Value-Added Tax Law 2024 (48/2024/QH15)

Pursuant to the Constitution of the Socialist Republic of Vietnam; the National Assembly promulgates the Law on Value Added Tax.

Chapter I. GENERAL PROVISIONS

Article 1. Scope of regulation

This law stipulates the taxable subjects, non-taxable subjects, taxpayers, the basis and method of tax calculation, deduction, and value-added tax refund.

Article 2. Value-added tax

Value-added tax is a tax calculated on the added value of goods and services arising in the process from production and circulation to consumption.

Article 3. Taxable subjects

Goods and services used for production, business, and consumption in Vietnam are subject to value-added tax, except for the subjects specified in Article 5 of this Law.

Article 4. Taxpayer

1. Organizations, households, and individuals that produce and trade goods and services subject to value-added tax (hereinafter referred to as business establishments).

2. Organizations and individuals that import goods subject to value-added tax (hereinafter referred to as importers).

3. Organizations and individuals producing and trading in Vietnam that purchase services (including cases of purchasing services attached to goods) from foreign organizations without a permanent establishment in Vietnam, or individuals abroad who are non-residents in Vietnam, except in cases prescribed in Clauses 4 and 5 of this Article; organizations producing and trading in Vietnam that purchase goods and services to conduct exploration, development, and exploitation of oil and gas of foreign organizations without a permanent establishment in Vietnam, or individuals abroad who are non-residents in Vietnam.

4. Foreign suppliers without a permanent establishment in Vietnam that engage in e-commerce business or business based on digital platforms with organizations or individuals in Vietnam (hereinafter referred to as foreign suppliers); organizations that are managers of foreign digital platforms shall withhold and pay on behalf of the foreign supplier’s tax obligations; business organizations in Vietnam applying the value-added tax calculation method as the deduction method will deduct tax on purchasing services from foreign suppliers without a permanent establishment in Vietnam through e-commerce channels or digital platforms that withhold and pay on behalf of the foreign supplier’s tax obligations.

5. The organization is the manager of the e-commerce trading floor, the manager of the digital platform with payment functions to carry out tax deduction, tax payment on behalf, and declare the tax amount deducted for business households and individual businesses on the e-commerce trading floor or digital platform.

6. The Government stipulates in detail Clauses 1, 4, and 5 of this Article; stipulates the taxpayer in the case where a foreign provider provides services to buyers who are business organizations in Vietnam, applying the tax deduction method prescribed in Clause 4 of this Article.

Article 5. Objects not subject to tax

1. Crop products, planted forests, livestock, aquaculture, and unprocessed or only normally processed products of these sectors produced or caught by organizations or individuals for sale, including at the import stage.

2. Livestock products according to the law on animal husbandry, plant breeding materials according to the law on crop production.

3. Animal feed according to the law on animal husbandry; aquatic feed according to the law on fisheries.

4. Salt products produced from seawater, natural rock salt, refined salt, iodized salt with the main component being sodium chloride (NaCl).

5. Housing belonging to public assets sold by the State to the tenant.

6. Irrigation and drainage; plowing and tilling land; dredging canals and fields for agricultural production; services for harvesting agricultural products.

7. Transfer of land use rights.

8. Life insurance, health insurance, student insurance, other insurance services related to humans; pet insurance, crop insurance, other agricultural insurance services; insurance for ships, boats, equipment, and other necessary tools directly used for fishing; reinsurance;

insurance for oil and gas works, equipment, and oil tankers registered under a foreign nationality, hired by foreign oil contractors or subcontractors to operate in Vietnamese waters, overlapping waters in which Vietnam and neighboring or opposite coastal countries have agreed to place under a joint exploitation regime.

9. The following financial, banking, securities, and commercial services:

a) Credit granting services according to the laws on credit institutions and the fees specified in the Loan Agreement between the Government of Vietnam and the foreign lender;

b) Lending services by taxpayers who are not credit institutions;

c) Securities business including securities brokerage, proprietary trading of securities, underwriting of securities issuance, securities investment consulting, management of securities investment funds, management of securities investment portfolios according to the securities laws;

d) Capital transfer includes transferring part or all of the capital invested in another economic organization (whether or not a new legal entity is established), transferring securities, transferring capital contribution rights, and other forms of capital transfer as prescribed by law, including cases of selling a business to another business for production and business purposes, where the purchasing business inherits all rights and obligations of the selling business as prescribed by law. The capital transfer specified in this point does not include investment project transfer or asset sale;

d) Debt sale includes selling payables and receivables;

e) Foreign currency trading;

g) Derivative products according to the provisions of the law on credit institutions, the law on securities, and the law on commerce, including: interest rate swaps; forward contracts; futures contracts; call and put options and other derivative products;

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

10. The following medical and veterinary services:

a) Medical services including: services for medical examination, treatment, and disease prevention for humans, family planning childbirth services, health nursing, rehabilitation for patients; care services for the elderly and people with disabilities; patient transport, rental services of hospital rooms and beds of medical facilities; testing, X-ray, imaging; blood and blood products for patients.

