Official Letter No. 3129/QNG-QLDN1 dated November 21, 2025, issued by the Quang Ngai Provincial Tax Department, provides guidance on the allocation of deductible input value-added tax (VAT) for the year, is as follows:

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Input VAT on goods and services (including fixed assets) that are used concurrently for the production and business of VAT-taxable goods and services and non-VAT-taxable goods and services shall only be deductible  in respect of the portion attributable to the production and business of VAT-taxable goods and services. Business establishments are required to separately account for deductible input VAT and non-deductible input VAT. In cases where separate accounting is not possible, the deductible input VAT shall be determined based on the percentage ratio of revenue from VAT-taxable goods and services to the total revenue from goods and services sold during the relevant tax period.

From the effective date of the Law on Value-Added Tax No. 48/2024/QH15, there is no  regulation requiring business establishments to perform a year-end allocation of deductible input VAT for the year  for the purpose of declaring adjustments to input VAT that has been provisionally allocated and deducted on a monthly basis.

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