AMENDMENTS TO THE GOVERNMENT’S DECREE NO. 181/2025/ND-CP DATED JULY 01, 2025 ELABORATING THE LAW ON VALUE-ADDED TAX

1. Addition of Clause 1b after Clause 1 of Article 4:

“1b. When enterprises, cooperatives, cooperative unions purchase products of agriculture production, forestry, husbandry, aquaculture and fishing that have not been processed into other products or have only been preprocessed, and subsequently sell them to other enterprises, cooperatives, cooperative unions, they are not required to declare and pay VAT but may still deduct input VAT.

To be specific:

a) Enterprises, cooperatives, cooperative unions that pay VAT using the credit-invoice method and sell the products of agriculture production, forestry, husbandry, aquaculture and fishing that have not been processed into other products or have only been preprocessed to other enterprises, cooperatives, cooperative unions for commercial purposes, they are not required to declare and pay VAT.

b) Enterprises, cooperatives, cooperative unions that pay VAT using the credit-invoice method and sell the products of agriculture production, forestry, husbandry, aquaculture and fishing that have not been processed into other products or have only been preprocessed to household businesses, individual businesses and other organizations and individuals shall pay 5% VAT as prescribed in Clause 3 Article 19 of this Decree.

c) Household businesses, individual businesses, enterprises, cooperatives, cooperative unions and other business organizations that pay VAT using the direct calculation method when selling products of agriculture production, forestry, husbandry, aquaculture and fishing that have not been processed into other products or have only been preprocessed for commercial purposes shall pay VAT at the rate of 1% of revenue (revenue multiplied by (x) 1%)."

2. Clause 3 Article 37 and Clause 3 Article 39 are annulled.

1. This Decree enters into force on January 01, 2026.

2. In cases where a business establishment that is eligible for VAT refunds prescribed in Article 15 of  the Law on Value-added Tax, has submitted the VAT refund claim which has been received by a tax authority before January 01, 2026, but has not received a VAT refund decision (or a decision on VAT refund and offsetting of excess VAT against amounts payable to state budget), payment of VAT by the sellers on the invoices issued to such business establishment is not an eligibility requirement for VAT refund.

3. Ministers, heads of ministerial-level agencies, heads of Governmental agencies, Presidents of the People’s Committees of provinces and centrally affiliated cities, relevant organizations and individuals are responsible for the implementation of this Decree.