Law on Value Added Tax No. 48/2024/QH15

LAW
VALUE ADDED TAX

On the basis of the Constitution of the Socialist Republic of Vietnam;

The National Assembly enacts the Value Added Tax Law.

PART I
GENERAL PROVISIONS

Article 1. Scope of Regulation

This Law stipulates the taxable objects, non-taxable objects, taxpayers, tax bases and methods of calculation, deduction and refund of value added tax.

Article 2. Value Added Tax

Value added tax is a tax levied on the value added of goods and services generated from production, circulation to consumption.

Article 3. Taxable Objects

Goods and services used for production, business, and consumption in Vietnam are taxable objects of value added tax, except for those specified in Article 5 of this Law.

Article 4. Taxpayers

1. Organizations, households, and individuals engaged in producing and trading taxable goods and services (hereinafter referred to as business entities).

2. Organizations and individuals importing taxable goods (hereinafter referred to as importers).

3. Organizations and individuals conducting business in Vietnam purchasing services (including cases where services are attached to goods) from foreign organizations without a permanent establishment in Vietnam and individuals outside Vietnam who are non-residents in Vietnam, except for the cases specified in Clause 4 and Clause 5 of this Article; organizations conducting business in Vietnam purchasing goods and services from foreign organizations without a permanent establishment in Vietnam and individuals outside Vietnam for the purpose of carrying out exploration, development, and oil and gas extraction activities.

4. Foreign suppliers without a permanent establishment in Vietnam engaging in e-commerce and platform-based business with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers); organizations managing foreign platforms implementing withholding and paying on behalf of the tax obligations of foreign suppliers; domestic businesses applying the tax deduction method for purchasing services from foreign suppliers without a permanent establishment in Vietnam through e-commerce channels or digital platforms implementing withholding and paying on behalf of the tax obligations of foreign suppliers.

5. Organizations managing e-commerce platforms and digital platforms with payment functions implementing withholding, paying on behalf, and declaring the taxes already withheld for individual traders operating on e-commerce platforms and digital platforms.

6. The Government shall provide detailed regulations for Clauses 1, 4, and 5 of this Article; and regulations regarding taxpayers when foreign suppliers provide services to domestic businesses applying the tax deduction method as specified in Clause 4 of this Article.

Article 5. Non-Taxable Objects

1. Agricultural products, planted forests, livestock, aquaculture products, and fishing products that have not been processed into other products or only undergone simple processing by organizations and individuals selling them and at the import stage.

2. Livestock breeding materials as prescribed by laws on animal husbandry and planting materials as prescribed by laws on agriculture.

3. Livestock feed as prescribed by laws on animal husbandry and aquatic feed as prescribed by laws on aquaculture.

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

5. Housing assets of state-owned property sold by the State to tenants.

6. Irrigation and drainage; plowing and harrowing land; dredging of irrigation canals and ditches serving agricultural production; harvesting services for agricultural products.

7. Transfer of land use rights.

8. Life insurance, health insurance, student insurance, and other insurance services related to humans; livestock insurance, crop insurance, and other agricultural insurance services; marine vessel, boat, equipment, and other necessary tools directly serving fishing; reinsurance; and insurance for offshore oil and gas facilities, foreign-flagged vessels leased by oil contractors or subcontractors for operations in Vietnam's exclusive economic zone or overlapping zones agreed upon by Vietnam and neighboring coastal states under joint development arrangements.

