- 1 On July 1, 2025, the Government issued Decree No. 181/2025/ND-CP and Circular No. 69/2025/TT-BTC detailing a number of articles of the Law on Value Added Tax.
- 1.0.1 Accordingly, some notable new points are as follows:
- 1.0.2 1. GOODS PURCHASED FROM 5 MILLION MUST HAVE NON-CASH PAYMENT DOCUMENTS
- 1.0.3 2. SOME NEW GUIDELINES ON NON-TAXABLE OBJECTS
- 1.0.4 3. SUPPLEMENTARY GUIDELINES ON TAXABLE PRICES OF GOODS AND SERVICES USED FOR PROMOTION IN SOME CASES
- 1.0.5 4. DETAILED GUIDELINES ON TAX PRICES FOR AGENT AND BROKERAGE ACTIVITIES FOR BUYING AND SELLING GOODS AND SERVICES WITH COMMISSIONS
- 1.0.6 5. CLARIFICATION OF THE TIME FOR DETERMINING VAT
- 1.0.7 6. VAT DEDUCTION FOR GOODS AND SERVICES CONVERTED FROM NON-TAXABLE TO TAXABLE
- 1.0.8 7. IMPORTED GOODS THEN EXPORTED TO OTHER COUNTRIES ARE NOT ENTITLED TO TAX REFUNDS
- 1.0.9 8. TAX REFUND GUIDELINES FOR BUSINESS ESTABLISHMENTS THAT ONLY PRODUCE GOODS AND PROVIDE SERVICES SUBJECT TO A VAT RATE OF 5%
On July 1, 2025, the Government issued Decree No. 181/2025/ND-CP and Circular No. 69/2025/TT-BTC detailing a number of articles of the Law on Value Added Tax.
Accordingly, some notable new points are as follows:
1. GOODS PURCHASED FROM 5 MILLION MUST HAVE NON-CASH PAYMENT DOCUMENTS
Previously, goods and services purchased each time with a value of less than 20 million VND did not need non-cash payment documents to deduct VAT according to the provisions of Clause 2, Article 12 of the Law on Value Added Tax 2008 (which has expired).
According to the new regulations in Article 26 of Decree 181/2025/ND-CP, business establishments must have non-cash payment documents for purchased goods and services (including imported goods) worth VND 5 million or more, including VAT.
Non-cash payment documents are documents proving non-cash payments according to the provisions of Decree No. 52/2024/ND-CP.
In the case of purchasing goods and services of a taxpayer with a value of less than VND 5 million but purchasing multiple times on the same day with a total value of VND 5 million or more, tax deductions are only allowed in cases where there are non-cash payment documents.
2. SOME NEW GUIDELINES ON NON-TAXABLE OBJECTS
Decree 181 adds new guidelines on non-taxable objects as follows:
– Adds additional processing methods: Milling, flaking, crushing, polishing, glazing, separating into parts, removing bones, chopping, peeling, grinding, rolling, and airtight packaging (Clause 1, Article 4).
– Supplementing the responsibility of the Ministry of Agriculture and Environment in determining unprocessed products or products that have only undergone conventional preliminary processing:
In case it cannot be determined, the Ministry of Agriculture and Environment is responsible for basing on the production process of crops, planted forests, livestock, aquaculture, and fishing products to determine whether the products are unprocessed into other products or have only undergone conventional preliminary processing by organizations and individuals that produce, catch, and sell them and at the import stage according to the provisions of law (Clause 1, Article 4).
– Issuing the List of exported products that are resources and minerals that have not been processed into other products and exported products that are resources and minerals that have been processed into other products that are not subject to tax (Appendix I, Appendix II).
3. SUPPLEMENTARY GUIDELINES ON TAXABLE PRICES OF GOODS AND SERVICES USED FOR PROMOTION IN SOME CASES
Article 6 of Decree 181 supplements guidance on taxable prices of goods and services used for promotion in some cases as follows:
– Selling goods and providing services with contest entry forms to customers to select prize winners according to the announced rules and prizes (or other equivalent forms of organizing contests and awarding prizes), the taxable price of goods and services does not include the value of the winning goods and services according to the contest entry form (if any).
– Selling goods and providing services together with participation in lucky programs where participation in the program is linked to the purchase of goods and services and winning prizes depends on the luck of the participants according to the announced rules and prizes, the taxable price of the goods and services does not include the value of the goods and services used to award prizes.
– Organizing regular customer programs, according to which the award to customers is based on the quantity or value of the purchase of goods and services that the customer performs, expressed in the form of customer cards, vouchers recording the purchase of goods and services, the taxable price does not include the value of the customer cards, vouchers recording the purchase of goods and services.
4. DETAILED GUIDELINES ON TAX PRICES FOR AGENT AND BROKERAGE ACTIVITIES FOR BUYING AND SELLING GOODS AND SERVICES WITH COMMISSIONS
This is a new content stipulated in Article 9 of Decree 181:
For agent and brokerage activities for buying and selling goods and services with commissions, the commissions earned from these activities do not include VAT, except for cases where VAT is not required, including:
– Revenue from goods and services sold by agents and revenue from commissions received from agent activities sold at the correct price prescribed by the party assigning the agent to receive commissions for the following services: postal, telecommunications, lottery ticket sales, airline, car, train, ship tickets; international transport agents; agents of aviation and maritime services to which the VAT rate of 0% is applied; insurance agents. – Revenue from goods and services and commission revenue from agents selling goods and services are not subject to VAT.
