{"id":2786,"date":"2025-08-20T09:26:39","date_gmt":"2025-08-20T02:26:39","guid":{"rendered":"https:\/\/thue.man.net.vn\/?p=2786"},"modified":"2026-02-27T10:57:51","modified_gmt":"2026-02-27T03:57:51","slug":"muc-thue-suat-thue-gtgt","status":"publish","type":"post","link":"https:\/\/thue.man.net.vn\/en\/muc-thue-suat-thue-gtgt\/","title":{"rendered":"VAT tax rates and corresponding taxable subjects for 2026"},"content":{"rendered":"

The VAT rates currently applied in Vietnam include 0%, 5%, 8% and 10%, depending on the type of goods and services. Since 2025, the Government has adjusted the policy with the tax rate of 8% (reduced from 10%) applied to many groups of products and services until the end of 2026, to support businesses and consumers in the difficult economic context. The following article will help you understand the concept of VAT rates, classify them by level and subject, provide accurate lookup instructions and summarize important notes when declaring.<\/span><\/p>\n

What is the VAT rate?<\/b><\/h2>\n

VAT is understood as a tax applied to the increased value of goods and services arising from the production, circulation and consumption stages, not calculated on the entire selling price of the product. This definition is stipulated in <\/span>Article 2 of the Law on VAT 2008<\/b><\/a>,<\/span><\/p>\n

Besides, based on <\/span>Article 9 of the Law on VAT 2024 (No. 48\/2024\/QH15)<\/b><\/a>, VAT rate is the percentage applied to the added value of goods and services to calculate the amount of tax payable. The law clearly stipulates the basic tax rates including <\/span>0%, 5%, 8% and 10%<\/b>, corresponding to each specific group of goods and services, and has detailed instructions to help accountants and businesses determine the correct tax rate for each business item.<\/span><\/p>\n

In summary, the VAT rate is the percentage applied to the added value of goods and services to calculate the amount of tax payable, which is clearly specified for each product group according to the 2024 VAT Law.<\/span><\/p>\n

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See more articles at: <\/strong>VAT Overview \u2013 MAN<\/span><\/a> to learn more about VAT<\/span><\/p>\n<\/blockquote>\n

Current VAT rates\u00a0<\/b><\/h2>\n

According to <\/span>Article 9 of VAT Law No. 48\/2024\/QH15<\/b>, Vietnam's VAT system currently maintains four tax rates: 0%, 5%, 8% and 10%. The existence of multiple tax rates is to regulate consumption, encourage the development of certain sectors and ensure budget revenue. Of which, the 10% rate is considered the standard tax rate, covering most goods and services in the economy.<\/span><\/p>\n

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Current VAT rates<\/figcaption><\/figure>\n

The government adjusts the policy flexibly depending on the situation. In 2026, many groups of goods and services currently applying the 10% tariff will have their rates reduced to 8% to stimulate consumption and support businesses. Meanwhile, the 0% and 5% rates will remain preferential for essential or export-oriented sectors. This mechanism reflects a balance between revenue collection goals and social welfare policies.<\/span><\/p>\n

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See more articles at: <\/strong>VAT Rate \u2013 MAN<\/span><\/a>\u00a0<\/span><\/p>\n<\/blockquote>\n

Classification by VAT rate and applicable subjects<\/b><\/h2>\n

VAT tax rate 0%<\/b><\/h3>\n

VAT rate 0% applies mainly to goods and services exported abroad or consumed in duty-free zones. This includes exported goods, services provided to organizations and individuals outside Vietnam, international transportation, construction and installation of works in export processing zones.<\/span><\/p>\n

The policy aims to encourage exports and increase the competitiveness of Vietnamese products. Enterprises benefit when the output applies 0% but are still entitled to deduct and refund input tax. However, the conditions for application are very strict: export contracts, customs declarations and bank payment documents. If missing, enterprises are forced to apply the VAT rate of 10%.<\/span><\/p>\n

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VAT tax rate 0%<\/figcaption><\/figure>\n

For the group of subjects not subject to VAT or not required to declare and pay tax, the VAT rate 0% has a special meaning: this law allows enterprises to be refunded input VAT paid at previous stages, thereby helping exported goods and services to be tax-free when entering the international market. This mechanism contributes to reducing costs, improving competitiveness and encouraging exports.<\/span><\/p>\n