9. Financial, banking, securities trading, and post-trade services including:

a) Credit services as prescribed by laws on credit institutions and specific fees listed in loan agreements between the Government of Vietnam and foreign lenders;

b) Loan services provided by taxpayers who are not credit institutions;

c) Securities trading including brokerage, proprietary trading, underwriting, investment advisory, fund management, and portfolio management services as prescribed by laws on securities;

d) Capital transfer including partial or full transfer of invested capital in another economic entity (regardless of whether a new legal entity is established), stock transfers, contribution right transfers, and other forms of capital transfer as prescribed by laws, including the sale of a business to another business for production and operation purposes, and the buyer assuming all rights and obligations of the seller as prescribed by laws. Capital transfer as defined herein does not include project transfers or asset sales;

đ) Debt sale including the sale of receivables and payables;

e) Foreign exchange trading;

g) Derivative products as prescribed by laws on credit institutions, laws on securities, and laws on commerce, including: interest rate swaps; forward contracts; futures contracts; call and put options and other derivative products;

h) Sale of collateral assets of organizations wholly owned by the State with 100% equity stake established by the Government for the purpose of buying and selling bad debts of Vietnamese credit institutions.

10. Medical services and veterinary services including:

a) Medical services include: medical examination, treatment, disease prevention for individuals, planned childbirth services, health rehabilitation services for patients; elderly care and disability care services; patient transportation, hospital room and bed rental services from healthcare facilities; testing, imaging, blood and blood products for patients.

Elderly care and disability care services include medical care, nutrition, and organizing cultural, sports, entertainment, physiotherapy, and rehabilitation activities for the elderly and people with disabilities.

In cases where the package of medical treatment services prescribed by the Ministry of Health includes the use of medicine, the revenue from medicines within the medical treatment service package also falls under the category exempt from value-added tax.

b) Veterinary services include: animal medical examination, treatment, and disease prevention services.

11. Funeral services.

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

13. Educational and vocational training activities in accordance with laws on education and vocational training.

14. Broadcasting radio and television using state budget funds.

15. Publishing, importing, and distributing newspapers, magazines, bulletins, special issues, political books, textbooks, teaching materials, legal texts, science and technology books, foreign information service books, books printed in ethnic minority scripts, and propaganda posters, including those in tape or disc form containing audio, video, or electronic data; currency printing.

16. Public passenger transport by bus, electric train, inland waterway vessels.

17. Machinery, equipment, spare parts, and materials that are not domestically produced and are imported directly for scientific research and technological development activities; machinery, equipment, spare parts, specialized transportation means, and materials that are not domestically produced and are imported for exploration, development of oil and gas fields; aircraft, helicopters, gliders, drilling platforms, ships that are not domestically produced and are imported to become fixed assets of enterprises or leased from abroad for production, business operations, or leasing.

18. National 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 national defense and security industries according to the list issued by the Prime Minister.

19. Goods imported in cases of humanitarian aid and non-reimbursable aid. Goods and services sold to foreign organizations and international organizations for humanitarian aid and non-reimbursable aid to Vietnam.

20. Goods in transit, transshipment through Vietnam's territory; temporarily imported goods for re-export; temporarily exported goods for re-import; raw materials imported for producing and processing export goods under export production and processing contracts signed with foreign parties; goods and services traded between foreign entities and non-tariff zones and between non-tariff zones.

Imported goods from abroad by financial leasing companies transported directly into non-tariff zones for leasing to enterprises within non-tariff zones.

21. 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 as stipulated by law.

22. Gold bars and sheets that have not been crafted into artistic, jewelry, or other products at the import stage.

Exported products that are natural resources and minerals extracted without further processing and those that are natural resources and minerals processed into other products according to the list specified by the Government in line with the State's direction to discourage the export of raw natural resources and minerals.

24. Artificial products used to replace human body parts of patients, including products implanted permanently in the human body; crutches, wheelchairs, and other specialized tools for people with disabilities.

25. Goods and services produced and traded by households and individuals with annual turnover of up to 200 million VND; assets of organizations and individuals not engaged in business and not subject to VAT; state reserve goods sold by state reserve agencies; fees and charges as stipulated by laws on fees and charges.

