Regulations on value-added tax payers in Vietnam from July 1, 2025

Regulations on value-added tax payers in Vietnam from July 1, 2025

Value-added taxpayers in Vietnam from July 1, 2025, include:

(1) Organizations, households, and individuals producing and trading goods and services subject to value-added tax (hereinafter referred to as business establishments).

(2) Organizations and individuals importing goods subject to value-added tax (hereinafter referred to as importers).

(3) Organizations and individuals producing and trading in Vietnam purchasing services (including services attached to goods) from foreign organizations without a permanent establishment in Vietnam, individuals abroad who are non-residents in Vietnam, except in cases specified in sections (4) and (5);

Organizations producing and trading in Vietnam purchasing goods and services for conducting exploration, development, and exploitation of oil and gas fields from foreign organizations without a permanent establishment in Vietnam, individuals abroad who are non-residents in Vietnam.

(4) Foreign suppliers not having a permanent establishment in Vietnam engaging in business activities of e-commerce, digital platform-based business with organizations and individuals in Vietnam (hereinafter referred to as foreign suppliers);

Organizations managing foreign digital platforms performing tax withholding and payment on behalf of the foreign suppliers; business organizations in Vietnam applying the value-added tax calculation method which is the tax deduction method for purchasing services from foreign suppliers without a permanent establishment in Vietnam via e-commerce channels or digital platforms executing withholding and payment on behalf of the foreign suppliers.

(5) Organizations managing e-commerce trading floors, digital platform managers with payment functions performing tax withholding, paying, and declaring the amount of tax withheld for business households, individual businesses on e-commerce floors, digital platforms.

(5) The Government of Vietnam specifies details in sections (1), (4), and (5); regulations on taxpayers in cases where foreign suppliers provide services to purchasers being business organizations in Vietnam applying the tax deduction method specified in section (4).

More details can be found in Law on Value-Added Tax 2024 effective from July 1, 2025, except in cases specified in clause 2, Article 18 of the Law on Value-Added Tax 2024.

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