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Are vocational skills training services subject to VAT?

1. Which training services are exempt from VAT?

Based on Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the implementation of the Value Added Tax Law and Decree No. 209/2013/NĐ-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Value Added Tax Law, the following regulations are stipulated:

Based on the above regulations, if training activities are specified in Clause 13, Article 4 as being exempt from VAT, then they are exempt from VAT as stipulated in Clause 13, Article 4 of Circular No. 219/2013/TT-BTC.

2. Are vocational skills training services subject to VAT?

Based on Circular No. 219/2013/TT-BTC dated December 31, 2013 of the Ministry of Finance guiding the implementation of the Value Added Tax Law and Decree No. 209/2013/NĐ-CP dated December 18, 2013 of the Government detailing and guiding the implementation of a number of articles of the Value Added Tax Law, the following regulations are stipulated:

SoTo determine whether vocational skills training is subject to VAT, it is necessary to determine whether that vocational skills training falls under the category of... Is teaching and vocational training conducted in accordance with the law?.

You need to refer to the Vocational Education Law No. 74/2014/QH13 dated November 27, 2014, to determine whether the vocational skills training activity actually meets the regulations on teaching and vocational training as prescribed by law.

In cases where training activities focusing on specific professional skills are considered teaching or vocational training as defined by law, they are exempt from Value Added Tax (VAT) as stipulated in Clause 13, Article 4 of Circular No. 219/2013/TT-BTC. Conversely, if training activities focusing on specific professional skills are determined not to be teaching or vocational training as defined by law, they are subject to VAT as prescribed.
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