26. Goods imported in the following cases:

a) Gifts for state agencies, political organizations, socio-political organizations, occupational socio-political organizations, social organizations, occupational social organizations, and people's armed forces units within the tax-free import quota as prescribed by laws on export and import taxes;

b) Gifts and presents within the tax-free import quota as prescribed by laws on export and import taxes given by foreign organizations and individuals to Vietnamese individuals; items of foreign organizations and individuals based on diplomatic exemption standards and movable assets within the tax-free import quota as prescribed by laws on export and import taxes;

c) Goods within the tax-free import quota for personal luggage as prescribed by laws on export and import taxes;

d) Goods imported to support disaster relief, post-disaster recovery, epidemic control, and war-related activities as prescribed by the Government;

đ) Goods bought and exchanged across borders for border residents' production and consumption purposes within the list of goods for border residents' trade and exchange as prescribed by law and within the tax-free import quota as prescribed by laws on export and import taxes;

e) Antiquities, cultural relics, national treasures according to the provisions of the law on cultural heritage imported by competent state agencies.

27. Business establishments operating goods and services not subject to value-added tax as provided for in this Article shall not be entitled to deduct input tax nor to have input tax refunded, except in cases where the zero percent tax rate prescribed in Clause 1, Article 9 of this Law is applied.

28. The Government shall provide detailed regulations for this Article. The Minister of Finance shall prescribe the documentation and procedures for identifying entities not subject to value-added tax as stipulated in this Article.

Chapter II
BASIS AND METHOD OF CALCULATING TAX

Article 6. Basis for calculating tax

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

Article 7. Taxable Price

1. The taxable price is defined 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 customs value for import tax as prescribed by the law on export tax and import tax plus import tax plus additional import taxes as prescribed by law (if applicable), plus special consumption tax (if applicable) and plus environmental protection tax (if applicable);

c) For goods and services used for exchange, internal consumption, gifts, or donations, it is the taxable price of similar goods or services at the time these activities occur;

For goods and services used for promotional purposes as prescribed by the law on trade, the taxable price is determined as zero (0);

d) For leasing activities, it is the lease payment excluding value-added tax;

In cases where lease payments are made periodically or prepaid for the lease period, the taxable price is the lease payment made periodically or prepaid for the lease period excluding value-added tax;

đ) For goods sold under installment or deferred payment terms, it is the selling price for a lump sum payment excluding value-added tax, excluding the interest on installments or deferred payments;

e) For processing goods, it is the processing fee excluding value-added tax,

g) For construction and installation activities, it is the value of the project, sub-project, or portion of work handed over excluding value-added tax. In cases where construction and installation do not include materials, machinery, or equipment in the bid, the taxable price is the construction and installation value excluding the value of materials and machinery;

h) For real estate trading activities, it is the selling price of real estate excluding value-added tax, minus land use fees or land rental fees paid to the state budget (land price is deducted). The Government shall specify the method of determining the deductible land price in accordance with the provisions of the law on land;

i) For agency and brokerage activities in buying and selling goods and services earning commission, it is the commission income from these activities excluding value-added tax;

k) For goods and services using invoices that record the payment amount inclusive of value-added tax, the taxable price is determined according to the following formula:

l) For casino operations, electronic games with prizes, and betting activities, it is the revenue from these activities minus the amount refunded to customers who did not use their full amount and the prize money paid out to customers (if applicable), inclusive of special consumption tax but exclusive of value-added tax;

m) For production and business activities including: electricity production by the Vietnam Electricity Corporation; transportation and loading/unloading; tour services under travel agency arrangements; pawnshop services; books subject to value-added tax sold at the cover price; printing activities; agency appraisal services, agency compensation assessment services, agency third-party reimbursement services, and agency full-replacement handling services earning service fees or commissions, the taxable price is the selling price excluding value-added tax. The Government shall specify the taxable price for the production and business activities mentioned herein.

2. The taxable price for goods and services specified in Clause 1 of this Article includes additional surcharges and fees collected by the business establishment.

