DECREE NO. 144/2026/ND-CP AMENDING AND SUPPLEMENTING REGULATIONS ON VALUE-ADDED TAX (VAT)

On May 5, 2026, the Government issued Decree No. 144/2026/ND-CP (“Decree 144”), amending and supplementing a number of provisions of Decree No. 181/2025/ND-CP (“Decree 181”), which details the implementation of several articles of the Law on Value-Added Tax (VAT). The new decree introduces a number of notable changes relating to VAT-exempt entities, conditions for input VAT deduction, and non-cash payment requirements.

1. Amendments and Supplements to VAT-Exempt Subjects

Articles 1 and 2 of Decree 144 amend and supplement several points and clauses of Article 4 of Decree 181 to add the following products and services to the list of VAT-exempt subjects:

• Life insurance, health insurance, student insurance, and other insurance services related to human life and health; livestock insurance, crop insurance, and other agricultural insurance services.
• Insurance for fishing vessels, boats, equipment, and other essential tools directly serving fishing activities.
• Reinsurance in accordance with the laws on insurance business; insurance for oil and gas facilities, equipment, and foreign-flagged oil storage vessels leased by foreign oil and gas contractors or subcontractors for operations in Vietnam’s maritime zones or overlapping maritime areas subject to joint exploitation agreements between Vietnam and neighboring or opposite coastal countries.
• Brokerage commission revenue from insurance services is also exempt from VAT.

In addition, Decree 144 revises the regulations on debt trading activities that are exempt from VAT. Under the new regulation, debt trading includes the sale of payables, receivables, and certificates of deposit. (Previously, only the sale of payables, receivables, and certificates of deposit conducted between taxpayers that were not credit institutions qualified for VAT exemption.)

2. Guidance on Determining Revenue for Input VAT Deduction Applicable to Credit Institutions, Securities, and Insurance Businesses

These are new provisions introduced in Article 3 of Decree 144, supplementing Clause 2, Article 23 of Decree 181, providing guidance on input VAT for goods in certain special cases as follows:

• Revenue of credit institutions and branches of foreign banks shall be determined in accordance with the laws on credit institutions.
• Revenue from securities and stock market activities shall be determined in accordance with securities laws; revenue from insurance business activities shall be determined in accordance with laws on insurance business.
• Revenue from VAT-taxable goods and services prescribed in this clause also includes revenue from goods and services that are not required to declare or calculate VAT (if any).

3. Deferred and Installment Payments Over VND 5 Million Not Yet Due Are Still Eligible for Input VAT Deduction

Article 4 of Decree 144 also amends and supplements Point g, Clause 2, Article 26 of Decree 181 regarding non-cash payment documents for deferred and installment purchases as follows:

For goods and services purchased on deferred payment or installment terms with a value of VND 5 million or more, businesses may rely on written purchase contracts, VAT invoices, and non-cash payment documents for such goods and services to claim input VAT deductions.

Where non-cash payment documents are not yet available because the payment due date under the contract or contract appendix has not yet arrived, businesses are still entitled to deduct input VAT.

By the payment due date specified in the contract or contract appendix, if the business does not have non-cash payment documents, it must declare and reduce the amount of deductible input VAT corresponding to the value of goods and services lacking non-cash payment documents in the tax period when the payment obligation arises under the contract or contract appendix.

If, after such adjustment, the business subsequently obtains valid non-cash payment documents, it may declare and deduct the corresponding amount of input VAT in the tax period in which the non-cash payment documents are obtained.

4. Replacement of the Appendix on Exported Natural Resources and Minerals Not Subject to VAT

Article 5 of Decree 144 replaces the Lists (Appendix I and Appendix II) issued together with Decree 181 with new Lists (Appendix I and Appendix II) attached to Decree 144.

Appendix I and Appendix II provide lists of exported products being unprocessed natural resources and minerals, as well as processed natural resources and minerals, in line with the State’s policy of discouraging and restricting exports of raw natural resources and minerals, which are not subject to VAT.

Decree 144 officially takes effect on June 20, 2026.