On November 26th, 2024, the National Assembly passed the Law on value added tax No. 48/2024/QH15 (replacing the Law on value added tax 2008), accordingly:
– Adjustment of objects not subject to VAT.
+ Eliminate some objects not subject to value added tax: Fertilizers; specialized machinery and equipment agricultural production; offshore fishing vessels; securities depository; market organization services of stock exchanges or securities trading centers; other securities business activities, and so on.
+ Exported products are resources, and minerals that have been processed into other products that are not subject to VAT, and must be applied according to the List prescribed by the Government.
+ Additional imported goods to support and sponsor the prevention of natural disasters, epidemics, and war according to Government regulations are not subject to VAT.
– Additional taxable prices for goods and services used for promotion: Taxable prices for goods and services used for promotion according to the regulations of commercial law, the taxable price is determined at 0.
– Adjustment of value added tax rates for certain goods and services:
+ Products not subject to tax will be changed to 5% tax: Fertilizer; Fishing vessels in the sea.
+ Products subject to a 5% tax rate will be changed to 10%: Unprocessed forest products; sugar; specialized equipment and tools for teaching, research, scientific experiments; and so on.
– Change the conditions for deduction of value-added tax: purchased goods and services must have non-cash payment documents, except for specific cases according to Government regulations; for exported goods and services, packing slips, bills of lading, goods insurance documents (if any); except for specific cases according to Government regulations, input VAT can be deducted.
– Additional cases eligible for VAT refund: Business establishments that only produce goods and provide services are subject to a 5% value added tax rate, if there is input value added tax that has not been fully deducted from 300 million VND or more after 12 consecutive months or 04 consecutive quarters will be eligible for a value added tax refund; in case the business establishments produce goods and provide services subject to multiple value added tax rates, they will be eligible for a value added tax refund according to the allocation rate prescribed by the Government.
The Law takes effect from July 01st, 2025, except for regulations regarding the revenue of households and individuals engaged in production and business that are not subject to tax in Clause 25, Article 5, and Article 17 of the Law, which takes effect from January 01st, 2026.
