27 subjects are not subject to value added tax in 2024

27 subjects not subject to value added tax in 2024 are specified in Article 4 of Circular 219/2013/TT-BTC, amended by Circular 26/2015/TT-BTC, Circular 130/2016/TT- BTC, including:

(1) Cultural products (including planted forest products), livestock, aquaculture, farmed and caught seafood that have not been processed into other products or have only undergone normal preliminary processing by organizations or individuals. Individuals produce, catch, sell and import.

Newly processed products are usually products that have just been cleaned, dried, peeled, ground, peeled, peeled, deseeded, destemmed, cut, salted, and refrigerated ( chilled, frozen), preserved by sulfur gas, preserved by chemicals to avoid rotting, soaked in sulfur solution or soaked in other preservative solutions and other common forms of preservation.

(2) Products are livestock breeds and plant breeds, including breeding eggs, breeding animals, seedlings, seeds, cuttings, bulbs, semen, embryos, and genetic material at the stages of farming and importing. export and commercial business.

Animal breeds and plant varieties that are not subject to VAT are products imported and traded by commercial establishments that have a certificate of registration to trade in livestock breeds and plant varieties issued by state management agencies. grant.

For products that are livestock breeds or plant breeds that have standards issued by the State, the quality must meet the conditions prescribed by the state.

(3) Irrigation and drainage; plowing and harrowing the land; dredging canals and ditches in the field to serve agricultural production; agricultural product harvesting services.

(4) Fertilizers are organic and inorganic fertilizers such as: phosphate fertilizer, nitrogen fertilizer (urea), NPK fertilizer, mixed nitrogen fertilizer, phosphate fertilizer, potash; microbial fertilizers and other fertilizers;

Feed for livestock, poultry, aquaculture and other pet foods, including processed or unprocessed products such as bran, residue, all kinds of oil cake, fish meal, bone meal, Shrimp meal, other feeds for livestock, poultry, aquaculture and other livestock, animal feed additives (such as premix, active ingredients and carriers) as prescribed in Clause 1, Article 3 of the Decree Decree 08/2010/ND-CP and Clauses 2 and 3, Article 1 Circular 50/2014/TT-BNNPTNT;

Offshore fishing vessels are vessels with a main engine capacity of 90CV or more engaged in seafood exploitation or providing logistics services for seafood exploitation; specialized machinery and equipment serving the exploitation and preservation of products for fishing vessels with a total main engine capacity of 90CV or more engaged in seafood exploitation or logistics services serving seafood exploitation;

Specialized machinery and equipment serving agricultural production include: plows; Harrow; milling machine; row slitting machine; original tarpaulin machine; field leveling equipment; seeding machine; transplanting machine; sugarcane planting machines; carpet plating production machine system; cultivators, bed cultivators, spreaders, fertilizer spreaders, and fertilizers; Machines and sprayers for plant protection chemicals; rice, corn, sugarcane, coffee, cotton harvesting machines; tuber, fruit and root harvester; tea cutting machine, tea picking machine; rice threshing machine; corn husk peeling machine; corn threshing machine; soybean thresher; peanut shelling machine; grinding coffee husks; machines and equipment for processing coffee and wet rice; dryer for agricultural products (rice, corn, coffee, pepper, cashew…), aquatic products; machines for collecting and loading sugarcane, rice, and straw in the fields; poultry egg incubator and hatcher; Grass harvesters, straw and grass balers; milking machines and other specialized machines.

(5) Salt products are produced from sea water, natural rock salt, refined salt, and iodized salt, the main ingredient of which is sodium chloride (NaCl).

(6) State-owned housing is sold by the State to current tenants.

(7) Transfer of land use rights.

(8) Life insurance, health insurance, student insurance, other insurance services related to people; livestock insurance, crop insurance, other agricultural insurance services; insurance for ships, boats, equipment and other necessary tools directly serving fishing; reinsurance.

