01

Law on VAT No. 48/2024/QH15, Decree No. 181 & Circular No. 69/2025/TT-BTC

From 01 July 2025, the Value-Added Tax Law No. 48/2024/QH15, together with Decree No. 181/2025/ND-CP and Circular No. 69/2025/TT-BTC, officially takes effect, bringing significant changes to VAT policy.

Key highlights

Revisions to the list of non-taxable entities under VAT

Article 5 of the 2024 Law on VAT revises the provisions on non-VAT taxable objects previously stipulated in Article 5 of the 2008 Law on VAT, with specific guidance under Article 4 of Decree No. 181/2025/ND-CP.

• Certain VAT non-taxable entities under the 2008 Law are removed, including fertilizers, specialized machinery and equipment used in agricultural production, and offshore fishing vessels.
• Securities depository services, market organization services provided by stock exchanges or securities trading centers, and other securities trading activities are no longer treated as non-taxable in the same manner.
• Exported products made from natural resources or minerals that have been processed into other products are no longer VAT-exempt and must comply with the list prescribed by the Government.
• Imported goods donated or sponsored for disaster relief, disease prevention, or war-related humanitarian aid, as specified by the Government, are added to the list of VAT-exempt entities.

Additional provision on promotional goods

Article 7 of the 2024 Law on VAT introduces a new provision: for goods and services used for promotional purposes in accordance with commercial laws, the taxable value is determined as zero (0).

Amendment to the taxable value for imported goods

Pursuant to Article 7 of the 2024 Law on VAT, the VAT taxable value for imported goods shall be determined based on the import taxable value, import duty if any, any additional import duties if any, special consumption tax if any, and environmental protection tax if any.

• If imported goods are exempt from import duty, the VAT taxable value is the import taxable value.
• If imported goods are entitled to import duty reduction, the VAT taxable value is the import taxable value plus the reduced amount of import duty payable.
• If imported goods subject to VAT were previously exempt from import duty but later change in intended use, supplementary VAT must be paid on the import duty incurred.

Adjustment of VAT rates for certain goods and services

Pursuant to Clause 2, Article 9 of the 2024 Law on VAT, certain goods previously not subject to VAT are now subject to the 5% VAT rate, including fertilizers and fishing vessels operating in maritime zones.

Certain goods and services previously subject to 5% VAT are now subject to the 10% VAT rate, including unprocessed forest products; sugar and by-products from sugar production; teaching and learning equipment; and cultural, exhibition, physical training, sports, performing arts, film production, film importation, distribution and screening activities.

Changes in conditions to apply 0% VAT for goods and services provided to non-tariff zones

The 0% VAT rate now includes goods and services provided to organizations in non-tariff zones, consumed within the non-tariff zones, and directly serving export production activities, without the requirement for export customs documentation.

Expansion of entities eligible for the 0% VAT rate

• International transportation;
• Construction and installation projects carried out overseas or within non-tariff zones;
• Goods sold in isolated areas to individuals who have completed exit procedures and goods sold at duty-free shops;
• Exported services, including leasing of means of transport used outside Vietnam and aviation or maritime services provided directly to international transportation or through authorized agents.

Additional case for VAT refund

Enterprises that exclusively produce and supply goods or services subject to the 5% VAT rate shall be eligible for VAT refund if, after 12 months or 4 consecutive quarters, their uncredited input VAT reaches VND 300 million or more.

Changes in conditions for input VAT deduction

• For domestic purchases of goods and services, a VAT invoice is required.
• For imports, documents evidencing VAT payment at the importation stage are required.
• For VAT paid on behalf of foreign parties, documents evidencing VAT payment on behalf of the foreign entity are required.
• For invoices under VND 5 million, payment may be made in cash or via bank transfer and the input VAT is still deductible.
• If purchases from the same supplier on the same day total VND 5 million or more, non-cash payment is mandatory for input VAT deduction.
• For invoices with a total value of VND 5 million or more, non-cash payment is required.
• Cash deposits into the seller’s bank account are not accepted as valid non-cash payment evidence.

Input VAT deductible conditions for special goods and services

Input VAT is deductible if there is sufficient documentation proving that the goods or services have actually been exported or consumed outside Vietnam, including cases of export via overseas e-commerce platforms, bonded warehouses abroad, international trade fairs and exhibitions, isolated areas or duty-free shops, digital content products provided to foreign countries, subcontracted goods for further export, overseas construction and installation activities, and goods or materials used for overseas construction projects.

