Article 1. Scope of regulation

This Circular guides theapplication of value-added tax (VAT) rates to goods at the stages ofimportation, production, trading and consumption in Vietnam according toVietnam’s list of imports.

Article 2. Subjects of application

1. Organizations and individualsimporting, producing or trading in VAT-liable goods.

2. Tax administration agencies andrelated organizations and individuals.

Article 3. VAT tariff

The VAT tariff promulgatedtogether with this Circular comprises:

1. The VAT tariff detailedaccording to 8-digit headings and goods descriptions according to Vietnam’slist of imports promulgated together with the Ministry of Finance’s CircularNo. 156/2011/TT-BTC of November 14, 2011, and added with the item “Particular”with descriptions of specifications according to names of goods liable or notliable to VAT specified in the Value-Added Tax Law and the Law Amending andSupplementing a Number of Articles of the Value-Added Tax Law (belowcollectively referred to as the Value-Added Tax Law) and guiding legaldocuments.

2. VAT rates

a/ Mark (*) in the tax rate columnin the VAT tariff denotes commodity items not liable to VAT.

For example: The lines forpure-bred breeding horses (sub-heading 0101.21.00) and carriages for disabledpersons (sub-headings 8713.10.00 and 8713.90.00) have mark (*) in the tax ratecolumn. This means that commodity items under these 3 sub-headings are notliable to VAT.

b/ Mark (5) in the tax rate columnin the VAT tariff denotes commodity items subject to the VAT rate of 5% at allstages of importation, production, processing and trading (including cases inwhich enterprises or cooperatives that pay VAT by the credit method sellpreliminarily processed rubber latex, preliminarily processed pine resin orpreliminarily processed cotton to other enterprises or cooperatives at thestage of trading).

For example: The line forpreliminarily processed natural rubber latex (heading 40.01) has mark (5) inthe tax rate column. This means that such goods item is subject to the VAT rateof 5% at all stages of importation, production and trading. Even in case anenterprise or a cooperative that pays VAT by the credit method sellspreliminarily processed natural rubber latex to another enterprise orcooperative at the stage of trading, such goods item is still subject to theVAT rate of 5%.

c/ Mark (*, 5) in the tax ratecolumn in the VAT tariff denotes commodity items not liable to VAT at thestages of self-production, fishing for sale and importation, but subject to theVAT rate of 5% at the stage of trading, except the cases specified at Point b,Clause 3, Article 4 of this Circular.

d/ Mark (10) in the tax ratecolumn in the VAT tariff denotes commodity items subject to the VAT rate of 10%at all stages of importation, production, processing and trading.

For example: The line for bathtub(sub-heading 3922.10.10) has mark (10) in the tax rate column. This means thatsuch goods item, subject to the VAT rate of 10% at the stage of importation, isalso subject to the VAT rate of 10% at the stages of production, processing andtrading.

e/ Mark (*, 10) in the tax ratecolumn in the VAT tariff denotes the commodity item of imported gold in theform of bar or ingot not yet fashioned into fine-art articles, jewelry or otherproducts (heading 71.08), which is not liable to VAT at the stage ofimportation but liable to VAT at the stages of production, processing andtrading with the tax rate of 10%.

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