Decree No. 181/2025/ND-CP

DECREE

DETAILING THE IMPLEMENTATION OF A NUMBER OF ARTICLES OF THE LAW ON VALUE-ADDED TAX

Pursuant to the Law on Organization of the Government dated February 18, 2025;

Pursuant to the Law on Value-Added Tax dated November 26, 2024;

Pursuant to the Law amending and supplementing a number of articles of the Law on Bidding, the Law on Investment under the Public-Private Partnership Model, the Law on Customs, the Law on Value-Added Tax, the Law on Export and Import Duties, the Law on Investment, the Law on Public Investment, and the Law on Management and Use of Public Property dated June 25, 2025;

At the proposal of the Minister of Finance;

The Government promulgates this Decree detailing the implementation of a number of articles of the Law on Value-Added Tax.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree provides details on taxpayers under Clauses 1, 4 and 5 of Article 4 and taxpayers in the case where a foreign supplier provides services to a purchaser being a business organization in Vietnam that applies the tax deduction method as prescribed in Clause 4 of Article 4; objects not subject to tax under Article 5; the taxable price under Article 7; the time for determining value-added tax under Clause 2 of Article 8; tax rates under Clauses 1 and 2 of Article 9; the tax deduction method under Article 11; the direct calculation method under Clause 1 of Article 12; the deduction of input value-added tax under Article 14; and value-added tax refunds under Article 15 of the Law on Value-Added Tax.

Article 2. Subjects of application

The subjects of application of this Decree comprise:

1. Taxpayers prescribed in Article 3 of this Decree.

2. Tax administration authorities in accordance with the law on tax administration.

3. Other related organizations and individuals.

Article 3. Taxpayers

Taxpayers shall comply with the provisions of Article 4 of the Law on Value-Added Tax. A number of cases are detailed as follows:

1. Taxpayers prescribed in Clause 1 of Article 4 of the Law on Value-Added Tax comprise:

a) Organizations established and registered for business under the Law on Enterprises, the Law on Cooperatives and other specialized laws.

b) Economic organizations of political organizations, socio-political organizations, social organizations, socio-professional organizations, people's armed forces units, public-service organizations and other organizations.

c) Foreign-invested enterprises and foreign parties participating in business cooperation under the Law on Investment; foreign organizations and individuals conducting business in Vietnam without establishing a legal entity in Vietnam.

d) Export-processing enterprises conducting other business activities in accordance with the law on the management of industrial parks and economic zones.

dd) Business households and individuals engaged in production and business; independent groups of businesspersons.

e) Other organizations and individuals engaged in production and business activities.

2. Taxpayers prescribed in Clauses 4 and 5 of Article 4 of the Law on Value-Added Tax comprise:

a) Foreign suppliers without a permanent establishment in Vietnam that engage in e-commerce business or digital-platform-based business with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers); organizations that are managers of foreign digital platforms carrying out the deduction and payment on behalf of the tax obligations payable by foreign suppliers; business organizations in Vietnam applying the value-added tax deduction method that purchase services from foreign suppliers without a permanent establishment in Vietnam through e-commerce channels or digital platforms and carry out the deduction and payment on behalf of the tax obligations payable by foreign suppliers. The deduction and payment on behalf of the tax obligations payable by foreign suppliers by the taxpayers prescribed at this Point shall comply with the law on tax administration.

b) Taxpayers prescribed in Clause 5 of Article 4 of the Law on Value-Added Tax that are organizations managing e-commerce trading floors or organizations managing digital platforms with a payment function shall comply with Decree No. 117/2025/ND-CP dated June 9, 2025 of the Government providing for tax administration of business activities on e-commerce platforms and digital platforms of households and individuals.

Article 4. Objects not subject to tax

Objects not subject to tax shall comply with the provisions of Article 5 of the Law on Value-Added Tax. A number of cases are detailed as follows:

1. Products from cultivation, planted forests, husbandry, and aquaculture and fishing that have not been processed into other products or have only undergone ordinary preliminary processing, sold by the organizations and individuals that produce or catch them, and at the import stage. Of which, products that have only undergone ordinary preliminary processing are products that have merely been cleaned, dried in the sun, dried by heat, husked, milled, cracked into pieces, ground into pieces, milled to remove the husk, hulled, deseeded, destemmed, cut, ground, polished, glazed, divided into portions, deboned, minced, skinned, ground, rolled thin, salted, sealed in airtight cans, preserved by refrigeration (chilling, freezing), preserved with sulfur dioxide gas, preserved by the method of adding chemicals to prevent rotting, soaked in sulfur solution or soaked in other preservative solutions, and other ordinary forms of preservation.

In cases where this cannot be determined, the Ministry of Agriculture and Environment shall be responsible for basing itself on the production process of the products from cultivation, planted forests, husbandry, and aquaculture and fishing provided by the taxpayer to determine whether they are products that have not been processed into other products or have only undergone ordinary preliminary processing, sold by the organizations and individuals that produce or catch them, and at the import stage, in accordance with law.

2. Residential houses being public property sold by the State to current tenants. Of which, residential houses being public property shall comply with the law on housing.

3. Transfer of land use rights in accordance with the law on land.

4. The following financial, banking, securities trading and commercial services:

a) Credit extension services in accordance with the law on credit institutions, and the fees specifically set out in the loan agreement between the Government of Vietnam and the foreign lender.

b) Lending services provided by taxpayers that are not credit institutions.

c) Securities trading, comprising securities brokerage, securities dealing, securities issuance underwriting, securities investment advisory services, securities investment fund management, and securities investment portfolio management in accordance with the law on securities.

d) Capital transfer, comprising the transfer of part or all of the capital invested in another economic organization (regardless of whether a new legal entity is established), transfer of securities, transfer of capital contribution rights and other forms of capital transfer in accordance with law, including the case of selling an enterprise to another enterprise for production and business where the purchasing enterprise inherits all the rights and obligations of the selling enterprise in accordance with law. Capital transfer prescribed at this Point does not include the transfer of investment projects or the sale of assets.

dd) Sale of debts, comprising the sale of payables and receivables, and the sale of certificates of deposit between taxpayers that are not credit institutions.

e) Foreign-currency trading.

g) Derivative products in accordance with the law on credit institutions, the law on securities and the law on commerce, comprising: interest-rate swaps; forward contracts; futures contracts; call and put option contracts; and other derivative products.

h) Sale of collateral of a debt of an organization in which the State owns 100% of the charter capital, established by the Government with the function of purchasing and selling debts to handle bad debts of Vietnamese credit institutions.

The Ministry of Finance shall detail the securities trading services and securities transfer prescribed at Points c and d of this Clause.

5. Funeral services, comprising the services of leasing funeral houses and automobiles for funerals, burial of the deceased in various forms, relocation of graves, and grave care, which must be provided by establishments having the function of providing funeral services.

6. Maintenance, repair and construction activities funded by contributions from the people or by humanitarian aid (accounting for 50% or more of the total capital used for the works; where the capital from contributions of the people or humanitarian aid accounts for less than 50% of the total capital used for the works, the entire value of the works shall be subject to value-added tax) with respect to historical-cultural relics, scenic landscapes, cultural and artistic works, works serving the public, infrastructure works, and housing for social policy beneficiaries. Of which:

a) Capital from contributions of the people includes contributions and sponsorships from organizations and individuals.

b) Historical-cultural relics and scenic landscapes prescribed in this Clause shall comply with the law on cultural heritage.

c) Works serving the public and infrastructure works are works that do not serve business purposes and do not collect money. The works prescribed at this Point shall comply with Point 2 of Section I and Section III of Appendix I promulgated together with Decree No. 06/2021/ND-CP dated January 26, 2021 of the Government detailing the management of quality, construction and maintenance of construction works.

d) Social policy beneficiaries prescribed in this Clause comprise: persons with meritorious services in accordance with the law on persons with meritorious services; social protection beneficiaries receiving allowances from the state budget; persons of poor and near-poor households and other cases in accordance with law.

7. Teaching and vocational training activities in accordance with the law on education and vocational education. In cases where teaching and vocational training establishments have amounts collected or paid on behalf of others, such amounts are not subject to value-added tax; goods and services provided by organizations and individuals to teaching and vocational training establishments are subject to value-added tax as prescribed.

8. Publishing, importing and distributing newspapers, magazines, bulletins, special issues, political books, textbooks, curricula, books of legal documents, science and technology books, books serving external information, books printed in ethnic minority languages, and propaganda and mobilization pictures, photos and posters, including in the form of audio or video recordings on tape or disc or as electronic data; money, printing of money. Of which:

a) Political books are books propagating the political lines of the Party and the State to serve political tasks by topic or theme, serving anniversaries and traditional days of organizations, levels, sectors and localities; various statistical books and books propagating the movement of good people and good deeds; and books printing the speeches and theoretical research of the leaders of the Party and the State.

b) Textbooks are books used for teaching and learning at all levels from preschool to upper secondary education (including reference books for teachers and students consistent with the content of the education program).

c) Curricula are books used for teaching and learning in universities, colleges, professional secondary schools and vocational-training establishments.

d) Books of legal documents are books that print the legal normative documents of the State.

dd) Science and technology books are books used to introduce and guide scientific and technical knowledge directly related to production and to the scientific and technical sectors.

e) Books printed in ethnic minority languages include bilingual books printed in the common script and in ethnic minority scripts.

g) Propaganda and mobilization pictures, photos and posters are pictures, photos, posters, and various types of leaflets and folded flyers serving the purpose of propaganda and mobilization, slogans, photos of leaders, the Party flag, the National flag, the Union flag and the Team flag.

h) Books serving external information, in which external information shall comply with Decree No. 72/2015/ND-CP dated September 7, 2015 of the Government on the management of external information activities.

9. Public passenger transport by bus, tram, and inland waterway craft operated within a province, within an urban area and on neighboring routes to adjacent provinces with stops for picking up and dropping off passengers.

10. Machinery, equipment, spare parts and supplies of a type not yet produced domestically which need to be imported for direct use in scientific research and technology development activities; machinery, equipment, replacement spare parts, specialized means of transport and supplies of a type not yet produced domestically which need to be imported to carry out oil and gas field prospecting, exploration and development activities; aircraft, helicopters, gliders, drilling rigs and ships of a type not yet produced domestically which need to be imported to form fixed assets of enterprises or to be leased from abroad for use in production, business or leasing. Of which:

The List of machinery, equipment, spare parts and supplies of a type already produced domestically, serving as the basis for distinguishing from the type not yet produced domestically that needs to be imported for direct use in scientific research and technology development activities; the List of machinery, equipment, replacement spare parts, specialized means of transport and supplies of a type already produced domestically, serving as the basis for distinguishing from the type not yet produced domestically that needs to be imported to carry out oil and gas field prospecting, exploration and development activities; and the List of aircraft, helicopters, gliders, drilling rigs and ships of a type already produced domestically, serving as the basis for distinguishing from the type not yet produced domestically that needs to be imported to form fixed assets of enterprises or to be leased from abroad for use in production, business or leasing, shall be issued by the Ministry of Finance.

11. Goods imported in the case of humanitarian aid or non-refundable aid. Goods and services sold to foreign organizations and individuals or international organizations for humanitarian aid or non-refundable aid to Vietnam. Of which:

a) Goods imported in the case of humanitarian aid or non-refundable aid are aid goods in accordance with the law on the receipt, management and use of humanitarian aid and non-refundable aid.

b) For goods and services purchased domestically for humanitarian aid or non-refundable aid to Vietnam, the foreign organization or individual or international organization must send a written document to the selling establishment clearly stating the name of the foreign organization or individual or international organization purchasing the goods and services for humanitarian aid or non-refundable aid to Vietnam, the quantity or value of the goods and services purchased, and there must be confirmation from the competent agencies or units receiving the humanitarian aid or non-refundable aid. The agencies and units receiving the humanitarian aid or non-refundable aid shall be responsible for providing such confirmation at the request of the foreign organization or individual or international organization.

12. Goods transported through Vietnamese territory in border-gate transfer or in transit; goods temporarily imported for re-export; goods temporarily exported for re-import; raw materials imported for the production or processing of goods for export under production or processing contracts for export signed with a foreign party; goods and services traded between foreign parties and non-tariff zones and between non-tariff zones. Goods imported from abroad by a financial leasing company that are transported directly into a non-tariff zone for financial lease to enterprises within the non-tariff zone. Non-tariff zones shall comply with the law on export and import duties.

13. Technology transfer in accordance with the Law on Technology Transfer; transfer of intellectual property rights in accordance with the Law on Intellectual Property; software products and software services in accordance with the law on information technology, the law on the digital technology industry and related laws. In cases where the technology transfer or transfer of intellectual property rights is accompanied by the transfer of machinery and equipment, the business establishment must separately account for the value of the transferred technology and the value of the transferred intellectual property rights in order to determine the object not subject to value-added tax; where they cannot be separately accounted for, the entire value of the contract shall be subject to value-added tax.

14. Exported products being resources or minerals that have been extracted but not yet processed into other products, and exported products being resources or minerals that have been extracted and processed into other products, in accordance with the State's orientation of not encouraging and restricting the export of raw resources and minerals, as prescribed in the List (Appendix I, Appendix II) promulgated together with this Decree.

In case it is necessary to adjust the exported products in the List (Appendix I, Appendix II) to suit the socio-economic context in each period, the Ministry of Finance is assigned to coordinate with related ministries to report to the Government for consideration and decision.

For exported products being resources or minerals that have been extracted and processed into other products which need to be encouraged for export and have high added value as determined and proposed by the Ministry of Industry and Trade, the Ministry of Finance shall assume the prime responsibility for, and coordinate with, related ministries in reporting to the Government for consideration and decision.

