VAT Rates for Air Ducts, Air Duct Accessories, and Fire-Resistant Air Ducts
RegHub explainer by New MarketerLast updated:
This explanation was generated by AI and checked by an automated AI review, not by a human expert. It is not legal, tax or accounting advice and may contain errors. Check the official document before you rely on it.
VAT on air ducts, air duct accessories and fire-resistant air ducts is not a flat figure: goods currently taxed at 10% are reduced to 8% (1 July 2025 - 31 December 2026) under Decree 174/2025/ND-CP, but products classified as "metal products" under Appendix I remain at 10%. The tax authority does not assign a rate; businesses must self-determine by cross-referencing the Vietnam Product Classification System (Decision 43/2018/QD-TTg).
Question
Phu Hung Industrial Services JSC asked about the applicable VAT rate for air ducts, air duct accessories and fire-resistant air ducts during the VAT reduction period under Decree 174/2025/ND-CP.
Official guidance
According to the response letter issued by Tax Sub-department 16 of Ho Chi Minh City on 3 March 2026:
National Assembly Resolution 204/2025/QH15 dated 17 June 2025 and Government Decree 174/2025/ND-CP dated 30 June 2025 reduce VAT from 10% to 8% for goods and services currently subject to the 10% rate. The reduction applies uniformly at all stages - import, production, processing and commercial trading - from 1 July 2025 to 31 December 2026.
However, the reduction does NOT apply to the categories listed in Appendix I (which includes telecommunications, financial services, banking, securities, insurance, real estate trading, metal products and mining products except coal) and Appendix II (goods and services subject to special consumption tax, except petrol). Items in Appendix I and II continue to bear 10% VAT.
For air ducts, air duct accessories and fire-resistant air ducts, the tax authority does not assign a single rate. Whether 8% or 10% applies depends on whether the specific product is classified as a "metal product" under Appendix I. Businesses must determine this themselves by cross-referencing the Vietnam Product Classification System issued with Prime Minister Decision 43/2018/QD-TTg dated 1 November 2018.
Action points
- Look up the product classification code for your air ducts, accessories and fire-resistant ducts in the Vietnam Product Classification System (Decision 43/2018/QD-TTg) to determine whether they fall under "metal products" (Appendix I).
- If the product does NOT fall under Appendix I or Appendix II: apply the 8% rate from 1 July 2025 to 31 December 2026.
- If the product falls under "metal products" in Appendix I: maintain the 10% rate.
- Retain classification documentation for audit purposes.
- If uncertain about the classification code, consult the tax authority or an experienced tax adviser for a binding determination.