Non-cash payment methods

From 01 July 2025, Decree No. 181/2025/ND-CP and Decree No. 52/2024/ND-CP clearly stipulate acceptable non-cash payment methods for determining tax obligations and deductible expenses.

Note: Where the remaining value after applying permitted payment methods is paid in cash and amounts to VND 5 million or more, VAT deduction is allowed only if there is non-cash payment evidence for that remaining amount.

02

Resolution No. 204/2025/QH15: Extension of 2% VAT rate reduction

At the 9th meeting of the 15th National Assembly held on 17 June 2025, the National Assembly approved the Resolution on VAT reduction.

03

Decree No. 69/2024/ND-CP: Key updates on electronic identification of organizations

Under Decree No. 69/2024/ND-CP, from 01 July 2025, login accounts created by the National Public Service Portal or ministerial/provincial portals will no longer be valid for many administrative procedures.

All entities legally established and operating in Vietnam will be required to use organizational electronic identification accounts (“VNeID accounts”) to access digital administrative procedures such as tax filing, investment licensing, business registration, labor, insurance and customs procedures.

Failure to timely register for an e-identification account may lead to disruptions in e-invoice registration and adjustment, business license applications, work permits for foreign employees and other conditional business procedures.

Eligible representatives

Registration methods

1. Online registration: submit Form TK02 to the electronic identification management authority or the provincial/municipal police office where the enterprise is headquartered.
2. Direct registration: proceed via the latest VNeID application or visit https://vneid.gov.vn.

The processing time is no more than 03 working days from receipt of a complete and valid application.

04

Notification No. 220/TB-V01: E-ID accounts for foreigners

According to Notification No. 220/TB-V01 dated 17 June 2025, issued by the Ministry of Public Security, the Immigration Department has begun accepting applications for Level-2 electronic identification accounts for foreigners.

1. Go directly to the Immigration Department under the Ministry of Public Security or the provincial-level police office.
2. Present Form TK01, passport or international travel document, temporary residence card, mobile phone number registered under the applicant’s name, email address if any, and other requested information.
3. Provide facial images and fingerprints for verification with the National Immigration Database.
4. The immigration management authority sends the request to the electronic identification and authentication authority.
5. The registration result is notified via the National Digital Identification Application, registered mobile phone number or email address.

Estimated implementation timeline: trial time before 25 June 2025; peak period of 50 days from 01 July 2025 to 19 August 2025.

05

Decree No. 117/2025/ND-CP: E-commerce platform operators to withhold and pay taxes on behalf of individual entities

Scope and subjects of application

The Decree applies to organizations operating domestic and foreign e-commerce platforms and digital platforms, including platforms with or without payment functions, that make income payments to individual entities.

It also applies to individuals and household businesses, whether residents or non-residents, conducting business activities on these platforms.

E-commerce platforms with payment functions

Platform operators are responsible for withholding and remitting VAT and PIT on behalf of individuals for each revenue-generating transaction conducted on the platform, immediately upon confirmation and successful payment.

Note: If the transaction type cannot be determined, the organization shall apply the highest applicable tax rate for each category.

E-commerce platforms without payment functions

Individuals selling goods or services on platforms without integrated payment systems, such as Facebook or Zalo, remain required to self-declare and pay taxes in accordance with current regulations.

• Resident individuals must declare taxes monthly or per transaction, depending on the case.
• Non-resident individuals must declare each transaction separately and submit electronic tax documents to the E-commerce Tax Sub-Department.

Obligation to provide information

Sellers must provide their tax identification number and ID card or passport information to the e-commerce platform and are responsible for the accuracy of the information provided.

06

Law on Social Insurance No. 41/2024/QH15: Key updates in the 2024 Social Insurance Law

From 01 July 2025, the Law on Social Insurance No. 41/2024/QH15 officially takes effect, replacing the 2014 Social Insurance Law.

The 2024 Social Insurance Law aims to provide more comprehensive protection for employees while strengthening employer oversight. Businesses should review labor contracts, social insurance contribution conditions and HR/payroll systems to ensure compliance from 01 July 2025.

07

Corporate Income Tax Law No. 67/2025/QH15: Additional tax rate incentives and revised eligibility conditions

On 14 June 2025, CIT Law No. 67/2025/QH15 was enacted to simplify tax policies, promote investment and innovation, and ensure transparency, fairness and alignment with international practices, particularly the global minimum tax.