15. Imported goods in the following cases:

a) Gifts to state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, and people's armed forces units within the import duty exemption quota in accordance with the law on export and import duties.

b) Presents and gifts within the import duty exemption quota in accordance with the law on export and import duties from foreign organizations and individuals to Vietnamese individuals; belongings of foreign organizations and individuals under diplomatic immunity standards, and movable assets within the import duty exemption quota in accordance with the law on export and import duties.

c) Goods within the duty-free luggage allowance in accordance with the law on export and import duties.

d) Goods imported to support or sponsor the prevention, response to and remediation of the consequences of disasters, natural calamities, epidemics and wars, being support or sponsorship goods received by ministries, ministerial-level agencies, People's Committees of provinces and cities, and Committees of the Vietnam Fatherland Front of provinces and cities. The receiving agencies and organizations shall be responsible for issuing a document of receipt at the request of the supporting or sponsoring organization or individual.

dd) Goods traded or exchanged to serve the production and consumption of border residents, which are on the List of goods traded or exchanged by border residents in accordance with law and within the import duty exemption quota in accordance with the law on export and import duties.

e) Relics, antiques and national treasures in accordance with the law on cultural heritage, imported by competent state agencies, including cases of authorized and entrusted importation.

16. Business establishments dealing in goods and services not subject to value-added tax prescribed in this Article shall not be entitled to deduct or to a refund of the input value-added tax on goods and services not subject to value-added tax, except in the case of applying the 0% tax rate prescribed in Clause 1 of Article 9 of the Law on Value-Added Tax.

Chapter II

TAX BASES AND TAX CALCULATION METHODS

Section 1. TAXABLE PRICE

Article 5. Taxable price for goods and services sold and for imported goods

1. For goods and services sold by a business establishment, the taxable price is the selling price exclusive of value-added tax; for goods and services subject to excise tax, it is the selling price inclusive of excise tax but exclusive of value-added tax; for goods subject to environmental protection tax, it is the selling price inclusive of environmental protection tax but exclusive of value-added tax; for goods subject to both excise tax and environmental protection tax, it is the selling price inclusive of excise tax and environmental protection tax but exclusive of value-added tax.

2. For imported goods, the taxable price is the import-duty taxable value in accordance with the law on export and import duties, plus the import duty, plus additional import duties in accordance with the law on export and import duties and the law on foreign trade management (if any), plus the excise tax (if any) and plus the environmental protection tax (if any).

a) In case imported goods are exempt from import duty, the value-added tax taxable price is the import-duty taxable value.

b) In case imported goods are entitled to a reduction of import duty, the value-added tax taxable price is the import-duty taxable value plus (+) the import duty determined according to the amount of duty payable after the reduction.

c) In case imported goods subject to value-added tax are exempt from import duty and their use purpose is subsequently changed, giving rise to an amount of import duty payable, additional value-added tax must be paid on the amount of import duty payable.

Article 6. Taxable price for goods and services used for exchange, internal consumption, presentation, gifting or giving, and goods and services used for sales promotion

1. For goods and services used for exchange, internal consumption, presentation, gifting or giving, the taxable price is the value-added tax taxable price of goods and services of the same or equivalent type at the time these activities arise. Of which, goods and services for internal consumption are goods and services delivered or provided by a business establishment for consumption, not including:

a) Goods and services used to continue the production and business process of the business establishment, such as goods delivered for internal warehouse transfer, delivery of supplies or semi-finished products for continuing the production and business process within a business establishment.

b) Goods and services delivered or provided by a business establishment for use in serving its production and business activities (including fixed assets self-constructed or self-produced by the business establishment).

c) Assets transferred among dependent-accounting member units within a business establishment; assets transferred upon division, splitting, consolidation, merger or transformation of the type of enterprise; fixed assets in use for which depreciation has been accounted for, transferred at the value recorded in the accounting books between a business establishment and its member units of which a business establishment owns 100% of the capital, or among member units of which a business establishment owns 100% of the capital, to serve the production and business of goods and services subject to value-added tax; assets contributed as capital to enterprises. A business establishment that has transferred assets must have an asset transfer order accompanied by the dossier of the origin of the assets. Assets contributed as capital to an enterprise must have: a record of production and business capital contribution, a joint-venture or association contract; a record of asset valuation by the Capital Contribution Handover Council of the capital-contributing parties (or a valuation document of an organization having the valuation function in accordance with law), accompanied by the dossier on the origin of the assets.

A business establishment that has goods and services prescribed at Points a, b and c of this Clause is not required to calculate value-added tax.

2. For goods and services used for sales promotion in accordance with the law on commerce, the taxable price is determined to be zero (0), except in the case of selling goods or providing services at a price lower than the previous selling price of the goods or services, applied during the sales promotion period (sales promotion in the form of a price discount), in which case the taxable price is the discounted selling price applied during the sales promotion period registered or notified in accordance with the commercial law on trade promotion activities. The forms of sales promotion of promotional goods and services with a taxable price of zero (0), or the taxable price of goods and services sold not including the value of the goods and services used for sales promotion, are specifically as follows:

a) Where sample goods are given or sample services are provided for customers to try free of charge, the sample goods and sample services have a taxable price of zero (0).

b) Where goods are given or services are provided free of charge, the given goods and services have a taxable price of zero (0).

c) Where goods are sold or services are provided together with goods-purchase vouchers or service-use vouchers, the taxable price of the goods and services does not include the value of the goods-purchase vouchers or service-use vouchers.

d) Where goods are sold or services are provided together with contest entry tickets given to customers to select prize winners according to the announced rules and prizes (or other equivalent forms of organizing contests and awarding prizes), the taxable price of the goods and services does not include the value of the goods and services won under the contest entry tickets (if any).

dd) Where goods are sold or services are provided together with participation in games of chance in which participation in the program is tied to the purchase of goods or services and winning is based on the luck of the participant according to the announced rules and prizes, the taxable price of the goods and services does not include the value of the goods and services used for awarding prizes.

e) Where a frequent-customer program is organized whereby rewards are given to customers based on the quantity or value of goods and services purchased by the customer, expressed in the form of a customer card, a record of the purchase of goods and services or other forms, the taxable price does not include the value of the customer card, the record of the purchase of goods and services or other forms.

In case goods are sold or services are provided as prescribed in this Clause but not in accordance with the provisions on sales promotion of the law on commerce, the taxable price shall be applied in the same manner as for goods presented, gifted or given as prescribed in Clause 1 of this Article.

Article 7. Taxable price for asset leasing, goods processing and construction and installation activities

1. For asset leasing, the taxable price is the rental amount exclusive of value-added tax. Of which:

a) The asset rental amount is the rent stipulated in the asset lease contract.

b) In case of leasing in the form of periodic rental payment or advance rental payment for the lease term, the taxable price is the rental amount paid periodically or paid in advance for the lease term, exclusive of value-added tax.

2. For goods processing, the taxable price is the processing price exclusive of value-added tax. The processing price is the processing price under the processing contract exclusive of value-added tax, including the processing charge, the costs of fuel, auxiliary materials and other costs serving the processing of the goods.

3. For construction and installation activities, the taxable price is the value of the works, work items or portion of work handed over, including the value of raw materials, machinery and equipment, exclusive of value-added tax. In case of construction and installation not covering the raw materials, machinery and equipment, the taxable price is the value of the construction and installation not including the value of the raw materials, machinery and equipment.

Article 8. Taxable price for real estate business activities

For real estate business activities, the taxable price is the selling price of the real estate exclusive of value-added tax, less the land use levy or land rent payable to the state budget (the deductible land price). The deductible land price for calculating value-added tax is determined in a number of cases as follows:

1. In case the State allocates land or leases land with a one-off rental payment for the entire lease term (through auction or not through auction), permits the change of the land use purpose, recognizes the land use right, adjusts the land allocation decision, adjusts the land lease decision, adjusts the detailed planning, extends the land use, adjusts the land use term, or converts from annual land rental payment to a one-off land rental payment for the entire lease term, the deductible land price for calculating value-added tax is the land use levy or the land rent paid in a lump sum for the entire lease term calculated in accordance with the Government's Decree on land use levy and land rent (without deducting the compensation, support and site-clearance costs relating to land that the land user has advanced (if any)).

2. In case a business establishment receives a transfer of real estate being land use rights from organizations or individuals, the deductible land price for calculating value-added tax upon transfer is the land use levy or land rent payable to the state budget of the land area or land parcel received, not including the value of the infrastructure. The business establishment may deduct the input value-added tax on the infrastructure (if any).

3. In case a business establishment receives a capital contribution in the form of land use rights from organizations or individuals, the deductible land price for calculating value-added tax is the land use levy or land rent payable to the state budget.

4. In case a business establishment performs a BT (Build-Transfer) contract paid for by a land fund, the deductible land price for calculating value-added tax is the value of the land fund paid in accordance with the law on investment under the public-private partnership model.

5. In case a business establishment constructs and deals in infrastructure or constructs housing for sale, transfer or lease, the value-added tax taxable price is the amount collected according to the project implementation progress or the payment collection progress stated in the contract, less (-) the deductible land price prescribed in Clauses 1, 2, 3 and 4 of this Article corresponding to the percentage (%) of the amount collected out of the total contract value.

6. In case a business establishment constructs multi-story multi-household buildings or apartment buildings for sale, the deductible land price allocated to 1 m² of housing for sale is determined as the deductible land price prescribed in Clauses 1, 2, 3 and 4 of this Article divided (:) by the number of m² of constructed floor area, not including the area for common use such as corridors, staircases, basements and underground construction works.

7. In case a business establishment receives a transfer of real estate or a capital contribution in the form of land use rights from organizations or individuals as prescribed in Clauses 2 and 3 of this Article, and the land use levy or land rent payable to the state budget cannot be determined, the value-added tax taxable price is the transfer price exclusive of value-added tax.

Article 9. Taxable price for agency and brokerage activities of buying and selling goods and services for commission, and for goods and services using payment invoices that record the payment price

1. For agency and brokerage activities of buying and selling goods and services for commission, the taxable price is the commission earned from these activities exclusive of value-added tax, except for cases where value-added tax is not required to be calculated, comprising:

a) The turnover of goods and services received for sale on an agency basis and the commission turnover earned from agency activities of selling at the price stipulated by the principal for commission, in respect of the following services: postal, telecommunications, sale of lottery tickets, air, automobile, train and ship tickets; international transport agents; agents of aviation and maritime services eligible for the 0% value-added tax rate; insurance sales agents.

b) The turnover of goods and services and the agency commission turnover earned from agency activities of selling goods and services not subject to value-added tax.

2. For goods and services using a payment invoice that records the payment price being the price inclusive of value-added tax, the taxable price is determined according to the following formula:

Article 10. Taxable price for casino business services, prize-winning electronic game services and betting business services

1. For casino business services and prize-winning electronic game services, the taxable price is the amount collected from these activities, less the amount exchanged and returned to customers who have not used it up and the amount of prizes paid to customers (if any), inclusive of excise tax and exclusive of value-added tax. Of which, the amount collected is the amount collected from exchanging conventional tokens for players at the counter and at the gaming tables, and the amount collected at prize-winning electronic game machines.

2. For betting business services, the taxable price is the amount collected from the sale of betting tickets, less the amount of prizes paid to customers (if any), inclusive of excise tax and exclusive of value-added tax.

Article 11. Taxable price for a number of other production and business activities

For production and business activities comprising: electricity production activities of the Vietnam Electricity Group; transport and loading/unloading; travel-tour tourism services; pawnbroking services; books subject to value-added tax sold at the correct issue price (cover price); printing activities; agency services for assessment, agency services for compensation review, agency services for claiming third-party reimbursement, and agency services for handling 100%-compensated goods earning wages or commission, the taxable price is the selling price exclusive of value-added tax. Of which:

1. For electricity production activities of the Vietnam Electricity Group:

a) For electricity of hydropower companies that carry out dependent accounting under the Vietnam Electricity Group or under the Power Generation Corporations, the value-added tax taxable price for determining the amount of value-added tax payable at the locality where the hydropower plant is located is calculated at 35% of the average retail electricity price exclusive of value-added tax in accordance with the law on electricity and the law on prices.

b) For electricity of thermal power companies that carry out dependent accounting under the Vietnam Electricity Group or under the Power Generation Corporations, the value-added tax taxable price for determining the amount of value-added tax payable at the locality where the thermal power plant is located is the electricity selling price to customers stated on the invoice under the power purchase contract applicable to each thermal power plant. In case there is no power purchase contract applicable to a particular thermal power plant, the value-added tax taxable price is determined as the average retail electricity price exclusive of value-added tax in accordance with the law on electricity and the law on prices.

c) For electricity of power generation companies (other than hydropower and thermal power) that carry out dependent accounting under the Vietnam Electricity Group or under the Power Generation Corporations, the value-added tax taxable price for determining the amount of value-added tax payable at the locality where the power generation plant is located is the electricity selling price exclusive of value-added tax prescribed by the competent state agency for each type of power generation. In case there is no electricity selling price prescribed by the competent state agency for each type of power generation mentioned at this Point, the value-added tax taxable price is determined as the average retail electricity price exclusive of value-added tax in accordance with the law on electricity and the law on prices.

2. For transport and loading/unloading, the taxable price is the transport and loading/unloading charge exclusive of value-added tax, regardless of whether the establishment directly performs the transport and loading/unloading or subcontracts it.

3. For travel-tour tourism services where the contract signed with the customer is at an all-inclusive price (meals, accommodation, travel), the all-inclusive price is determined to be the price inclusive of value-added tax.

The taxable price is determined according to the following formula:

In case the all-inclusive price also includes the costs of air tickets for transporting tourists from abroad into Vietnam or from Vietnam abroad, and the costs of meals, accommodation, sightseeing and certain other expenses incurred abroad (if there are lawful documents), the amounts collected from customers to cover the above expenses are deducted from the price (turnover) for calculating value-added tax. The input value-added tax serving the all-inclusive tourism activity is fully deducted as prescribed.

4. For pawnbroking services, the value-added tax taxable price is the amount receivable from this service exclusive of value-added tax; the amount receivable from this service includes the interest receivable from pawn lending and other amounts arising from the sale of pawned goods (if any). In case the amount collected from this service already includes value-added tax, the taxable price is determined according to the following formula:

5. For books subject to value-added tax sold at the correct issue price (cover price) in accordance with the Law on Publishing, that selling price is determined to be the price inclusive of value-added tax. In cases of sale not at the cover price, value-added tax is calculated on the selling price exclusive of value-added tax.

6. For printing activities, the taxable price is the printing charge exclusive of value-added tax. In case the printing establishment performs printing contracts in which the payment price includes both the printing charge and the printing-paper cost, the taxable price includes both the printing charge and the printing-paper cost, exclusive of value-added tax.

