View and download the infographic
Decree No. 144/2026/ND-CP, effective from June 20, 2026, will amend and supplement several crucial regulations regarding Value-Added Tax (VAT), including non-taxable objects and the principles of VAT deduction:
1. Addition of objects not subject to VAT (Non-taxable objects):
- Life insurance, health insurance, student insurance, and other human-related insurance services.
- Insurance for livestock, crops, and agricultural insurance services.
- Insurance for ships, boats, and equipment directly serving fishing activities.
- Reinsurance activities in accordance with the law on insurance business.
- Insurance for petroleum constructions, equipment, and foreign-flagged oil vessels operating in Vietnamese waters or joint exploitation zones.
This Decree also amends and supplements regulations related to debt selling (including the sale of payables, receivables, and certificates of deposit) and exported products that are unprocessed or processed natural resources and minerals, with the policy orientation of discouraging or restricting exportation.
2. VAT deduction for deferred payments:
- For goods and services purchased on deferred payment or installment plans valued at VND 05 million or more, business establishments are permitted to deduct the input VAT. This deduction must be based on economic contracts, VAT invoices, and non-cash payment vouchers.
- Notably, in cases where the payment deadline specified in the contract has not yet arrived and a non-cash payment voucher is not yet available, business establishments are still temporarily allowed to deduct the input VAT.
- However, if the payment deadline arrives and the business establishment still lacks non-cash payment vouchers, they must declare and make a downward adjustment to the previously deducted input VAT amount.
- If, subsequent to an adjustment, the business establishment obtains non-cash payment vouchers, it is entitled to declare and deduct the input VAT corresponding to the value of the goods and services supported by such non-cash payment vouchers in the tax period during which these vouchers are obtained.