(9) The following financial, banking and securities trading services:

(9.1) Credit services include the following forms:

– Loans;

– Discount, rediscount of negotiable instruments and other valuable papers;

– Bank guarantee;

– Financial leasing;

– Issuing credit cards.

In case a credit institution collects fees related to credit card issuance, the fees collected from customers belong to the credit granting service process (card issuance fee) according to the lending regulations of the credit institution. for customers such as early repayment fees, late payment penalties, debt restructuring, loan management and other fees in the credit granting process are not subject to value added tax (VAT).

Common card transaction fees that are not part of the credit granting process such as fees for reissuing pin codes for credit cards, fees for providing copies of transaction invoices, fees for claiming reimbursement when using the card, and fees for reporting theft , lost credit card, credit card cancellation fee, credit card conversion fee and other fees subject to VAT.

– Domestic factoring; International factoring for banks licensed to make international payments;

– Sale of loan security assets by a credit institution or by a judgment enforcement agency or by the borrower selling the security assets themselves under authorization of the lender to repay the secured loan, specifically:

+ Loan security assets to be sold are assets under secured transactions that have been registered with competent authorities in accordance with the law on secured transaction registration.

+ The handling of loan security assets shall be carried out in accordance with the provisions of law on secured transactions.

In case the debt repayment period expires, the person with the secured assets is unable to repay the debt and must hand over the assets to the credit institution so that the credit institution can handle the loan security assets according to the provisions of law. , parties that carry out procedures to hand over secured assets according to the provisions of law are not required to issue VAT invoices.

In case a credit institution receives collateral to replace debt repayment obligations, the credit institution shall account for the increase in asset value to serve production and business according to regulations. When a credit institution sells assets for business activities, if the assets are subject to VAT, the credit institution must declare and pay VAT according to regulations.

– Credit information provision services are provided by units and organizations under the State Bank to credit institutions for use in credit granting activities according to the provisions of the Law on the State Bank.

– Other forms of credit as prescribed by law.

(9.2) Individual lending activities, not business activities, regular supply activities of taxpayers are not credit institutions.

(9.3) Securities business includes: Securities brokerage, securities trading, securities underwriting, securities investment consulting, securities depository, securities investment fund management, public management securities investment company, securities portfolio management, market organization services of a stock exchange or securities trading center, services related to securities registered and deposited at the Center Vietnam Securities Depository, lending money to customers to perform margin transactions, advance money from securities sales and other securities business activities in accordance with the provisions of securities law.

Activities of providing information, organizing auctions of shares of issuing organizations, and providing technical support for online securities transactions of the Stock Exchange.

(9.4) Capital transfer includes the transfer of part or all of the capital invested in another economic organization (regardless of whether or not a new legal entity is established), transfer of securities, transfer of the right to contribute capital and other forms of capital transfer according to the provisions of law, including cases of selling an enterprise to another enterprise for production and business purposes and the purchasing enterprise inherits all rights and obligations of the selling enterprise. according to regulations of the Law.

(9.5) Sale of debt;

(9.6) Foreign currency trading;

(9.7) Derivative financial services include: interest rate swaps; forward contracts; futures contracts; options to buy and sell foreign currencies; other derivative financial services as prescribed by law;

(9.8) Sale of security assets of debt of an organization whose charter capital is 100% owned by the State established by the Government to handle bad debts of Vietnamese credit institutions.

(10) Medical services, veterinary services, including medical examination, treatment, disease prevention services for humans and pets, planned birth services, health nursing services, and rehabilitation services for sick people, care services for the elderly and people with disabilities; Patient transportation, hospital room and bed rental services of medical facilities; tests, screenings, scans, blood and blood products for patients.

Care services for the elderly and people with disabilities include medical care, nutrition and organization of cultural, sports, entertainment, physical therapy and rehabilitation activities for the elderly. , People with disabilities.

In case the medical service package (according to the regulations of the Ministry of Health) includes the use of medicine, the revenue from the medical fee included in the medical service package is also not subject to VAT.