7. For agency services for assessment, agency services for compensation review, agency services for claiming third-party reimbursement, and agency services for handling 100%-compensated goods earning wages or commission, the value-added tax taxable price is the wages or commission earned, exclusive of value-added tax.

Article 12. Taxable price for international telecommunications services

For international telecommunications services, the value-added tax taxable price is the price of providing international telecommunications services exclusive of value-added tax; in case the business establishment incurs services of connecting with telecommunications networks abroad, the value-added tax taxable price is reduced by the amounts collected from customers to pay the connection charge. The business establishment must separate out the charge for connection with telecommunications networks abroad in order to determine the value-added tax taxable price; where it cannot be separated out, the value-added tax taxable price is the entire contract value exclusive of value-added tax.

Article 13. Taxable price for services provided by foreign organizations or individuals abroad

For services provided by a foreign organization without a permanent establishment in Vietnam or a foreign individual being a non-resident in Vietnam (hereinafter collectively referred to as the foreign contractor or foreign subcontractor) that has turnover arising in Vietnam and has not fully implemented the accounting, invoice and voucher regime, excluding the foreign suppliers prescribed in Clause 4 of Article 4 of the Law on Value-Added Tax, the value-added tax taxable price is the entire turnover from the provision of services, or services associated with goods subject to value-added tax, received by the foreign contractor or foreign subcontractor, before deducting the taxes payable, including the expenses paid by the Vietnamese party on behalf of the foreign contractor or foreign subcontractor (if any). The Ministry of Finance shall detail this Article.

Article 14. Principles for determining the value-added tax taxable price

1. The taxable price for the types of goods and services prescribed in this Section:

a) Includes surcharges and additional fees collected outside the price of goods and services that the business establishment is entitled to.

b) Does not include amounts collected that are not related to the sale of goods or provision of services by the business establishment: amounts of compensation in money (including compensation for land and assets on land upon land recovery under a decision of a competent state agency), bonuses, amounts collected from third parties in insurance activities, amounts collected on behalf of others, remuneration from state agencies for performing collection and payment on behalf of state agencies, and financial revenues.

2. In case a business establishment applies a form of trade discount for customers (if any), the value-added tax taxable price is the selling price after the trade discount for the customer, exclusive of value-added tax.

3. In case a business establishment has calculated value-added tax but the taxable price is changed according to the conclusion of a competent state agency in accordance with relevant law, the taxable price is determined according to the conclusion of the competent state agency.

Section 2. TIME FOR DETERMINING VALUE-ADDED TAX

Article 15. Time for determining value-added tax for exported goods and imported goods

1. For exported goods, the time for determining value-added tax is determined by the seller itself but no later than the working day following the day on which the goods are cleared from customs in accordance with the law on customs.

2. For imported goods, the time for determining value-added tax is the time for determining import duty in accordance with the law on export and import duties.

Article 16. Time for determining value-added tax for a number of other goods and services

1. For telecommunications services (including value-added telecommunications services):

a) For telecommunications services (including value-added telecommunications services) requiring the reconciliation of connection data among service business establishments, the time for determining value-added tax is the time of completing the reconciliation of data on service charges under the economic contract among the service business establishments, but no later than 2 months from the month in which the connection service charge arises.

b) For telecommunications services (including value-added telecommunications services) provided in fixed periods, the time for determining value-added tax is the time of completing the reconciliation of data between the parties (except the case mentioned at Point a of this Clause), but no later than the 7th day of the month following the month in which the service provision arises or no later than 7 days from the day of ending the conventional period. The conventional period serving as the basis for calculating the quantity of services provided is based on the agreement between the service provider and the purchaser.

c) For telecommunications services (including value-added telecommunications services) provided through the sale of prepaid cards and the collection of network connection charges, the time for determining value-added tax is the time of selling the prepaid cards and collecting the network connection charges.

2. For electricity sale activities:

a) For electricity sale activities of power generation companies on the electricity market, the time for determining value-added tax is determined based on the time of reconciling payment data between the electricity system and electricity market operator, the power generation unit and the electricity purchasing unit in accordance with the regulations of the Ministry of Industry and Trade or the power purchase contract guided and approved by the Ministry of Industry and Trade, but no later than the last day of the time limit for tax declaration and payment for the month in which the tax obligation arises in accordance with the law on tax administration. Specifically for electricity sale activities of power generation companies with a Government guarantee commitment on the payment time, the time for determining value-added tax is based on the Government guarantee, the guidance and approval of the Ministry of Industry and Trade and the power purchase contracts signed between the electricity purchaser and the electricity seller.

b) For electricity sale activities (except the case mentioned at Point a of this Clause), the time for determining value-added tax is the time of completing the reconciliation of data between the parties, but no later than the 7th day of the month following the month in which the electricity provision arises or no later than 7 days from the day of ending the conventional period. The conventional period serving as the basis for calculating the quantity of electricity provided is based on the agreement between the electricity provider and the purchaser.

3. For clean water supply activities, the time for determining value-added tax is the time of completing the reconciliation of data between the parties, but no later than the 7th day of the month following the month in which the water provision arises or no later than 7 days from the day of ending the conventional period. The conventional period serving as the basis for calculating the quantity of water provided is based on the agreement between the water provider and the purchaser.

4. For insurance business activities, the time for determining value-added tax is the time of recognizing insurance revenue in accordance with the law on insurance business.

5. For real estate business, infrastructure construction, and construction of housing for sale, transfer or lease:

a) In case ownership or use rights have been transferred, the time for determining value-added tax is the time of transferring the ownership or use rights of the goods to the purchaser, regardless of whether money has been collected.

b) In case ownership or use rights have not been transferred but money is collected according to the project implementation progress or the payment collection progress stated in the contract, the time for determining value-added tax is the date of collecting money or according to the payment agreement in the contract.

6. For construction and installation activities, including shipbuilding, the time for determining value-added tax is the time of acceptance and handover of the works, work items, completed construction or installation volume, or portion of work handed over, regardless of whether money has been collected.

7. For oil and gas activities:

a) For the prospecting, exploration, extraction and processing of crude oil, the time for determining value-added tax of the activity of selling crude oil, condensate and products processed from crude oil (including product off-take activities under a Government commitment) is the time when the purchaser and the seller determine the official selling price, regardless of whether money has been collected.

b) For the sale of natural gas, associated gas or coal gas transported by gas pipeline to the purchaser, the time for determining value-added tax is the time when the purchaser and the seller determine the quantity of gas delivered in the month, but no later than the last day of the time limit for tax declaration and payment for the month in which the tax obligation arises in accordance with the law on tax administration.

Section 3. TAX RATES

Article 17. The 0% tax rate

The 0% tax rate applies to the goods and services prescribed in Clause 1 of Article 9 of the Law on Value-Added Tax. Of which:

1. Exported goods comprise:

a) Goods sold from Vietnam to organizations and individuals abroad and consumed outside Vietnam.

b) Goods sold from the Vietnamese domestic market to organizations in a non-tariff zone and consumed within the non-tariff zone directly serving export production activities.

c) Goods sold in the isolation area to individuals (foreigners or Vietnamese) who have completed exit procedures; goods sold at duty-free shops. The isolation area and duty-free shops are determined in accordance with Decree No. 68/2016/ND-CP dated July 1, 2016 of the Government providing for the conditions for duty-free goods business, warehouses, locations for customs procedures, gathering, inspection and customs supervision (as amended and supplemented by Decree No. 67/2020/ND-CP dated June 15, 2020 of the Government).

2. Exported services comprise:

a) Services provided directly to organizations and individuals abroad and consumed outside Vietnam. Of which, an individual abroad satisfies the condition of being outside Vietnam during the period of the service provision.

b) Services provided directly to organizations in a non-tariff zone and consumed within the non-tariff zone directly serving export production activities, comprising: services provided directly to organizations in a non-tariff zone and consumed within the non-tariff zone directly serving export production activities; transport services and services provided to export-processing enterprises (container lifting and lowering services at ports, factories and warehouses; loading/unloading and handling services at factories, ports and airports, and related expenses incurred such as: document fees, delivery order fees, seal fees, cargo handling fees, packing fees). An organization in a non-tariff zone is an organization with business registration.

3. Other exported goods and services comprise: international transport; services of leasing means of transport used outside Vietnamese territory; aviation and maritime services provided directly or through agents for international transport; construction and installation of works abroad or in a non-tariff zone; digital information content products provided to a foreign party with dossiers and documents proving consumption outside Vietnam; spare parts and supplies for the repair and maintenance of vehicles, machinery and equipment for a foreign party and consumed outside Vietnam; goods processed for onward transfer for export in accordance with law; goods and services not subject to value-added tax when exported, except the cases not subject to the 0% tax rate prescribed in Clause 4 of this Article. Of which:

a) International transport comprises the transport of passengers, luggage and goods on international legs from Vietnam abroad or from abroad to Vietnam, or with both the point of departure and the point of arrival abroad, regardless of whether there is a means of transport directly performing it. In case the international transport contract also includes a domestic transport leg, international transport also includes the domestic leg.

b) Aviation services comprise: in-flight catering services; aircraft take-off and landing services; aircraft parking services; aircraft security protection services; security screening of passengers, luggage and goods; luggage conveyor services at the terminal; ground commercial technical services; aircraft protection services; aircraft pushback services; aircraft marshalling services; passenger boarding bridge rental services; departure and arrival flight control services; transport services for the flight crew, cabin crew and passengers within the aircraft parking area; cargo loading and counting; passenger services for international flights departing from a Vietnamese airport; aircraft repair services; underground fuel refueling services for international flights. Aviation services subject to the 0% tax rate are those performed within the international airport area, the airfield and the international air cargo terminal.

c) Maritime services comprise: ship towing services; maritime pilotage; maritime salvage; wharves and buoys; loading/unloading; mooring and unmooring; opening and closing of cargo hatches; cargo hold cleaning; counting and delivery; registration; ship repair services. Maritime services subject to the 0% tax rate are those performed in the port area.

d) Digital information content products provided to a foreign party are content and information products, comprising text, data, images and sound expressed in digital form, stored and transmitted on a network environment, determined in accordance with the law on information technology. The business establishment providing digital information content products must have dossiers and documents proving consumption outside Vietnam, such as: information on the residency status of the foreign party (organization or individual) abroad (information on the payment address, delivery address, head office address, home address or similar information declared by the purchasing organization or individual to the business establishment providing services in Vietnam); information on the access of the organization or individual abroad, such as information on the national telephone code of the SIM card, the IP address, the location of the fixed telephone line or similar information of the organization or individual purchasing the goods or services.

4. Cases not subject to the 0% tax rate prescribed at Points b and d of Clause 1 of Article 9 of the Law on Value-Added Tax comprise:

a) Technology transfer or transfer of intellectual property rights abroad.

b) Reinsurance services abroad.

c) Credit extension services.

d) Capital transfer.

dd) Derivative products.

e) Postal and telecommunications services.

g) Exported products prescribed in Clause 14 of Article 4 of this Decree.

h) Cigarettes, alcohol and beer that are imported and then exported.

i) Petrol and oil purchased domestically and sold to business establishments in a non-tariff zone; automobiles sold to organizations and individuals in a non-tariff zone.

k) The following services provided in Vietnam to organizations and individuals abroad: sports competitions, art, cultural and entertainment performances, conferences, hotels, training, advertising, travel and tourism; services provided in association with the sale, distribution and consumption of products and goods in Vietnam; non-cash payment services.

l) The following services provided by business establishments to organizations and individuals in a non-tariff zone: leasing of houses, halls, offices, hotels and warehouses; transport services for shuttling workers; catering services (except the provision of industrial meals and catering services within the non-tariff zone).

5. Goods and services sold and provided to organizations in a non-tariff zone and consumed within the non-tariff zone directly serving export production activities prescribed in Clauses 1 and 2 of this Article are goods and services consumed within the non-tariff zone serving the export production activities of organizations in the non-tariff zone and not serving activities other than export production activities, except the goods and services prescribed in Clause 4 of this Article.

6. The Ministry of Finance shall detail this Article in cases where it is necessary to perform the function of state management.

Article 18. Conditions for applying the 0% tax rate

Exported goods and services subject to the 0% tax rate prescribed in Article 17 of this Decree (except a number of specific cases prescribed in Articles 27 and 28 of this Decree) must satisfy the following provisions:

1. For exported goods, there must be:

a) A contract for the sale or processing of exported goods (in the case of sale or processing); an export entrustment contract (in the case of export entrustment).

b) Documents of non-cash payment for the exported goods.

c) A customs declaration as prescribed.

2. For exported services, except as prescribed in Clauses 3, 4 and 5 of this Article, there must be:

a) A contract for the provision of services with an organization or individual abroad or in a non-tariff zone.

b) Documents of non-cash payment for the exported services.

3. For international transport, there must be:

a) A contract for the transport of passengers, luggage and goods between the carrier and the hirer of the carriage on an international leg from Vietnam abroad or from abroad to Vietnam, or with both the point of departure and the point of arrival abroad, in forms consistent with law. For passenger transport, the transport contract is the ticket. Business establishments engaged in international transport shall comply with the law on transport.

b) Documents of non-cash payment. In the case of transport of passengers being individuals, there must be documents of direct payment.

4. For aviation services, there must be:

a) A contract for the provision of services with an organization abroad or a foreign airline, or a request for the provision of services from an organization abroad or a foreign airline.

b) Documents of non-cash payment. In case the services provided to a foreign organization or foreign airline arise irregularly, not on a schedule and without a contract, there must be documents of direct payment from the foreign organization or foreign airline.

The provisions on contracts and payment documents mentioned in this Clause do not apply to passenger service charges for international flights departing from a Vietnamese airport.

Specifically for aircraft repair services provided to foreign organizations and individuals, in order to be eligible for the 0% tax rate, the aircraft brought into Vietnam must complete temporary-import and re-export procedures as prescribed.

5. For maritime services, there must be:

a) A contract for the provision of services with an organization abroad or a shipping agent, or a request for the provision of services from an organization abroad or a shipping agent.

b) Documents of non-cash payment from the organization abroad, or documents of non-cash payment from the shipping agent to the business establishment providing the services.