Elderly and disabled care services include medical care, nutrition, and organizing cultural, sports, entertainment activities, physical therapy, and rehabilitation for the elderly and disabled.

In cases where the medical treatment service package according to the regulations of the Ministry of Health includes the use of medicinal drugs, the revenue from the cost of the medicinal drugs included in the medical service package is also subject to value-added tax exemption;

b) Veterinary services include: services for examining, treating, and preventing diseases in animals.

11. Funeral services.

12. Maintenance, repair, and construction activities funded by contributions from the people, humanitarian aid funds (accounting for 50% or more of the total funds used for the projects) for historical and cultural relics, scenic spots, cultural and artistic works, public service works, infrastructure, and housing for social policy beneficiaries.

13. Teaching and vocational training activities in accordance with the provisions of the Laws on Education and Vocational Education.

14. Broadcasting radio and television using state budget funds.

15. Publishing, importing, and distributing newspapers, magazines, newsletters, special issues, political books, textbooks, teaching materials, legal documents books, scientific and technical books, books serving foreign information purposes, books printed in ethnic minority languages, and propaganda pictures, posters, including in the form of tapes or discs with audio, video, electronic data; currency, printing money.

16. Public passenger transportation by bus, metro, and inland waterway vehicles.

17. Machinery, equipment, spare parts, and materials of types that are not yet manufactured domestically that need to be imported for direct use in scientific research and technological development activities; machinery, equipment, spare parts, specialized transport vehicles, and materials of types not yet manufactured domestically that need to be imported to carry out oil and gas exploration and development activities; airplanes, helicopters, gliders, drilling rigs, and ships of types not yet manufactured domestically that need to be imported to create fixed assets for enterprises or leased from abroad for use in production, business, or rental.

18. Defense and security products according to the list issued by the Minister of National Defense and the Minister of Public Security; imported products and services serving the defense and security industry according to the list issued by the Prime Minister.

19. Imported goods in the case of humanitarian aid, non-refundable aid. Goods and services sold to foreign organizations, individuals, international organizations for humanitarian aid, non-refundable aid to Vietnam.

20. Transshipped or transit goods through Vietnamese territory; temporarily imported goods for re-export; temporarily exported goods for re-import; imported raw materials for the production or processing of export goods under production or export processing contracts signed with foreign parties; goods and services traded between foreigners and duty-free zones and between duty-free zones themselves.

Imported goods from abroad by a financial leasing company are transported directly to the duty-free zone for lease to businesses in the duty-free zone.

21. Technology transfer in accordance with the provisions of the Law on Technology Transfer; transfer of intellectual property rights in accordance with the provisions of the Law on Intellectual Property; software products and software services in accordance with the provisions of the law.

22. Gold in the form of bars or ingots that has not been crafted into handicraft products, jewelry, or other products at the import stage.

23. Export products are resources and minerals that have been extracted but not processed into other products, and export products are resources and minerals that have been extracted and processed into other products according to the List prescribed by the Government in line with the State's orientation of not encouraging exports and limiting the export of raw resources and minerals.

24. Artificial products used to replace parts of a patient's body, including products that are long-term implants in the human body; crutches, wheelchairs, and other specialized equipment for people with disabilities.

25. Goods and services produced or traded by households or individuals with an annual revenue of 200 million VND or less; assets of organizations or individuals that do not engage in business and are not value-added tax payers sold; national reserve goods sold by the national reserve agency; fees and charges according to the provisions of the law on fees and charges.