According to <\/span>Article 9 of the 2024 Law on VAT<\/b> and instructions at <\/span>Article 17, 18 Decree 181\/2025\/ND-CP<\/b>, VAT rate 0% is applied to certain groups of goods and services. Including:<\/span><\/p>\n

For export goods<\/b>, including: goods sold from Vietnam to foreign countries for consumption abroad; goods supplied to organizations in duty-free zones to serve export production; goods sold at duty-free shops or in quarantine areas for people leaving the country.<\/span><\/p>\n

For export services<\/b>, including: services provided directly to organizations and individuals abroad and consumed outside of Vietnam; services provided to organizations in duty-free zones for export production; international transportation services, container lifting, loading and unloading, warehousing, document fees, sealing fees, packaging... related to export activities.<\/span><\/p>\n

Other goods and services are subject to VAT rate 0%<\/b> including: international transportation; leasing of means of transport for use outside Vietnam; aviation and maritime services for international transportation; construction works abroad or in duty-free zones; digital content products for consumption abroad; spare parts and repair materials for foreign organizations; processed goods for export; and some goods and services when exported according to regulations.<\/span><\/p>\n

However, the law also provides <\/span>Cases not eligible for VAT tax rate 0%<\/b>. According to <\/span>Point d, Clause 1, Article 9, Law on VAT 2024<\/b> and <\/span>Clause 4, Article 17, Decree 181\/2025\/ND-CP<\/b>, the exclusions include: technology transfer, transfer of intellectual property rights abroad; reinsurance services; credit provision; transfer of capital, derivative products; postal and telecommunications services; imported tobacco, wine, beer for re-export; gasoline sold to duty-free zones; some services provided in Vietnam such as hotels, advertising, tourism, training, etc.<\/span><\/p>\n\n\n\n\n\n\n\n
Summary table of goods and services subject to VAT rate 0%<\/b><\/caption>\n
GROUP<\/b><\/td>\nGOODS\/SERVICES<\/b><\/td>\n<\/tr>\n
Export goods<\/strong><\/td>\nSell from Vietnam to foreign countries for consumption abroad<\/span><\/p>\n

Provide for organizations in duty-free zones to serve export production<\/span><\/p>\n

Sold at duty free shops or quarantine areas for people leaving the country<\/span><\/td>\n<\/tr>\n

Export services<\/strong><\/td>\nProvide directly to organizations and individuals abroad and consume outside Vietnam.<\/span><\/p>\n

Supply to organizations in duty-free zones for export production<\/span><\/p>\n

International transportation, container lifting, loading and unloading, warehousing, document fees, sealing fees, export-related packaging<\/span><\/td>\n<\/tr>\n

Other types<\/strong><\/td>\nInternational transportation<\/span><\/p>\n

Vehicle rental for use outside Vietnam<\/span><\/p>\n

Air and maritime services for international transport<\/span><\/p>\n

Construction of works abroad or in duty-free zones<\/span><\/p>\n

Digital content products consumed abroad<\/span><\/p>\n

Spare parts and repair materials for foreign organizations<\/span><\/p>\n

Export processing goods<\/span><\/p>\n

Some other goods and services exported according to regulations<\/span><\/td>\n<\/tr>\n

Cases where VAT rate 0% is not applied<\/strong><\/td>\nTechnology transfer, intellectual property rights transfer abroad<\/span><\/p>\n

Reinsurance and credit services<\/span><\/p>\n

Capital transfer, derivative products<\/span><\/p>\n

Postal and telecommunications services<\/span><\/p>\n

Tobacco, alcohol, beer imported for re-export<\/span><\/p>\n

Gasoline sold in duty free zone<\/span><\/p>\n

Some services provided in Vietnam: hotels, advertising, tourism, training<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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Explore more information at: <\/b>VAT Subjects \u2013 MAN<\/b><\/a>\u00a0<\/b><\/p>\n<\/blockquote>\n

VAT tax rate 5%<\/b><\/h3>\n

According to <\/span>Clause 2, Article 9 of the 2024 Law on VAT<\/b> and instructions at <\/span>Article 19 of Decree 181\/2025\/ND-CP<\/b>, VAT rate <\/span>5%<\/b> Applicable to essential goods and services that contribute to supporting people's lives and developing agriculture, health, education, and culture. The specific list includes:<\/span><\/p>\n

Clean water for production and daily life<\/b> VAT rate 5% is applied, except for bottled water, jarred water or soft drinks, which are subject to VAT rate 10%. The preferential tax rate aims to ensure that people's basic needs are met at a reasonable cost, while encouraging the use of clean water in production and daily life.<\/span><\/p>\n