Specifically for ship repair services provided to foreign organizations and individuals, in order to be eligible for the 0% tax rate, the ship brought into Vietnam must complete temporary-import and re-export procedures as prescribed.

Article 19. The 5% tax rate

The 5% tax rate applies to the goods and services prescribed in Clause 2 of Article 9 of the Law on Value-Added Tax. A number of cases are detailed as follows:

1. Fertilizers, ore for producing fertilizers, plant protection drugs and animal growth stimulants in accordance with law, in which: ore for producing fertilizers is ore used as raw materials for producing fertilizers, such as apatite ore used to produce phosphorus-containing fertilizers, and peat used to make microbial fertilizers; plant protection drugs shall comply with the law on plant protection and quarantine.

2. Services of dredging and excavating canals, ditches, ponds and lakes serving agricultural production; cultivating, tending and preventing pests and diseases for plants; preliminary processing and preservation of agricultural products. Of which, the preliminary processing and preservation of agricultural products includes the services of: cleaning, drying in the sun, drying by heat, husking, milling, cracking into pieces, grinding into pieces, milling to remove the husk, hulling, deseeding, destemming, cutting, grinding, polishing, glazing, dividing into portions, deboning, mincing, skinning, grinding, rolling thin, salting, sealing in airtight cans, preserving by refrigeration (chilling, freezing), preserving with sulfur dioxide gas, preserving by the method of adding chemicals to prevent rotting, soaking in sulfur solution or soaking in other preservative solutions, and other ordinary forms of preservation.

3. Products from cultivation and planted forests (except timber and bamboo shoots), husbandry, and aquaculture and fishing that have not been processed into other products or have only undergone ordinary preliminary processing, except the products prescribed in Clause 1 of Article 4 of this Decree.

4. Rubber latex in the form of crepe, sheet, granule and crumb latex; nets, headlines and twine for making fishing nets. Of which, nets, headlines and twine for making fishing nets comprise fishing nets and the types of twine and headline specialized for making fishing nets, regardless of the raw materials of production.

5. Products made of jute, sedge, bamboo, neohouzeaua, leaves, straw, coconut husk, coconut shell, water hyacinth and other handicraft products made from raw materials utilized from agriculture; carded and combed cotton fibers; newsprint. Of which, products made of jute, sedge, bamboo, neohouzeaua, leaves, straw, coconut husk, coconut shell, water hyacinth and other handicraft products made from raw materials utilized from agriculture are the types of products produced and processed from the main raw materials of jute, sedge, bamboo, rattan, cane, indosasa, neohouzeaua, thysanolaena and dendrocalamus, and leaves, such as: jute carpets, jute yarn, jute bags, coir carpets, mats made of jute and sedge; brooms made of thysanolaena, ropes and binding cords made of bamboo, neohouzeaua and coir; blinds and curtains made of bamboo, cane and neohouzeaua, bamboo brooms, conical leaf hats; bamboo chopsticks and indosasa chopsticks.

6. Fishing vessels for exploiting aquatic products at sea; specialized machinery and equipment serving agricultural production. Of which, specialized machinery and equipment serving agricultural production comprise: plowing machines; harrowing machines; rotary tillers; furrowing machines; stump-cutting machines; field-leveling equipment; seeders; transplanting machines; sugarcane-planting machines; carpet-seedling production systems; tilling, ridging, spreading and fertilizing machines; plant-protection drug sprayers and spray tanks; harvesters for rice, maize, sugarcane, coffee and cotton; harvesters for tubers, fruits and roots; tea-pruning machines and tea-plucking machines; threshing machines for rice; maize-husking and shelling machines; maize shellers; soybean threshers; peanut shellers; coffee huskers; machinery and equipment for the preliminary processing of coffee and wet paddy; dryers for agricultural products (rice, maize, coffee, pepper, cashew, etc.) and aquatic products; machines for collecting and loading sugarcane, rice and straw in the field; poultry egg incubators and hatchers; grass harvesters, straw and grass balers; milking machines and other specialized machines.

The Ministry of Agriculture and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, guiding other specialized machines serving agricultural production that are subject to the 5% tax rate as prescribed in this Clause.

7. Medical equipment in accordance with the law on the management of medical equipment; preventive and curative medicines; pharmaceutical substances and medicinal materials being raw materials for producing curative and preventive medicines. Of which:

a) Medical equipment is equipment that has an import license or a marketing authorization certificate or a document announcing the applicable standard of the medical device in accordance with the law on health, or is on the List of exported and imported medical equipment for which commodity codes have been determined according to Vietnam's List of Exported and Imported Goods, issued by the Minister of Health in accordance with the law on the management of medical equipment.

b) Preventive and curative medicines comprise finished medicines and raw materials for making medicines, except functional foods; vaccines; medical biologicals, distilled water for preparing injections and infusions.

8. Traditional and folk performing arts activities are performing arts and folk performance activities in accordance with the law on performing arts and cultural heritage.

9. Children's toys; books of all kinds, except the books prescribed in Clause 8 of Article 4 of this Decree.

Section 4. TAX DEDUCTION METHOD

Article 20. Tax deduction method

1. The amount of value-added tax payable under the tax deduction method equals the output value-added tax minus the deductible input value-added tax.

2. The output value-added tax equals the total value-added tax of goods and services sold as recorded on the value-added tax invoice.

The value-added tax of goods and services sold as recorded on the value-added tax invoice equals the taxable price of the taxable goods and services sold multiplied by the value-added tax rate of those goods and services.

In case an invoice is used that records the payment price being the price inclusive of value-added tax, the output value-added tax is determined by the payment price minus the value-added tax taxable price determined in accordance with Clause 2 of Article 9 of this Decree.

3. The deductible input value-added tax equals the total value-added tax recorded on the value-added tax invoice for the purchase of goods and services, the value-added tax payment voucher for imported goods, or the tax payment voucher in the case of purchasing services, and satisfying the deduction conditions prescribed in Sections 1 and 2 of Chapter III of this Decree. Of which, the tax payment voucher in the case of purchasing services shall comply with Point a of Clause 2 of Article 3 of this Decree and Clause 3 of Article 4 of the Law on Value-Added Tax.

Article 21. Subjects applying the tax deduction method

The tax deduction method applies to business establishments that fully implement the accounting, invoice and voucher regime in accordance with the law on accounting, invoices and vouchers, comprising:

1. Business establishments with annual turnover from the sale of goods and provision of services of 1 billion VND or more, except business households and individuals engaged in production and business. Of which:

a) The annual turnover is self-determined by the business establishment based on the total of the criterion "Total turnover of goods and services sold subject to value-added tax" on the monthly value-added tax declaration for the tax periods from November of the preceding year to the end of the October tax period of the current year, before the year of determining the value-added tax calculation method, or on the quarterly value-added tax declaration for the tax periods from the 4th quarter of the preceding year to the end of the 3rd quarter tax period of the current year, before the year of determining the value-added tax calculation method. The period for the stable application of the tax calculation method is 2 consecutive years.

b) In case a business establishment is newly established during the year and its production and business activities during the year do not cover a full 12 months, the estimated turnover of the year is determined as follows: the total of the criterion "Total turnover of goods and services sold subject to value-added tax" on the value-added tax declaration for the tax periods of the months of production and business activities divided (:) by the number of months of production and business activities and multiplied by (x) 12 months. If, according to the above method of determination, the estimated turnover is 1 billion VND or more, the business establishment applies the tax deduction method. If the estimated turnover determined by the above method is less than 1 billion VND, the business establishment applies the direct calculation method on turnover for 2 years, unless the business establishment voluntarily registers to apply the tax deduction method.

c) In case a business establishment temporarily suspends production and business for the whole year, the turnover of the year preceding the year of temporary suspension of production and business is used for determination. For a business establishment that temporarily suspends production and business for a period during the year or the preceding year, the turnover is determined according to the number of months or quarters of actual production and business, as in the case of production and business activities not covering a full 12 months mentioned at Point b of this Clause.

2. Business establishments voluntarily applying the tax deduction method, except business households and individuals engaged in production and business. Of which:

a) Enterprises, cooperatives and unions of cooperatives that are operating with annual turnover from the sale of goods and provision of services subject to value-added tax of under 1 billion VND, and that have fully implemented the accounting, book-keeping, invoice and voucher regime in accordance with the law on accounting, invoices and vouchers.

b) Enterprises newly established from the investment project of a business establishment that is operating and paying value-added tax by the tax deduction method.

c) Enterprises newly established that carry out investment under an investment project approved by a competent authority, falling into the case of voluntarily registering to apply the tax deduction method.

d) Enterprises, cooperatives and unions of cooperatives newly established that have an investment project not required to be approved by a competent authority in accordance with the law on investment, but that have an investment plan approved by the person competent within the enterprise who makes the investment decision, falling into the subjects registering to apply the tax deduction method.

dd) Enterprises, cooperatives and unions of cooperatives newly established that carry out investment in, procurement of, or receipt of capital contribution in the form of, fixed assets, machinery, equipment, tools and instruments, or that have a contract for leasing a business location.

e) Foreign organizations with a permanent establishment in Vietnam, and foreign individuals being residents in Vietnam that have turnover arising in Vietnam.

g) Other economic organizations that can account for input and output value-added tax, not including enterprises, cooperatives and unions of cooperatives.

3. Foreign organizations and individuals that provide goods and services to carry out oil and gas field prospecting, exploration and development and oil and gas extraction activities and that pay tax by the tax deduction method declared, deducted and paid on their behalf by the Vietnamese party.

4. A newly established branch of an enterprise that is paying value-added tax by the tax deduction method (including a branch established from the enterprise's investment project) that falls into the case of separate value-added tax declaration in accordance with the law on tax administration determines its tax calculation method according to the tax calculation method of the operating enterprise.

Section 5. THE DIRECT CALCULATION METHOD ON ADDED VALUE FOR THE ACTIVITIES OF BUYING, SELLING AND FASHIONING GOLD, SILVER AND GEMSTONES

Article 22. The direct calculation method on added value for the activities of buying, selling and fashioning gold, silver and gemstones

1. The amount of value-added tax payable under the direct calculation method on added value equals the added value multiplied by the value-added tax rate applicable to the activities of buying, selling and fashioning gold, silver and gemstones.

2. The added value of the activities of buying, selling and fashioning gold, silver and gemstones is determined by the payment price of the gold, silver and gemstones sold minus the corresponding payment price of the gold, silver and gemstones purchased. Of which:

a) The payment price of the gold, silver and gemstones sold is the actual selling price recorded on the invoice for the sale of gold, silver and gemstones, including the fashioning charge (if any), value-added tax and the surcharges and additional fees to which the seller is entitled.

b) The payment price of the gold, silver and gemstones purchased is determined by the value of the gold, silver and gemstones purchased or imported, inclusive of value-added tax, used for the corresponding activities of buying, selling and fashioning gold, silver and gemstones sold.

3. In case a business establishment engages in the activities of buying, selling and fashioning gold, silver and gemstones, the business establishment must separately account for these activities to pay tax under the direct calculation method on added value.

4. In case a negative (-) added value of gold, silver and gemstones arises during the tax period, it may be offset against the positive (+) added value of gold, silver and gemstones. In case no positive (+) added value arises, or the positive (+) added value is insufficient to offset the negative (-) added value, the negative amount may be carried forward to offset against the added value of a subsequent period within the year. At the end of the calendar year, the negative (-) added value may not be carried forward to the following year.

Chapter III

TAX DEDUCTION AND REFUND

Section 1. PRINCIPLES FOR DEDUCTING INPUT VALUE-ADDED TAX

Article 23. Value-added tax deduction

1. Input value-added tax on goods and services used for the production and business of goods and services subject to value-added tax is fully deductible, including the uncompensated input value-added tax on goods and services subject to value-added tax that suffered losses, and on goods subject to natural loss due to their physicochemical properties during transport. The business establishment must have complete dossiers and documents proving the cases of uncompensated loss in order to deduct the tax. In case the law provides for a natural loss norm, the business establishment may deduct the input value-added tax on the quantity of goods actually lost naturally not exceeding the loss norm as prescribed; the input value-added tax on the quantity of goods exceeding the loss norm is not deductible.

2. Input value-added tax on goods (including fixed assets) and services used simultaneously for the production and business of taxable and non-taxable goods and services is deductible only for the input value-added tax on goods and services used for the production and business of goods and services subject to value-added tax. The business establishment must separately account for the deductible and non-deductible input value-added tax; where it cannot be separately accounted for, the deductible input value-added tax is calculated according to the percentage (%) between the turnover of goods and services subject to value-added tax and the total turnover of goods and services sold in the tax period. Of which:

a) The total turnover of goods and services sold comprises the turnover of goods and services subject to value-added tax; the turnover of goods and services not subject to value-added tax; the added value of the activities of buying, selling and fashioning gold, silver and gemstones (except where the added value is negative (-)); and the turnover of goods and services prescribed in Clause 2 of Article 40 of this Decree (if any). Specifically for foreign-currency trading and securities trading activities, the turnover is the difference between the selling price and the purchase price (except where the difference is negative (-)).

b) For an investment project that both invests in the production and business of goods and services subject to value-added tax and invests in the production and business of goods and services not subject to value-added tax, the input value-added tax on fixed assets during the basic construction investment phase is provisionally deducted according to the percentage (%) between the turnover of goods and services subject to value-added tax and the total turnover of goods and services sold according to the business establishment's production and business plan; the provisionally deducted tax amount is adjusted according to the percentage (%) between the turnover of goods and services subject to value-added tax and the total turnover of goods and services sold over 3 years from the first year in which turnover arises. In case, after adjustment, the deductible value-added tax amount leads to a reduction of the value-added tax amount already refunded (if any), the difference in the value-added tax amount due to the downward adjustment must be re-paid into the state budget in accordance with the law on tax administration. The business establishment shall not be administratively sanctioned for tax violations with respect to the difference in the value-added tax amount due to the downward adjustment.

3. Input value-added tax on goods and services sold to organizations and individuals using humanitarian aid or non-refundable aid capital is fully deductible.

4. Input value-added tax on goods and services used for oil and gas field prospecting, exploration and development activities is fully deductible.

