- Vietnam’s National Assembly enacted new VAT and tax administration regulations during their eighth session ending on 30 November 2024
- These changes, effective from early 2025, impact businesses especially in the e-commerce and digital sectors
- Key amendments include a withholding tax obligation for e-commerce platform operators and 0% VAT for export services
- New VAT refund conditions were introduced along with increased VAT rates for foreign suppliers through e-commerce platforms
- Businesses are advised to review these changes to prepare for compliance in 2025
- VAT Law No. 48/2024/QH15 expands the scope of taxpayers to include foreign suppliers involved in e-commerce and digital businesses without a permanent establishment in Vietnam
- Operators of foreign digital platforms and e-commerce platforms with payment functions must withhold, declare, and pay taxes on behalf of business households and individuals
- The sale of debts is now VAT-exempt
- The revenue threshold for VAT and personal income tax for business households and individuals has been raised from VND 100 million to VND 200 million
- Invoice issuance now triggers VAT liability for the supply of goods
- Exported services eligible for 0% VAT include those consumed outside Vietnam or in non-tariff zones directly serving export production activities
- The VAT rate for foreign suppliers providing services through digital platforms has increased from 5% to 10%
- The new VAT Law introduces a list of prohibited acts related to VAT credit and refund procedures
- VAT refund eligibility has been extended to business establishments that produce goods or provide services subject to 5% VAT under certain conditions
Source: insightplus.bakermckenzie.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