Fertilizers, ores for fertilizer production, pesticides, animal growth stimulants<\/b> are all subject to tax 5%. For example, apatite ore is used to produce phosphate fertilizers, mud is used to produce biofertilizers; pesticides and growth stimulants are clearly regulated in the law on quarantine and plant protection and veterinary medicine. This is a policy that directly supports agriculture.<\/span><\/p>\n

Agricultural services<\/b> such as: digging, dredging canals, ponds; caring for and preventing pests and diseases for crops; processing and preserving agricultural products. These services support production, reduce costs for farmers, and contribute to improving productivity and quality of agricultural products, especially in the small-scale production conditions of Vietnam.<\/span><\/p>\n

Unprocessed or only pre-processed agricultural, forestry and fishery products<\/b> such as crops, planted forests (except wood, bamboo shoots), aquaculture, fishing, and livestock. These products, when sold for processing or consumption, are subject to VAT rate 5%. The policy helps reduce costs, promote consumption, and support the agricultural supply chain.<\/span><\/p>\n

\"M\u1ee9c
VAT tax rate 5%<\/figcaption><\/figure>\n

Raw rubber latex<\/b> (crepe latex, sheet latex, vermicelli latex, rice latex), along with <\/span>rope, net, specialized thread used to weave fishing nets<\/b>: These are important input materials in exploitation and aquaculture - the key economic sector of many coastal localities in Vietnam.<\/span><\/p>\n

Traditional handicraft products<\/b> from agricultural materials such as jute, sedge, bamboo, straw, leaves, water hyacinth, coconut shell, coconut shell; combed cotton fiber; newsprint. These products both utilize available materials and are closely linked to the livelihood of craft villages. The VAT rate 5% encourages the preservation and development of traditional crafts and increases the value of rural labor.<\/span><\/p>\n

Fishing vessels, specialized machinery and equipment in agriculture<\/b> are also subject to tax incentives. Tax reduction contributes to reducing initial investment costs, creating conditions for fishermen and farmers to access modern tools, thereby improving productivity, safety and production efficiency.<\/span><\/p>\n

Medicines and medical devices<\/b> The applicable levels include: disease prevention and treatment drugs; pharmaceutical ingredients and medicinal materials for drug production; vaccines; medical biological products; distilled water for mixing injections and infusions. For medical equipment, it is required to have an import license, a circulation certificate or a standard declaration in accordance with legal regulations. This is a policy that prioritizes public health.<\/span><\/p>\n

Teaching equipment<\/b> such as models, drawings, boards, chalk, rulers, compasses are also subject to tax 5%. Reducing education costs contributes to expanding access to knowledge, especially in disadvantaged areas. This policy demonstrates the State's priority in investing in future generations.<\/span><\/p>\n

Traditional and folk performing arts activities<\/b> also falls under 5%. The purpose is to encourage the preservation and promotion of intangible cultural values, while creating conditions for artists and artisans to maintain and develop their profession. This is both a cultural policy and has economic and social significance.<\/span><\/p>\n

Children's toys and books<\/b> (except for books not covered by the provisions of Article 4 of Decree 181) are also entitled to the 5% rate. This is a policy to encourage intellectual development, creativity and learning for children, while promoting the publishing industry and the production of safe and healthy toys.<\/span><\/p>\n

Science and technology services<\/b> According to the Law on Science and Technology, tax incentives are also given. This encourages businesses, research institutes, and schools to invest more in research and application, thereby promoting innovation and serving the development of the knowledge economy.<\/span><\/p>\n

Social housing<\/b> When selling, renting, or leasing, all enjoy the tax rate 5%. This is a tool to support social security policies, creating opportunities to access affordable housing for low-income people, workers, and laborers in industrial zones.<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Summary table of goods\/services subject to VAT rate 5%<\/b><\/caption>\n
GOODS\/SERVICES GROUP<\/b><\/td>\nCONTENT OF APPLICATION OF VAT RATE 5%<\/b><\/td>\nNOTE<\/b><\/td>\n<\/tr>\n
Clean water<\/b><\/td>\nClean water for production and daily life<\/span><\/td>\nExcept bottled water, jars, soft drinks (tax 10%)<\/span><\/td>\n<\/tr>\n
Fertilizers, pesticides, livestock stimulants<\/b><\/td>\nFertilizer<\/span><\/p>\n

