Decree No. 144/2026/ND-CP dated 05 May 2026 amending and supplementing certain regulations on Value Added Tax (VAT), effective from 20 June 2026 as follows:

by KMC Consulting Company Limited

1. Addition of VAT non-taxable objects:

a. Insurance services relating to individuals, agriculture, and fisheries:

  • Life insurance, health insurance, student insurance, and other insurance services relating to individuals.
  • Livestock insurance, crop insurance, and other agricultural insurance services.
  • Insurance for ships, boats, equipment, and other essential tools directly serving fishing activities.
  • Reinsurance in accordance with the laws on insurance business.
  • Insurance for petroleum facilities and equipment, foreign-flagged oil storage vessels leased by petroleum contractors or foreign subcontractors for operations in Vietnam’s maritime areas and overlapping maritime areas subject to joint exploitation agreements between Vietnam and neighboring or opposite coastal countries.

b. Financial, banking, and securities services:

  • Debt trading, including the sale of payables and receivables, and the sale of certificates of deposit.

c. Exported products:

  • Exported products being natural resources or minerals that are either unprocessed or processed but included in the State’s list of products not encouraged or restricted for export.

2. Amendments to regulations on input VAT creditable amounts, specifically the allocation of common input VAT where separate accounting is not available:

  • For credit institutions, branches of foreign banks, securities, and insurance businesses: Total revenue for allocation purposes shall be determined in accordance with specialized laws;
  • Taxable revenue used for calculating the allocation ratio shall also include revenue from goods and services not required to be declared and subject to VAT payment (if any).

3. New regulations on non-cash payment documents for purchases of goods under deferred payment or installment arrangements valued at VND 5 million or more:

  • Input VAT may still be declared and credited before the payment due date under a written contract;
  • If, by the payment due date, there is no non-cash payment document, the input VAT previously credited must be adjusted and reduced in the tax period in which the payment obligation arises;
  • After such adjustment, if a non-cash payment document is subsequently obtained, the input VAT may be re-declared and credited in the tax period when the non-cash payment document becomes available.

 

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