5. Input value-added tax arising in a month or quarter is declared and deducted when determining the amount of tax payable for that month or quarter, regardless of whether it has been used or is still in stock. Input value-added tax not yet fully deducted in a month or quarter is deducted in the following month or quarter.

6. In case a business establishment detects that the input value-added tax was erroneous when declared and deducted, it may declare the tax before the tax authority or competent authority announces a decision on tax examination or tax inspection, as follows:

a) The taxpayer shall make a supplementary declaration for the month or quarter in which the erroneous input value-added tax arose if declaring the tax for the month or quarter in which the erroneous input value-added tax arose increases the amount of tax payable or reduces the amount of tax to be refunded for that month or quarter; the taxpayer must fully pay the additional amount of tax payable or have the corresponding refunded tax amount recovered, and pay the late-payment interest into the state budget (if any).

b) The taxpayer shall make a declaration for the month or quarter in which the error is detected if declaring the tax in the month or quarter in which the erroneous input value-added tax arose reduces the amount of tax payable or only increases or reduces the amount of value-added tax still deductible carried forward to the following month or quarter.

7. Input value-added tax on goods (including goods purchased externally or goods self-produced by the business establishment) that the business establishment uses for giving, presenting, gifting, sales promotion or advertising is deductible.

8. The amount of value-added tax paid under a Tax Assessment Decision of the customs authority is fully deductible, except in the case where the customs authority sanctions for tax fraud or tax evasion.

9. In case a business establishment assigns a Project Management Board or a branch to directly implement and manage an investment project and declare value-added tax for the investment project, and the business establishment pays certain expenses on behalf of the project, the Project Management Board or branch may deduct the input value-added tax according to the value-added tax invoice bearing the name of the business establishment. The business establishment may not deduct the input value-added tax with respect to value-added tax invoices that the Project Management Board or branch has declared and deducted.

10. A business establishment paying value-added tax by the direct calculation method that switches to paying tax by the tax deduction method may deduct the value-added tax on goods and services purchased that arises from the first period of declaring and paying tax by the tax deduction method.

11. A business establishment paying value-added tax by the tax deduction method that switches to paying tax by the direct calculation method may account the amount of value-added tax on goods and services purchased that arose during the period of paying tax by the tax deduction method but was not yet fully deducted in the last tax period before the conversion of the tax calculation method into expenses for calculating corporate income tax, or account it into the original cost of fixed assets in accordance with the law on corporate income tax, except the value-added tax on goods and services purchased in each instance with a value of 5 million VND or more without documents of non-cash payment.

12. For goods and services converted from being not subject to value-added tax to being subject to value-added tax under the Law on Value-Added Tax, the business establishment may only declare and deduct the input value-added tax on goods and services used for the production and business of goods and services subject to value-added tax that arises from July 1, 2025.

13. A business establishment may not deduct the input value-added tax on fixed assets, machinery and equipment in the following cases:

a) Fixed assets, machinery and equipment specialized for the production of defense and security products.

b) Fixed assets, machinery and equipment of credit institutions, enterprises engaged in reinsurance business or life insurance, securities trading, medical examination and treatment establishments, and training establishments.

c) Aircraft, helicopters, civil gliders and yachts not used for the business of transporting goods or passengers, or for tourism or hotel business.

The non-deduction prescribed in this Clause also includes the input value-added tax on leasing activities and the repair costs of the fixed assets, machinery and equipment (if any).

14. The offices of corporations and groups that do not directly engage in business, and affiliated administrative and public-service units such as: hospitals, health stations, convalescence and rest homes, institutes, training schools, etc., that are not value-added taxpayers, may not deduct the input value-added tax on goods and services purchased to serve the activities of these units. In case these units engage in the business of goods and services subject to value-added tax, they must separately register and declare and pay value-added tax for the business activities of goods and services subject to value-added tax.

15. A business establishment that does not satisfy the provisions on tax deduction in Sections 1 and 2 of Chapter III of this Decree, and invoices and vouchers created from the acts strictly prohibited under Article 13 of the Law on Value-Added Tax, may not deduct value-added tax.

16. With respect to the non-deductible input value-added tax, the business establishment may account it into expenses for calculating corporate income tax or into the original cost of fixed assets in accordance with the law on corporate income tax, except the value-added tax on goods and services purchased in each instance with a value of 5 million VND or more without documents of non-cash payment.

Article 24. Value-added tax deduction in a number of specific cases

The deduction of value-added tax in a number of cases prescribed at Point g of Clause 1 of Article 14 of the Law on Value-Added Tax is carried out as follows:

1. For goods and services forming fixed assets serving workers:

a) The input value-added tax on goods and services forming fixed assets serving workers in the production and business area, and housing and health stations for workers working in industrial parks, is fully deductible.

b) In case a business establishment leases housing for workers working in industrial parks, the value-added tax on the rental amount is deducted as prescribed. In case a business establishment builds or buys housing outside the industrial park to serve workers working in industrial parks, the value-added tax on the housing built or bought serving the workers is fully deductible. The housing for workers prescribed at this Point must satisfy the conditions for housing for workers in industrial parks in accordance with the law on housing.

c) In case foreign experts remain employees of the enterprise abroad, are subject to the assignment of the enterprise abroad, are paid salaries by the enterprise abroad and enjoy the regimes of the enterprise abroad during their period of working in Vietnam, and there is a written contract between the enterprise abroad and the business establishment in Vietnam clearly stating that the business establishment in Vietnam must bear the accommodation costs for the foreign experts during their working period in Vietnam, the value-added tax on the rental amount for housing for the foreign experts working in Vietnam paid by the business establishment in Vietnam is deductible; in case a business establishment has foreign experts coming to work in Vietnam, holding managerial positions in Vietnam and receiving salaries in Vietnam under a labor contract signed with the business establishment in Vietnam, the business establishment may not deduct the value-added tax on the rental amount for housing for these foreign experts.

2. For the case of capital contribution in the form of assets, where the asset contributed as capital is a newly purchased asset that has not been used and has a lawful invoice accepted by the Capital Contribution Handover Council, the value of the capital contribution is determined according to the value recorded on the invoice, including value-added tax. The capital-recipient party may deduct the value-added tax recorded on the asset purchase invoice of the capital-contributing party.

3. For goods and services purchased under the form of authorization, a business establishment may deduct the value-added tax on goods and services purchased under the form of authorization to another organization or individual where the invoice bears the name of the authorized organization or individual, comprising the following cases:

a) Where an insurance enterprise authorizes the insurance participant to repair the assets; the cost of repairing the assets together with the supplies and replacement spare parts have value-added tax invoices bearing the name of the insurance participant, and the insurance enterprise pays the insurance participant the corresponding insurance premium under the insurance contract, the insurance enterprise may deduct the value-added tax corresponding to the portion of the insurance indemnity paid according to the value-added tax invoice bearing the name of the insurance participant; in case the portion of the insurance indemnity paid by the insurance enterprise to the insurance participant has a value of 5 million VND or more, non-cash payment must be made.

b) Where, before the establishment of an enterprise, the founders have a written authorization for an organization or individual to pay on their behalf certain expenses for procuring goods, supplies and other expenses related to the establishment of the enterprise, the enterprise may deduct the input value-added tax according to the value-added tax invoice bearing the name of the authorized organization or individual, and must make non-cash payment to the authorized organization or individual for those invoices with a value of 5 million VND or more.

4. For fixed assets being automobiles for carrying up to 9 persons (except automobiles used for the business of transporting goods or passengers, or for tourism or hotel business; automobiles used as samples and for test drives for automobile business) with a value exceeding 1.6 billion VND (the price exclusive of value-added tax), the input value-added tax deducted corresponds to the portion of value up to 1.6 billion VND.

5. For a production and business establishment that organizes closed-loop production with centralized accounting and uses products not subject to value-added tax through various stages to produce items subject to value-added tax, the input value-added tax at the various stages is fully deductible.

Section 2. CONDITIONS FOR DEDUCTING INPUT VALUE-ADDED TAX

Article 25. Invoices and tax payment vouchers

A business establishment must have a value-added tax invoice for the goods and services purchased, or a value-added tax payment voucher at the import stage, or a value-added tax payment voucher on behalf of the foreign party as prescribed at Point a of Clause 2 of Article 14 of the Law on Value-Added Tax (including the value-added tax payment voucher at the percentage (%) rate multiplied by turnover on behalf of the foreign party).

Article 26. Documents of non-cash payment

A business establishment must have documents of non-cash payment for goods and services purchased (including imported goods) of 5 million VND or more, inclusive of value-added tax. Of which:

1. Documents of non-cash payment are documents proving non-cash payment in accordance with Decree No. 52/2024/ND-CP dated May 15, 2024 of the Government on non-cash payment, except documents where the purchaser deposits cash into the seller's account.

2. A number of specific cases under Point b of Clause 2 of Article 14 of the Law on Value-Added Tax comprise:

a) In case goods and services are purchased under the method of offsetting payment between the value of the goods and services purchased and the value of the goods and services sold, or the borrowing and lending of goods, where this payment method is specifically stipulated in the contract, there must be a record of data reconciliation and confirmation between the two parties on the offsetting payment between the goods and services purchased and the goods and services sold or the goods borrowed or lent. In case of offsetting debts through a third party, there must be a three-party debt offsetting record as the basis for tax deduction.

b) In case goods and services are purchased under the method of offsetting debts such as borrowing and lending money, or offsetting debts through a third party, where this payment method is specifically stipulated in the contract, there must be a money borrowing/lending contract made in writing beforehand and there must be documents of the money transfer from the account of the lender to the account of the borrower for the money borrowed or lent, including the case of offsetting between the value of the goods and services purchased and the amount that the seller supports the purchaser or asks the purchaser to pay on its behalf.

c) In case goods and services purchased are paid by authorization through a third party making non-cash payment (including the case where the seller requests the purchaser to make non-cash payment to a third party designated by the seller), the authorized payment or payment to the third party as designated by the seller must be specifically stipulated in the contract in writing, and the third party must be an organization or natural person operating in accordance with law.

d) In case goods and services are purchased under the method of paying for the goods and services by shares or bonds, where this payment method is specifically stipulated in the contract, there must be a sale-and-purchase contract made in writing beforehand.

dd) In case, after implementing the payment forms mentioned at Points a, b, c and d of this Clause, the remaining value is paid in money with a value of 5 million VND or more, tax deduction is allowed only where there are documents of non-cash payment.

e) In case goods and services purchased are paid by non-cash payment into the account of a third party opened at the State Treasury to enforce a coercive measure of collecting money and assets held by another organization or individual (under a Decision of a competent state agency), the input value-added tax deducted is determined corresponding to the amount transferred into the account of the third party opened at the State Treasury.

g) For goods and services purchased on deferred or installment payment terms with a value of the goods and services purchased of 5 million VND or more, the business establishment bases itself on the written contract for the purchase of goods and services, the value-added tax invoice and the documents of non-cash payment for the goods and services purchased on deferred or installment payment terms to deduct the input value-added tax. In case there are not yet documents of non-cash payment because the payment time under the contract or contract annex has not arrived, the business establishment is still entitled to deduct the input value-added tax. In case, upon the payment time under the contract or contract annex, the business establishment does not have documents of non-cash payment, the business establishment must declare and adjust to reduce the deductible input value-added tax with respect to the portion of the value of goods and services without documents of non-cash payment, in the tax period in which the payment obligation arises under the contract or contract annex.

h) In case the value of imported goods and services in each instance is under 5 million VND, goods and services purchased in each instance under an invoice for under 5 million VND at the price inclusive of value-added tax, and the case where a business establishment imports goods being presents, gifts or samples received free of charge from foreign organizations or individuals, documents of non-cash payment for the goods and services purchased are not required.

i) In case goods and services purchased serving the production and business of goods and services subject to value-added tax are authorized to an individual being an employee of the business establishment to make non-cash payment according to the financial regulation or internal regulation of the business establishment, and the business establishment subsequently reimburses the employee by non-cash payment, the input value-added tax is deductible.

3. In case goods and services are purchased from one taxpayer with a value of under 5 million VND each but are purchased multiple times on the same day with a total value of 5 million VND or more, tax deduction is allowed only where there are documents of non-cash payment.

Article 27. Conditions for deducting input value-added tax for exported goods and services

For exported goods and services, in addition to the conditions prescribed in Articles 25 and 26 of this Decree, there must also be: a contract signed with the foreign party on the sale or processing of goods or the provision of services; an invoice for the sale of goods or provision of services; documents of non-cash payment; a customs declaration for the exported goods (except cases where a customs declaration is not required in accordance with the law on customs); a packing list, a bill of lading, and goods insurance documents (if any). Of which:

1. For the contract of selling goods, processing goods or providing services to the foreign party (the importer): in the case of export entrustment, it is the export entrustment contract and the record of liquidation of the export entrustment contract (in case the contract has ended) or the record of periodic debt reconciliation between the export-entrusting party and the export-entrusted party clearly stating: the quantity and type of products and the value of the entrusted goods that have been exported; the number and date of the export contract signed by the export-entrusted party with the foreign party; the number, date and amount recorded on the documents of non-cash payment with the foreign party of the export-entrusted party; the number, date and amount recorded on the payment documents of the export-entrusted party paying the export-entrusting party; the number and date of the customs declaration of the exported goods of the export-entrusted party.

2. For the customs declaration of exported goods: a declaration that has completed customs procedures in accordance with the law on customs.