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

Article 8. Time for Determining Value Added Tax

1. The time for determining value added tax shall be regulated as follows:

a) For goods, it is the time when ownership or usage rights over the goods are transferred to the buyer or the time when the invoice is issued, regardless of whether payment has been received or not;

b) For services, it is the time when the provision of the service is completed or the time when the service invoice is issued, regardless of whether payment has been received or not.

2. The time for determining value added tax for the following goods and services shall be specified by the Government:

a) Exported goods, imported goods;

b) Telecommunication services;

c) Insurance business services;

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

đ) Real estate trading activities;

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

Article 9. Tax Rate

1. The zero percent tax rate applies to the following goods and services:

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

c) Other exported goods and services including: international transportation; leasing services for means of transport used outside the territory of Vietnam; services of the aviation and maritime industries provided directly or through agents for international transportation; construction and installation activities for projects abroad or within non-tariff zones; digital content products supplied to foreign parties and with documentation proving consumption outside Vietnam according to government regulations; spare parts and materials for repairing and maintaining equipment for foreign parties and consumed outside Vietnam; semi-finished goods for further processing and export according to legal provisions; goods and services exempt from value added tax upon export, except for cases where the zero percent tax rate does not apply as stipulated in point d of this clause;

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

2. The five percent tax rate applies to the following goods and services:

a) Clean water for production and daily use excluding bottled drinking water and other types of beverages;

b) Fertilizers, ores for fertilizer production, plant protection chemicals, and growth stimulants for livestock according to legal regulations;

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

d) Agricultural crop products, plantation forest products (excluding wood, bamboo shoots), livestock products, aquaculture products, and fishing products that have not been processed into other products or only undergone simple preliminary processing, except for products specified in Clause 1 of Article 5 of this Law;

đ) Natural rubber latex, sheet rubber, ribbon rubber, granular rubber; nets, ropes, and fibers for making fishing nets;

e) Products made from rattan, straw, bamboo, leaves, rice straw, coconut shells, coir, duckweed, and other handicrafts produced using agricultural waste materials; raw cotton after rough combing and fine combing; newsprint;

g) Fishing vessels operating in marine areas; machinery and equipment specifically used for agricultural production according to government regulations;

h) Medical devices according to medical device management laws; disease prevention and treatment drugs; medicinal ingredients and herbs used as raw materials for producing disease prevention and treatment drugs;

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

k) Traditional and folk performing arts activities;

l) Children's toys; various types of books, except books specified in Clause 15 of Article 5 of this Law;

m) Science and technology services according to the Science and Technology Law;

n) Sale, lease, and lease-purchase of social housing according to the Housing Law.

3. The ten percent 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 or individuals in Vietnam through electronic commerce channels and digital platforms.

4. Businesses dealing with multiple goods and services subject to different value added tax rates (including those exempt from value added tax) must declare value added tax according to the respective tax rates applicable to each type of goods and service; if the business does not declare separately according to each tax rate, they must calculate and pay tax at the highest applicable tax rate for the goods and services produced or traded by the business.

5. Agricultural crop products, plantation forest products, livestock products, aquaculture products, and fishing products that have not been processed into other products or only undergone simple preliminary processing, when used as animal feed or medicinal herbs, shall be subject to the value added tax rate prescribed for agricultural crop products, plantation forest products, livestock products, and aquaculture products.

By-products, secondary products, and scrap materials recovered for recycling and reuse when sold shall be subject to the tax rate applicable to the by-products, secondary products, and scrap materials being sold.

6. The Government shall provide detailed regulations for Clause 1 and Clause 2 of this Article. The Minister of Finance shall specify the documentation and procedures for applying a 0% value-added tax rate as provided in Clause 1 of this Article.

Article 10. Methods of Calculating Tax

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

Article 11. Tax Deduction Method

1. The tax deduction method is prescribed as follows:

a) 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.

b) The output value-added tax equals the total value-added tax on goods and services sold recorded on the value-added tax invoice.

