Knowledge base

Ho Chi Minh City Tax Department responded to a query about VAT rates for domestic distribution and retail of pet food (HS 23091010) and animal feed raw materials (HS 2301.10.00) imported from South Korea. The question concerns whether these qualify as VAT-exempt "animal feed" under Clause 3, Article 5 of VAT Law No. 48/2024/QH15. However, the HCM Tax Department did not provide specific guidance, instead directing the business to submit a formal written request to their directly managing tax authority for case-specific guidance. The response did not clarify the applicable domestic sales VAT rate. Key point: import VAT (0% with C/O or 5% without C/O) and domestic sales VAT may differ, and the legal distinction between pet food and livestock feed under applicable law requires clarification.

The Ministry of Industry and Trade issued Consolidated Document No. 11/VBHN-BCT on 2 March 2026, integrating Circular 04/2020/TT-BCT and amending Circular 08/2026/TT-BCT (effective 25 February 2026). The document governs the full auction procedure for tariff-rate quotas (TRQ) on the importation of used vehicles from CPTPP member countries. TRQs are allocated through a competitive auction mechanism held annually in Q1 (no later than 15 April). Successful bidders are notified within 14 days and must present the Ministry's allocation notice to customs authorities when importing. Vehicles must satisfy CPTPP rules of origin with valid certificates, and must meet Vietnam's technical, safety, and environmental standards. The annual quota increases progressively from 66 vehicles (2020) to 150 vehicles (2034), then remains fixed from 2035 onward. Annex I was updated to replace the term "engine capacity (công suất)" with the correct term "engine displacement (dung tích)" pursuant to Circular 08/2026.

The Law on Fees and Charges No. 97/2015/QH13, effective since January 1, 2017, has now been consolidated as Document No. 92/VBHN-VPQH, folding in amendments from 19 related laws passed through late 2025, including the Law on Prices, the Law on Electronic Transactions, the Law on Telecommunications, the State Budget Law, the Law on Atomic Energy, the Law on Cybersecurity, and the Law on Employment. The law sets the nationwide list of fees and charges, the principles for setting collection rates (fees are meant to roughly cover the cost of a public service, while charges are fixed amounts not intended to cover costs), who must pay, which agencies may collect, and how the money is managed - mostly remitted to the state budget, with public service units allowed to retain part of it to cover their own service-delivery costs. For SMEs, this is the foundational legal text behind hundreds of specific fees and charges businesses pay when applying for licenses, registering a company, obtaining professional practice certificates, or handling import-export and port entry procedures. The attached schedule lists individual charges in detail (for example, import permit fees, professional certificate fees, outbound investment registration fees, and seaport or airport entry/exit fees) along with the agency responsible for setting each rate, mostly the Ministry of Finance. Several schedule items were recently updated by 2025 laws taking effect January 1, 2026 or July 1, 2026, adding fee items tied to atomic energy activities, cybersecurity, and national vocational skill assessments. Because this is a consolidated reference text rather than a newly enacted law, businesses do not need to take immediate action, but should consult it to confirm the current, accurate rules for the specific fees and charges that apply to their industry or activity.

The National Assembly Office has published Consolidated Document No. 90/VBHN-VPQH of the Law on Handling of Administrative Violations (Law No. 15/2012/QH13), merging all nine rounds of amendments since 2014, most recently Law No. 88/2025/QH15 (effective July 1, 2025) and upcoming changes taking effect July 1, 2026 under the new Cybersecurity Law and Anti-Drug Law. This is a reference consolidation, not new legislation, but it is the foundational legal basis for every administrative penalty decision a business may face. Key points for SME owners and accountants: fines imposed on organizations are always double the fine imposed on individuals for the same violation. Maximum fine caps are set by sector - for example, accounting, invoices, fees and charges, and national reserves top out at VND 50 million; customs and tax procedures top out at VND 100 million; while tax, independent audit, securities, competition, and personal data protection violations follow their own specialized laws rather than this general cap. The statute of limitations for imposing penalties is generally 1 year, extended to 2 years for violations involving accounting, invoices, fees and charges, securities, and intellectual property, while tax and independent-audit violations follow the limitation periods set in tax administration and independent audit law. The law also sets out five forms of penalty (warning, fine, suspension of licenses/operations, confiscation of exhibits or instrumentalities, and deportation), lists of mitigating and aggravating circumstances, cases where no penalty applies (force majeure, legitimate self-defense, etc.), and prohibited conduct by enforcement officials (harassment, soliciting money, covering up violations). Businesses should keep this consolidated text on hand when dealing with tax, customs, or sector inspectors, since it determines fine levels, limitation periods, and the right to appeal.

