1) Agricultural goods, fertilizers & farm machinery (→ 5%)
- Previously: many items were non-subject to VAT.
- From July 1, 2025: these move into the 5% VAT bracket (e.g., unprocessed agricultural products, fertilizers, certain farm machinery).
Heads-up: The new 5% scope affects retail prices, contracts, and inventory tax mapping. Review SKUs and update your ERP/e-invoice settings.
2) Items moving from 5% → 10%
- Unprocessed forest products (certain categories).
- Sugar and by-products (e.g., molasses, bagasse).
- Learning devices and some culture/arts/sports services.
- Film production, import, distribution, and exhibition.
3) Temporary VAT reduction 10% → 8% (July 1, 2025 – December 31, 2026)
Broadly applicable to goods/services currently at 10%, with exclusions (e.g., telecommunications, finance, real estate, and goods subject to special consumption tax).
4) Input VAT & refunds
- Non-cash payment required for input VAT credit even for invoices below VND 20 million.
- Additional export documentation (e.g., packing list, bill of lading, cargo insurance) may be required for credits/refunds.
- Refunds remain for exports and qualifying investment projects; additionally, manufacturers supplying goods/services taxed at 5% can claim refunds when uncredited input VAT accumulates (threshold-based).
5) Import VAT taxable value
For imports, the VAT base includes: customs value at the border plus import duty plus special consumption tax (if any) plus environmental protection tax (if any).
6) Action checklist for businesses
- Remap your product tax matrix (5% / 8% / 10%).
- Update contracts, quotations, and price lists.
- Configure ERP/e-invoice software for new rates and evidence.
- Train accounting & sales teams on documentation and timing rules.
- Prepare refund dossiers early if input VAT accumulation is expected.