Knowledge base

The Ministry of Finance clarified the bid-clarification procedure for electronic construction bid documents (E-HSDT) under the one-stage, single-envelope format: whether clarification may occur simultaneously across all evaluation stages or must follow a two-phase sequence. Under Article 30, clause 1 of Decree 214/2025/ND-CP, after bid opening contractors must clarify their bids upon the project owner's request. For key personnel and major construction equipment, clarification and supplementation apply only to the first-ranked bidder after financial evaluation. Under Article 29, clause 2, evaluation of personnel and equipment is initially based solely on commitments stated in the bid form (not attached documents), with detailed document-level evaluation occurring only after ranking. If the first-ranked bidder fails to satisfy personnel or equipment requirements after being asked to clarify and supplement or replace (up to 2 rounds per item), that bidder is disqualified, has its reputation assessed under Article 20, and has its account suspended for 3 months on the National E-Procurement System.

The Ho Chi Minh City Tax Department answered a company's query on how to determine taxable income for PIT purposes when the employer pays flight tickets and housing costs for Vietnamese employees reassigned to work in other provinces or cities within Vietnam. The tax authority's guidance: employer-paid flight tickets settled directly with agents on actual invoices for domestic reassignment assignments are not counted as the employee's taxable income, as they are actual business-travel costs rather than income. Employer-paid housing (where the employee pays and is reimbursed on actual invoices) is included in taxable income, but the amount included is capped at 15% of total taxable income (excluding the housing, utilities and related costs themselves). Applied to the example: salary income VND 65 million + housing VND 10 million (flight tickets VND 16.5 million are excluded). Whether the VND 10 million housing amount exceeds 15% of total taxable income must be calculated to determine the portion included in the taxable base.

The Ho Chi Minh City Tax Department advised a medical equipment importer that invoices may use the customer's common trade name for goods, supplemented by the registered name in parentheses, as long as the true nature, model, and type of goods can be identified. Under Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC, invoice goods names must accurately reflect the goods but need not exactly match the name on import documents. Companies may use the common name or the name in tender documents with the Ministry of Health-registered name in brackets. When adding a foreign language name on the invoice, it must appear below the Vietnamese text and in a smaller font size. If the goods bear a legally registered trademark, that trademark name must also appear on the invoice.

The Ho Chi Minh City Tax Department advised that an individual acting as an insurance sales agent receiving commission income does not need to register a household business, as this activity is treated as an individual in business under an agency contract. Under Decree 68/2026/ND-CP, if annual revenue (commissions) does not exceed VND 500 million, no VAT or personal income tax (PIT) is owed. If the threshold is exceeded, the individual must declare and pay tax starting from the quarter in which revenue exceeds VND 500 million. The VND 500 million threshold applies to total commission income received during the year. If the actual amount exceeds the threshold after initially being projected below it, tax filing starts from the quarter of exceedance only.

The tax authority advised that a household business purchasing cardboard scrap from individual collectors without invoices may use a procurement list (bang ke) as supporting documentation for deductible business expenses when computing tax, under Decree 68/2026/ND-CP and Circular 78/2021/TT-BTC. The procurement list must include seller information (name, address, national ID number), goods description (type, quantity, weight), unit price, total amount, purchase date, and payment vouchers. For transactions of VND 5 million or more, non-cash payment is mandatory. Other business expenses with proper invoices — electricity, water, telephone, transport, asset rental — are also deductible for personal income tax purposes.

The Ministry of Finance clarifies VAT policy for individual household businesses operating in education and vocational training. Under VAT Law No. 48/2024/QH15 and Decree No. 181/2025/ND-CP, teaching and vocational training activities conducted in accordance with education and vocational training law are VAT-exempt. Additionally, under Law No. 149/2025/QH15 amending the VAT Law, goods and services provided by household businesses with annual revenue of VND 500 million or less are also VAT-exempt. The Ministry advises the inquirer to review applicable regulations against their actual activities to determine the correct treatment.

