- The Ministry of Finance proposes adding 3 groups of goods that are not subject to 0% VAT, including imported and then exported cigarettes, alcohol, and beer; cars sold to organizations and individuals in non-tax zones; goods and services provided to individuals not registered for business in non-tax zones.
- The draft proposes specific regulations on the application of 0% VAT rate to export services, including transportation services used outside Vietnam, international transportation services, and services provided directly to international transportation by the aviation and maritime sectors.
- The draft also suggests adding specific regulations for 3 groups of goods that are not subject to 0% VAT, including imported and then exported cigarettes, alcohol, and beer; gasoline and oil purchased domestically for sale to vehicles of businesses in non-tax zones; goods and services provided to individuals not registered for business in non-tax zones.
- The draft proposes not applying the 0% VAT rate to products and services provided on digital platforms, in order to determine whether these products and services are consumed in Vietnam or abroad at the time of supply.
- The draft also suggests adding regulations for the 5% VAT rate, including not applying the rate to bottled and packaged drinks and other types of beverages, and including plant protection drugs in the 5% VAT rate category.
- The draft proposes removing the 5% VAT rate for “fresh food” and instead implementing the unified regulation in the draft Law on products of animal husbandry and aquaculture that are not subject to VAT, which only applies to products that have not been processed into other products, but only through normal processing.
- The draft suggests removing the 5% VAT rate for “unprocessed forest products” (and applying a 10% VAT rate instead) to narrow down the taxable objects subject to 5% VAT and limit the exploitation of natural forests.
- The draft proposes removing the 5% VAT rate for “sugar; by-products in sugar production, including molasses, bagasse, sludge” (and applying a 10% VAT rate instead).
- The draft suggests removing the 5% VAT rate for “various types of equipment and tools used in agriculture and forestry” (and applying a 10% VAT rate instead).
Source: baochinhphu.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
