Official Letter No. 2524/CT-CS dated April 20, 2026, issued by the Tax Department on VAT policy

In cases where a Company, being a business establishment applying the VAT credit method, mortgages assets attached to land and land use rights to obtain a loan from a bank, and such mortgage transaction (of assets attached to land and land use rights) has been duly registered with the competent authority, upon the due date of repayment, if the Company is unable to repay the debt and the bank issues a written approval for the release of the mortgage to allow the Company to sell the assets for debt repayment, the proceeds from the sale of such assets shall be classified as not subject to VAT. 

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