Fertilizer production ores (Apatite, mud...)<\/span><\/p>\n

Pesticides, animal growth stimulants<\/span><\/td>\n

Agricultural support<\/span><\/td>\n<\/tr>\n
Agricultural services<\/b><\/td>\nDigging, dredging canals, ponds and lakes<\/span><\/p>\n

Plant care and pest control<\/span><\/p>\n

Preliminary processing and preservation of agricultural products<\/span><\/td>\n

Reduce production costs<\/span><\/td>\n<\/tr>\n
Unprocessed agricultural, forestry and fishery products<\/b><\/td>\nPlanted trees, planted forests (except wood, bamboo shoots)<\/span><\/p>\n

Aquaculture and fishing<\/span><\/p>\n

Livestock products<\/span><\/td>\n

Only applies to raw or semi-processed products.<\/span><\/td>\n<\/tr>\n
Rubber, fishing gear<\/b><\/td>\nRaw rubber latex (crepe latex, sheet latex, vermicelli latex, granular latex)<\/span><\/p>\n

Rope, net, fishing net yarn<\/span><\/td>\n

Raw materials for exploitation and aquaculture<\/span><\/td>\n<\/tr>\n
Traditional handicraft products<\/b><\/td>\nJute, sedge, bamboo, straw, leaves, water hyacinth, coconut shell\/skull; combed cotton; newsprint<\/span><\/td>\nEncourage the preservation of craft villages<\/span><\/td>\n<\/tr>\n
Boats & Agricultural Machinery<\/b><\/td>\nFishing vessels, specialized agricultural machinery and equipment<\/span><\/td>\nReduce investment costs for farmers and fishermen<\/span><\/td>\n<\/tr>\n
Medicines & Medical Devices<\/b><\/td>\nMedicines, vaccines, pharmaceuticals, biological products<\/span><\/p>\n

Distilled water for injection and infusion<\/span><\/p>\n

Medical equipment with license\/certification<\/span><\/td>\n

Prioritize public health care<\/span><\/td>\n<\/tr>\n
Teaching equipment<\/b><\/td>\nModels, drawings, boards, chalk, rulers, compasses\u2026<\/span><\/td>\nSupport education, especially in disadvantaged areas<\/span><\/td>\n<\/tr>\n
Traditional performing arts<\/b><\/td>\nTraditional folk art activities<\/span><\/td>\nPreserve and promote cultural values<\/span><\/td>\n<\/tr>\n
Children's toys & books<\/b><\/td>\nChildren's toys; books (except for those not covered by Article 4 of Decree 181)<\/span><\/td>\nDeveloping children's intelligence and creativity<\/span><\/td>\n<\/tr>\n
Science and technology services<\/b><\/td>\nScience and Technology Services under the Law on Science and Technology<\/span><\/td>\nPromote research, pouring<\/span><\/td>\n<\/tr>\n
Social housing<\/b><\/td>\nSale, rent, lease purchase of social housing<\/span><\/td>\nSocial security policy, support for low-income people<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

VAT tax rate 10%<\/b><\/h3>\n

Clause <\/span>3 Article 9 of VAT Law No. 48\/2024\/QH15<\/b> regulations:\u00a0<\/span><\/p>\n

\u201cVAT rate 10% applies to goods and services not included in VAT rate groups 0% and 5%. This is a common tax rate, accounting for a large proportion of the economy. The subjects of application include both common consumer goods and many types of domestic services.\u201d<\/span><\/p><\/blockquote>\n

\"M\u1ee9c
VAT tax rate 10%<\/figcaption><\/figure>\n

In order to support the economy, the National Assembly has issued <\/span>Resolution No. 204\/2025\/QH15<\/b><\/a> June 17, 2025. On that basis, the Government issued <\/span>Decree 174\/2025\/ND-CP<\/b> June 30, 2025, regulations continue to reduce 2% VAT for a number of groups of goods and services subject to VAT rate 10%.\u00a0<\/span><\/p>\n

New point of<\/span> VAT Law 2024<\/b> is to expand the scope to services provided by foreign suppliers through e-commerce and digital platforms for individuals and organizations in Vietnam. This regulation helps manage revenue sources in the digital economy and ensure fair competition.<\/span><\/p>\n

VAT tax rate 8%<\/b><\/h3>\n

According to <\/span>Clause 2, Article 1, Decree 174\/2025\/ND-CP<\/b>The Government implements a policy of reducing VAT rates according to <\/span>Resolution 204\/2025\/QH15<\/b>This policy aims to support businesses, business households and consumers, while reducing costs in production and circulation of goods.<\/span><\/p>\n

