Effective from 01 July 2025: New VAT Law, Businesses Must Take Immediate Note!

Starting from 01 July 2025, the Value-Added Tax Law 2024 officially takes effect, introducing significant changes impacting the business and commercial activities of enterprises and household businesses.

1. Stricter conditions for VAT input credit

Enterprises may only claim input VAT credit if they possess valid non-cash payment evidence, applicable to all transactions, including those under VND 20 million. This requirement is exempt only in certain cases such as debt offsetting or payments made in the form of shares or bonds. Accordingly, enterprises must strictly monitor payment methods to avoid the risk of losing input VAT credit.

2. Changes in VAT rates

  • Fertilizers and agricultural machinery: shifted from non-taxable to subject to a 5% VAT rate.
  • Securities depository services: shifted from non-taxable to subject to an 8% VAT rate.
  • Households and individual business owners with annual revenue below VND 200 million: added to the non-taxable category (detailed guidance on determination and certification is not yet available).

3. VAT on imported goods

The VAT calculation formula for imported goods now includes an additional element—supplementary import duties (including safeguard duty, anti-dumping duty, and countervailing duty). Importing enterprises should take note to ensure accurate cost and tax liability calculation.

4. VAT reduction to 8%

Pursuant to Resolution 204/2025/QH15, most goods and services currently subject to the 10% VAT rate will be reduced to 8% from 01 July 2025 until 31 December 2026. Exceptions apply to specific sectors such as telecommunications, finance and banking, real estate, metal products, mining (excluding coal), and goods/services subject to special consumption tax (excluding gasoline).

5. Address on VAT invoices

Following the administrative unit rearrangement, enterprises are not immediately required to update their registered tax addresses. Depending on whether the tax authority has synchronized the new address in its system, enterprises may record either the old or new address on VAT invoices.

With these changes, enterprises should promptly review their payment methods, tax management practices, import plans, and business strategies to ensure compliance while leveraging legitimate tax reductions to optimize costs.

Please see full details here.

Please contact for free consultation: 

Email: admin@atim.com.vn - Hotline: 028 7301 3679 - Zalo OA

Knowledge center
Contact us