Pursuant to Clause 27, Article 5 of the Law on Value Added Tax 2024, the following is stipulated:
Article 5. Goods and services not subject to VAT:
27. Business establishments trading in goods and services that are not subject to value added tax as prescribed in this Article are not entitled to deduct or receive a refund of input value added tax, except for cases where the 0% VAT rate is applied in accordance with Clause 1 Article 9 of this Law.
Accordingly, business establishments trading in goods and services not subject to VAT are not entitled to deduct or receive a refund of input VAT.
Only in cases where goods and services are eligible for the 0% VAT rate (as listed below) shall input VAT deduction and refund be considered in accordance with law.
a) Exported goods, including: Goods sold from Vietnam to foreign organizations or individuals and consumed outside Vietnam; goods sold from inland Vietnam to organizations in non-tariff zones and consumed within such zones for direct export production activities; goods sold in isolation areas to individuals (foreigners or Vietnamese citizens) who have completed exit procedures; goods sold at duty-free shops; on-the-spot export goods.
b) Exported services, including: Services provided directly to foreign organizations or individuals and consumed outside Vietnam; services provided directly to organizations in non-tariff zones and consumed within such zones for direct export production activities.
c) Other exported goods and services, including: International transportation; leasing of means of transport used outside the territory of Vietnam; aviation and maritime services provided directly or through agents for international transportation; construction and installation activities conducted abroad or within non-tariff zones; digital content products supplied to foreign parties with dossiers and documents evidencing consumption outside Vietnam in accordance with Government regulations; spare parts and replacement materials for repair and maintenance of vehicles, machinery, and equipment for foreign parties and consumed outside Vietnam; goods processed for onward export in accordance with law; goods and services not subject to VAT when exported, except for cases where the 0% VAT rate is not applicable as prescribed in Point d of this Clause.
d) Cases not eligible for the 0% VAT rate, including: Technology transfer and assignment of intellectual property rights abroad; overseas reinsurance services; credit granting services; capital transfer; derivative products; postal and telecommunications services; exported products prescribed in Clause 23 Article 5 of this Law; imported cigarettes, alcohol, and beer that are subsequently exported; gasoline and oil purchased domestically and sold to business establishments in non-tariff zones; automobiles sold to organizations or individuals in non-tariff zones.
(Pursuant to Clause 1 Article 9 of the Law on Value Added Tax 2024, as amended and supplemented by Article 4 of Law No. 90/2025/QH15)
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