3. For documents of non-cash payment: documents of the money transfer from the account of the importer (or the bank serving the importer) into the account bearing the name of the business establishment (the exporter) opened at a bank, in the payment forms consistent with the agreement in the contract and the regulations of the bank. The payment document is the credit advice of the exporter's bank on the amount received from the account of the importer's bank. In case of deferred payment, there must be an agreement stated in the export contract or contract annex; upon the payment deadline, the exporter must have documents of non-cash payment. In case of export entrustment, there must be documents of non-cash payment from the foreign party to the entrusted party, and the entrusted party must have documents of non-cash payment for the exported goods to the entrusting party. In case the foreign party pays directly to the export-entrusting party, the entrusting party must have documents of non-cash payment and this payment must be stipulated in the contract. In case the exporter sells the receivables of the importer to a third party (the buyer of the receivables) abroad, there must be documents of non-cash payment from the third party (the buyer of the receivables); this payment must be stipulated in the export contract and the contract for the sale of the receivables with the third party abroad; the exporter must have a written commitment and explanation of the reason why the amount paid differs from the amount to be paid under the export contract, consistent with the contract for the sale of the receivables. Except for a number of cases not required to satisfy the condition of documents of non-cash payment as follows:

a) In case exported goods and services are paid by offsetting against a foreign loan debt, the business establishment must have complete conditions, procedures and dossiers as follows: the loan contract (for financial loans with a term of under 1 year); or the certificate of loan registration of the State Bank of Vietnam (for loans over 1 year); documents of non-cash payment of the money transfer of the foreign party into Vietnam. The method of paying for exported goods and services by offsetting against the foreign loan debt must be stipulated in the export contract; a confirmation by the foreign party on the offsetting of the loan debt; in case, after offsetting the value of the exported goods and services against the foreign loan debt, there is a difference, the difference amount must have documents of non-cash payment.

b) In case the exporting business establishment uses the money paid for the exported goods and services to contribute capital to the importer abroad, the business establishment must have complete conditions, procedures and dossiers as follows: the capital contribution contract; the use of the money paid for the exported goods and services to contribute capital to the importer abroad must be stipulated in the export contract; in case the capital contribution amount is smaller than the turnover of the exported goods, the difference amount must have documents of non-cash payment.

c) In case the foreign party authorizes a third party being an organization or individual abroad to make the payment, the authorized payment must be stipulated in the export contract (contract annex or document adjusting the contract (if any)).

d) In case the foreign party requests a third party being an organization in Vietnam to offset debts with the foreign party by making non-cash payment of the amount that the foreign party must pay to the exporting business establishment, and the above request for offsetting debts is stipulated in the export contract (contract annex or document adjusting the contract (if any)), and there are payment documents being the credit advice of the exporter's bank on the amount received from the account of the third party, and at the same time the exporter must have a debt reconciliation statement confirmed by the foreign party and the third party.

dd) In case the foreign party (the importer) authorizes a third party being an organization or individual abroad to make the payment; the third party requests an organization in Vietnam (the fourth party) to offset debts with the third party by making non-cash payment of the amount that the importer must pay to the exporter, the exporter must have complete conditions and dossiers as follows: the export contract (contract annex or document adjusting the contract (if any)) stipulating the authorization of payment and the offsetting of debts among the parties; payment documents being the credit advice of the bank on the amount received by the exporter from the account of the fourth party; a debt reconciliation statement confirmed by the relevant parties (between the exporter and the importer, and between the third party abroad and the fourth party being an organization in Vietnam).

e) In case the foreign party authorizes its Representative Office in Vietnam to make the payment into the account of the exporter, and the above authorization of payment is stipulated in the export contract (contract annex or document adjusting the contract (if any)).

g) In case the foreign party (except where the foreign party is an individual) makes the payment from the foreign party's current deposit account opened at credit institutions in Vietnam, this payment must be stipulated in the export contract (contract annex or document adjusting the contract (if any)). The payment document is the credit advice of the exporter's bank on the amount received from the current account of the foreign party that signed the contract.

h) In case the foreign party is a private enterprise that makes the payment through the current account of the private enterprise owner opened at a credit institution in Vietnam, and this is stipulated in the export contract (contract annex or document adjusting the contract (if any)), it is determined to be non-cash payment. In case the foreign purchaser being a private enterprise enters through Vietnam's international border gates by passport carrying foreign currency in cash or Vietnamese dong in cash to deposit into the current account of the private enterprise owner opened at a credit institution in Vietnam, customs declaration at the border gate upon exit and entry must be made in accordance with the guidance of the State Bank of Vietnam.

i) In case the foreign party makes non-cash payment but the amount paid on the non-cash payment document does not match the amount to be paid as agreed in the contract or contract annex: if the amount paid on the non-cash payment document has a value smaller than the amount to be paid as agreed in the contract or contract annex, the business establishment must clearly explain the reason, such as: the bank's money transfer fee, a price reduction due to poor-quality or short goods (in this case there must be a written agreement on the price reduction between the importer and the exporter); if the amount paid on the non-cash payment document has a value larger than the amount to be paid as agreed in the contract or contract annex, the business establishment must clearly explain the reason, such as: a single payment for multiple contracts, an advance payment for goods; the business establishment must commit to take responsibility before the law for the reasons explained to the tax authority and the adjustment documents (if any).

k) In case the foreign party makes non-cash payment but the non-cash payment document does not state the correct name of the bank to make payment as agreed in the contract, if the content of the document clearly shows the name of the payer, the name of the beneficiary, the export contract number and the payment value consistent with the signed export contract, it is accepted as a valid payment document.

l) In case a business establishment exports goods and services to the foreign party (the second party), and at the same time imports goods and services from another foreign party or purchases goods from an organization or individual in Vietnam (the third party); if the business establishment has an agreement with the second party and the third party that the second party makes non-cash payment to the third party of the amount that the business establishment still has to pay to the third party, the offsetting of payments among the parties must be stipulated in the export contract, the import contract or the purchase contract (contract annex or document adjusting the contract (if any)), and the business establishment must have a debt reconciliation statement confirmed by the relevant parties (between the business establishment and the second party, and between the business establishment and the third party).

m) In case goods are exported abroad but, for objective reasons, the foreign party refuses to receive the goods and the business establishment finds a new customer in the same country as the customer with which the original sale-and-purchase contract was signed to sell the said consignment, the deduction documents comprise the entire export dossier related to the export contract signed with the original customer (the contract, the customs declaration for the exported goods, the invoice), a written explanation by the business establishment of the reason for the difference in the name of the purchasing customer (in which the business establishment commits to take responsibility for the accuracy of the information and ensures there is no fraud), and the entire export dossier related to the export contract signed with the new customer (the contract, the sales invoice, the documents of non-cash payment as prescribed and other documents (if any)).

n) In case of labor export where the labor-export business establishment collects money directly from the workers, there must be documents of collecting money from the workers.

o) In case goods and services are exported to repay a foreign debt for the Government, there must be a confirmation by the bank of the export consignment that has been accepted by the foreign party for debt offsetting, or a confirmation that the set of documents has been sent to the foreign party for debt offsetting; the payment documents shall comply with the guidance of the Ministry of Finance.

p) The case of exported goods and services paid by goods is the case of exporting goods (including processing goods for export) or services to the foreign party but the payment between the exporting business establishment and the foreign party is by offsetting between the value of the exported goods and services or the processing charge for exported goods and the value of the goods and services purchased from the foreign party. For exported goods and services paid by goods: the payment method for goods exported by goods must be stipulated in the export contract; the contract for purchasing goods and services from the foreign party; there must be a customs declaration for the imported goods offset against the exported goods and services; there must be a written confirmation with the foreign party on the amount offset between the exported goods and services and the imported goods and services purchased from the foreign party; in case, after offsetting between the value of the exported goods and services and the value of the imported goods and services, there is a difference, the difference amount must have documents of non-cash payment.

q) In case of exporting goods to countries with a shared border, in accordance with the law on the management of border trade activities with countries with a shared border, this shall comply with the guidance of the Ministry of Finance and the State Bank of Vietnam.

r) In case the foreign party loses the ability to pay, the business establishment exporting goods must have a written explanation clearly stating the reason and may use one of the following documents to substitute for the documents of non-cash payment: the customs declaration for goods imported from Vietnam registered with the customs authority in the country importing the goods (1 copy); or the complaint filed with the court or competent authority in the country of residence, together with a notice or a document of a certifying nature of this authority on the acceptance of the complaint (1 copy); or the winning judgment of the foreign court in favor of the business establishment (1 copy); or a document of a competent foreign organization confirming (or notifying) that the foreign party is bankrupt or has lost the ability to pay (1 copy).

s) In case the exported goods do not ensure quality and must be destroyed, the business establishment exporting goods must have a written explanation clearly stating the reason and may use the destruction record (or a document confirming the destruction) of the goods abroad of the agency carrying out the destruction (1 copy), together with the documents of non-cash payment for the destruction costs for which the business establishment exporting goods is responsible, or together with documents proving that the destruction costs are the responsibility of the importer or a third party (1 copy), to substitute for the documents of non-cash payment. In case the importer of goods must carry out the destruction procedures abroad, the destruction record (or the document confirming the destruction) shall bear the name of the importer of goods.

t) In case the exported goods suffer losses, the business establishment exporting goods must have a written explanation clearly stating the reason and may use one of the following documents to substitute for the documents of non-cash payment: a confirmation of the loss outside the border of Vietnam by the relevant competent authority (1 copy); or a record determining the loss of goods during transport outside the border of Vietnam clearly stating the cause of the loss (1 copy). If the business establishment exporting goods has received compensation for the exported goods lost outside the border of Vietnam, it must enclose the documents of non-cash payment on the amount received (1 copy).

u) The copies of the types of documents prescribed in this Clause must bear the certification of true copy from the original by the business establishment exporting goods. In case the language used in the documents or papers of confirmation of the third party substituting for the documents of non-cash payment is not English or is not accompanied by English, there must be 1 notarized translation enclosed. In case the relevant parties issue, use and store documents in electronic form, there must be a paper printout. The business establishment exporting goods shall take full responsibility for the accuracy of the types of documents substituting for the documents of non-cash payment for the cases prescribed in this Clause.

3. For the invoice for the sale of goods or provision of services: a commercial invoice or a value-added tax invoice in accordance with the law on invoices and vouchers.

Article 28. Conditions for deducting input value-added tax for a number of specific goods and services

For the conditions for deducting input value-added tax in the case of exporting goods through an e-commerce trading floor abroad and a number of other specific cases, in addition to the conditions for deducting input value-added tax prescribed in Articles 25 and 26 of this Decree, the goods-exporting establishment must have documents proving that the goods have been sold outside Vietnam. Of which:

1. For the case of exporting goods through an e-commerce trading floor abroad: the business establishment exporting goods must have documents proving that the goods have been sold outside Vietnam, such as: a contract signed with the manager of the e-commerce trading floor to sell goods on the e-commerce trading floor abroad (the transaction of selling goods between the business establishment and the purchaser abroad must fully satisfy the provisions on the conclusion of contracts using the online ordering function on the e-commerce trading floor abroad in accordance with the law on commerce, the law on e-commerce and the law on electronic transactions); the invoice for the sale of goods; documents of non-cash payment (in case the business establishment exporting goods authorizes an intermediary organization being the manager of the e-commerce trading floor to collect money on its behalf from the purchaser abroad, the authorized payment must be stipulated in the contract with the manager of the e-commerce trading floor); the declaration that has completed customs procedures in accordance with the law on customs when sending the goods abroad; documents proving the delivery of the goods to the purchaser abroad; a packing list, a bill of lading, and goods insurance documents (if any).

2. For the case of exporting goods stored at a bonded warehouse abroad: the business establishment exporting goods must have documents proving that the goods have been sold outside Vietnam, such as: the contract for exporting goods; the export entrustment contract; the invoice for the sale of goods; documents of non-cash payment; the declaration that has completed customs procedures in accordance with the law on customs when sending the goods abroad; documents proving the delivery of the goods to the importer abroad (the declaration that has completed customs procedures when releasing the goods for delivery to the purchaser of the country of consignment, or documents proving that the goods have been sold at the bonded warehouse); a packing list, a bill of lading, and goods insurance documents (if any).

3. For the case of exporting goods at a fair or exhibition abroad: the business establishment exporting goods must have documents proving that the goods have been sold outside Vietnam, such as: documents of non-cash payment; if the foreign-currency cash is collected and transferred back to the country in the country where the trade fair or exhibition is held, the business establishment must have documents declaring to the customs authority the foreign-currency cash collected from the sale of goods transferred back to the country, and documents of depositing the money into a bank in Vietnam.

4. For goods sold in the isolation area to individuals (foreigners or Vietnamese) who have completed exit procedures; goods sold at duty-free shops: the business establishment must have documents proving that the goods have been sold in the isolation area or at the duty-free shop; the business establishment must have a List of goods sold to departing customers in the isolation area or at the duty-free shop according to the form in Appendix III promulgated together with this Decree.

5. For digital information content products provided to a foreign party: the business establishment providing the service must have dossiers and documents proving that the service is consumed outside Vietnam as prescribed at Point d of Clause 3 of Article 17 of this Decree, and must have documents of non-cash payment.

6. For goods processed for onward transfer for export, being goods processed for onward transfer in accordance with the law on commerce and the law on foreign trade management: the export processing contract and the contract annexes (if any) signed with the foreign party, clearly stating the establishment receiving the goods in Vietnam; the value-added tax invoice clearly stating the processing price and the quantity of processed goods returned to the foreign party (at the price stipulated in the contract signed with the foreign party) and the name of the receiving establishment as designated by the foreign party; the transfer slip of onward-transfer processed products (referred to as the Transfer Slip) with full confirmation of the delivering party and the receiving party of the onward-transfer processed products; goods processed for the foreign party must be paid by non-cash payment in accordance with law; the customs declaration shall comply with the law on customs.

7. For construction and installation of works abroad or in a non-tariff zone: there must be a contract for the construction and installation of works abroad or in a non-tariff zone; there must be documents of non-cash payment in accordance with law.

8. In case goods and supplies are exported by a business establishment to carry out a construction work abroad, in addition to the provisions in Clause 7 of this Article, the business establishment must satisfy the following conditions: a customs declaration; the exported goods and supplies must be consistent with the List of exported goods for carrying out the construction work abroad approved by the Director of the Vietnamese enterprise carrying out the construction work abroad; an export entrustment contract (in the case of export entrustment).

9. In case a business establishment has exported goods that have the confirmation of the customs authority but does not have all the other procedures and dossiers on the conditions for deducting input value-added tax as prescribed for each specific case prescribed in this Section, it may not deduct the input value-added tax and is not required to calculate the output value-added tax. Specifically for the case of goods processed for onward transfer, if there are not all the procedures and dossiers on the conditions for deducting input value-added tax as prescribed, tax must be calculated and value-added tax paid as for goods consumed domestically. For a business establishment that has exported services, if it does not satisfy the condition on non-cash payment as prescribed, it may not deduct the input value-added tax and is not required to calculate the output value-added tax.

