Sending Excel files to foreign partners, is it considered a "service export"?
The owner of a business household in Ha Dong (Hanoi), operating in the field of financial service support, has signed a service provision contract with a foreign company. According to the contract, this business household will prepare financial and administrative reports as requested, then hand over the results in the form of Excel files sent via email.
The business owner said that all services are performed in Vietnam, but the user is a company abroad, so he thought this was a form of service export and was eligible for 0% VAT.
To clarify, this person sent a document asking the Ministry of Finance about the tax policy applied in his case.
Ha Dong Tax Team: Receive 0% VAT if eligible
On May 27, 2025, the Ha Dong District Tax Team issued a response document, clarifying many important points.
According to Circular 219/2013/TT-BTC, services are considered for export and are subject to 0% VAT if:
- Directly provided to organizations and individuals abroad.
- Services consumed outside of Vietnam.
- Have full documents, including contracts, invoices, bank payment documents, etc.
In addition, Appendix I of Circular 40/2021/TT-BTC also stipulates:
- Business households providing export services do not have to pay VAT.
- Only pay 2% personal income tax (PIT) on revenue.
However, the tax authority also emphasized: if the service does not meet export requirements, the VAT rate will be 5% or 10% depending on the type, while the personal income tax will still be 2%.
Important notes to enjoy 0% VAT
According to instructions from the Ha Dong District Tax Team, to enjoy a preferential tax rate of 0%, business households need to note:
- Contracts must be signed directly with foreign partners (not through intermediaries in Vietnam).
- Must prove that the service is consumed abroad, through the content of the contract and the method of product delivery.
- Payment must be made through a bank from the account of a foreign organization/individual.
If any of the above conditions are missing, the VAT rate will no longer be 0%, leading to a significant increase in costs.
Currently, many business households and freelancers in Vietnam are providing services to foreign partners in fields such as accounting, design, programming, financial consulting, translation, etc.
If they register to do business legally and meet the conditions for exporting services according to regulations, they can enjoy 0% VAT and 2% personal income tax - a great incentive to help reduce costs and increase international competitiveness. However, it is necessary to fully prepare contracts, documents and declare in accordance with regulations to apply this policy.