(11) Postal services, public telecommunications and universal Internet under the Government’s program; Postal and telecommunications services from abroad to Vietnam (arrival).

(12) Services for maintaining zoos, flower gardens, parks, street trees, and public lighting; funeral service. The services mentioned in this clause do not distinguish between payment sources.

Specifically:

– Services for maintaining zoos, flower gardens, parks, street trees, and protecting forests owned by the State, including management activities, planting trees, taking care of trees, protecting birds and animals in the areas. parks, zoos, public areas, national forests, national parks;

– Public lighting includes lighting of streets, alleys, hamlets in residential areas, flower gardens, and parks. Non-taxable revenue is revenue from public lighting activities;

– Funeral services of establishments with the function of providing funeral services include activities of renting funeral homes, cars for funerals, burials, cremations, reburials, moving graves, grave care.

(13) Maintenance, repair, and construction using capital contributed by the people (including capital contributions and sponsorships from organizations and individuals), humanitarian aid capital for cultural works, art, public works, infrastructure and housing for social policy beneficiaries.

In cases where capital sources other than people’s contributions or humanitarian aid capital are used, but other capital sources do not exceed 50% of the total capital used for the project, the entire value is not subject to tax. construction.

In case other capital sources other than people’s contributions or humanitarian aid capital are used and other capital sources exceed 50% of the total capital used for the project, the entire value of the project is subject to tax. VAT.

Social policy subjects include: people with meritorious services according to the provisions of law on people with meritorious services; Social protection subjects receive subsidies from the state budget; people from poor, near-poor households and other cases as prescribed by law.

(14) Teaching and vocational training according to the provisions of law, including teaching foreign languages and information technology; teaching dance, singing, painting, music, theater, circus, physical education and sports; Raising children and teaching other occupations to train and improve cultural qualifications and professional knowledge.

In cases where teaching establishments at all levels from preschool to high school collect money for meals, transportation to pick up and drop off students, and other revenues in the form of collection and payment on behalf of the school, then the meals and transportation fees will be given to students. Picking up students and other revenues and expenses on behalf of these households are also not subject to tax.

Boarding income from pupils, students, and trainees; Training activities (including the organization of exams and issuance of certificates in the training process) provided by training facilities are not subject to VAT. In case the training facility does not directly organize training but only organizes exams and issues certificates in the training process, the activities of organizing exams and issuing certificates are also not subject to tax. In case of providing examination and certification services that are not part of the training process, they are subject to VAT.

(15) Radio and television broadcasting using state budget capital.

(16) Publishing, importing, distributing newspapers, magazines, specialized newsletters, political books, textbooks, course books, legal text books, scientific and technical books, books printed in civil script ethnic minorities and propaganda paintings, photos, posters, including in the form of audio or video tapes or discs, or electronic data; money, print money.

Newspapers, magazines, and specialized newsletters, including activities of transmitting newspapers, magazines, and specialized newsletters.

Political books are books that propagate the political guidelines of the Party and State to serve political tasks according to topics and themes, and serve anniversaries and traditional days of organizations, levels, branches, local; books of statistics and propaganda for the good people and good deeds movement; Books printed on speeches and theoretical research of Party and State leaders.

Textbooks are books used for teaching and learning at all levels from preschool to high school (including reference books for teachers and students in accordance with the content of the educational program).

Textbooks are books used for teaching and learning in universities, colleges, professional and vocational schools.

Legal document books are books that print legal documents of the State.

Scientific and technical books are books used to introduce and guide scientific and technical knowledge directly related to production and scientific and technical branches.

Books printed in ethnic minority languages include bilingual books in common and ethnic minority languages.

Paintings, photos, and propaganda posters are paintings, photos, posters, all kinds of flyers and leaflets serving the purpose of propaganda, promotion, slogans, photos of leaders, Party flags, National flags, and Union flags. period, Team flag.

(17) Public passenger transportation includes public passenger transportation by bus, tram (including tram) along intra-provincial and urban routes and neighboring extra-provincial routes according to the provisions of the Law. traffic laws.