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

In cases where invoices recording payment prices inclusive of value-added tax are used, the output value-added tax is determined by subtracting the taxable value-added tax price determined according to Point k, Clause 1, Article 7 of this Law from the payment price.

c) The deductible input value-added tax equals the total value-added tax recorded on purchase invoices for goods and services, import value-added tax payment certificates for imported goods, or tax payment certificates for services specified in Clause 3 and Clause 4, Article 4 of this Law, and which meet the conditions stipulated in Article 14 of this Law.

2. The tax deduction method applies to businesses that fully comply with accounting records, invoices, and certificates as prescribed by laws on accounting, invoices, and certificates, including:

a) Businesses with annual revenue from selling goods and providing services of VND 1 billion or more, excluding households and individuals engaged in production and business activities.

b) Businesses voluntarily applying the tax deduction method, excluding households and individuals engaged in production and business activities.

c) Foreign organizations and individuals providing goods and services for oil and gas exploration, development, and extraction activities shall pay taxes using the tax deduction method declared, deducted, and paid by the Vietnamese party.

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

Article 12. Direct Calculation Method

1. The amount of value-added tax payable under the direct calculation method on added value equals the added value multiplied by the applicable value-added tax rate for gold, silver, and precious stone trading and processing activities.

The added value of gold, silver, and precious stone trading and processing activities is determined by subtracting the purchase payment price of gold, silver, and precious stones from the sale payment price of gold, silver, and precious stones.

Where a business engages in gold, silver, and precious stone trading and processing activities, the business must separately account for these activities to pay taxes under the direct calculation method on added value.

2. The amount of value-added tax payable under the direct calculation method based on revenue is calculated as a percentage of revenue as follows:

a) Applicable entities include:

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

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

a3) Foreign organizations without a permanent establishment in Vietnam and foreign individuals who are non-residents earning income in Vietnam and have not fully complied with accounting records, invoices, and certificates, excluding foreign suppliers as defined in Clause 4, Article 4 of this Law.

a4) Other organizations, except those paying taxes under the tax deduction method as stipulated in Clause 2, Article 11 of this Law.

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

b1) Distribution and supply of goods: 1%

b2) Services and construction excluding materials: 5%

b3) Production, transportation, and services attached to goods and construction including materials: 3%

b4) Other business activities: 2%

c) Revenue for calculating value-added tax is the total amount recorded on sales invoices, including additional surcharges and fees collected by the business.

3. Households and individuals engaged in production and business activities that do not implement or fully implement accounting records, invoices, and certificates as prescribed by law shall pay value-added tax under the turnover tax method as stipulated in the Law on Tax Administration.

4. The Government shall provide detailed regulations for Clause 1 of this Article. The Minister of Finance shall specify the detailed categories of goods and services subject to application at the percentage rates as provided in Point b, Clause 2 of this Article.

Chapter III
DEDUCTION AND REFUND OF TAX

Article 13. Prohibited acts in tax deduction and refund

1. Buying, giving, selling, organizing advertisements, brokering purchases and sales of invoices.

2. Creating transactions for purchasing and selling goods or providing services that are not real or do not comply with legal regulations.

3. Issuing invoices for selling goods or providing services during temporary cessation of business operations, except for cases where invoices are issued to customers to fulfill contracts signed before the announcement of the temporary cessation of business operations.

4. Using illegal invoices or improperly using invoices as prescribed by the Government.

5. Failing to transfer electronic invoice data to the tax authority as required.

6. Altering, misusing, accessing without authorization, or destroying information systems related to invoices and receipts.

7. Giving, receiving, brokering bribes, or engaging in other acts related to invoices and receipts to obtain tax deductions, refunds, embezzle tax money, or evade value-added tax.

8. Colluding, shielding; connecting between tax management officials, tax management agencies, and businesses, importers, or among businesses and importers in the use of illegal invoices and receipts, or improperly using invoices and receipts to obtain tax deductions, refunds, embezzle tax money, or evade value-added tax.

