Circular No. 69/2025/TT-BTC dated July 1, 2025, issued by the Ministry of Finance, provides detailed regulations on several provisions of the Law on Value-Added Tax and guides the implementation of Decree No. 181/2025/ND-CP, as follows:

by KMC Consulting Company Limited

1. Purpose of Issuance

This Circular provides detailed guidance on the Law on Value-Added Tax (VAT) and Decree No. 181/2025/ND-CP, assisting enterprises and tax authorities in properly complying with regulations.

2. Scope of Application

  • VAT taxpayers;
  • Tax administration authorities;
  • Organizations and individuals involved in VAT-liable activities.

3. Key Provisions

  a. VAT-exempt goods and services (Article 3)
     Taxpayers must prepare clear and adequate supporting documentation for goods and services that are VAT-exempt, such as:

  • Breeding animals and plant varieties;
  • Imported textbooks, newspapers, and magazines;
  • Humanitarian aid goods;
  • Transfers of intellectual property rights.

  b. 0% VAT rate (Article 4)
     Applies to exported goods and services. Complete documentation is required, especially for transactions conducted via e-commerce platforms.

  c. Application of percentage-based VAT calculation (Article 5)
     Applicable to certain groups of goods and services:

  • 1%: Wholesale and retail activities;
  • 5%: Accommodation services, brokerage, consultancy, asset leasing, etc.;
  • 3%: Manufacturing, transportation, construction involving materials;
  • 2%: Other activities not specifically listed.

  d. Payment of VAT on behalf of foreign entities (Article 6)
     Organizations in Vietnam paying VAT on behalf of foreign organizations/individuals must obtain valid tax payment documents in order to claim input VAT deduction.

  e. VAT refund (Articles 7 & 8)
     Provides clear methods for determining VAT refund amounts for:

  • Export activities;
  • Production and supply of goods/services subject to the 5% VAT rate.
    Taxpayers must clearly distinguish between separately accounted expenses and shared costs in order to accurately calculate the refundable amount.

  f. VAT for foreign organizations and individuals (Article 9)
Clarifies which foreign entities are subject to VAT in Vietnam.
Provides detailed guidance on tax calculation methods and applicable percentage rates for various activities (e.g., construction, services, equipment leasing, etc.).

4. Effective Date and Repeal of Previous Regulations

This Circular takes effect from July 1, 2025.
It replaces several previous circulars, including Circular No. 219/2013/TT-BTC, Circular No. 103/2014/TT-BTC, Circular No. 13/2023/TT-BTC, and other related regulations.

For more detailed information about this or related Tax Advisory, please don't hesitate to contact us.
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