(18) Goods that cannot be produced domestically may be imported in the following cases:

– Imported machinery, equipment, spare parts and supplies for direct use in scientific research and technological development activities;

– Machinery, equipment, spare parts, specialized means of transport and supplies need to be imported to conduct search, exploration and development of oil and gas fields;

– Airplanes (including aircraft engines), drilling rigs, and ships that cannot be produced domestically are imported to create fixed assets of the enterprise or rented from foreign countries to use for production and business. business, lease, sublease.

To determine whether goods are not subject to VAT at the import stage specified in this Clause, the importer must present to the customs authority documents according to the Ministry of Finance’s instructions on customs procedures; customs inspection and supervision; export tax, import tax and tax administration for exported and imported goods.

List of machinery, equipment, spare parts and supplies that can be produced domestically to serve as a basis for distinguishing those that cannot be produced domestically and need to be imported for direct use in scientific research and technological development; List of machinery, equipment, spare parts, specialized means of transport and supplies that can be produced domestically as a basis for distinguishing those that cannot be produced domestically and need to be imported to carry out operations. Search, explore and develop oil and gas fields; List of aircraft, drilling rigs, and ships that can be produced domestically as a basis for distinguishing those that cannot be produced domestically and need to be imported to create fixed assets of the enterprise or leased from foreign countries for use. Applicable for production, business, lease, and sublease issued by the Ministry of Planning and Investment.

(19) Weapons and equipment specifically used for national defense and security.

– Weapons and specialized equipment serving national defense and security according to the List of weapons and specialized equipment serving national defense and security issued by the Ministry of Finance in agreement with the Ministry of National Defense and the Ministry of Public Security.

Weapons and equipment specifically used for national defense and security that are not subject to VAT must be complete, complete products or specialized parts, components, and packaging used to assemble and preserve products. complete product. In cases where weapons and specialized equipment used to serve national defense and security must be repaired, weapons and equipment repair services performed by enterprises of the Ministry of National Defense and the Ministry of Public Security are not subject to VAT. .

– Imported weapons and equipment (including supplies, machinery, equipment, and spare parts) exclusively used for national defense and security are exempt from import tax according to the provisions of the Law on Export Tax and Tax. import or import according to annual quotas approved by the Prime Minister.

Documents and procedures for imported weapons and ammunition are not subject to VAT at the import stage according to the Ministry of Finance’s instructions on customs procedures; customs inspection and supervision; export tax, import tax and tax administration for exported and imported goods.

(20) Imported goods and goods and services sold to organizations and individuals for humanitarian aid and non-refundable aid in the following cases:

– Goods imported in the case of humanitarian aid or non-refundable aid must be confirmed by the Ministry of Finance or Department of Finance;

– Gifts to state agencies, political organizations, socio-political organizations, socio-political-professional organizations, social organizations, socio-professional organizations, armed forces units People comply with the provisions of law on gifts and donations;

– Gifts and gifts to individuals in Vietnam shall comply with the provisions of law on gifts and gifts;

– Belongings of foreign organizations and individuals according to diplomatic immunity standards according to the provisions of law on diplomatic immunity and privileges; Goods are belongings of Vietnamese people residing abroad when returning home;

– Carry-on goods within duty-free baggage standards;

The level of imported goods that are not subject to VAT at the import stage is according to the import tax exemption level specified in the Law on Export and Import Taxes and its guiding documents.

Imported goods of organizations and individuals that are subject to diplomatic immunity according to the provisions of law on diplomatic privileges and immunities are not subject to VAT. In case the subject of diplomatic immunity purchases goods and services in Vietnam that have VAT, it is subject to tax refund according to the instructions in Clause 7, Article 18 of Circular 219/2013/TT-BTC.

Subjects, goods, and documentation procedures to enjoy diplomatic immunities guided in this Article shall comply with the guidance of the Ministry of Finance on VAT refund for diplomatic missions and agencies. Consulates and representative agencies of international organizations in Vietnam.