Article 14. Deduction of Input Value-Added Tax

1. Businesses subject to value-added tax under the tax deduction method shall deduct input value-added tax as follows:

a) The input value-added tax on goods and services used for producing and trading taxable goods and services shall be fully deducted, including the input value-added tax on taxable goods and services that have been lost or naturally depleted during transportation.

b) The input value-added tax on goods and services used simultaneously for producing and trading taxable and non-taxable goods and services shall only be deducted for the portion used for taxable goods and services. Businesses must separately account for deductible and non-deductible input value-added tax; if separate accounting is not possible, the deductible input value-added tax shall be calculated based on the ratio of revenue from taxable goods and services to total revenue from sold goods and services.

c) The input value-added tax on goods and services sold to organizations or individuals using humanitarian aid or non-repayable aid funds shall be fully deducted.

d) The input value-added tax on goods and services used for exploration, development activities of oil and gas fields shall be fully deducted.

đ) Input value-added tax arising in a month or quarter shall be declared and deducted when determining the tax payable for that month or quarter. Any remaining input value-added tax not deducted in a month or quarter may be deducted in the following month or quarter.

In case a business discovers errors or omissions in the declaration and deduction of input value-added tax, it may declare taxes before the tax authority or competent authority announces the decision to inspect or audit taxes as follows:

If the taxpayer's declaration increases the tax payable or reduces the tax refund due to errors or omissions in the declaration of input value-added tax, the taxpayer must pay the additional tax amount or recover the refunded tax amount and pay any late payment penalties to the state budget (if applicable).

If the taxpayer's declaration decreases the tax payable or only affects the carryover of deductible input value-added tax to the next month or quarter, the taxpayer shall declare in the month or quarter when the error or omission was discovered.

e) For input value-added tax that cannot be deducted, the business may include it in costs for calculating corporate income tax or in the original cost of fixed assets according to the Corporate Income Tax Law, except for the value-added tax on purchased goods and services without non-cash payment vouchers as prescribed by the Government.

g) The Government shall provide detailed regulations on the deduction of input value-added tax for: fixed assets serving employees; cases of capital contribution through assets; goods and services purchased in the form of agency by another organization or individual where the invoice is in the name of the authorized party; fixed assets being passenger cars with up to nine seats; production and trading businesses organizing closed production and centralized accounting.

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

a) Having a value-added tax invoice for purchasing goods and services or a tax payment voucher at the import stage or a tax payment voucher instead of foreign parties as prescribed in Clause 3 and Clause 4 of Article 4 of this Law. The Minister of Finance shall specify the tax payment voucher instead of foreign parties.

b) Having a non-cash payment voucher for purchased goods and services, except for certain special cases as prescribed by the Government.

c) For exported goods, in addition to the conditions specified in point a and point b of this clause, there must also be: a contract signed with a foreign party regarding the sale or processing of goods or provision of services; an invoice for selling goods or providing services; a non-cash payment voucher; a customs declaration for exported goods; a packing list, bill of lading, and cargo insurance certificate (if any). The Government shall stipulate conditions for deduction in cases of exporting goods through overseas e-commerce platforms and other special cases.

3. Business entities that do not comply with the regulations on VAT deduction as stipulated in Clauses 1 and 2 of this Article and invoices, certificates issued from prohibited acts under this Law shall not be entitled to deduct VAT.

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

Article 15. Refund of VAT

1. The refund of VAT for exports shall be regulated as follows:

a) Business entities in a month or quarter having exported goods or services if they have a remaining input VAT amounting to VND 300 million or more which has not been deducted shall be entitled to a monthly or quarterly VAT refund, except for goods imported and then re-exported to another country;

b) Business entities in a month or quarter having both exported goods or services and consumed domestic goods or services must separately account for the input VAT used for producing and trading exported goods or services; in cases where separate accounting is not possible, the input VAT for exported goods or services shall be determined based on the ratio between the revenue from exported goods or services over the total revenue from taxable goods or services during the refund period. The refund period is determined from the tax period with continuous unrefunded input VAT until the tax period when the refund application is made.

