New Regulations on VAT: What Businesses Need to Know!

On November 26, 2024, the National Assembly passed the amended Law on Value-Added Tax No. 48/2024/QH15, marking a significant step in modernizing Vietnam's tax system. This law not only directly impacts domestic businesses but also includes foreign providers operating in Vietnam. To best prepare for these changes, businesses must understand the key updates in Chapter I: General Provisions, including taxable and non-taxable subjects.

1. Taxable subjects
   Under the new regulations, goods and services used for production and business activities in Vietnam remain subject to VAT. This ensures transparency and fairness in the tax system while helping the government better manage financial transactions.

2. Non-taxable subjects
   Certain essential goods and services continue to be exempted to ease financial burdens on citizens and support priority industries. These include:

• Unprocessed agricultural products.
• Educational and medical activities.
• Land use rights transfer services.

This exemption not only protects consumer interests but also supports businesses in priority sectors.

3. New taxpayers
   A notable point in this revised VAT Law is the expansion of taxpayers, now including foreign providers operating through e-commerce platforms and digital technology. This demonstrates Vietnam's legal adaptability to the rapid growth of the digital economy and ensures fairness between domestic and international businesses.

Understanding the changes in Chapter I: General Provisions helps businesses avoid tax declaration errors, ensure legal compliance, and build long-term financial credibility.

If your business needs assistance or detailed advice on the new VAT Law, Viet Australia Auditing is ready to accompany you. With a team of experienced professionals, we will help your business prepare for all changes, ensuring transparency and efficiency in financial management.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.