The Vietnamese Government Amends Several Provisions of the Value-Added Tax (VAT) Law

The Government of Vietnam has amended several provisions of the Value-Added Tax (VAT) Law. The new regulations relate to VAT-exempt goods and services, input VAT deduction requirements, and non-cash payment conditions. These amendments are set out in Decree No. 144/2026/ND-CP, which officially took effect on 20 June 2026.

Amendments to the List of VAT-Exempt Goods and Services

Articles 1 and 2 of Decree 144 amend and supplement certain provisions of Article 4 of Decree 181 by expanding the list of VAT-exempt goods and services. The newly exempt items include:

• Life insurance, health insurance, student insurance, and other insurance services relating to individuals;
• Pet insurance, crop insurance, and other agricultural insurance services;
• Insurance for fishing vessels, equipment, and other tools directly used in fishing activities;
• Reinsurance in accordance with the laws on insurance business;
• Insurance for petroleum facilities, equipment, and foreign oil tankers leased by foreign oil and gas contractors or subcontractors operating in Vietnam’s waters or in overlapping maritime areas where Vietnam and neighboring coastal states have agreed to jointly exploit resources.

In addition, commission income derived from insurance brokerage services is not subject to VAT.

Decree 144 also revises the VAT exemption rules on debt trading. Under the new regulations, debt trading includes the sale of both receivables and payables, as well as the transfer of certificates of deposit. Previously, only the sale of receivables and the transfer of certificates of deposit between taxpayers that were not credit institutions qualified for the VAT exemption.

New Regulations on Input VAT for Credit Institutions, Securities Companies, and Insurance Enterprises

Guidelines on determining deductible input VAT are provided in Article 3 of Decree 144, supplementing Clause 2, Article 23 of Decree 181.

Accordingly:

• Revenue of credit institutions and foreign bank branches shall be determined in accordance with the Law on Credit Institutions.
• Revenue from securities and stock market activities shall be determined in accordance with the Law on Securities.
• Revenue from insurance business activities shall be determined in accordance with the Law on Insurance Business.
• Revenue from VAT-taxable goods and services under these provisions also includes revenue from goods and services that are not required to be declared or paid for VAT purposes (if any).

Conditions for Input VAT Deduction on Deferred and Instalment Payments

Deferred or instalment purchases with a value exceeding VND 5 million that have not yet reached the payment due date remain eligible for input VAT deduction.

Article 4 of Decree 144 amends and supplements Point (g), Clause 2, Article 26 of Decree 181 regarding non-cash payment documentation for deferred or instalment purchases as follows:

• For deferred or instalment purchases of goods and services valued at VND 5 million or more, enterprises must possess a written sales contract, a VAT invoice, and non-cash payment documents in order to claim input VAT deductions.
• Where non-cash payment documents are not yet available because the contractual payment due date has not yet arrived, enterprises are still entitled to deduct input VAT.
• If, by the payment due date specified in the contract or its appendix, the enterprise fails to obtain non-cash payment documents, it must declare and reduce the previously deducted input VAT corresponding to the value of goods and services lacking valid non-cash payment evidence in the tax period when the payment obligation arises.
• If, after making such adjustment, the enterprise subsequently obtains valid non-cash payment documents, it may declare and deduct the corresponding input VAT in the tax period in which those payment documents are issued.

New Appendices on Exported Natural Resources and Minerals Not Eligible for VAT

Article 5 of Decree 144 stipulates that the Lists (Appendices I and II) attached to Decree 181 are replaced by the new Lists (Appendices I and II) attached to Decree 144.

Specifically:

• Appendix I provides the list of exported products consisting of unprocessed extracted natural resources and minerals.
• Appendix II provides the list of exported products consisting of processed extracted natural resources and minerals.

These lists are intended to align with the Government’s policy of discouraging or restricting the export of raw natural resources and minerals that are not eligible for VAT incentives.