5. CLARIFICATION OF THE TIME FOR DETERMINING VAT
5.1. Telecommunication services
Clause 1, Article 16 of Decree 181 divides VAT determination into 03 cases for telecommunication services:
(1) For telecommunication services that require data reconciliation between service providers: The time for completing the reconciliation of service fee data according to the economic contract between service providers but no later than 02 months from the month in which the connection service fee arises.
(2) For telecommunication services provided on a fixed period: The time for completing the reconciliation of data between the parties (except for case 1) but no later than the 07th of the month following the month in which the service is provided or no later than 07 days from the end date of the agreed period. The convention period used as the basis for calculating the amount of services provided is based on the agreement between the service provider and the buyer.
(3) For prepaid card sales and connection fee collection services: Time of prepaid card sales and connection fee collection.
Previously, Decree 209/2013/ND-CP stipulated that for telecommunications services, it was the time of completion of data reconciliation on telecommunications connection service fees according to economic contracts between telecommunications service businesses, but no later than 2 months from the month of arising telecommunications connection service fees.
5.2. Supply of electricity and clean water
Previously, according to Decree 209/2013/ND-CP, the time for determining VAT for electricity and clean water supply activities was the date of recording the electricity and water consumption index on the meter to record on the bill.
According to the new regulations in Decree 181, the time for determining VAT for electricity and clean water supply activities is guided in more detail as follows:
Electricity supply
Clause 2, Article 16 of Decree 181 stipulates:
– For electricity sales activities of power generation companies in the electricity market: The time for reconciling payment data between the power system operator and the electricity market, the power generation unit and the power purchase unit according to the regulations of the Ministry of Industry and Trade or the power purchase contract has been instructed and approved by the Ministry of Industry and Trade but no later than the last day of the deadline for declaration and tax payment for the month in which tax obligations arise.
In particular, the electricity sales activities of power generation companies with a commitment to guarantee from the Government on the time of payment will be based on the Government’s guarantee, instructions and approval of the Ministry of Industry and Trade and the power purchase contracts signed between the power purchaser and the power seller.
– For electricity sales activities (except for the case specified in Point a of this Clause): The time for completing data reconciliation between the parties is no later than the 7th day of the month following the month in which the electricity supply occurs or no later than 7 days from the end of the convention period.
The convention period is used as the basis for calculating the amount of electricity supplied based on the agreement between the electricity supplier and the buyer.
Clean water supply
According to Clause 3, Article 16 of Decree 180:
For clean water supply activities: The time for completing data reconciliation between the parties is no later than the 7th day of the month following the month in which the water supply occurs or no later than 7 days from the end of the convention period.
The convention period is used as the basis for calculating the amount of water supplied based on the agreement between the water supplier and the buyer.
5.3. Real estate business, infrastructure construction, house construction for sale, transfer or lease
Previously, according to Decree 209/2013/ND-CP, the time for determining VAT for the above activities was the time of collecting money according to the project implementation progress or the collection progress stated in the contract. Based on the amount of money collected, the business establishment shall declare output VAT arising in the period.
According to the new regulation in Clause 5, Article 16, the time for determining VAT is as follows:
– In case of transferring ownership or right to use: The time of transferring ownership or right to use goods to the buyer, regardless of whether the money has been collected or not.
– In case of not transferring ownership or right to use but collecting money according to the project implementation progress or the collection progress stated in the contract: The date of collection or according to the payment agreement in the contract.
6. VAT DEDUCTION FOR GOODS AND SERVICES CONVERTED FROM NON-TAXABLE TO TAXABLE
According to Clause 7, Article 23 of Decree 181:
For goods and services converted from non-taxable to taxable according to the provisions of the Law on VAT, business establishments are only allowed to declare and deduct input VAT of goods and services used for production and trading of goods and services subject to VAT arising from July 1, 2025.
7. IMPORTED GOODS THEN EXPORTED TO OTHER COUNTRIES ARE NOT ENTITLED TO TAX REFUNDS
This is a new provision in Article 29 of Decree 181/2025, specifically:
Business establishments that export goods and services in a month or quarter, if the input VAT amount that has not been fully deducted is from VND 300 million or more, will be eligible for VAT refunds on a monthly or quarterly basis, except for imported goods that are then exported to other countries, in which:
Imported goods that are then exported to other countries are goods that the business establishment imports and then directly exports or entrusts the export, excluding goods that are imported raw materials for the production and processing of export goods.
8. TAX REFUND GUIDELINES FOR BUSINESS ESTABLISHMENTS THAT ONLY PRODUCE GOODS AND PROVIDE SERVICES SUBJECT TO A VAT RATE OF 5%
Business establishments that only produce goods and provide services subject to a VAT rate of 5%, if their input VAT amount has not been fully deducted from VND 300 million or more after 12 consecutive months or 04 consecutive quarters, will be eligible for a VAT refund.
This Decree and Circular take effect from July 1, 2025.
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