The Ministry of Finance provides guidance on VAT applicable to household businesses selling goods on foreign e-commerce platforms, where goods are shipped from Vietnam to overseas consumers. The official image response shows the Hanoi Tax Department forwarding the inquiry (reference 060326-22) from Ms. Nguyen Thi Anh regarding VAT on goods exported via foreign e-commerce platforms. The Hanoi Tax Department acknowledges receipt and directs the inquirer to contact the tax office directly (phone 0983001726 or 024 33640589) for specific guidance on the 0% VAT rate applicable to exported goods not consumed in Vietnam.

The Ministry of Finance confirms that 10% VAT is correct for PT Precision Mechanical Company's service of processing auto parts from steel box materials. Under Article 1 of Decree No. 174/2025/ND-CP, product codes 241006 and 241008 (level-6 codes) are listed in Appendix I as goods excluded from VAT reduction - therefore the 8% reduced rate does not apply. The company's invoicing at 10% was correct. The customer's argument that the product falls under industry code group 25 and qualifies for the 8% rate has no basis under current regulations. For businesses using the credit method, the 8% VAT rate applies only to goods and services specified in Article 1 Clause 1 of Decree 174 - which does not include codes 241006 and 241008.

The Ministry of Finance provides guidance on the procurement of computers and printers for hamlets (thon/buon) to support administrative reform. The official response confirms that hamlets are not administrative units and do not fall under the equipment usage standards in Prime Minister Decision No. 15/2025/QD-TTg dated 14 June 2025. Regarding the state budget, State Budget Law No. 89/2025/QH15 provides that provincial People's Councils may determine the allocation of spending tasks between local budget levels, which may include supporting equipment procurement for hamlets if deemed appropriate. The Ministry recommends the inquirer consult the competent local authority for specific guidance.

The Ministry of Finance confirms that to be appointed as chief accountant or accounting manager, an individual must hold a chief-accountant refresher certificate AND have actual working experience in accounting, as required by Article 53(4) and Article 54(1) of the 2015 Law on Accounting. A person who holds only a second accounting degree but has never practiced accounting and lacks the refresher certificate does not meet the appointment requirements. For State Treasury transaction registration, the Ministry of Finance directs compliance with Article 7(1)(a) of Circular No. 157/2025/TT-BTC dated 31 December 2025. The second signatory on transaction documents must be the chief accountant, the accounting manager, or an authorized delegate. Appointing a person who does not meet these standards violates the Law on Accounting, and such a person does not have legal standing to register as the second signatory at the State Treasury.

The Ministry of Finance provides guidance on accounting for the 'Fund for the Poor' (Quy vi nguoi ngheo) at commune-level Vietnam Fatherland Front (MTTQ) committees under Circular No. 41/2022/TT-BTC. Two approaches apply depending on whether the unit maintains a separate accounting system for the fund. If the unit maintains a separate accounting system: use the account structure under Circular 41/2022, specifically Account 337 (earmarked contributions) and Account 511 (non-earmarked pooled contributions); do not use accounts under Circular No. 24/2024/TT-BTC. If no separate accounting is maintained: record fund activities within the entity's main books under Circular 24/2024, using Accounts 338, 512, or 711 as appropriate, and open separate sub-ledgers for the fund. In both cases, periodic income/expenditure reports must be prepared and financial information publicly disclosed in accordance with regulations.

The tax authority clarifies the personal income tax (PIT) treatment when two co-owners of a land parcel (Ms. Hao and Ms. Thao) jointly gift the land to three recipients: Ms. Hao's biological child (Mr. Trai), Ms. Thao's biological child (Mr. Hieu), and a nephew/niece (Hoang Dinh Ai Huu). The PIT exemption for gifts between parents and biological children applies only to the specific donor-recipient pair with that direct relationship. The tax authority determines: Mr. Trai is exempt on the portion received from Ms. Hao (his biological mother) but must pay PIT on the portion from Ms. Thao. Likewise, Mr. Hieu is exempt on the portion from Ms. Thao (his biological mother) but owes PIT on the portion from Ms. Hao. The nephew/niece has no parent-child relationship with either donor and must pay PIT on the full amount received. This analysis reflects the principle that the exemption applies to the individual donor-recipient relationship, not to the overall multi-party transaction.