How is value-added tax defined in Vietnam?

 It is applicable on most goods and services rendered during the process of production, circulation and consumption in Vietnam. There are indeed 3 tax rates – 0 percent, 5 percent and 10 percent:

• 0 percent – applicable to exported goods and services

• 5 percent – applicable to 15 categories of essential goods and services

• 10 percent – applicable to other goods and services

There are also exemptions applicable to 25 categories of goods and services.