26. Imported goods in the following cases:

a) Gifts for state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, social-professional organizations, and people's armed units within the import tax exemption quota according to the provisions of the law on export and import taxes;

b) Gifts, presents within the customs duty-free quota according to the provisions of the law on export tax and import tax given by foreign organizations or individuals

Vietnamese individuals; items of organizations and individuals from foreign countries according to diplomatic exemption standards and movable assets within the import duty-free quota as prescribed by the law on export tax and import tax;

c) Goods within the standard of duty-free luggage according to the provisions of the law on export tax and import tax;

d) Imported goods supporting, sponsoring the prevention, control, and mitigation of consequences of disasters, natural calamities, epidemics, and wars as prescribed by the Government;

d) Goods purchased and sold, exchanged across the border to serve production and consumption of border residents belonging to the List of goods purchased and exchanged by border residents under the provisions of law and within the import tax exemption quotas according to the provisions of export tax and import tax law;

e) Relics, antiques, national treasures according to the provisions of cultural heritage law imported by competent state agencies.

27. Business establishments of goods and services not subject to value-added tax as prescribed in this Article are not entitled to deduct or refund input value-added tax, except in cases where the 0% tax rate is applied as prescribed in Clause 1, Article 9 of this Law.

28. The Government provides detailed regulations on this Article. The Minister of Finance regulates the dossiers and procedures for determining subjects not subject to value-added tax as prescribed in this Article.

Chapter II. BASIS AND METHODS OF TAX CALCULATION

Article 6. Basis for tax calculation

The basis for calculating value-added tax is the taxable price and the tax rate.

Article 7. Taxable price

1. The taxable price is stipulated as follows:

a) For goods and services sold by business establishments, it is the selling price excluding value-added tax; for goods and services subject to special consumption tax, it is the selling price including special consumption tax but excluding value-added tax; for goods subject to environmental protection tax, it is the selling price including environmental protection tax but excluding value-added tax; for goods subject to both special consumption tax and environmental protection tax, it is the selling price including both special consumption tax and environmental protection tax but excluding value-added tax;

b) For imported goods, it is the taxable value for import duty according to the provisions of the law on export and import taxes, plus import tax, plus additional import taxes as prescribed by law (if any), plus special consumption tax (if any), and plus environmental protection tax (if any);

c) For goods and services used for internal exchange, consumption, gifting, it is the value-added tax taxable value of goods and services of the same type or equivalent at the time these activities occur.

For goods and services used for promotions according to commercial law regulations, the taxable price is determined to be zero (0);

d) For asset rental activities, it is the rental amount excluding value-added tax.

In the case of leasing under the method of paying rent periodically or paying rent in advance for the lease term, the taxable price is the rent paid periodically or in advance for the lease term excluding value-added tax;

d) For goods sold in installments or deferred payments, the price is calculated according to the one-time sale price excluding value-added tax of those goods, not including installment interest or deferred payment interest;

e) For processing goods, the price is the processing price excluding value-added tax;

g) For construction and installation activities, the price is the value of the work, construction item, or portion of work completed and handed over, excluding value-added tax. In the case of construction and installation without including materials, machinery, and equipment, the taxable price is the value of construction and installation excluding the value of materials and machinery, equipment;

h) For real estate business activities, the selling price of real estate is exclusive of value-added tax, minus the land use fee or land lease fee paid to the state budget (deductible land price). The government regulates the determination of deductible land prices specified in this point in accordance with the provisions of land law;

i) For agency and brokerage activities of buying and selling goods and services earning commission, the commission is the amount obtained from these activities, exclusive of value-added tax;

k) For goods and services paid by invoice with the payment price being the price including value-added tax, the taxable price is determined according to the following formula:

Price excluding value-added tax = Payment price

1 + goods and services tax rate (%)

l) For casino business services, electronic games with rewards, and betting, the revenue is the amount obtained from these activities minus the amount refunded to customers for unused funds and the prizes paid to customers (if any), already including special consumption tax, but excluding value-added tax;

m) For production and business activities including: electricity production activities of Vietnam Electricity Group; transportation, loading and unloading; tourism services in the form of travel; pawn services; books subject to value-added tax sold at the official price (cover price); printing activities; appraisal agency services, claim assessment agency, third-party claim recovery agency, compensation handling agency with 100% commission or remuneration received, the taxable price is the selling price excluding value-added tax. The Government shall regulate the taxable price for production and business activities specified in this point.

2. The taxable price for goods and services specified in Clause 1 of this Article includes surcharges and additional fees that the business establishment is entitled to receive.

3. The government shall provide detailed regulations on this Article.

Article 8. Time of value-added tax determination

1. The time of determining value-added tax is regulated as follows:

a) For goods, it is the time of transfer of ownership or the right to use the goods to the buyer or the time of invoice issuance, regardless of whether the payment has been received or not;

b) For services, it is the time of completion of service provision or the time of issuing a service invoice, regardless of whether the payment has been received or not.

