Determining Cases Eligible for Value-Added Tariff Reduction Under Decree No. 174/2025/NĐ-CP
On September 29, 2025, the Base Tax Office No. 3 of Dong Nai Province issued Official Letter No. 7879/TCS3-QLDN1 regarding the reduction of value-added tariff (VAT) under Decree No. 174/2025/NĐ-CP for steel structure products.
Detailed instructions are as follows:
Step 1: Determine the product code according to Decision 43/2018/QĐ-TTg
- Product code 24 : Metal products
- Product code 25 : Fabricated metal products (excluding machinery and equipment)
Step 2: Compare with the List of Goods and Services Not Eligible for VAT Reduction under Decree 174/2025/NĐ-CP
“1. Value-added tariff reduction for groups of goods and services currently subject to the tariff rate of 10%, except for the following groups of goods and services:
- a) Telecommunications, financial activities, banking, securities, insurance, real estate trading, metal products, mining products (except coal). Details in Appendix I promulgated together with this Decree”
Step 3: Determine applicability
- If the product falls under Code 24 according to Decision 43/2018/QĐ-TTg, it is classified as a metal product and is not eligible for VAT reduction. Applicable tariff rate: 10%.
- If the product falls under Code 25 according to Decision 43/2018/QĐ-TTg, it is classified as a fabricated metal product and eligible for VAT reduction. Applicable tariff rate: 8%.
For example, Applicable to steel structure products (columns, beams, bracing):
Products under Product Code 25 according to Decision 43/2018/QĐ-TTg: Fabricated metal products:
- 2511013: Steel structures and mesh poles made of iron, steel, aluminum
- 2511019: Other structures and their parts of iron, steel, aluminum
Therefore, steel structure products (columns, beams, bracing) are not included in the List of Goods and Services Not Eligible for VAT Reduction under Decree 174/2025/NĐ-CP and shall be subject to the 8% tariff rate.
(According to Official Letter No. 7879/TCS3-QLDN1 dated September 29, 2025)
Application of Value-Added Tariff on Re-Imported Returned Exported Goods
On September 29, 2025, the Department of Tax Policy Management and Supervision of Fees and Charges issued Official Letter No. 1904/CST-GTGT regarding value-added tariff (VAT) applicable to exported goods that are returned and re-imported under customs regime A31.
Details of the guidance are as follows:
- From July 01, 2025, in cases where an enterprise sells goods to an export processing enterprise (EPE) but such goods are returned and re-imported, the returned goods shall be subject to VAT.
(Article 3 of the VAT Law 2024)
- The enterprise is entitled to deduct the VAT already paid on the returned goods upon re-importation or may be considered for a VAT refund in accordance with regulations.
(Articles 14 and 15 of the VAT Law 2024)
(According to Official Letter No. 1904/CST-GTGT dated September 29, 2025)
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