The Value Added Tax Law No. 48/2024/QH15 (hereinafter referred to as the “VAT Law 2024”), together with Decree No. 181/2025/NĐ-CP, effective from July 1, 2025, provides clear regulations on export services eligible for a 0% Value Added Tax (VAT) rate, aimed at enhancing the competitiveness of enterprises in the international market. In this article, Nacilaw offers a detailed analysis of the relevant legal provisions, including the types of export services, conditions for application, and cases not eligible for the 0% VAT rate, to assist enterprises in understanding and complying with the law.
1. Export Services Eligible for 0% VAT Rate
Pursuant to Point b, Clause 1, Article 9 of the VAT Law 2024, as guided by Clause 2, Article 17 of Decree 181/2025/NĐ-CP, export services eligible for the 0% VAT rate include:
- Services provided directly to organizations or individuals abroad, consumed outside the territory of Vietnam. A prerequisite is that the individual abroad must not be present in Vietnam during the provision of the service.
- Services provided directly to organizations in non-tariff zones, consumed within the non-tariff zone and directly serving export production activities. These services include:
- Transportation services, including container handling at ports, factories, or warehouses.
- Loading and unloading services at factories, ports, or airports.
- Related expenses such as documentation fees, delivery order fees, sealing fees, cargo handling fees, and packaging fees.
Note: Organizations in non-tariff zones must be registered businesses under applicable law.
2. Other Export Services
As stipulated in Point c, Clause 1, Article 9 of the VAT Law 2024, and further detailed in Clause 3, Article 17 of Decree 181/2025/NĐ-CP, other export services eligible for the 0% VAT rate include:
- International transportation: This includes the transport of passengers, luggage, or cargo on international routes from Vietnam to foreign countries, from foreign countries to Vietnam, or between foreign points of origin and destination. Domestic transport segments included in an international transport contract are also considered international transportation.
- Aviation industry services: These encompass services such as in-flight meal provision, aircraft takeoff and landing, apron parking, aircraft security, passenger and cargo security screening, baggage conveyor services, ground commercial technical services, aircraft towing and pushing, aircraft marshalling, passenger boarding bridge rental, flight operations, transportation of crew and passengers within the apron area, cargo loading and counting, services for passengers on international flights departing from Vietnamese airports, aircraft repair, and fuel supply for international flights. These services must be performed at international airports, airfields, or international air cargo terminals.
- Maritime industry services: These include tugboat services, maritime pilotage, maritime rescue, wharf and buoy services, loading and unloading, rope tying and untying, hatch cover operations, cargo hold cleaning, cargo counting and delivery, ship inspection, and ship repair. These services must be performed within port areas.
- Digital information content products: These include digital content products (text, data, images, or audio in digital form) provided to foreign parties, with documentation proving consumption outside Vietnam, such as:
- Information on the residency status of foreign organizations or individuals (e.g., payment address, delivery address, headquarters address, or similar information).
- Access information, such as the country code of the SIM card, IP address, fixed telephone line location, or similar data.
3. Conditions for Applying the 0% VAT Rate
To qualify for the 0% VAT rate, export services must meet stringent legal conditions, including:
- Not falling under the cases ineligible for the 0% VAT rate, as outlined in Section 4 below.
- Having a service provision contract with organizations or individuals abroad or in non-tariff zones.
- Providing non-cash payment documents, except in specific cases (e.g., services for passengers on international flights).
For international transportation, the following are required:
- A contract for transporting passengers, luggage, or cargo on international routes, or a ticket (for passengers). The contract must comply with transportation laws.
- Non-cash payment documents, or direct payment documents for individual passengers.
For aviation industry services, the following are required:
- A contract or service request from a foreign organization or airline.
- Non-cash payment documents, or direct payment documents for non-recurring, unscheduled services without a contract.
- For aircraft repair services provided to foreign organizations or individuals, the aircraft must undergo temporary import and re-export procedures as prescribed.
For maritime industry services, the following are required:
- A contract or service request from a foreign organization or ship agent.
- Non-cash payment documents from the foreign organization or ship agent.
- For ship repair services provided to foreign organizations or individuals, the ship must undergo temporary import and re-export procedures as prescribed.
Note: The requirements for contracts and payment documents do not apply to passenger service charges for international flights.
4. Cases Not Eligible for the 0% VAT Rate
Pursuant to Point d, Clause 1, Article 9 of the VAT Law 2024, as guided by Clause 4, Article 17 of Decree 181/2025/NĐ-CP, the following services and goods are not eligible for the 0% VAT rate:
- Transfer of technology or intellectual property rights abroad.
- Reinsurance services provided abroad.
- Credit provision, capital transfer, or derivative products.
- Postal and telecommunications services.
- Services provided in Vietnam for foreign organizations or individuals, including sports competitions, artistic performances, cultural events, entertainment, conferences, hotels, training, advertising, travel agency services; services related to the sale, distribution, or consumption of products or goods in Vietnam; and non-cash payment services.
- Services provided to organizations or individuals in non-tariff zones, including leasing of houses, conference halls, offices, hotels, or warehouses; transportation of workers; and catering services (except industrial meal provision and catering services within non-tariff zones).
5. Conclusion
The provisions of the VAT Law No. 48/2024/QH15 and Decree No. 181/2025/NĐ-CP establish a robust legal framework, enabling export processing enterprises and organizations operating in export processing zones to leverage the 0% VAT rate for export services. This benefit not only reduces costs and enhances global competitiveness but also allows enterprises to claim input VAT deductions or refunds. Nonetheless, strict compliance with requirements regarding contracts, non-cash payment documents, and legal records is critical to ensuring proper application of the law.
Nacilaw is committed to providing comprehensive legal advisory services, assisting enterprises with contract drafting, legal document review, and compliance with VAT regulations. For detailed guidance or legal support related to export services and the 0% VAT rate, please contact Nacilaw. Our team of experienced lawyers and experts stands ready to support you, ensuring optimal benefits and absolute compliance with legal requirements.
