Amendments to the Law on Value-Added Tax 2025

The amended Law on Value-Added Tax 2025, effective from January 1, 2026, revises and supplements a number of clauses of Article 5 on objects not subject to value-added tax as follows:

- To amend and supplement Clause 1:

Products of agricultural crops, planted forests, livestock, aquaculture, and capture fisheries that have not been processed into other products or have only undergone ordinary preliminary processing produced or captured by organizations and individuals for sale, and at the importation stage, are exempt from VAT.

Enterprises, cooperatives, and cooperative unions that purchase unprocessed or ordinarily preliminarily processed products of agricultural crops, planted forests, livestock, aquaculture, and capture fisheries for resale to other enterprises, cooperatives, or cooperative unions are not required to declare or pay value-added tax, but are entitled to credit input value-added tax.

- To amend and supplemeent Clause 25:

Goods and services of business households or individual business taxpayers with annual revenue of VND 500 million or less; assets sold by non-business organizations or individuals that are not VAT taxpayers; national reserve goods sold by national reserve agencies; and charges and fees collected under the law on charges and fees.

In addition, the Law also amends and supplements Clause 5 of Article 9 as follows:

• By-products, secondary products, and waste recovered in the production process shall be subject to the tax rate applicable to such by-products, secondary products, and waste.