production; import, distribution and screening of films.
- Toys for children; books of all kinds, except books specified in Clause 15, Article 5 of the Law on Value Added Tax.
- Scientific and technological services according to the provisions of the Law on Science and Technology.
- Sale, lease, lease-purchase of social housing according to the provisions of the Housing Law.
3. Value added tax rate of 8% and value added tax rate of 10%
From July 1, 2023 to December 31, 2023, for goods and services not included in Section 1 and Section 2 above, the value added tax rate of 8% will apply; except for the following group of goods (which will apply a tax rate of 10%): Telecommunications, information technology, financial activities, banking, securities, insurance, real estate business, metals, prefabricated metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products, goods and services subject to special consumption tax.
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