- New VAT Law Introduction: Vietnam’s National Assembly passed Law 48/2024/QH15 on November 26, 2024, which will take effect on July 1, 2025, replacing the existing VAT Law No. 13/2008/QH12 and its amendments, aiming to simplify and consolidate the regulatory framework.
- Key Changes to Taxation: The new law expands the taxpayer definition to include foreign suppliers involved in e-commerce, specifies the timing for VAT liability based on ownership transfer, service completion, or invoice issuance, and raises the VAT exemption threshold from 100 million VND to 200 million VND.
- Reclassification of VAT Rates: The law reclassifies certain VAT rates, including a 0% rate for exports, a 5% rate for specific agricultural machinery and offshore fishing vessels, and a 10% rate for digital services by foreign suppliers. Additionally, a reduced VAT rate of 8% will be extended for certain goods and services until June 2025 to boost consumption and production.
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