On November 26, 2024, the National Assembly enacted the Law on Value Added Tax 2024 (the Law on VAT 2024), replacing the Law on Value Added Tax 2008 and its amendments and supplements. The Law on VAT 2024 is developed and promulgated with the aim of refining VAT policies to enhance and broaden revenue sources, stabilize state budget revenues, address the recent issues in implementing the previous Law on VAT, as well as reform administrative procedures to facilitate and protect the rights of taxpayers. The Law will take effect from July 1, 2025, with several notable contents as follows:
(i) Supplement of the regulations on taxpayers;
(ii) Amendment and supplement of the regulations on non-taxable subjects and tax rates;
(iii) Amendment and supplement of the regulations on taxable prices and the timing of tax determination;
(iv) Amendment of the regulations on VAT deduction conditions;
(v) Supplement of the regulations on VAT additional declarations when declaring and deducting input VAT.