2. The time of determining value-added tax for the following goods and services is regulated by the Government:

a) Exported goods, imported goods;

b) Telecommunication services;

c) Insurance business services;

d) Electricity supply activities, electricity production activities, and clean water activities;

d) Real estate business activities;

e) Construction, installation, and oil and gas activities.

Article 9. Tax rates

1. The 0% tax rate applies to the following goods and services:

a) Exported goods include: goods from Vietnam sold to organizations or individuals abroad and consumed outside Vietnam; goods from domestic Vietnam sold to organizations in non-tariff zones and consumed in non-tariff zones directly serving export production activities; goods sold in quarantine areas to individuals (foreigners or Vietnamese) who have completed exit procedures; goods sold in duty-free shops;

b) Exported services include: services provided directly to organizations or individuals abroad and consumed outside Vietnam; services provided directly to organizations in non-tariff zones and consumed in non-tariff zones directly serving export production activities;

c) Other exported goods and services include: international transport; vehicle rental services used outside the territory of Vietnam; services of the aviation and maritime sectors provided directly or through agents for international transport; construction and installation activities of works abroad or in non-tariff zones; digital information content products provided to foreign parties with records and documents proving consumption outside Vietnam as stipulated by the Government; spare parts and materials for the repair and maintenance of vehicles, machinery, and equipment for foreign parties and consumed outside Vietnam; goods processed for onward export in accordance with the law; goods and services that are not subject to value-added tax upon export, except in cases where the 0% tax rate does not apply as provided in point d of this clause;

d) Cases where the 0% tax rate does not apply include: technology transfer, transfer of intellectual property rights abroad; reinsurance services abroad; credit granting services; capital transfer; derivative products; postal and telecommunication services; export products specified in Clause 23, Article 5 of this Law; imported cigarettes, alcohol, beer that are then exported; gasoline and oil purchased domestically and sold to businesses in the non-tariff zone; cars sold to organizations and individuals in the non-tariff zone.

2. The 5% tax rate applies to the following goods and services:

a) Clean water for production and daily life does not include bottled water, water in jars, and other types of beverages;

b) Fertilizers, ores for fertilizer production, pesticides, and growth stimulants for livestock as prescribed by law;

c) Services for excavation, dredging channels, ditches, ponds, and lakes for agricultural production; cultivation, care, and pest control for crops; preliminary processing and preservation of agricultural products;

d) Crop products, plantation forest products (excluding timber and bamboo shoots), livestock, farmed and caught aquatic products that have not been processed into other products or only undergone basic processing, except for products prescribed in Clause 1, Article 5 of this Law;

đ) Rubber latex in forms of cup lump, sheet rubber, crumb rubber, and latex crumbs; nets, ropes, and fibers for weaving fishing nets;

e) Products made from jute, coir, bamboo, cane, leaves, straw, coconut husk, coconut shell, water hyacinth, and other handicraft products produced from materials utilized from agriculture; cotton fiber that has been carded roughly or finely; newsprint paper;

g) Fishing vessels in the sea areas; machinery and equipment specialized for agricultural production as prescribed by the Government;

h) Medical equipment as prescribed by the law on management of medical equipment; preventive and therapeutic drugs; active pharmaceutical ingredients, medicinal herbs used as raw materials for producing therapeutic and preventive drugs;

i) Equipment used for teaching and learning, including: models, drawings, boards, chalk, rulers, compasses;

k) Traditional and folk performing arts;

l) Toys for children; books of all kinds, except books specified in Clause 15, Article 5 of this Law;

m) Scientific and technological services as prescribed by the Law on Science and Technology;

n) Selling, renting, or lease-purchasing social housing in accordance with the provisions of the Housing Law.

3. The 10% tax rate applies to goods and services not specified in Clauses 1 and 2 of this Article, including services provided by foreign suppliers without a permanent establishment in Vietnam to organizations and individuals in Vietnam via e-commerce channels and digital platforms.

4. Business establishments dealing in multiple types of goods and services with different value-added tax rates (including objects not subject to value-added tax) must declare value-added tax according to the tax rate applicable to each type of goods and services; if the business establishment does not determine according to each tax rate, it must calculate and pay tax at the highest applicable tax rate of the goods and services that the establishment produces or trades.

5. Crop products, plantation forest products, livestock, aquaculture products, and caught aquatic products that have not been processed into other products or have only undergone ordinary preliminary processing used as animal feed or medicinal herbs shall be subject to value-added tax rates according to the tax rates prescribed for crop products, plantation forest products, livestock, and aquatic products.

