The National Assembly passed the Value-Added Tax Law

Official: On November 26, 2024, the National Assembly officially passed the Value-Added Tax Law

The Value-Added Tax Law of 2024 has many changes compared to the current law. According to Draft No. 5 (the latest draft), there are some notable changes such as:

Adjustments to the regulations on subjects not subject to VAT in Article 5 of the VAT Law No. 13/2008/QH12, amended by Law No. 31/2013/QH13, Law No. 106/2016/QH13 as follows:

- Removal of some subjects not subject to VAT compared to the current law, including:

• Fertilizers; specialized machinery and equipment for agricultural production; offshore fishing vessels;
• Securities depository; market organization services of the stock exchange or securities trading center; other securities trading activities...

- Exported products that are resources, minerals that have been processed into other products not subject to VAT must comply with the list prescribed by the Government.

Currently, exported products that are goods processed from resources and minerals with a total value of resources, minerals plus energy costs accounting for 51% or more of the product cost are not subject to VAT.

In addition, imported goods donated or sponsored for disaster, epidemic, and war prevention and control as prescribed by the Government are also not subject to VAT.

Article 14 of the draft VAT Law also adds the following case for tax refund:

Business establishments that only produce goods and provide services subject to a 5% VAT rate, if they have input VAT that has not been fully deducted from 300 million VND or more after 12 months or 4 quarters, are entitled to a VAT refund.

Additionally, the draft VAT Law also:

- Amends the tax base for imported goods
- Adjusts the tax rates of some goods and services
- Adds the tax base for goods and services used for promotion...

The Value-Added Tax Law 2024 officially takes effect from July 1, 2025, and replaces the VAT Law 2008, No. 13/2008/QH12, Law No. 31/2013/QH13 amending the Value-Added Tax Law.

Source: luatvietnam.vn

See the full details of the Draft here.