– Goods and services sold to foreign organizations and individuals, international organizations for humanitarian aid and non-refundable aid to Vietnam.

Procedures for international organizations and foreigners to buy goods and services in Vietnam for humanitarian aid and non-refundable aid to Vietnam that are not subject to VAT: international organizations and foreigners must send a document to the sales establishment, clearly stating the name of the international organization or foreigner purchasing goods and services for humanitarian aid or non-refundable aid to Vietnam, the quantity or value of the type. purchased goods; confirmation from the Ministry of Finance or Department of Finance about this aid.

When selling goods, business establishments must issue invoices in accordance with the law on invoices, clearly stating that the goods are sold to foreign organizations and individuals, international organizations for non-refundable aid, Humanitarian aid does not include VAT and retains documents from international organizations or Vietnamese representative agencies as a basis for tax declaration. In cases where foreign organizations and individuals or international organizations purchase goods and services in Vietnam for non-refundable aid or humanitarian aid with VAT, they are eligible for tax refund according to the instructions in Clause 6 of Article. 18 Circular 219/2013/TT-BTC.

(21) Goods transferred or transited through Vietnamese territory; temporarily imported and re-exported goods; temporarily exported and re-imported goods; imported raw materials and supplies to produce and process export goods according to production and export processing contracts signed with foreign parties.

Goods and services are traded between foreign countries and non-tariff zones and between non-tariff zones with each other.

Non-tariff zones include: export processing zones, export processing enterprises, tax bonded warehouses, tax bonded areas, bonded warehouses, special economic and trade zones, commercial – industrial zones and other economic areas designated Establish and enjoy tax incentives such as non-tariff zones according to the Prime Minister’s Decision. The relationship of buying, selling and exchanging goods between these zones and the outside world is an export and import relationship.

Documents and procedures to determine and handle non-collection of VAT in these cases comply with the Ministry of Finance’s instructions on customs procedures; customs inspection and supervision; export tax, import tax and tax administration for exported and imported goods.

(22) Technology transfer according to the provisions of the Technology Transfer Law; transfer of intellectual property rights according to the provisions of the Intellectual Property Law. In case a technology transfer contract or intellectual property rights transfer includes the transfer of machinery and equipment, the subject is not subject to VAT calculated on the value of the transferred technology or intellectual property rights. cede; If it is not possible to separate, VAT is calculated on the value of technology, intellectual property rights transferred, transferred along with machinery and equipment.

Computer software includes software products and software services as prescribed by law.

(23) Imported gold in bars, pieces and other types of gold that have not been processed into fine arts, jewelry or other products.

Gold in bars, pieces and unprocessed types of gold are determined according to the provisions of law on gold management and trading.

(24) Exported products are natural resources and minerals that have not been processed into other products.

Exported products are goods processed directly from raw materials such as natural resources and minerals, with the total value of natural resources and minerals plus energy costs accounting for 51% or more of the product’s production cost. except for some cases as prescribed in Clause 1, Article 1 of Decree 146/2017/ND-CP.

(25) Artificial products used to replace a patient’s body parts, including products that are permanently implanted in the human body; crutches, wheelchairs and other specialized equipment for disabled people.

(26) Goods and services of business households and individuals with annual revenue of one hundred million VND or less.

Determining whether business households or individuals are or are not subject to VAT is carried out according to the guidance of the law on tax administration.

(27) The following goods and services:

– Goods sold duty-free at duty-free shops according to regulations of the Prime Minister.

– National reserve goods are sold by the national reserve agency.

– Activities that collect fees and charges from the State according to the law on fees and charges.

– Clearing of mines and explosives is carried out by defense units for projects invested with state budget capital.

Note: If goods are not subject to VAT at the import stage, if the purpose of use is changed, VAT must be declared and paid at the import stage according to regulations with the customs office where the customs declaration is registered. Organizations and individuals selling goods to the domestic market must declare and pay VAT to the directly managing tax agency according to regulations.

Above are 27 subjects not subject to value added tax in 2024.