By-products, secondary products, and scrap recovered for recycling or reuse when sold shall be subject to tax rates according to the tax rates on the sold by-products, secondary products, and scrap.

6. The Government shall detail the provisions of clauses 1 and 2 of this Article. The Minister of Finance shall stipulate the dossiers and procedures for applying the 0% value-added tax rate under clause 1 of this Article.

Article 10. Tax calculation method

The value-added tax calculation method includes the tax deduction method and the direct calculation method.

Article 11. Tax deduction method

1. The tax deduction method is regulated as follows:

a) Value-added tax payable under the tax deduction method is calculated as the output value-added tax minus the deductible input value-added tax;

b) Output value-added tax is the total value-added tax of goods and services sold recorded on the value-added tax invoice.

The value-added tax of goods and services sold recorded on the value-added tax invoice is calculated by multiplying the taxable price of the goods or services sold by the applicable value-added tax rate of those goods or services.

In cases where an invoice records a payment price that already includes value-added tax, the output value-added tax is determined by subtracting the taxable price calculated according to the provisions at point k, clause 1, Article 7 of this Law from the payment price.

c) The input value-added tax deductible is equal to the total value-added tax stated on the value-added tax invoices for purchasing goods and services, the documents for paying value-added tax of imported goods, or the tax payment documents in the case of purchasing services as stipulated in Clause 3 and Clause 4, Article 4 of this Law and meeting the conditions prescribed in Article 14 of this Law.

2. The tax deduction method applied to business establishments that fully comply with accounting, invoice, and documentation regimes according to the law on accounting, invoices, and documents includes:

a) Business establishments with annual revenue from selling goods and providing services of 01 billion VND or more, excluding households and individual producers and businesses;

b) Business establishments voluntarily applying the tax deduction method, excluding households and individual producers and businesses;

c) Foreign organizations and individuals providing goods and services for activities of oil and gas exploration, development, and extraction shall pay tax using the deduction method, where the Vietnamese party declares, deducts, and pays on their behalf.

3. The government shall provide detailed regulations on this Article.

Article 12. Direct calculation method

1. The value-added tax payable under the direct calculation method on the value added is equal to the value added multiplied by the applicable value-added tax rate for the purchase, sale, and processing of gold, silver, and gemstones.

The value added of the activities of purchasing, selling, and processing gold, silver, and gemstones is determined by the payment price of sold gold, silver, and gemstones minus the payment price of the corresponding purchased gold, silver, and gemstones.

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

2. Value-added tax payable under the direct revenue method is calculated by applying a percentage rate to the applicable revenue as follows:

a) Applicable subjects include:

a1) Enterprises, cooperatives, and cooperative unions with annual revenue below the revenue threshold of 1 billion VND, except in cases voluntarily applying the tax deduction method as prescribed in Clause 2, Article 11 of this Law;

a2) Households and individuals engaged in production and business, except as provided in Clause 3 of this Article;

a3) Foreign organizations without a permanent establishment in Vietnam, and non-resident individuals with revenue arising in Vietnam who have not fully implemented accounting, invoicing, and documentation regimes, excluding foreign suppliers prescribed in Clause 4, Article 4 of this Law;

a4) Other organizations, except in cases of paying tax according to the tax deduction method as prescribed in Clause 2, Article 11 of this Law;

b) The percentage rate for calculating value-added tax is prescribed as follows:

b1) Distribution, supply of goods: 1%;

b2) Services, construction without material contracting: 5%;

b3) Manufacturing, transportation, services attached to goods, construction with material contracting: 3%;

b4) Other business activities: 2%;

c) Revenue for calculating value-added tax is the total amount of money from selling goods and services recorded on sales invoices, including surcharges and additional fees that the business establishment is entitled to.

3. Households and individuals producing or doing business who do not implement or do not fully implement the accounting regime, invoices, and documents according to the law shall pay value-added tax by the lump-sum tax method prescribed in the Law on Tax Administration.

4. The government shall provide detailed regulations for Clause 1 of this Article. The Minister of Finance shall provide detailed regulations on the groups of goods and services subject to the application rate according to the percentage at Point b, Clause 2 of this Article.

Chapter III. DEDUCTION AND TAX REFUND

Article 13. Acts prohibited in deduction and tax refund

1. Buying, giving, selling, organizing advertising, or brokering the buying and selling of invoices.

2. Creating transactions for the buying and selling of goods, the provision of services that do not exist, or transactions not in accordance with legal regulations.

3. Issuing invoices for the sale of goods or provision of services during the period of temporary business suspension, except for issuing invoices to customers to fulfill contracts signed before the notice of business suspension.

