Tax & Pricing
Regulatory Update: Law No. 48/2024/QH15 on Value-Added Tax (VAT)
Key Provisions on Taxable/Non-Taxable Objects, Tax Rates, and VAT Refund for Goods, Services, and Digital Business Activities.
Law No. 48/2024/QH15 on VAT, passed by the National Assembly on November 26, 2024, is the new governing law for Value-Added Tax in Vietnam. This law consolidates regulations on taxable objects, tax rates, tax calculation methods, tax credits, and VAT refunds. Notably, it clarifies VAT obligations for foreign suppliers involved in e-commerce and digital platforms, and updates rules on non-taxable activities.
Key Highlights
- Scope of Application:
- Goods and services used for production, business, and consumption in Vietnam are generally subject to VAT.
- Taxpayers include businesses producing/trading taxable goods/services, importers, and foreign organizations/individuals supplying services to Vietnam (including via e-commerce/digital platforms).
- Key Updates (Taxable/Non-Taxable & Rates):
- Non-Taxable (VAT Exemptions – Điều 5): Includes certain raw agricultural products (unprocessed or only lightly processed) , life/health insurance , certain medical/veterinary services , and goods/services of business households/individuals with annual revenue under 200 million VND (effective 01/01/2026).
- Tax Rates (Điều 9):
- 0%: Applicable mostly to exported goods/services.
- 5%: Applies to essential goods/services like clean water, fertilizer, medicine, medical equipment, and educational materials.
- 10%: The standard rate, applying to all remaining goods and services, including digital services provided by foreign suppliers to Vietnamese customers.
- Effective Date:
- The main provisions of the Law are effective from July 01, 2025.
- The new annual revenue threshold (200 million VND) for VAT exemption for business households/individuals takes effect later, from January 01, 2026.
This summary is provided for reference purposes only and highlights key aspects of Law No. 48/2024/QH15. For full and legally binding content, please refer strictly to the attached official document.
Attached File:
📎 Law No. 48/2024/QH15 (Official PDF – signed & sealed)
