NEW FEATURES OF THE AMENDED VALUE-ADDED TAX LAW 2024

1. Stipulations effective from July 01, 2025

1.1. Adjustment to value-added tax (VAT) non-taxable objects:

Addition of the list of goods imported to support and finance disaster prevention and management, epidemic relief and war relief as stipulated by the Government shall be the VAT non-taxable objects.

1.2. Amendment of stipulations on the taxable prices of imported goods

- According to stipulations of the Value-Added Tax Law 2008: The taxable prices of imported goods is the import price at the border plus (+) import tax (if any), plus (+) special consumption tax (if any), and plus (+) environmental protection tax (if any). The import price at the border is determined according to the stipulations on the taxable prices of imported goods.

- According to stipulations of the Value-Added Tax Law 2024: The taxable prices of imported goods will be determined according to Article 7 of the Value Added Tax Law 2024, specifically: The taxable prices of imported goods is amended to the import taxable value as stipulated by the law on export and import taxes plus (+) import tax plus (+) any additional import taxes as stipulated by law (if any), plus (+) special consumption tax (if any) and plus (+)  environmental protection tax (if any).

1.3. Addition of taxable prices of goods and services used for promotional purposes:

Article 7 of the Value Added Tax Law 2024 has added the stipulation: The taxable prices of goods and services used for promotional purposes as stipulated by the law on commerce is determined to be 0 (zero).

1.4. Adjustment to VAT rates on certain goods and services:

1.4.1. Products previously exempt from VAT now subject to a 5% VAT rate:

- Fertilizers;

- Fishing vessels at sea.

1.4.2. Products previously subject to a 5% VAT rate now subject to a 10% VAT rate:

- Unprocessed forest products;

- Sugar; by-products of sugar production, including molasses, bagasse, and sludge;

- Specialized equipment and tools for teaching and learning, scientific research and experiments;

- Cultural activities, exhibitions, physical education, sports; artistic performances; film production; import, distribution and screening of films.

1.5. Addition of certain objects subject to a 0% VAT rate:

According to stipulation of clause 1 Article 9, certain goods and services will be subject to a 0% VAT rate, including:

- International transportation;

- Construction and installation projects carried out abroad or in non-tariff zones;

- Goods sold in isolation areas to individuals (foreigners or Vietnamese citizens) who have completed exit procedures; goods sold at duty-free shops;

- Export services: Rental services of means of transport used outside Vietnamese territory; aviation and maritime services supplied directly to international transportation or through agents.

1.6. Change in VAT deduction conditions:

1.6.1. For purchases of goods and services fewer VND 20 million are required to have non-cash payment documents

- According to stipulations of the Value-Added Tax Law 2008: Goods and services purchased individually with value fewer VND 20 million are not required to have non-cash payment documents in eligibility for VAT deduction.

- According to stipulations of the Value-Added Tax Law 2024: According to stipulation of clause 2 Article 14, the purchases of goods and services are required to have non-cash payment documents, except for certain specific cases as stipulated by the Government.

1.6.2. Addition of certain documents meeting the conditions for input VAT deduction

- According to clause 2 Article 14 stipulated conditions for input VAT deduction: For exported goods and services, additional documents such as packing slips, waybills, and goods insurance documents (if any) are required; except for certain specific cases as stipulated by the Government, input VAT deduction is permitted.

1.7. Addition of VAT refund cases:

- According to clause 3 Article 15, addition of VAT refund cases: Business establishments that only produce goods and provide services subject to a 5% VAT rate, if there is input VAT that has not been fully deducted from VND 300 million or more after 12 months or 04 quarters, it is eligible for a VAT refund.

2. The stipulations effective from January 01, 2026：Additional stipulation of goods and services produced and traded by households and individuals with annual revenue fewer VND 200 million are exempt from VAT.

The aforementioned is our updated content for your company's reference.

***Note:

-The translation is for reference only.