4. Using illegal invoices and documents, or unlawfully using invoices and documents as prescribed by the Government.

5. Failing to transfer electronic invoice data to the tax authorities as prescribed.

6. Falsifying, misusing, unauthorized accessing, destroying information systems related to invoices and documents.

7. Giving, receiving, brokering bribes or performing other acts related to invoices and documents to obtain tax deductions, tax refunds, misappropriate tax money, evade value-added tax.

8. Colluding, covering up; conspiring between tax officials, tax management agencies, and business establishments or importers, between business establishments and importers in the use of illegal invoices and documents, using invoices and documents illegally to obtain tax deductions, tax refunds, misappropriate tax money, evade value-added tax.

Article 14. Deduction of input value-added tax

1. Business establishments paying value-added tax using the tax deduction method are allowed to deduct input value-added tax as follows:

a) Input value-added tax on goods and services used for the production and business of goods and services subject to value-added tax shall be fully deductible, including input value-added tax that is not reimbursable on goods and services subject to value-added tax that are damaged, and goods that are naturally lost due to physical and chemical properties during transportation;

b) Input value-added tax on goods and services used simultaneously for the production and business of goods and services subject to tax and not subject to tax shall only be deductible 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. Business establishments

input value-added tax must be accounted for separately between deductible and non-deductible; in cases where it cannot be accounted for separately, the deductible input value-added tax is calculated according to the percentage ratio between the revenue of goods and services subject to value-added tax and the total revenue of goods and services sold;

c) Input value-added tax of goods and services sold to organizations or individuals using humanitarian aid capital or non-refundable aid can be fully deducted;

d) Input value-added tax of goods and services used for oil and gas exploration, prospecting, and development activities can be fully deducted;

đ) Input value-added tax incurred in any month or quarter is declared and deducted when determining the tax payable for that month or quarter. Input value-added tax that has not been fully deducted in a month or quarter can be deducted in the following month or quarter.

In cases where a business discovers that the input value-added tax (VAT) declared for deduction is incorrect or omitted, it is allowed to declare the tax before the tax authority or the competent authority announces a decision to conduct a tax inspection or tax audit as follows:

The taxpayer shall make a supplementary declaration for the month or quarter in which the incorrect or omitted input VAT occurred. If declaring the tax for the month or quarter in which the incorrect or omitted input VAT occurred results in an increase in payable tax or a decrease in refundable tax, the taxpayer must pay the additional tax payable or return the refunded tax accordingly and pay late payment interest to the state budget (if any).

Taxpayers shall declare in the month or quarter when errors or omissions are discovered. If the monthly or quarterly tax declaration results in incorrect or omitted input value-added tax, which reduces the amount of tax payable or only increases or decreases the input value-added tax to be carried forward to the next month or quarter;

e) For input value-added tax that cannot be deducted, business establishments may include it in expenses for calculating corporate income tax or in the cost of fixed assets according to the provisions of the corporate income tax law, except for the value-added tax of goods and services purchased without non-cash payment documents as prescribed by the Government;

g) The government stipulates detailed regulations on the deduction of input value-added tax for: goods and services forming fixed assets serving employees; cases of capital contribution in the form of assets; goods and services purchased under the authorization of other organizations or individuals where the invoice is in the name of the authorized organization or individual; fixed assets that are cars carrying passengers with 9 seats or less; production and business establishments that organize closed-loop production and centralized accounting.

2. Conditions for deduction of input value-added tax are stipulated as follows:

a) Having a value-added tax invoice for the purchase of goods or services, or documents of value-added tax payment at the import stage, or documents of value-added tax payment on behalf of foreign parties as stipulated in Clauses 3 and 4, Article 4 of this Law. The Minister of Finance regulations the documents of value-added tax payment on behalf of foreign parties;

b) Have non-cash payment documents for purchased goods and services, except for certain special cases as prescribed by the Government;

c) For exported goods and services, in addition to the conditions stipulated in points a and b of this clause, it must also have: a contract signed with a foreign party for the sale, processing of goods, or provision of services; invoice for the sale of goods or provision of services; non-cash payment documents; customs declaration for exported goods; packing list, bill of lading, cargo insurance documents (if any). The government provides regulations on deduction conditions for the case of exporting goods through foreign e-commerce platforms and certain other specific cases.

3. Business establishments that do not meet the tax deduction regulations in clauses 1 and 2 of this Article and invoices, documents issued from acts prohibited under this Law are not entitled to value-added tax deductions.

