On the morning of December 11, within the framework of the 10th Session, the 15th National Assembly officially passed the Law Amending and Supplementing a Number of Articles of the Value Added Tax (VAT) Law with a very high approval rate (421/424 delegates).
The issuance of this Law is considered urgent in order to timely remove obstacles in tax refunds, support enterprises in quickly restoring production and business after natural disasters, and promote the development of the circular economy.
Crowe Vietnam respectfully presents to Enterprises the most critical new points of this Law, which will take effect from January 01, 2026:
1. Removing the “Bottleneck” Regarding VAT Refund Conditions
One of the most important changes awaited by the business community is the abolition of the regulation making tax refund conditions dependent on the seller.
- Old Regulation: The buyer was only eligible for a tax refund when the seller had declared and paid the tax.
- New Regulation: This condition is removed, helping to clearly separate the responsibilities and rights between the buyer and the seller.
- Impact: This amendment helps shorten the time for processing tax refund dossiers, ensures cash flow for enterprises, and unifies the management process in accordance with the Law on Tax Administration.
2. Incentives and New Policies for the Agricultural Sector
The new Law focuses on providing strong support for the agricultural sector through adjustments regarding non-taxable objects and tax rates:
- Restoring Preferential Regulations for B2B: Enterprises and cooperatives trading cultivation, husbandry, and aquatic products that are unprocessed (or only preliminarily processed) with each other will not have to calculate output VAT but are still allowed to deduct input VAT. This is a restoration of the regulations from the 2016 VAT Law aimed at facilitating the circulation of agricultural goods.
- Adjustment Regarding Animal Feed: Amending regulations on applying tax rates for agricultural products used as animal feed and medicinal materials to ensure fairness between domestically produced and imported goods. This creates motivation to reduce costs, directly supporting farmers.
- Encouraging the Circular Economy: Regulations on agricultural by-products and waste products have been technically revised to encourage recovery and reuse, contributing to environmental protection.
3. Raising the Non-Taxable Revenue Threshold for Business Households
Synchronized with the (Amended) Law on Personal Income Tax, the new VAT Law stipulates that goods and services of production and business households and individuals with an annual revenue of 500 million VND or less will be subject to non-taxable VAT (an increase compared to the old level).
The changes above, especially regarding the tax refund mechanism and policies for agricultural products, will have a significant impact on the cash flow strategies and tax compliance of enterprises starting from 2026. Enterprises should proactively update themselves on the upcoming detailed guidelines to optimize tax benefits.