On July 1, 2025, the Government issued Decree 181/2025/ND-CP (“Decree 181”) detailing certain provisions of the Value Added Tax (“VAT”) Law No. 48/2025/QH15. On the same day, the Ministry of Finance also issued Circular 69/2025/TT-BTC (“Circular 69”) providing detailed guidance on implementing the new VAT regulations.

These two documents mark significant changes in VAT regulations in Vietnam, directly affecting business operations. The article below will analyze in detail the important new points that businesses need to understand to ensure compliance.

1. New Regulations on Exported Goods and Services Eligible for 0% VAT

1.1. Services provided to organizations in non-tariff zones

Decree 181 has detailed the services provided to organizations in non-tariff zones (NTZ) that are eligible for 0% VAT, including:

• Services provided directly to organizations in NTZs and consumed within NTZs directly serving export production activities
• Transportation services, services provided to export processing enterprises (EPEs) such as:
  • Container lifting services at ports, factories, warehouses
  • Loading and unloading services at factories, ports, airports
  • Related incidental costs such as: document fees, delivery notification fees, seal fees, handling fees, packaging fees

1.2. Conditions for consumption within NTZs

To be eligible for 0% VAT, goods and services must meet the following conditions:

• Be consumed within the NTZ serving the export production activities of organizations in the NTZ
• Not serve activities other than export production activities

When requested by state management agencies, businesses must present documents and procedures proving they meet the conditions for applying 0% VAT.

2. New Regulations on Non-Cash Payment Documents

2.1. Non-cash payment threshold

The non-cash payment threshold for goods and services purchased (including imported goods) is set at 5 million VND or above (including VAT).

2.2. Expanded forms of non-cash payments

Decree 181 supplements cases considered as non-cash payments, including:

• Payment methods using stocks, bonds where this payment method is specifically stated in the contract
• Method of authorizing individuals who are employees to make non-cash payments according to the financial regulations or internal regulations of the business establishment, after which the business establishment reimburses the employees through non-cash payment methods

3. Conditions for VAT Deduction and Refund

3.1. Regulations on deduction conditions for special cases

Decree 181 stipulates VAT deduction conditions for certain special cases such as:

• Exporting goods through foreign e-commerce platforms
• Exporting goods stored in bonded warehouses abroad
• Digital content products provided to foreign parties

3.2. Tax refunds for businesses producing goods subject to multiple tax rates

New regulations added:

• Business establishments producing goods or providing services subject to multiple VAT rates are eligible for VAT refunds according to:
  • Input VAT used for producing goods or providing services subject to 5% VAT rate that is separately accounted for, or
  • According to the ratio between revenue from goods and services subject to 5% tax and total revenue

3.3. New tax refund condition regarding seller’s declaration

A notable point is that Decree 181 adds a new condition for VAT refunds:

Business establishments will only be eligible for VAT refunds if the seller has declared and paid VAT for invoices issued to the business establishment requesting the refund.

This imposes higher requirements for verifying the tax declaration status of suppliers before businesses can obtain VAT refunds.

4. Effective Date and Transitional Provisions

4.1. Effective date

• Decree 181 and Circular 69 take effect from July 1, 2025
• Circular 69 replaces current circulars providing guidance on VAT
• Abolishes all or parts of several other circulars, including VAT provisions of Foreign Contractor Tax as stipulated in Circular 103/2014/TT-BTC

4.2. Transitional provisions

Decree 181 clearly stipulates transitional provisions:

5. Impacts and Considerations for Businesses

5.1. Impact on export businesses and service providers to NTZs

Export businesses and service providers to organizations in non-tariff zones need to:

• Review their service portfolios to correctly identify subjects eligible for 0% VAT
• Establish rigorous document management systems to prove services are consumed within NTZs directly serving export production activities
• Prepare documents and procedures ready for presentation when requested by state management agencies

5.2. Impact on businesses requiring VAT refunds

Businesses should note:

• The new condition requiring sellers to have declared and paid VAT will increase businesses’ verification responsibilities regarding suppliers
• Businesses producing goods subject to multiple tax rates need separate accounting systems to facilitate tax refunds
• Need to understand transitional provisions clearly to apply correct regulations for each phase

5.3. Actions businesses need to take immediately

• Review internal processes for invoice and payment document management
• Update payment policies to accommodate newly supplemented non-cash payment methods
• Assess the impact of new regulations on business operations and cash flow
• Develop processes to verify suppliers’ VAT declaration and payment status

Conclusion

Decree 181/2025/ND-CP and Circular 69/2025/TT-BTC have introduced important new VAT regulations, especially conditions for applying 0% tax rate for exported goods and services, expanding non-cash payment methods, and conditions for VAT deduction and refund.

Understanding and complying with these new regulations will help businesses optimize tax obligations, avoid tax risks, and ensure business operations comply with the law.

Given the complexity of the new VAT regulations under Decree 181/2025/ND-CP, consulting tax law experts is necessary to ensure full compliance. Harley Miller Law Firm with its team of tax lawyers in Vietnam can support your business:

• Comprehensive assessment of your business’s current VAT compliance status
• Advice on accurate application of VAT rates for specific products/services
• Guidance on VAT refund procedures and new requirements
• Support during tax audits and resolution of disputes with tax authorities
• Regular updates on new interpretations and guidance from tax authorities

Contact us today to schedule a free 30-minute consultation on VAT compliance issues under Decree 181/2025. Be proactive in tax compliance to protect your business from unnecessary legal and financial risks.

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