This is a consolidated circular issued by the Ministry of Industry and Trade (MOIT) on August 3, 2026, merging Circular No. 12/2018/TT-BCT (detailed rules implementing the Law on Foreign Trade Management and Decree 69/2018/ND-CP) with six subsequent amending circulars (42/2019, 08/2023, 38/2025, 15/2026, 26/2026, and 41/2026/TT-BCT) into one up-to-date text. It applies to Vietnamese traders and organizations/individuals engaged in foreign trade activities. The main content covers: (1) a detailed HS-code list of used consumer goods, medical devices, and vehicles banned from import; (2) application forms and procedures for licenses commonly needed by import-export businesses - Certificate of Free Sale (CFS), temporary-import re-export business licenses, cargo transit permits, and licenses to manufacture or export military uniforms; (3) rules on import tariff-rate quota goods - refined and raw sugar, salt, raw tobacco material, and poultry eggs - including which agency sets the annual quota (by November 15), eligibility to apply, required documents, the 10-working-day processing timeline, and quarterly reporting obligations. Businesses should note this consolidated text is for reference purposes only and does not itself create new legal obligations - it simply compiles provisions that took effect at various earlier dates (the newest constituent provisions, from Circular 41/2026/TT-BCT on the scrap-materials and used-goods list subject to a temporary-import ban, took effect September 5, 2026). It is a useful single reference for import-export, temporary-import re-export, and transit-trade businesses to see the full current set of rules in one place.

Decree 292/2026/ND-CP, issued on 22 July 2026 and published in Official Gazette No. 456 on 3 August 2026, provides detailed guidance for implementing Vietnam's Law on Foreign Trade Management. It is an overarching framework covering the entire spectrum of international goods trading: export, import, temporary import for re-export, temporary export for re-import, transshipment, transit, processing of goods involving foreign elements, and agency arrangements for buying and selling goods with foreign parties. For import-export businesses, the Decree clarifies that Vietnamese traders without foreign investment capital may freely conduct export-import business, except for goods on the prohibited or suspended lists, while foreign-invested enterprises (FIEs) may only export or import in line with their approved investment project and are barred from the temporary-import-re-export and transshipment trading business (FIEs may only transship goods shipped directly between the exporting and importing country, without passing through a Vietnamese border gate). The Decree sets out detailed dossiers, procedures, and processing timelines, typically 2-5 working days, for licenses covering special-case export or import of prohibited goods, goods under temporary suspension, temporary-import-re-export trading, and transshipment trading, along with the maximum storage period for temporarily imported goods in Vietnam, 60 days, extendable up to twice. The Decree also details the Certificate of Free Sale (CFS) for exported and imported goods, including the issuing authority, required dossier, processing time, and a 5-year validity period for export CFS. In addition, the Decree establishes a coordination mechanism among ministries and agencies for resolving international disputes over the application of foreign trade management measures, for example when a foreign government files a claim against Vietnam before an arbitral tribunal or international court. This is a foundational regulation that every import-export business, especially FDI enterprises and companies engaged in temporary-import-re-export or transshipment trading, needs to understand in order to comply correctly with licensing procedures and avoid violations.

