Close
An overview by DFDL, Taxand Vietnam
The National Assembly of Vietnam has recently approved a new law on Value Added Tax (VAT), which will take effect from the 1st of July 2025. The legislation will modernise and consolidate existing VAT regulations, introducing key changes such as expanded taxpayer definitions to include foreign e-commerce suppliers, removal of non-cash payment thresholds for input VAT credits, revised VAT rates and exemptions, and new VAT refund categories.
It also reclassifies certain goods and services into higher VAT rate groups. From the 1st of January 2026, the VAT exemption threshold for individuals and households will increase to VND 200 million annually. Separately, a 2% VAT rate reduction for most goods and services, excluding specific sectors, has been extended for the first half of 2025, maintaining a temporary 8% VAT rate.
Jack Sheehan, Lan Hua and Dai Le from our Vietnamese member firm DFDL have published a more detailed overview of these changes in a tax alert, which can be read here.
For similar content to our Global Guide, subscribe to our mailing list and keep up to date.