{"id":1504,"date":"2025-05-21T07:49:40","date_gmt":"2025-05-21T00:49:40","guid":{"rendered":"https:\/\/thue.man.net.vn\/?p=1504"},"modified":"2025-07-08T15:36:10","modified_gmt":"2025-07-08T08:36:10","slug":"thue-suat-thue-gtgt","status":"publish","type":"post","link":"https:\/\/thue.man.net.vn\/en\/thue-suat-thue-gtgt\/","title":{"rendered":"VAT rate"},"content":{"rendered":"

VAT rates are an important factor that directly affects the tax obligations of businesses and individuals. This type of tax is regularly adjusted to suit fiscal policy and the economic context of each period. The following article will analyze in detail the current VAT rates, changes after July 1, 2025, instructions on correct tax calculation and optimal application in practical business activities.<\/p>\n

What is tax rate and its role in Vietnam tax system?<\/h2>\n

Tax rate is a percentage applied to the tax base to determine the amount of tax payable. According to the provisions of Article 3, Law on VAT No. 13\/2008\/QH12<\/a>, modified and supplemented by Law No. 31\/2013\/QH13<\/a> and Law No. 71\/2014\/QH13<\/a>, tax rates may be applied at different levels depending on the type of tax and the taxable entity.<\/p>\n

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What is tax rate and its role in Vietnam tax system?<\/figcaption><\/figure>\n

The main role of tax rates is to regulate consumption, protect domestic production, encourage exports and adjust the economic structure according to the State's direction.<\/p>\n

VAT rate update from July 1, 2025: What should businesses pay attention to?<\/h3>\n

From July 1, 2025, some groups of goods and services may continue to be subject to the preferential tax rate of 8% instead of 10%, in accordance with the post-COVID-19 economic recovery policy orientation. The Government has issued Decree 174\/2025\/ND-CP on tax rate adjustment, which clearly states the list and specific scope of application.<\/p>\n

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According to Decree 174\/2025\/ND-CP, starting from July 1, 2025, many groups of goods and services from the tax rate of 10% will be reduced to 8%. The detailed list, conditions of application and impact on businesses have been clearly analyzed in the article "Expanding the range of goods and services eligible for VAT reduction from July 1, 2025<\/a>\u201d on the website of MAN \u2013 Master Accountant Network.<\/p>\n<\/blockquote>\n

Understanding the content of the document and applying it correctly is necessary to avoid the risk of incorrect tax rates and take advantage of the State's preferential policies in the new period.<\/p>\n

Overview of current tax rates<\/strong><\/h2>\n

Current VAT rates: 0%, 5%, 8% and 10%<\/h3>\n

According to Article 8 of the Law on Value Added Tax, the VAT system in Vietnam currently applies four main tax rates, depending on the type of goods, services and regulatory goals of the State.<\/p>\n

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Table: Summary of current VAT rates and scope of application<\/em><\/strong><\/caption>\n
Tax rate<\/strong><\/th>\nApplicable objects<\/strong><\/th>\nConditions & legal basis<\/strong><\/th>\n<\/tr>\n<\/thead>\n
0%<\/strong><\/td>\nExport goods, services, international transportation, some special activities<\/td>\nExport contract, customs declaration, bank payment documents are required. Apply according to Article 8, Law on VAT.<\/td>\n<\/tr>\n
5%<\/strong><\/td>\nEssential goods and services such as: clean water, medical equipment, textbooks, fertilizers, pesticides<\/td>\nApply according to Article 8, Law on VAT and guidance by Circular 219\/2013\/TT-BTC. Objective: support people's livelihood and agricultural production.<\/td>\n<\/tr>\n
8%<\/strong> (temporary)<\/em><\/td>\nSome consumer goods, services, construction materials, machinery...<\/td>\nTemporary policy under Resolution 43\/2022\/QH15, extended to June 30, 2025 by Resolution 110\/2024\/QH15. Not expected to continue after July 1, 2025.<\/td>\n<\/tr>\n
10%<\/strong><\/td>\nPopular level \u2013 most of the remaining goods and services are not in the preferential group<\/td>\nApplicable to commercial, financial, real estate services... according to Article 8, Law on VAT.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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The system of 4 VAT rates is clearly classified according to the goals of economic regulation, social security and export support. Enterprises need to understand each level clearly to declare taxes correctly and avoid errors when making invoices.<\/p>\n

Update the latest VAT rate table after July 1, 2025<\/h3>\n

From July 1, 2025, the temporary VAT incentives under Resolution 43\/2022\/QH15 and Resolution 110\/2023\/QH15 will officially expire. Accordingly, the VAT rate schedule will return to the standard structure as prescribed by the Law. Law on Value Added Tax<\/a>, there are only three main levels: 0%, 5% and 10%.<\/p>\n

Below is a summary table of tax rates applicable from this point in time:<\/p>\n

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Table: VAT rate schedule applicable from July 1, 2025<\/em><\/strong><\/caption>\n
Tax rate<\/th>\nApplicable objects<\/th>\nLegal Note<\/th>\n<\/tr>\n<\/thead>\n
0%<\/td>\nExport goods, services provided abroad, international transportation<\/td>\nApplicable when meeting the conditions of contract, customs declaration, payment via bank (Article 9, Circular 219\/2013\/TT-BTC<\/em>)<\/td>\n<\/tr>\n
5%<\/td>\nEssential goods: clean water, medicine, medical equipment, textbooks, teaching aids<\/td>\nStipulated at Article 10, Circular 219\/2013\/TT-BTC<\/em>, to support social security<\/td>\n<\/tr>\n
10%<\/td>\nNormal goods and services (commercial services, real estate, domestic transportation, etc.)<\/td>\nGeneral tax rate, accounting for a large proportion of revenue in manufacturing and service industries<\/td>\n<\/tr>\n
No longer applicable 8%<\/td>\nItems discounted under COVID-19 relief program<\/td>\nTax reduction policy ends from June 30, 2025 according to Resolution 110\/2023\/QH15<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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VAT tax schedule from July 1, 2025 officially returns to the three-level standard system: 0%, 5% and 10%<\/strong>. The tax incentives 8% are only valid until the end of the year. 30\/6\/2025<\/strong>, then the business must update its accounting and invoice systems to ensure compliance with the law.<\/p>\n

Legal references:<\/strong><\/p>\n