The Ministry of Finance has responded to a query from an international freight forwarding agent about applying the 0% VAT rate to port handling fees and related charges (documentation fees, delivery order fees, cleaning fees, container balancing fees, container maintenance fees, agency fees) provided to an enterprise located in a non-tariff zone in connection with imported goods (machinery). Under Point b, Clause 1, Article 9 of VAT Law No. 48/2024/QH15 and Clauses 2, 4, and 5, Article 17 of Decree 181/2025/ND-CP, export services qualify for the 0% VAT rate when provided directly to an organization in a non-tariff zone and consumed within that zone to directly serve export production activities. The key condition is that the service must serve the export production of the receiving organization, not other activities, and must not fall under the exclusion list in Clause 4, Article 17 (such as leasing of housing or warehouses, catering services, or worker shuttle transport within the non-tariff zone). The Ministry did not issue a blanket ruling on each specific fee type, instead directing the company to compare its situation against the cited regulations. The key takeaway for businesses is that fees not explicitly named in Point b, Clause 2, Article 17 (such as cleaning fees, container balancing fees, container maintenance fees, and agency fees) may still qualify for the 0% rate if, in substance, they are services provided directly to a non-tariff zone organization, directly serve its export production, and are not covered by the exclusions. Logistics companies and freight agents should carefully examine the true nature of each fee and the intended use of the imported goods to apply the correct VAT rate and avoid the risk of tax reassessment during audits.

The Da Nang Tax Department responded to OBE Vietnam Co., Ltd. on issuing VAT invoices for export sample goods with no payment. Under Decree 320/2025/ND-CP and Circular 20/2026/TT-BTC, export samples without bank payment documents do not meet the conditions for the 0% VAT rate. The tax authority determined that goods exported without charge (no bank payment evidence) fall under the VAT-exempt category per Article 5 of the VAT Law, rather than the 0% taxable category. The company may therefore issue a VAT invoice marked 'Not subject to VAT' for these sample shipments. For case-specific guidance, the enterprise should contact the Da Nang Tax Department directly with actual documentation.

The Customs Department responds to an enterprise's question about handling a situation where customs authorities notify the enterprise of numerous 2024 and 2025 import declarations with incorrect HS codes, resulting in wrong VAT (reduced from 10% to 8%) and import duties (increased from 3% to 5%). The enterprise has paid the additional import duties but is unsure how to handle the overpaid VAT. The Customs Department guidance: Under Article 60(1) of Tax Administration Law No. 38/2019/QH14, overpaid VAT is handled in three ways: (1) offset against other outstanding tax debts; (2) deducted from the next tax payment; or (3) refunded when the enterprise has no outstanding tax debts. When offsetting against outstanding debts, no late-payment interest is charged for the period from the date of overpayment to the date of offset. Importantly, for VAT to be refunded through customs, the enterprise must first file an adjustment with the domestic tax authority (tax office) regarding previously credited VAT input, before requesting the refund from customs. After issuing a refund decision, customs provides information to the tax authority.

The Ho Chi Minh City Tax Department provides guidance on non-cash payment requirements for VAT input deductibility and CIT deductible expenses under the current legal framework. Under Article 14 of the Law on VAT 2024 and Article 26 of Decree 181/2025/ND-CP, purchases of goods and services worth VND 5 million or more (including imported goods) must be supported by non-cash payment instruments for input VAT to be deductible. Similarly, under Article 9 of the Law on Corporate Income Tax 2025 and Article 9 of Decree 320/2025/ND-CP, expenses on goods and services of VND 5 million or more must be supported by non-cash payment proof to qualify as deductible CIT expenses. Where a logistics company pays customs and transport fees of VND 5 million or more on behalf of the importer, and the importer does not comply with non-cash payment requirements, those expenses risk being disallowed for CIT purposes and the corresponding input VAT may not be deductible. The Tax Department advises businesses to study and comply with Article 14 of the VAT Law, Article 9 of the CIT Law, and their implementing regulations.

The Ministry of Finance clarifies the conditions for import duty exemption on goods imported for export processing when the taxpayer subcontracts processing to another entity. Under Article 10 of Decree 134/2016/ND-CP (as amended by Decree 18/2021/ND-CP), a company holding an export processing contract with a foreign party may pass materials to a Vietnamese sub-processor duty-free, provided the sub-processor owns or has the right to use a qualifying processing facility and equipment in Vietnam, and duly notifies customs of the sub-processing arrangement and contract. The Ministry does not explicitly confirm or deny whether a joint venture (lien danh) qualifies as an "organization" for this purpose. It directs the questioner to study applicable customs and import-export tax law independently. The key principle is that whichever entity receives the sub-processing work must meet all conditions of the Decree before the exemption applies.