4. The Government shall provide detailed regulations on this Article.

Article 15. Value-added Tax Refund

1. The tax refund for exports is regulated as follows:

a) Business establishments in the month or quarter with goods and services for export, if the input value-added tax has not been fully deducted from 300 million VND or more, are entitled to a value-added tax refund monthly or quarterly, except in cases where imported goods are then exported to another country;

b) In a month or quarter, if a business establishment has both goods and services for export and goods and services for domestic consumption, the business must separately account for the input value-added tax used for the production and business of exported goods and services; in cases where separate accounting is not possible, the input value-added tax of exported goods and services is determined according to the ratio between the revenue from exported goods and services and the total taxable goods and services revenue of the tax refund period. The tax refund period is determined from the value-added tax calculation period with input value-added tax not yet fully deducted continuously and not yet refunded, up to the tax calculation period with a refund request.

The input value-added tax of exported goods and services (including the separately accounted input value-added tax and the input value-added tax determined according to the above ratio) if, after offsetting with the value-added tax payable on domestically consumed goods and services, the remaining amount is 300 million VND or more, then

Businesses are eligible for a tax refund on exported goods and services. The amount of value-added tax refundable for exported goods and services shall not exceed 10% of the revenue from exported goods and services for the tax refund period. Input value-added tax that has been determined for exported goods and services but has not been refunded due to exceeding 10% of the revenue from exported goods and services of the previous tax refund period shall be deducted in the next tax period to determine the amount of value-added tax to be refunded for exported goods and services in the next tax refund period.

2. The tax refund for investments is regulated as follows:

a) Business establishments that have registered to pay value-added tax using the tax deduction method and have investment projects (new investment projects, expanded investment projects) under the provisions of investment law (including investment projects divided into multiple investment phases or multiple investment items, except in cases where investment projects do not form the enterprise's fixed assets) that are in the investment phase, or oil and gas exploration and development projects that are in the investment phase, with input value-added tax incurred during the investment phase that has not yet been refunded, the business establishments shall offset it against the value-added tax payable on ongoing production and business activities (if any). After offsetting, if the input value-added tax of the investment project that has not yet been deducted is 300 million VND or more, the value-added tax may be refunded.

In the case where the investment project has been completed (including investment projects divided into multiple phases, investment items with phases, investment items that have been completed) but the business establishment has not yet carried out the value-added tax refund incurred during the investment phase (completed investment item, investment phase), the business establishment shall submit the value-added tax refund dossier in accordance with regulations within 01 year from the date the investment project or the investment phase, investment item is completed.

The date the investment project or the date the investment phase, investment item is completed is the date revenue is generated from the investment project or the date revenue is generated from the phase, investment item. Revenue specified in this clause does not include revenue arising during the trial operation phase, financial operation revenue, or liquidation of materials of the investment project.

b) Business establishments are not allowed to get a value-added tax refund but are allowed to carry forward the unclaimed tax of the investment project to the next period in the following cases:

b1) Investment projects of business establishments that have not contributed the full charter capital as registered at the time of submitting the tax refund application; are engaged in industries or business lines that require investment conditions without meeting the business conditions as prescribed by investment law, or fail to ensure sufficient business conditions during the operation.

activities, excluding investment projects during the investment phase, according to the provisions of investment law and specialized laws, do not need to request the competent state authority to issue a business license for conditional investment and business sectors; investment projects under the provisions of investment law and specialized laws do not need to have a business license for conditional investment and business sectors;

b2) Investment projects for the exploitation of natural resources and minerals (excluding projects for exploration, prospecting, and development of oil and gas fields as specified in point a of this clause) and investment projects for the production of products that are natural resources and minerals processed into other products as specified in clause 23, Article 5 of this Law.

3. A business establishment that only produces goods or provides services subject to a 5% value-added tax rate can receive a value-added tax refund if the input value-added tax that has not been fully deducted is 300 million VND or more after 12 consecutive months or 04 consecutive quarters; in the case of a business establishment producing goods or providing services subject to multiple value-added tax rates, the tax refund will be made according to the allocation ratio prescribed by the Government.

4. A business establishment paying value-added tax using the credit method can receive a value-added tax refund upon dissolution or bankruptcy if there is an excess value-added tax paid or input value-added tax that has not been fully deducted.

In the case where a cooperative alliance paying taxes under the credit method converts into a cooperative, the cooperative shall inherit the excess value-added tax paid or the input value-added tax that has not yet been fully deducted by the cooperative alliance in order to offset or refund the tax according to regulations.