If the input VAT for exported goods or services (including the input VAT determined according to the aforementioned ratio) remains at VND 300 million or more after offsetting against the VAT payable for domestically consumed goods or services, the business entity shall be entitled to a VAT refund for exported goods or services. The VAT refund amount for exported goods or services shall not exceed 10% of the revenue from exported goods or services during the refund period. Input VAT already determined for exported goods or services but not yet refunded due to exceeding 10% of the revenue from exported goods or services during the previous refund period shall be deducted in the subsequent tax period to determine the VAT refund amount for exported goods or services in the next refund period.

2. The refund of VAT for investment projects shall be regulated as follows:

a) Business entities registered to pay VAT under the deduction method with investment projects (new investment projects, expanded investment projects) as prescribed by laws on investment (including investment projects divided into multiple phases or components, except for projects that do not form fixed assets of the enterprise) currently in the investment phase or exploration and development oil and gas projects currently in the investment phase, if there is a remaining input VAT generated during the investment phase that has not been refunded, the business entity shall offset it against the VAT payable for ongoing production and business activities (if any). After offsetting, if the remaining input VAT of the investment project amounts to VND 300 million or more, the business entity shall be entitled to a VAT refund.

In cases where the investment project has been completed (including projects divided into multiple phases or components, with some phases or components already completed), but the business entity has not yet applied for a VAT refund for the input VAT generated during the investment phase (completed phases or components), the business entity shall submit the VAT refund application within one year from the date the investment project or the completed phase or component was completed.

The completion date of the investment project or the completion date of the phase or component is the date when the revenue from the investment project or the phase or component is generated. The revenue specified herein does not include revenue generated during the trial operation phase, financial activity revenue, and the liquidation of raw materials of the investment project;

b) Business entities shall not be entitled to a VAT refund but may carry forward the undeducted VAT of the investment project to the following period as prescribed by laws on investment in the following cases:

b1) Investment projects of business entities that have not contributed the registered charter capital at the time of submitting the refund application; operating industries or businesses requiring conditions without meeting the required business conditions as prescribed by laws on investment or failing to maintain such conditions during operations, except for investment projects in the investment phase as prescribed by laws on investment and specialized laws that do not require the competent state agency to issue a business license for industries or businesses requiring conditions, investment projects as prescribed by laws on investment and specialized laws that do not require a business license for industries or businesses requiring conditions;

b2) Investment projects exploiting natural resources and minerals (excluding exploration and development oil and gas projects as stipulated in point a of this Clause) and investment projects producing products derived from processed natural resources and minerals as stipulated in Clause 23, Article 5 of this Law.

3. Business entities solely producing goods or providing services subject to a 5% VAT rate, if the remaining input VAT not deducted exceeds VND 300 million after twelve consecutive months or four consecutive quarters, shall be entitled to a VAT refund; in cases where business entities produce goods or provide services subject to multiple VAT rates, the refund shall be made according to the allocation ratio prescribed by the Government.

4. Business entities paying VAT under the deduction method shall be entitled to a VAT refund upon dissolution or bankruptcy if they have excess VAT paid or remaining input VAT not deducted.

In cases where a cooperative organization paying VAT under the deduction method transforms into a cooperative, the cooperative shall inherit the excess VAT paid or remaining input VAT not deducted of the cooperative organization to deduct and refund VAT as prescribed.

5. Foreign individuals and overseas Vietnamese residents holding passports or international travel documents shall be entitled to a tax refund for goods purchased in Vietnam that they carry out of the country upon departure.

The Government shall specify the documentation, procedures, amount of tax refundable, and the method of tax refund for the cases stipulated in this clause.

