- The Amended VAT Law, effective January 1, 2026, increases the VAT exemption threshold to VND500 million and replaces the presumptive tax regime with a declaration-based system for business households and individuals.
- Restrictive conditions for VAT refunds are removed, allowing buyers to claim refunds based solely on their own compliance, streamlining procedures and reducing business obstacles.
- Unprocessed agricultural products are now classified as non-taxable, exempting enterprises and cooperatives from VAT declaration and payment while allowing input VAT deduction.
- VAT rates on unprocessed or primarily processed agricultural products used for animal feed and medicinal materials are removed, reducing costs and boosting competitiveness in the agricultural sector.
- Overall, the amendments simplify tax compliance, reduce costs, and enhance efficiency and competitiveness for individuals, business households, and enterprises in Vietnam.
Source: indochinecounsel.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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