5. Foreigners and overseas Vietnamese holding a passport or travel document valid for international travel are entitled to a tax refund for goods purchased in Vietnam and carried when exiting the country.

The Government shall regulate the dossiers, procedures, amount of tax to be refunded, and the method of tax refund for the cases specified in this paragraph.

6. The refund of value-added tax on programs and projects using official development assistance (ODA) non-refundable capital or non-refundable aid, humanitarian aid shall be regulated as follows:

a) The program or project owner, main contractor, or an organization designated by the foreign sponsor to manage the program or project using non-refundable ODA funds is entitled to a refund of the value-added tax paid for goods and services purchased in Vietnam to serve the program or project;

b) Organizations in Vietnam using non-refundable aid or humanitarian aid from foreign organizations or individuals to purchase goods and services for non-refundable aid or humanitarian aid programs or projects in Vietnam are entitled to a refund of the value-added tax paid for those goods and services.

7. Subjects entitled to diplomatic privileges and immunities under the law on diplomacy who purchase goods and services in Vietnam for use are entitled to a refund of the value-added tax paid as stated on the value-added tax invoice or on the payment document stating the payment amount including value-added tax.

8. Business establishments with a decision on value-added tax refund issued by a competent authority according to the provisions of law and cases of value-added tax refund under international treaties to which the Socialist Republic of Vietnam is a member.

9. Business establishments falling under the case of tax refund specified in this Article must meet the following conditions:

a) Business establishments eligible for tax refunds under the provisions of Clauses 1, 2, 3, and 4 of this Article must be business establishments paying value-added tax under the tax deduction method, maintaining and keeping accounting books and accounting documents in accordance with the provisions of accounting law; having a bank account under the tax code of the business establishment;

b) Comply with the regulations on input value-added tax deduction stipulated in Clause 2, Article 14, and not fall under the cases specified in Clause 3, Article 14 of this Law;

c) The seller has declared and paid value-added tax in accordance with regulations for the invoices issued to the business requesting a tax refund.

10. Taxpayers who are eligible for a value-added tax refund, and whose input value-added tax fully meets the conditions for a tax refund as prescribed in this Article, and comply with the provisions on tax declaration according to the law on tax administration, shall prepare a value-added tax refund dossier for each case and submit it to the competent tax authority for receipt.

The tax authority shall classify the value-added tax refund dossiers into those for refund first or inspection before refund and handle the value-added tax refund dossiers in accordance with the law on tax administration.

11. The Government shall provide detailed regulations on this Article.

Article 16. Invoices and documents

1. The sale and purchase of goods and services must have invoices and documents in accordance with the law and the following provisions:

a) Business establishments applying the tax deduction method using value-added tax invoices. In the case of selling goods and services subject to value-added tax where the value-added tax amount is not stated on the value-added tax invoice, the output value-added tax is determined by multiplying the payment amount stated on the invoice by the value-added tax rate, except for the cases specified in Clause 2 of this Article;

b) Business establishments applying the direct calculation method using sales invoices.

2. For types of stamps, tickets, and cards that are payment documents with a printed payment amount, the payment amount of those stamps, tickets, and cards already includes value-added tax.

Chapter IV. IMPLEMENTING PROVISIONS

Article 17. Amend and supplement Clause 1, Article 3 of the Personal Income Tax Law No. 04/2007/QH12 as amended and supplemented in some articles by Law No. 26/2012/QH13 and Law No. 71/2014/QH13

"1. Income from business, including:

a) Income from production and business activities of goods and services;

b) Income from independent professional activities of individuals with a license or practice certificate as prescribed by law.

Income from business as prescribed in this clause does not include the income of households or individuals engaged in production or business with revenue below the level specified in Clause 25, Article 5 of the Law on Value Added Tax.

Article 18. Effectiveness

1. This law takes effect from July 1, 2025, except for the provisions specified in Clause 2 of this Article.

2. The provisions on the revenue level of households or individuals engaged in production or business who are not subject to tax under Clause 25, Article 5 of this Law and Article 17 of this Law take effect from January 1, 2026.

3. The Law on Value Added Tax No. 13/2008/QH12, as amended and supplemented by Law No. 31/2013/QH13, Law No. 71/2014/QH13, and Law No. 106/2016/QH13, shall cease to be effective from the date this Law takes effect.

This law was passed by the National Assembly of the Socialist Republic of Vietnam, XV legislature, 8th session, on November 26, 2024.

CHAIRMAN OF THE NATIONAL ASSEMBLY

Tran Thanh Man