Value Added Tax Law 2024

Summary

The Value Added Tax (VAT) Law 2024 brings many important changes to better align with business realities and enhance tax management efficiency, entirely replacing the 2008 version.

The most notable point for business households and individuals is the increase in the non-taxable VAT revenue threshold. The threshold is raised from 100 million VND to 200 million VND/year, helping to reduce the tax burden for citizens.

In addition, the Law narrows the scope of non-taxable objects, subjecting certain important goods like fertilizers and specialized agricultural machinery to a 5% tax rate. This aims to allow domestic enterprises to claim input tax deductions, creating fair competition with imported goods.

Regulations on deduction conditions and VAT refund procedures are also tightened and clarified to prevent invoice fraud and tax evasion, while promoting cashless payments in transactions.