6. The value-added tax refund for programs and projects utilizing official development assistance (ODA) non-repayable funds or non-repayable aid, humanitarian aid shall be regulated as follows:

a) The program or project sponsor, main contractor, or organization designated by the foreign donor side to manage programs and projects using non-repayable ODA funds shall be entitled to a refund of the value-added tax paid on goods and services purchased in Vietnam for the purposes of such programs and projects.

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

7. Individuals or entities enjoying diplomatic privileges and immunities under the law on diplomacy who purchase goods and services in Vietnam for their own use shall be entitled to a refund of the value-added tax recorded on the value-added tax invoice or payment receipt showing the total payment including value-added tax.

8. Businesses with a decision to refund value-added tax issued by the competent authority in accordance with the law and cases of value-added tax refunds pursuant to international treaties to which the Socialist Republic of Vietnam is a party.

9. Businesses falling within the scope of value-added tax refunds as prescribed in this Article must meet the following conditions:

a) Businesses eligible for a refund under clauses 1, 2, 3, and 4 of this Article must be businesses subject to value-added tax under the tax deduction method, maintaining accounting books and accounting vouchers in compliance with the law on accounting, and having a bank account under the business's taxpayer identification number;

b) Complying with the regulations on deducting input value-added tax as stipulated in Clause 2, Article 14 of this Law and not falling under the circumstances prescribed in Clause 3 of Article 14 of this Law;

c) The seller has declared and paid the value-added tax according to the provisions applicable to the invoices issued to the business requesting a tax refund.

10. Taxpayers eligible for a value-added tax refund, whose input value-added tax meets the full conditions for a refund as prescribed in this Article, and comply with the tax declaration regulations under the law on tax administration, shall prepare a value-added tax refund application for each case and submit it to the competent tax authority.

The tax authority shall classify value-added tax refund applications for prior refund or prior inspection before refund and process the value-added tax refund applications in accordance with the law on tax administration.

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

Article 16. Invoices and Documents

1. Sales transactions of goods and services must be accompanied by invoices and documents in accordance with the law and the following provisions:

a) Businesses applying the tax deduction method shall use value-added tax invoices. In cases where goods and services subject to value-added tax are sold without the value-added tax amount indicated on the value-added tax invoice, the output value-added tax shall be determined by multiplying the payment amount shown on the invoice by the value-added tax rate, except as provided in Clause 2 of this Article;

b) Businesses applying the direct calculation method shall use sales invoices.

2. For pre-printed price-inclusive tickets, vouchers, and cards, the payment amount for these tickets, vouchers, and cards already includes value-added tax.

Chapter IV

IMPLEMENTING PROVISIONS

Article 17. Amend and supplement Clause 1 of Article 3 of the Law on Personal Income Tax No. 04/2007/QH12 which has been amended and supplemented by some articles pursuant to Law No. 26/2012/QH13 and Law No. 71/2014/QH13.

"1. Income from business operations, including:

a) Income from production and trading of goods and services,

b) Income from independent professional activities of individuals holding a license or certificate in accordance with the provisions of the law.

The income from business operations specified in this clause does not include income of households and individuals engaged in production and trading with turnover below the threshold stipulated in Clause 25 of Article 5 of this Law on Value Added Tax.

Article 18. Effective Date

1. This Law shall take effect from July 1, 2025, except for the cases provided for in Clause 2 of this Article.

2. The provisions regarding the turnover threshold of households and individuals engaged in production and trading that are exempt from tax under Clause 25 of Article 5 of this Law and Article 17 of this Law shall take effect from January 1, 2026.

3. The Law on Value Added Tax No. 13/2008/QH12 which has been amended and supplemented by some articles pursuant to 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.

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This Law was passed by the National Assembly of the Socialist Republic of Vietnam, the fifteenth session, eighth meeting, on November 26, 2024.

SPEAKER OF THE NATIONAL ASSEMBLY

Tran Thanh Man