From July 1, 2025, many important regulations on tax and value-added tax management will take effect according to Circular 86/2024/TT-BTC, Law on VAT 2024 and Law on Tax Administration as amended and supplemented. Below are 08 notable contents.
Major changes to tax code
According to Clause 2, Article 38 of Circular 86/2024/TT-BTC, the tax code issued by the tax authority to individuals, households, and business households is only valid until June 30, 2025. From July 1, 2025, the personal identification number will be used to replace the tax code according to the provisions of Article 35 of the Law on Tax Administration 2019.
Adjusting subjects not subject to VAT
The 2024 Law on VAT abolishes some groups of subjects not subject to VAT compared to current regulations, including: fertilizers; machinery and equipment for agricultural production; offshore fishing vessels; securities deposits; market organization services of securities trading offices, securities trading centers; other securities trading activities.
Exported products from natural resources and minerals after processing are only exempt from tax if they are on the list prescribed by the Government. In addition, the law adds tax exemptions for imported goods used to finance, support natural disaster prevention, control, epidemics, and war.
Amending taxable prices for imported goods
According to Article 7 of the Law on VAT 2024, the taxable price for imported goods is amended to: import tax calculation value according to the provisions of the law on export and import taxes; adding import tax; adding additional import taxes (if any); adding special consumption tax and environmental protection tax (if any). The new regulation clarifies the basis for tax calculation and is consistent with relevant laws.
Specific instructions for declaring input VAT incorrectly and incorrectly
At Point d, Clause 1, Article 14 of the Law on VAT 2024, in case a business establishment discovers incorrect declaration of input VAT, it is given specific instructions:
Open the arising period if the addition increases the amount of tax payable or reduces the amount of tax refunded. Taxpayers must pay the full additional payment and late payment fee (if any).
Open the discovery period if the addition reduces the amount of tax payable or only adjusts the tax amount to be deducted and transferred to the next period.
Supplementing tax refund cases
According to Article 14 of the Law on VAT 2024, businesses that only produce goods and provide services subject to a tax rate of 5% will be refunded if they have an input VAT that has not been fully deducted of VND300 million or more after 12 months or 4 consecutive quarters.
Changes in conditions for deducting input VAT
From July 1, 2025, all transactions of purchasing goods and services must have non-cash payment documents, including transactions under 20 million VND (except for some special cases as prescribed by the Government). In addition, documents such as packaging forms, receipts, and insurance documents (if any) are also recognized as the basis for deducting input tax on exported goods. (Clause 2, Article 14 of the Law on VAT 2024)
Adjusting VAT rates for some goods and services
Article 9 of the Law on VAT 2024 stipulates a number of major changes in tax rates:
Apply a 0% tax rate to: international transportation; construction works, installed abroad, in non-taxable areas; goods in quarantine areas, duty-free stores; aviation and maritime services for international transportation.
Apply a tax rate of 5% to items previously not subject to tax such as: fertilizers, fishing vessels in coastal areas.
Apply a tax rate of 10% to items previously classified as 5%, including: unprocessed forest products; sugar and sugar production by-products; specialized equipment and tools for teaching, research, and experimentation; cultural, artistic, sports and film activities.
Supplementing regulations for promotional goods
Article 7 of the Law on VAT 2024 adds a provision: the VAT price is 0 for goods and services used for promotion in accordance with the provisions of commercial law. This is a new point to synchronize tax policies with regulations on trade promotion.
