Amended VAT Law 2025: Abolition of the condition linking VAT refunds to the seller’s declaration and tax payment; increase of the VAT exemption revenue threshold for household businesses to VND 500 million per year
On 11 December 2025, at the 10th Session of the 15th National Assembly, the National Assembly officially passed Law No. 149/2025/QH15 amending and supplementing a number of articles of the 2024 Law on Value-Added Tax (hereinafter referred to as the “Amended VAT Law 2025”)
The Amended VAT Law 2025 contains several notable provisions, including:
- Abolishing the condition that a buyer is only entitled to a VAT refund if the seller has declared and paid VAT on the relevant invoices used for the VAT refund claim.
- Increasing the VAT exemption revenue threshold for household and individual businesses to VND 500 million per year (previously VND 200 million per year).
- Enterprises, cooperatives, and cooperative unions that purchase agricultural, forestry, livestock, and aquaculture products—whether farmed or harvested—that have not been processed into other products or have only undergone simple preliminary processing, and subsequently sell them to other enterprises, cooperatives, or cooperative unions, are not required to declare, calculate, or pay VAT, while still being entitled to deduct input VAT in accordance with regulations.
The Amended VAT Law 2025 shall take effect from 1 January 2026.
For detailed information, please refer to the link.