Section 3. VALUE-ADDED TAX REFUND

Article 29. Refund for exports

1. A business establishment that, in a month or quarter, has exported goods and services and has input value-added tax not yet fully deducted of 300 million VND or more, is entitled to a value-added tax refund on a monthly or quarterly basis, except in the case of goods imported and then exported to another country. Of which:

a) The subjects entitled to a refund in a number of export cases are determined as follows: in the case of export entrustment, it is the business establishment that has the goods entrusted for export; in the case of onward-transfer processing, it is the business establishment that signs the export processing contract with the foreign party; in the case of goods exported to carry out a construction work abroad, it is the business establishment that has the goods exported to carry out the construction work abroad.

b) Goods imported and then exported to another country are goods that the business establishment imports from abroad into Vietnam and then directly exports or entrusts for export, not including goods being raw materials imported for the production or processing of goods for export.

2. A business establishment that, in a month or quarter, has both exported goods and services and goods and services consumed domestically must separately account for the input value-added tax used for the production and business of exported goods and services; where it cannot be separately accounted for, the input value-added tax on exported goods and services is determined according to the ratio between the turnover of exported goods and services and the total turnover of taxable goods and services of the refund period. The refund period is determined from the value-added tax period in which there is input value-added tax not yet fully deducted continuously and not yet refunded, to the tax period in which the refund is requested; the input value-added tax on exported goods and services (including the separately accountable input value-added tax and the input value-added tax determined according to the above ratio), if, after offsetting against the value-added tax payable on goods and services consumed domestically, there remains 300 million VND or more, the business establishment is entitled to a refund for the exported goods and services. The refundable value-added tax on exported goods and services must not exceed 10% of the turnover of the exported goods and services of the refund period. The input value-added tax already determined for exported goods and services but not yet refunded because it exceeds 10% of the turnover of the exported goods and services of the previous refund period is deducted in the following tax period to determine the refundable value-added tax on exported goods and services of the following refund period. The Ministry of Finance shall provide for the method of determining the refundable value-added tax for exported goods and services.

Article 30. Refund for investment

1. A business establishment that has registered to pay value-added tax by the tax deduction method and that has an investment project (a new investment project or an expansion investment project) in accordance with the law on investment (including an investment project divided into multiple investment phases or multiple investment items, except an investment project that does not form fixed assets of the enterprise) that is in the investment phase, or a project for prospecting, exploration and development of an oil and gas field that is in the investment phase, that has input value-added tax arising during the investment phase not yet refunded, shall offset it against the value-added tax payable on the production and business activities being carried out (if any). After offsetting, if the input value-added tax of the investment project not yet fully deducted is 300 million VND or more, it is entitled to a value-added tax refund. In case the investment project has been completed (including an investment project divided into multiple investment phases or items where a phase or item has been completed) but the business establishment has not yet carried out the refund of the value-added tax arising during the investment phase (the completed investment item or investment phase), the business establishment shall submit the value-added tax refund dossier as prescribed within 1 year from the day the investment project or the day the investment phase or investment item is completed. The day the investment project or the day the investment phase or item is completed is the day turnover of the investment project arises, or the day turnover of the investment phase or item arises. The turnover prescribed in this Article does not include turnover arising during the trial-run phase, financial-activity turnover, or turnover from liquidating raw materials of the investment project.

In case the business establishment being the investment project owner establishes a new economic organization, or assigns a Project Management Board or branch to directly implement and manage the investment project, the newly established economic organization, Project Management Board or branch may deduct and be refunded the value-added tax for the investment project. The newly established economic organization, Project Management Board or branch must offset the value-added tax on goods and services purchased for use in the investment project against the value-added tax payable on the production and business activities being carried out by the business establishment, economic organization or branch in the same tax period (if any). After offsetting, if the input value-added tax of the investment project not yet fully deducted is 300 million VND or more, it is entitled to a value-added tax refund as prescribed in this Article. When the investment project, investment phase or investment item has been completed, in case the newly established economic organization, Project Management Board or branch does not continue to manage and operate the production and business activities but the investment project owner directly manages and operates the production and business activities or assigns another business establishment to manage and operate the production and business activities, the newly established economic organization, Project Management Board or branch must hand over the value-added tax not yet fully deducted of the investment project to the investment project owner or the business establishment assigned to manage and operate the production and business activities, so that it may continue to declare and deduct it for the production and business activities in the tax period following the day the investment project or the day the investment phase or investment item is completed.

In case the investment project is in the investment phase and has not yet gone into production and business operation but must terminate the operation of the investment project, and the output value-added tax of the main production and business activities under the investment project has not yet arisen, the business establishment must re-pay the value-added tax already refunded for the investment project into the state budget in accordance with the law on tax administration; with respect to the value-added tax not yet refunded, the refund is not settled.

2. For the investment project of a business establishment engaged in a conditional business investment line falling into the following cases, the business establishment is entitled to a value-added tax refund for the investment project as prescribed in Clause 1 of this Article:

a) The investment project is in the investment phase and, in accordance with the law on investment and specialized law, has been granted by the competent state agency a business license for the conditional business investment line in one of the following forms: a permit or a certificate or a written confirmation or approval.

b) The investment project is in the investment phase and, in accordance with the law on investment and specialized law, is not yet required to request the competent state agency to grant a business license for the conditional business investment line in one of the following forms: a permit or a certificate or a written confirmation or approval.

c) The investment project, in accordance with the law on investment and specialized law, is not required to have a business license for the conditional business investment line in one of the following forms: a permit or a certificate or a written confirmation or approval.

3. A business establishment is not entitled to a value-added tax refund but may carry forward the tax not yet deducted of the investment project in accordance with the law on investment to the following period in the following cases:

a) The investment project of the business establishment does not contribute the charter capital in full as registered at the time of submitting the refund dossier.

b) The investment project of a business establishment engaged in a conditional business investment line when it does not yet fully satisfy the business conditions in accordance with the law on investment, except the case prescribed in Clause 2 of this Article.

c) The investment project of a business establishment engaged in a conditional business investment line that does not ensure the maintenance of sufficient business conditions during operation, being an investment project of a business establishment engaged in a conditional business investment line but during operation the business establishment has one of the business licenses for the conditional business investment line revoked: a permit or a certificate or a written confirmation or approval; or during operation the business establishment does not satisfy the conditions for carrying out the conditional business investment in accordance with the law on investment, in which case the time of not refunding the value-added tax is counted from the time the business establishment has one of the above types of documents revoked, or from the time the competent state agency examines and detects that the business establishment does not satisfy the conditions on the conditional business investment.

d) An investment project for exploiting resources and minerals (not including the project for prospecting, exploration and development of an oil and gas field prescribed in Clause 1 of this Article) and an investment project producing products being resources or minerals extracted and processed into other products prescribed in Clause 14 of Article 4 of this Decree.

Article 31. Refund for goods and services subject to the 5% value-added tax rate

A business establishment that only produces goods or provides services subject to the 5% value-added tax rate, if it has input value-added tax not yet fully deducted of 300 million VND or more after 12 consecutive months or 4 consecutive quarters, is entitled to a value-added tax refund. In case a business establishment produces goods or provides services subject to multiple value-added tax rates, the business establishment must separately account for the input value-added tax used for producing goods or providing services subject to the 5% value-added tax rate; with respect to the input value-added tax used simultaneously for producing goods or providing services subject to the 5% value-added tax rate and used for the production and business of goods and services subject to multiple other tax rates (including goods subject to the 5% value-added tax rate at the commercial business stage), where it cannot be separately accounted for, the input value-added tax used for producing goods or providing services subject to the 5% value-added tax rate is determined according to the ratio between the turnover of the activity of producing goods or providing services subject to the 5% value-added tax rate and the total turnover of taxable goods and services of the refund period. The refund period is determined from the value-added tax period at the 5% value-added tax rate in which there is input value-added tax not yet fully deducted continuously and not yet refunded, to the tax period in which the refund is requested; the input value-added tax used for producing goods or providing services subject to the 5% value-added tax rate (including the separately accountable input value-added tax and the input value-added tax determined according to the above ratio), if, after offsetting against the value-added tax payable on taxable goods and services (if any), there remains 300 million VND or more, the business establishment is entitled to a refund of the input value-added tax used for producing goods or providing services subject to the 5% value-added tax rate. The Ministry of Finance shall provide for the method of determining the refundable value-added tax for the activity of producing goods or providing services subject to the 5% value-added tax rate.

Article 32. Refund for business establishments upon dissolution or bankruptcy

A business establishment paying value-added tax by the tax deduction method is entitled to a value-added tax refund upon dissolution or bankruptcy where it has overpaid value-added tax or input value-added tax not yet fully deducted (except the case where the business establishment is dissolved and terminates the operation of the investment project prescribed in Clause 1 of Article 30 of this Decree). The business establishment must comply with the law on dissolution, bankruptcy and tax administration. In case a branch of an enterprise paying value-added tax by the tax deduction method is dissolved, or a cooperative group paying tax by the tax deduction method is transformed into a cooperative or union of cooperatives, the enterprise, cooperative or union of cooperatives may inherit the overpaid value-added tax or the input value-added tax not yet fully deducted of the cooperative group or branch in order to deduct or be refunded as prescribed.

Article 33. Refund for goods purchased in Vietnam and carried along upon exit

Foreigners and Vietnamese residing abroad (except members of the flight crew in accordance with the law on aviation and members of the ship crew in accordance with the maritime law) carrying a passport or an international travel document are entitled to a refund for goods purchased in Vietnam and carried along upon exit. The dossiers, procedures, refundable tax amount and refund method for the case prescribed in this Clause are provided for in Appendix IV promulgated together with this Decree.

Article 34. Refund for programs and projects using non-refundable official development assistance (ODA) capital or non-refundable aid or humanitarian aid

The value-added tax refund for programs and projects using non-refundable official development assistance (ODA) capital or non-refundable aid or humanitarian aid is provided for as follows:

1. The owner of the program or project, or the main contractor (including the Executive Office of the main contractor in Vietnam), or the organization designated by the foreign donor to manage the program or project using ODA capital (including the Representative Office of the donor or the organization managing and implementing the program or project designated by the donor) is refunded the value-added tax paid for goods and services purchased in Vietnam to serve the program or project.

2. An organization in Vietnam that uses non-refundable aid money or humanitarian aid money of foreign organizations or individuals to purchase goods and services serving the non-refundable aid or humanitarian aid program or project in Vietnam is refunded the value-added tax paid for those goods and services.

Article 35. Refund for goods and services purchased in Vietnam by subjects entitled to diplomatic immunity and privileges

Subjects entitled to diplomatic immunity and privileges in accordance with the law on diplomacy that purchase goods and services in Vietnam for use are refunded the value-added tax paid as recorded on the value-added tax invoice or on the payment document that records the payment price inclusive of value-added tax.

Article 36. Refund under international treaties

A business establishment that has a value-added tax refund decision of a competent authority in accordance with law, and the case of a value-added tax refund under an international treaty to which the Socialist Republic of Vietnam is a member.

Article 37. Conditions for value-added tax refund

A business establishment falling into a refund case prescribed in this Section must satisfy the following conditions:

1. A business establishment falling into a refund case prescribed in Articles 29, 30, 31 and 32 of this Decree must be a business establishment paying value-added tax by the tax deduction method, that prepares and keeps accounting books and accounting vouchers in accordance with the law on accounting; and that has a deposit account at a bank under the tax identification number of the business establishment.

2. Satisfying the provisions on deducting input value-added tax as prescribed in Section 2 of Chapter III and not falling into the case prescribed in Clause 15 of Article 23 of this Decree.

3. The seller has declared and paid value-added tax as prescribed for the invoices issued to the business establishment requesting the refund, determined as follows:

a) At the time the business establishment submits the refund dossier, the seller has submitted the value-added tax declaration dossier as prescribed and no longer owes value-added tax of the tax period corresponding to the tax period within the refund period of the business establishment requesting the refund.

b) The tax administration authority, at the time the business establishment submits the refund dossier, based on the processing results of the automated information technology system, determines that the seller has declared and paid value-added tax as prescribed.

c) In case it is determined that the seller has not fully submitted the value-added tax declaration dossier of the tax period corresponding to the tax period within the refund period of the business establishment (including the case where the deadline for submitting the tax declaration dossier has not yet arrived) or still owes value-added tax of the tax period corresponding to the tax period within the refund period, the business establishment is not entitled to a refund for the invoices corresponding to the tax period in which the seller has not fully submitted the value-added tax declaration dossier or still owes value-added tax.

4. At the time the business establishment submits the refund dossier, the business establishment falls into a value-added tax refund case, has input value-added tax that fully satisfies the refund conditions prescribed in this Section, and complies with the provisions on tax declaration in accordance with the law on tax administration, prepares a value-added tax refund dossier for each value-added tax refund case and sends it to the competent tax authority for receipt. The tax authority classifies the value-added tax refund dossier into the category of refund before examination or examination before refund, and settles the value-added tax refund dossier in accordance with the law on tax administration.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 38. Effect

1. This Decree takes effect from July 1, 2025.

2. This Decree replaces:

a) Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on Value-Added Tax.

b) Decree No. 49/2022/ND-CP dated July 29, 2022 of the Government amending and supplementing a number of articles of Decree No. 209/2013/ND-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Law on Value-Added Tax, which had a number of articles amended and supplemented under Decree No. 12/2015/ND-CP, Decree No. 100/2016/ND-CP and Decree No. 146/2017/ND-CP.

c) The provisions determining products with a total value of resources and minerals plus energy costs accounting for 51% or more of the product cost at Point a of Clause 1 of Article 11 and Clause 2 of Article 15 of Decree No. 134/2016/ND-CP dated September 1, 2016 of the Government detailing a number of articles and measures for implementing the Law on Export and Import Duties (as amended and supplemented by Decree No. 18/2021/ND-CP dated March 11, 2021 of the Government amending and supplementing a number of articles of Decree No. 134/2016/ND-CP dated September 1, 2016 of the Government detailing a number of articles and measures for implementing the Law on Export and Import Duties), Point b of Clause 2 of Article 4 and Form No. 14, Appendix II promulgated together with Decree No. 26/2023/ND-CP dated May 31, 2023 of the Government on the Export Tariff, the Preferential Import Tariff, the List of goods and the absolute duty rates, mixed duties, and out-of-quota import duties, are replaced by the provisions in Appendix V promulgated together with this Decree.

