What’s New in Decree 144/2026/ND-CP? Important VAT Changes Businesses Need to Pay Attention To

The Government has officially issued Decree No. 144/2026/ND-CP to amend and supplement several provisions of Decree No. 181/2025/ND-CP regarding the implementation of the Law on Value-Added Tax (VAT). The new amendments mainly focus on: Conditions for input VAT deduction; Additional categories of non-VATable goods and services; Updated regulations on exported goods related to natural resources and minerals. These are critical issues that accounting and finance departments must closely monitor in order to avoid errors during tax declaration and settlement.

1. Addition of New Non-VATable Subjects

One of the most notable changes under Decree 144/2026/ND-CP is the expansion of the list of goods and services exempt from VAT, particularly in the insurance, financial, and mineral export sectors.

Addition of Insurance Services Exempt from VAT

Under the new regulations, several insurance products directly related to human welfare and agriculture are now classified as non-VATable, including:

• Life insurance;

• Health insurance;

• Student insurance;

• Livestock insurance;

• Crop insurance;

• Other agricultural insurance services.

In addition, reinsurance activities and certain insurance services supporting fisheries and petroleum exploitation are also exempt from VAT under the new rules.

This expansion helps create a clearer legal framework for insurance enterprises and reduces difficulties during tax declaration procedures.

Addition of Financial Activities Exempt from VAT

The new decree also revises regulations applicable to the finance and banking sectors.

Specifically, the following activities are now classified as non-VATable:

• Debt sales;

• Sales of receivables;

• Sales of payables;

• Sales of certificates of deposit.

This regulation is considered more consistent with the actual nature of financial activities and helps align tax regulations with the operational practices of credit institutions, banks, and enterprises involved in debt restructuring and receivable management.

2. Amendments to VAT Deduction Regulations

In addition to expanding non-VATable subjects, Decree 144/2026/ND-CP also revises several provisions relating to input VAT deduction conditions.

Under the new rules, for goods and services purchased under deferred payment or installment arrangements with a value of VND 5 million or more, enterprises may still declare and deduct input VAT if all of the following conditions are satisfied:

• A written purchase contract;

• A valid VAT invoice;

• Non-cash payment documents in accordance with regulations.

Important New Point

If the payment due date under the contract has not yet arrived, businesses are still temporarily allowed to declare input VAT deductions.

However, if the payment deadline arrives and the enterprise fails to provide valid non-cash payment documents, the enterprise must reduce the amount of previously deducted VAT.

Once sufficient valid payment documents are supplemented, the enterprise may re-declare and deduct the corresponding VAT amount in the tax period when the payment documents arise.

This regulation enables tax authorities to strengthen transparency control over payment transactions while limiting improper VAT deductions.

3. New Regulations on Non-Cash Payment Documents in Special Cases

Another important point in Decree 144/2026/ND-CP is the clarification of regulations concerning non-cash payment evidence in deferred payment and installment transactions.

Accordingly, for goods and services valued at VND 5 million or more:

• Enterprises are required to possess valid non-cash payment documents to qualify for input VAT deduction.

If the payment deadline under the contract has not yet arrived, businesses may still declare VAT deductions in advance.

However, if the payment due date arrives and the enterprise:

• Fails to make bank transfers;

• Lacks valid payment documents;

• Makes cash payments in violation of regulations;

then the corresponding input VAT amount will be adjusted downward.

Common Practical Errors

In reality, this is one of the most common reasons enterprises lose deductible VAT during tax inspections and audits.

Many businesses still make mistakes such as:

• Making cash payments for high-value transactions;

• Failing to monitor contractual payment deadlines;

• Bank transfer documents not matching payment contents;

• Payments made through accounts belonging to incorrect entities.

These issues may lead to:

• Disallowance of input VAT;

• Tax reassessments and back taxes;

• Late payment interest and administrative tax penalties.

Therefore, enterprises should:

• Review internal payment procedures;

• Closely inspect bank transfer documents;

• Regularly reconcile outstanding debts;

• Closely monitor contractual payment deadlines;

• Fully archive accounting and payment records;

in order to minimize tax risks during tax finalization and inspections.

4. Stricter Regulations on Exported Natural Resources and Minerals

Decree 144/2026/ND-CP also amends regulations relating to exported products derived from natural resources and minerals.

Accordingly:

• Unprocessed natural resources and minerals;

• Or processed products included in the restricted export list;

will fall under the category of non-VATable goods according to the list issued together with the decree.

In addition, the Ministry of Industry and Trade will coordinate with the Ministry of Finance to review and adjust the list in accordance with each stage of economic development and the State’s policy orientation toward limiting exports of raw natural resources.

This regulation reflects the Government’s orientation toward strengthening management over mineral exports and encouraging deeper processing before exportation.

5. What Should Businesses Do in Response to These Changes?

In light of the important amendments introduced by Decree 144/2026/ND-CP, enterprises should proactively:

• Update VAT regulations;

• Review input VAT deduction conditions;

• Examine non-cash payment procedures;

• Closely monitor deferred and installment debts;

• Correctly identify non-VATable subjects;

• Standardize accounting records and payment documents.

Timely updates and proper compliance will help businesses:

• Minimize tax risks;

• Avoid tax reassessments and penalties;

• Optimize VAT declaration processes;

• Improve transparency in financial and accounting management.

Decree 144/2026/ND-CP will officially take effect from June 20, 2026. Therefore, businesses should promptly review and prepare their systems to ensure full compliance with the new regulations.