For establishments applying the deduction method, the VAT rate from 10% will be adjusted down to the VAT rate of 8% for some groups of goods and services. This reduction helps businesses save costs, expand production and improve competitiveness.<\/span><\/p>\n

For business households and individuals paying tax at the rate of %, the policy stipulates a reduction of 20% in the rate used to calculate VAT when issuing invoices. This is an indirect reduction but still ensures benefits, suitable for the characteristics of small businesses.<\/span><\/p>\n

From 01\/07\/2025, many types of goods and services that are subject to VAT rate 10% will be reduced to VAT rate 8%. However, items included in <\/span>Appendix I and Appendix II <\/b>belong to <\/span>Decree 174\/2025\/ND-CP<\/b> remain the same, ensuring tax reduction policy is focused.<\/span><\/p>\n

Summary table of VAT rates and practical examples<\/b><\/h3>\n

To help businesses and individuals easily visualize how to apply VAT rates in practice, below is a summary table of current tax rates with applicable subjects, illustrative examples and specific conditions. This table not only clarifies the differences between VAT rates 0%, 5%, 8% and 10%, but also provides practical situations for readers to easily compare, thereby applying accurately and limiting the risk of errors when declaring taxes.<\/span><\/p>\n\n\n\n\n\n\n\n
VAT RATE<\/b><\/td>\nAPPLICABLE SUBJECTS<\/b><\/td>\nREAL EXAMPLE<\/b><\/td>\nCONDITIONS\/NOTES<\/b><\/td>\n<\/tr>\n
0%<\/b><\/td>\nExported goods and services; international transportation; construction and installation in duty-free zones; goods sold at duty-free shops<\/span><\/td>\nCompany A exports rice to the Philippines; logistics company transports goods to Singapore.<\/span><\/td>\nNeed contract, cleared customs declaration, bank payment documents<\/span><\/td>\n<\/tr>\n
5%<\/b><\/td>\nEssential goods and services for life, agriculture, health, education<\/span><\/td>\nCompany B sells fertilizer; hospitals buy medicine; schools buy textbooks.<\/span><\/td>\nTo reduce living expenses and support social security; the scope of application is clearly listed in the law.<\/span><\/td>\n<\/tr>\n
8%<\/b><\/td>\nGroups of goods and services previously subject to 10% but reduced in 2025\u20132026: industry, construction, accommodation, food and beverage, transportation...<\/span><\/td>\nHotel business and construction company for civil housing<\/span><\/td>\nNot applicable to banking, real estate, telecommunications, mining, insurance, securities and goods subject to special consumption tax.<\/span><\/td>\n<\/tr>\n
10%<\/b><\/td>\nMost of the remaining goods and services: trade, real estate, general services, consumer industry<\/span><\/td>\nReal estate businesses sell apartments; network operators provide telecommunications services; supermarkets sell consumer goods<\/span><\/td>\nStandard tax rate, most common; ensures budget revenue<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
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See more articles at: <\/b>Latest Value Added Tax Law 2025 and VAT rates from July 1, 2025<\/span><\/a><\/p>\n<\/blockquote>\n

How to look up VAT rates<\/b><\/h2>\n

Source for looking up VAT rates<\/b><\/h3>\n

To determine the correct applicable tax rate, businesses can rely on official legal sources. First, consult <\/span>VAT Law 2024<\/b><\/a> and implementing decrees, especially <\/span>Decree 181\/2025\/ND-CP<\/b><\/a>Second, update circulars of the Ministry of Finance and the General Department of Taxation, which regularly issue detailed documents on the list of goods and services to which each level applies.\u00a0<\/span><\/p>\n

In addition, businesses can use the search tool on the General Department of Taxation's Electronic Information Portal, which integrates a system of documents and practical instructions. When unclear cases arise, businesses should send a request to the direct tax authority for written instructions to avoid legal risks.<\/span><\/p>\n

In practice, many businesses are penalized for applying the wrong tax rate due to lack of updates on new regulations. Therefore, it is necessary to regularly look up and pay attention to the effective period of the policy (for example, VAT rate 8% is only applicable until the end of 2026).<\/span><\/p>\n

Steps to look up VAT rates<\/b><\/h3>\n

To perform <\/span>look up VAT rates<\/b>First of all, businesses need to:<\/span><\/p>\n