VAT Treatment for Soft Skills Training Services (Digital Marketing, Business Management)
RegHub explainer by New MarketerLast updated:
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The Ho Chi Minh City Tax Sub-department 2 advised that soft skills training in digital marketing and business management (industry code 8559) is VAT-exempt if it qualifies as "teaching and vocational training activities as regulated by the law on education and vocational education" under Article 5.13 of VAT Law 48/2024/QH15 and Article 4.7 of Decree 181/2025/ND-CP. Soft skills training centers may qualify as an "other center performing continuing education tasks" under Article 42.2 of Decree 125/2024/ND-CP (covering centers for knowledge enrichment, life skills, and workplace capacity building), or as a "vocational education institution" under Vocational Education Law 74/2014/QH13 - requiring the relevant registration certificate in either case. If the activity does not meet these conditions, the service is subject to 10% VAT (no preferential rate of 0%, 5%, or 8% applies). Businesses must self-assess against their actual circumstances and applicable law, bearing responsibility for accuracy under Article 17.2 of Tax Administration Law 38/2019/QH14.
Question
A business providing soft skills training programs in digital marketing and business management (industry code 8559), issuing certificates of completion, asks whether these programs qualify as VAT-exempt under the latest regulations (effective December 2025) and what rate applies if not (0%, 5%, 8%, or 10%).
Official guidance
HCM City Tax Sub-department 2 (Question ref. 060326-1 - Ms./Mr. Nguyen Linh) responded as follows:
1. VAT-exempt category
Under Article 5.13 of VAT Law 48/2024/QH15 and Article 4.7 of Decree 181/2025/ND-CP, "teaching and vocational training activities as regulated by the law on education and vocational education" are VAT-exempt.
A soft skills training center may qualify if recognized as:
- An "other center performing continuing education tasks" under Article 42.2 of Decree 125/2024/ND-CP: covers centers for foreign languages, IT, life skills, knowledge enrichment, culture, arts, and centers delivering programs to improve workplace capacity or update knowledge and skills. Establishment conditions are governed by Article 43 of the same Decree.
- A vocational education institution under Vocational Education Law 74/2014/QH13 (Articles 3 and 19) - requiring a vocational education registration certificate.
Education Law 43/2019/QH14 (Articles 5.1 and 5.2) defines continuing education as flexible-format programs delivered to meet lifelong learning needs.
2. If the exemption conditions are not met
Under Article 9 of VAT Law 48/2024/QH15:
- 0% rate: applies only to exported goods/services - not to domestic training services.
- 5% rate: applies to a specific list (clean water, fertilizers, medical equipment, books, etc.) - soft skills training is not on this list.
- 10% rate: applies to all goods and services not in the 0% or 5% categories.
- No 8% preferential rate exists in VAT Law 48/2024/QH15 (the 8% reduction was a temporary measure under earlier resolutions and is no longer in effect).
If the soft skills training does not meet the education/vocational education conditions, it is subject to 10% VAT.
3. Self-assessment responsibility
Under Article 6.4 of Tax Administration Law 56/2024/QH15 (amending Article 17.2 of Law 38/2019/QH14), businesses must "declare accurately, honestly, and completely" and bear legal responsibility for the accuracy of their tax files. Businesses must self-assess their actual activities against applicable law.
Action points
- Check your operating license: confirm whether the center holds a continuing education registration certificate (Decree 125/2024/ND-CP) or a vocational education registration (Law 74/2014/QH13).
- If no license yet: review the establishment conditions under Article 43 of Decree 125/2024/ND-CP and apply for a license if eligible - this is the path to VAT exemption.
- If licensing is not feasible: apply 10% VAT on soft skills training fees and update contracts and invoices accordingly.
- Consult a tax advisor if classification of your specific activities remains unclear.