On December 11, 2025, the National Assembly of the Socialist Republic of Vietnam at its 10th session approved the Law on Amendments and Supplements to a Number of Articles of the Law on Value Added Tax 2025, Law No. 149/2025/QH15.

by KMC Consulting Company Limited

Accordingly, the latest new points of the Law amending and supplementing the Law on Value Added Tax 2025 are as follows:

1. Additional subjects not required to declare, calculate or pay VAT but still entitled to input VAT deduction

Pursuant to Point a, Clause 1, Article 1 of the Law amending and supplementing a number of articles of the Law on Value Added Tax 2025, Clause 1, Article 5 of the Law on Value Added Tax 2024 is amended and supplemented as follows:

  • Products of crops, planted forests, livestock and aquaculture products and captured fishery products that have not been processed into other products or have only undergone preliminary processing, produced or caught by organizations for sale and at the import stage.

Enterprises, cooperatives or unions of cooperatives that purchase products of crops, planted forests, livestock and aquaculture and fishery products that have not been processed into other products or are only preliminarily processing and sell  to other enterprises, cooperatives or unions of cooperatives are not required to declare,  calculate or pay value-added tax but are entitled to deduct input value-added tax.

2. Raising the VAT exemption turnover threshold to VND 500 million for business households and individuals

Pursuant to Point b, Clause 1, Article 1 of the Law amending and supplementing a number of articles of the Law on Value Added Tax 2025, Clause 25, Article 5 of the Law on Value Added Tax 2024 is amended and supplemented as follows:

Goods and services of production and business households and individuals with an annual turnover of VND 500 million or less; assets of non-business organizations and individuals who are not VAT taxpayers; national reserve goods sold by the national reserve agency; the collection of charges and fees in accordance with the law on charges and fees.

3. Re-stipulation of VAT rates for defective products, by-products and scraps recovered in the production process

Pursuant to Clause 2, Article 1 of the Law amending and supplementing a number of articles of the Law on Value Added Tax 2025, Clause 5, Article 9 of the Law on Value Added Tax 2024 is amended and supplemented as follows:

  • For defective products, by-products and scraps recovered in the course of production, the VAT rate applicable to such defective products, by-products and scraps shall apply.

4. Abolition of a number of regulations

Pursuant to Clause 3, Article 1 of the Law Amending and Supplementing a Number of Articles of the Law on Value Added Tax 2025, Clause 3, Article 12 and Point c, Clause 9, Article 15 of the Law on Value Added Tax 2024 are annulled as follows:

  • Clause 3, Article 12 of the Law on Value Added Tax 2024 on the method on the direct VAT calculation method applicable to production and business households and individuals that fail to comply with or insufficiently comply with accounting, invoices and documents regulations, under which VAT is paid according to the presumptive tax method specified in the Law on Tax Administration 2019, is abolished.
  • Annulling Point c, Clause 9, Article 15 of the Law on Value Added Tax 2024 on VAT regarding VAT refunds, under Article 15 of the Law on Value Added Tax 2024: The seller has declared and paid VAT in accordance with regulations for invoices issued to the business establishment applying for the VAT refund.

Note: The Law amending and supplementing a number of articles of the Law on Value Added Tax 2025 takes effect from January 1, 2026

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