3. Annulment of the provisions at:

a) Article 2 of Decree No. 91/2014/ND-CP dated October 1, 2014 of the Government amending and supplementing a number of articles at the Decrees on taxes.

b) Article 3 of Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government detailing the implementation of the Law amending and supplementing a number of articles of the Laws on taxes and amending and supplementing a number of articles of the Decrees on taxes.

c) Article 1 of Decree No. 100/2016/ND-CP dated July 1, 2016 of the Government detailing and guiding the implementation of a number of articles of the Law amending and supplementing a number of articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration.

d) Article 1 of Decree No. 146/2017/ND-CP dated December 15, 2017 of the Government amending and supplementing a number of articles of Decree No. 100/2016/ND-CP dated July 1, 2016 and Decree No. 12/2015/ND-CP dated February 12, 2015 of the Government.

4. In case the legal normative documents cited in this Decree are amended, supplemented or replaced, the amended, supplemented or replacing documents shall apply.

Article 39. Transitional provisions

1. For an investment project invested before July 1, 2025 that is still in the investment phase from the effective date of this Decree, the provisions on the refund for investment in Article 30 of this Decree apply.

2. The provisions on value-added tax refunds for the activity of producing goods or providing services subject to the 5% value-added tax rate prescribed in Article 31 of this Decree apply to the input value-added tax not yet fully deducted used for producing goods or providing services subject to the 5% value-added tax rate that arises from the effective date of this Decree.

3. The provisions in Clause 3 of Article 37 of this Decree apply to the tax period from July 2025 or the 3rd quarter of 2025.

Article 40. Responsibility for implementation

1. The Ministry of Finance shall detail the articles and clauses assigned to it in the Decree and guide the implementation of this Decree according to its functions and tasks to ensure management requirements.

2. The Ministry of Finance shall provide specifically for goods and services that do not fall within the scope of regulation of this Decree and the Law on Value-Added Tax.

3. Ministers, Heads of ministerial-level agencies, Heads of Government-attached agencies, Chairpersons of the People's Committees of provinces and centrally-run cities, and related agencies, organizations and individuals shall be responsible for implementing this Decree.

APPENDIX I

RESOURCES AND MINERALS EXTRACTED BUT NOT YET PROCESSED INTO OTHER PRODUCTS (Promulgated together with Decree No. 181/2025/ND-CP dated July 1, 2025 of the Government)

Note: The List in this Appendix comprises the Commodity code and the Description of goods according to Vietnam's List of Exported and Imported Goods. Organizations and individuals shall look up Vietnam's List of Exported and Imported Goods for application.

APPENDIX II

RESOURCES AND MINERALS EXTRACTED AND PROCESSED INTO OTHER PRODUCTS (Promulgated together with Decree No. 181/2025/ND-CP dated July 1, 2025 of the Government)

Note: The List in this Appendix comprises the Commodity code and the Description of goods according to Vietnam's List of Exported and Imported Goods. Organizations and individuals shall look up Vietnam's List of Exported and Imported Goods for application.

APPENDIX III

LIST OF GOODS SOLD TO DEPARTING CUSTOMERS IN THE ISOLATION AREA OR AT DUTY-FREE SHOPS (Promulgated together with Decree No. 181/2025/ND-CP dated July 1, 2025 of the Government)

(01) Name of enterprise:

(02) Tax identification number:

(03) Shop/warehouse:

(04) Country/territory of delivery:

APPENDIX IV

REFUND FOR GOODS PURCHASED IN VIETNAM AND CARRIED ALONG UPON EXIT BY FOREIGNERS AND VIETNAMESE RESIDING ABROAD CARRYING A PASSPORT OR AN INTERNATIONAL TRAVEL DOCUMENT (Promulgated together with Decree No. 181/2025/ND-CP dated July 1, 2025 of the Government)

The refund in the case where foreigners and Vietnamese residing abroad carrying a passport or an international travel document purchase goods in Vietnam and carry them along upon exit as prescribed in Article 33 of this Decree is carried out as follows:

1. Goods entitled to a value-added tax refund prescribed in this Appendix are goods that satisfy the following provisions:

a) Goods not on the List of goods banned from export; the List of goods exported under a license of the Ministry of Industry and Trade; or the List of goods exported subject to specialized management prescribed in Decree No. 69/2018/ND-CP dated May 15, 2018 of the Government detailing a number of articles of the Law on Foreign Trade Management and the documents guiding this Decree.

b) Goods not subject to the prohibition on being brought aboard aircraft prescribed in Article 12 of the Law on Vietnam Civil Aviation dated June 29, 2006 and the documents guiding its implementation.

c) Goods not among the items eligible for value-added tax refunds for foreigners and Vietnamese residing abroad as prescribed in Circular No. 08/2003/TT-BTC dated January 15, 2003 of the Minister of Finance guiding value-added tax refunds for diplomatic missions, consular missions and representative offices of international organizations in Vietnam.

d) Goods purchased at an enterprise selling goods with value-added tax refunds, not yet used, still with the original wrapping and packaging at the time of purchase, with a value-added tax invoice cum refund declaration prepared within a maximum period of 60 days up to the day the foreigner or Vietnamese residing abroad exits.

dd) The value of goods recorded on the value-added tax invoice cum refund declaration purchased at 1 shop in 1 day (including the aggregation of multiple purchase invoices in the same 1 day at 1 shop) is at least 2 (two) million VND or more.

2. Refundable amount and refund currency of value-added tax

a) The amount of value-added tax refunded to the foreigner or Vietnamese residing abroad equals 85% (eighty-five percent) of the total amount of value-added tax of the goods eligible for value-added tax refund carried along by the foreigner or Vietnamese residing abroad upon exit through the refund border gate.

The commercial bank is entitled to 15% (fifteen percent) of the total amount of value-added tax of the goods eligible for value-added tax refund carried along by the foreigner or Vietnamese residing abroad upon exit through the refund border gate.

b) The refund currency is Vietnamese dong. In case the foreigner or Vietnamese residing abroad requests to convert the refund amount from Vietnamese dong into a freely convertible foreign currency, the commercial bank shall sell the foreign currency to the foreigner or Vietnamese residing abroad in accordance with law.

The conversion exchange rate is the rate quoted by the commercial bank at the time of conversion and consistent with the regulations of the State Bank of Vietnam.

3. Time of value-added tax refund

a) The time of the value-added tax refund for the departing foreigner or Vietnamese residing abroad is carried out immediately after the foreigner or Vietnamese residing abroad completes the procedures for examining the value-added tax invoice cum refund declaration at the refund counter of the commercial bank acting as the refund agent, and before the boarding time of the flight or the departure of the ship on which the foreigner or Vietnamese residing abroad exits.

b) The customs authority and the commercial bank shall be responsible for arranging officials and public employees to work on all days, including holidays and Sundays, and outside administrative working hours, to carry out the refund of value-added tax to foreigners and Vietnamese residing abroad as prescribed in this Decree.

4. Dossiers and procedures for value-added tax refunds to foreigners and Vietnamese residing abroad upon exit

a) The foreigner or Vietnamese residing abroad shall present to the customs authority at the counter for examining the value-added tax invoice cum refund declaration, the goods, and the following documents:

a1) The passport or exit-entry document.

a2) The value-added tax invoice cum refund declaration as prescribed by the Ministry of Finance.

a3) The goods.

b) The customs authority shall conduct a physical inspection of the goods at the counter for examining the value-added tax invoice cum refund declaration and the goods. The inspection is carried out as follows:

b1) Cross-check and determine that each item of information matches between the information recorded on the passport or exit-entry document and the information on the value-added tax invoice cum refund declaration presented by the foreigner or Vietnamese residing abroad; the information of the value-added tax invoice cum refund declaration on the Value-Added Tax Refund Management System for foreigners (the System) sent by the selling enterprise, the electronic invoice system of the tax authority, and the provisions on goods eligible for refund prescribed in Point 1 of this Appendix.

b2) Conduct a physical inspection of the goods for goods requiring physical inspection according to the risk management principle.

In case the goods presented do not match the description of goods on the value-added tax invoice cum refund declaration, or the value-added tax invoice cum refund declaration does not fully record the information as prescribed, or the value-added tax invoice cum refund declaration is not on the System or the electronic invoice system of the tax authority (except where the System experiences an incident), the customs authority shall exchange and verify with the selling enterprise. In case the information exchanged with the selling enterprise does not match the information on the goods, invoice and passport, the customs authority shall refuse the refund.

b3) Record the inspection results and stamp approval of the refund or refusal of the refund. In case the customs authority approves the refund, it shall determine the items and calculate the amount of value-added tax that the foreigner or Vietnamese residing abroad is actually refunded as prescribed in Point 2 of this Appendix.

b4) Update the information on the value-added tax refund for the foreigner or Vietnamese residing abroad into the System according to the guidance of the Ministry of Finance, and apply a digital signature.

In case the System experiences an incident, the customs authority shall sign and stamp the confirmation of approval of the refund or refusal of the refund on the value-added tax invoice cum refund declaration.

5. Refund of tax to foreigners and Vietnamese residing abroad

a) After the value-added tax invoice cum refund declaration and the goods have been inspected by the customs authority, the foreigner or Vietnamese residing abroad shall be responsible for presenting to the commercial bank at the refund counter:

a1) The boarding pass for the aircraft or ship.

a2) The value-added tax invoice cum refund declaration that has been inspected by the customs authority, with the items determined and the amount of value-added tax refunded to the foreigner or Vietnamese residing abroad calculated and stamped with confirmation (the original).

b) The commercial bank shall:

b1) Examine the boarding pass for the aircraft or ship; the value-added tax invoice cum refund declaration; check on the System the information on the departing person, the goods, the confirmation of the customs authority's approval of the refund and the refundable tax amount.

In case the information on the passenger's name on the boarding pass for the aircraft or ship does not match the information on the value-added tax invoice cum refund declaration that has been inspected and confirmed by the customs authority, the commercial bank shall exchange and verify with the customs authority. In case the information exchanged with the customs authority does not match the information on the boarding pass for the aircraft or ship, the commercial bank shall refuse the refund and notify it on the System for the customs authority to know.

b2) Update the information on the number, date and month of the flight or ship of the foreigner or Vietnamese residing abroad and other information according to the guidance of the Ministry of Finance into the System or on the software of the commercial bank connected to the System, apply a digital signature and transmit it to the customs authority.

b3) Pay the refund to the foreigner or Vietnamese residing abroad in cash or through the international card of the foreigner or Vietnamese residing abroad, according to the amount of value-added tax that the foreigner or Vietnamese residing abroad is actually refunded as calculated by the customs authority and recorded on the value-added tax invoice cum refund declaration.

In case the refund is paid to the foreigner or Vietnamese residing abroad through an international card, the bank shall cross-check the information (name, card number) that the foreigner or Vietnamese residing abroad registered to receive the refund with the card actually presented in order to carry out the refund.

In case the System experiences an incident, the commercial bank shall, based on the paper value-added tax invoice cum refund declaration and the confirmation of the customs authority prescribed at Point b4 of Point 4 of this Appendix, carry out the refund of tax to the foreigner or Vietnamese residing abroad as prescribed in Point 2 of this Appendix, and at the same time sign and stamp the confirmation that the refund has been paid to the foreigner or Vietnamese residing abroad on the value-added tax invoice cum refund declaration.

Immediately after the System operates normally, the commercial bank shall update the information of the value-added tax invoice cum refund declaration that has been refunded on the System or on the software of the commercial bank connected to the System, apply a digital signature and transmit it to the customs authority.

b4) Return to the foreigner or Vietnamese residing abroad the boarding pass for the aircraft or ship.

b5) Store the refund dossier for electronic documents and paper documents in accordance with law.

6. The dossiers and procedures for value-added tax refunds to commercial banks acting as value-added tax refund agents for departing customers shall comply with the law on tax administration.

APPENDIX V

DETERMINATION OF THE PROPORTION OF THE VALUE OF RESOURCES AND MINERALS AND ENERGY COSTS IN THE PRODUCT COST (Promulgated together with Decree No. 181/2025/ND-CP dated July 1, 2025 of the Government)

An exported product being goods processed directly from the main raw materials being resources or minerals with a total value of resources and minerals plus energy costs accounting for 51% or more of the production cost of the product.

1. Resources and minerals are resources and minerals of domestic origin, comprising: metallic minerals; non-metallic minerals; crude oil; natural gas; coal gas.

2. The determination of the proportion of the value of resources and minerals and energy costs in the product cost is carried out according to the formula:

Of which:

The value of resources and minerals put into processing is determined as follows: For resources and minerals directly extracted, it is the direct and indirect costs of extracting the resources and minerals, not including the cost of transporting the resources and minerals from the place of extraction to the place of processing; for resources and minerals purchased for further processing, it is the actual purchase price not including the cost of transporting the resources and minerals from the place of purchase to the place of processing.

Energy costs comprise: fuel, electrical energy, thermal energy.

The value of resources and minerals and energy costs is determined according to the value recorded in the accounting books, consistent with the Product Cost Aggregation Table.

The production cost of the product comprises: direct raw material costs, direct labor costs and general production costs. Indirect costs such as selling costs, management costs, financial costs and other costs are not included in the production cost of the product.

The ratio of the value of resources and minerals and energy costs to the production cost of the product is determined based on the finalization of the previous year, and this ratio is applied stably during the export year. In case of the first year of exporting the product, the ratio of the value of resources and minerals and energy costs to the production cost of the product is determined according to the investment plan, and this ratio is applied stably during the export year; in case there is no investment plan, the ratio of the value of resources and minerals and energy costs to the production cost of the product is determined according to the actual figures of the exported product.

3. In case an enterprise does not export but sells to another enterprise for export, the enterprise purchasing these goods for export must declare value-added tax in the same manner as the same-type products produced by an enterprise that directly exports.