Commodities free from VAT announced
VGP - The Ministry of Finance introduced a circular instructing the implementation of the Law on Value Added Tax (VAT). Accordingly, 26 kinds of goods and services will be exempted from VAT.
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Public telecomunications services are free from VAT. Illustration photo |
These commodities and services include products of cultivation, husbandry, and aquaculture; breeding animals, plant varieties; salt; irrigation and drainage services.
Other categories are State-owned houses sold to renters; transferable land use; life insurance, financial services, healthcare, post and telecommunications for public benefit, and Internet services popularized through the Government-sponsored programs.
The VAT-free list also covers imported planes, airplane engines, machinery and equipment for scientific research and technological development; weapons for national defense; transit goods across Việt Nam’s territories; temporary imports or re-exports; gold imported as bars, pieces and in the rough, and jewelry.
Goods and services to serve production, business and consumption in Việt Nam are subjected to VAT, including those purchased from foreign organizations and individuals.
The Law on VAT came into effect on January 1, 2009.
By Kim Anh
