New Tax Policies and Regulations Effective from July 1, 2025, in Vietnam

Here are some key highlights of new policies and legal documents taking effect in Vietnam from July 1, 2025, based on available information:

1. Tax Code Reforms

• Replacement of Tax Codes with Personal ID Numbers:
  • Individuals and businesses will use personal ID numbers instead of tax codes for tax registration and compliance, as per Clause 7, Article 35 of the Law on Tax Administration No. 38/2019/QH14 and Circular 86/2024/TT-BTC5.
  • Taxpayers must update their information on the General Department of Taxation’s portal (www.gdt.gov.vn).

2. VAT Adjustments

• Standard VAT Rate Remains at 10%:
  • The temporary 8% VAT reduction (applied from 2023-2025) ends on July 1, 2025, reverting to the standard 10% rate for most goods and services5.
  • Certain essential goods (e.g., agriculture, healthcare) continue to enjoy a 5% VAT rate.

3. 0% VAT for Exports & Non-Tariff Zones

• Goods/services sold to foreign entities for consumption outside Vietnam qualify for 0% VAT under Law No. 48/2024/QH15 and Decree 181/2025/ND-CP5.
• On-the-spot import-export transactions (goods delivered in Vietnam at a foreign buyer’s request) now qualify for 0% VAT under Law 90/2025/QH15.

4. Stricter VAT Compliance & Refund Rules

• Mandatory Non-Cash Payments for transactions ≥ VND 5 million (~USD 192) under Decree 181/2025/ND-CP5.
• VAT Refund Restrictions:
  • No refunds for mergers/splits.
  • Expanded eligibility for businesses with ≥ VND 300 million (~USD 11,900) in unclaimed input VAT over 12 months.

5. Higher VAT Exemption Threshold

• From January 1, 2026, small businesses and households with annual revenue ≤ VND 200 million (~USD 7,900) will be exempt from VAT (up from VND 100 million)5.

6. Personal Data Protection

• Decree 13/2023/ND-CP (effective April 2023 but reinforced in 2025) strengthens data protection measures, including:
  • Organizational & technical safeguards for personal data processing.
  • Enhanced state oversight for compliance1.

Key Legal Documents

• VAT Law No. 48/2024/QH15 (effective July 1, 2025).
• Decree 181/2025/ND-CP (VAT implementation rules).
• Circular 86/2024/TT-BTC (tax code reforms).
• Law 90/2025/QH15 (amending VAT & Customs Laws).

For official updates, refer to the Ministry of Finance or Vietnam Briefing