Vietnam VAT Rates and Applicability in 2025: A Brief Guide

Exported goods

• Goods sold from Vietnam to organizations or individuals abroad and consumed outside Vietnam, except for goods that were first imported and then re-exported;
• Goods sold from mainland Vietnam to organizations in non-tariff zones and consumed within those zones, directly serving export production activities;
• Goods sold at isolated areas to individuals (foreigners or Vietnamese) who have completed exit procedures;
• Goods sold at duty-free shops; and
• Goods delivered and received in Vietnam as designated by a foreign trader under contracts for sale, processing, leasing, or borrowing between Vietnamese enterprises and the foreign trader (“on-spot import-export transactions”).

Exported services

• Services provided directly to overseas organizations or individuals and consumed outside Vietnam, with the condition that the individual must be outside Vietnam during service delivery; and
• Services provided directly to organizations in non-tariff zones and used within these zones to directly support export production activities.

Other exported goods and services

• International transportation;
• Rental services of vehicles used outside the territory of Vietnam;
• Aviation and maritime services provided directly or through agents for international transportation;
• Construction and installation activities carried out overseas or within non-tariff zones;
• Digital content products supplied to foreign parties with supporting documentation evidencing overseas consumption;
• Spare parts and materials used for the repair and maintenance of vehicles, machinery, and equipment for foreign parties and consumed outside of Vietnam;
• Onward processed goods for export in accordance with the law; and
• Goods and services subject to non-VAT when exported, except the followings:
  • Transferring technology or intellectual property rights to foreign countries;
  • Issuing reinsurance policies for foreign countries;
  • Credit extension services;
  • Transferring capital;
  • Derivatives;
  • Postal and telecommunications services;
  • Exports that are raw natural resources or minerals under the regulated list;
  • Tobacco, alcohol and beer imported and then exported;
  • Oil and gas purchased in domestic and sold to businesses in free trade zones;
  • Cars sold to organizations and individuals in free trade zones;
  • Services provided in Vietnam for overseas organizations and individuals, such as sports competitions, art performances, entertainment, conferences, hotels, advertising, and travel services;
  • Services related to selling, distributing, and consuming goods in Vietnam;
  • Cashless payment services;
  • Services provided by businesses to organizations and individuals in free trade zones, including renting houses, halls, offices, hotels, and warehouses;
  • Employee shuttle services; and
  • Food and beverage services, excluding industrial catering services and food and beverage services within free trade zones.

Fertilizers, ores, pesticides, growth stimulants

• Fertilizers and ores used for producing fertilizers (e.g., phosphorus-containing fertilizers, humus as biofertilizer); and
• Pesticides and growth stimulants for livestock as regulated by law.

Agricultural services

• Excavation and dredging of canals, ditches, and ponds for agricultural use;
• Cultivation, care, and pest control for crops; and
• Preliminary processing and preservation of agricultural products (cleaning, drying, milling, shelling, cutting, salting, canning, freezing, fumigation, etc.).

Raw agricultural, forestry, livestock, and fishery products

• Products from crops, planted forests (excluding timber and bamboo shoots), livestock, aquaculture, and fishing; and
• Must be unprocessed or only preliminarily processed (except those listed in Article 4.1 of the Decree).

Rubber and fishing nets

• Natural rubber latex in forms such as crepe, sheets, crumbs, granules; and
• Fishing nets, ropes, and yarn used for making fishing nets.

Handicrafts and raw materials

• Handicraft products made from jute, sedge, bamboo, rattan, leaves, straw, coconut husk/shell, water hyacinth, and other agricultural by-products; and
• Newsprint paper.

Fishing vessels and agricultural machinery

• Seagoing fishing vessels for offshore operations; and
• Specialized agricultural machinery (plows, seeders, rice planters, harvesters, threshers, dryers, milking machines, poultry incubators, etc.).

Medical equipment, medicines, pharmaceuticals

• Medical devices with import licenses, marketing authorization certificates, or registration as required by law;
• Medicines for prevention and treatment (finished drugs, raw materials, vaccines, biological products, distilled water for injection, infusion solutions); and
• Excludes dietary supplements.

Traditional and folk performing arts

• Traditional art and folk performances as defined under cultural heritage and performance regulations.

Children’s products and books

• Children’s toys; and
• All types of books, except categories excluded under Article 4.8 of the Decree.