Expanding the scope of goods and services exempt from value-added tax.

Decree 359/2025/ND-CP amends and supplements regulations on value-added tax, expands the scope of tax-exempt items, and provides guidance on declaration and deduction.

The Government has just issued Decree No. 359/2025/ND-CP dated December 31, 2025, amending and supplementing a number of articles of Decree No. 181/2025/ND-CP dated July 1, 2025, detailing the implementation of the Value Added Tax (VAT) Law.

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According to point a, clause 1, Article 1 of Law No. 149/2025/QH15, unprocessed or only minimally processed agricultural products, planted forests, livestock, aquaculture, and wild-caught aquatic products produced, caught, and sold by organizations and individuals themselves, and imported, will not be subject to Value Added Tax (VAT).

For businesses, cooperatives, and cooperative unions, if they purchase the above products and resell them to similar entities, they are not required to declare or pay VAT, but they are entitled to deduct input VAT. In the case of selling to households, individuals engaged in production and business, or other organizations, the applicable tax rate is 5%. With the direct calculation method, the VAT rate is 1% of revenue.

Decree 359/2025/ND-CP also repeals Clause 3 of Article 37 and Clause 3 of Article 39 of Decree 181/2025/ND-CP related to tax refund conditions. Accordingly, businesses that submitted tax refund applications before January 1, 2026 are not required to meet the conditions for declaring and paying VAT by the seller.

The decree, effective from January 1, 2026, aims to facilitate businesses, cooperatives, household businesses, and individuals in declaring, paying, and deducting VAT, while ensuring transparency and legality in tax management.

Source: https://congthuong.vn/mo-rong-doi-tuong-khong-chiu-thue-gia-tri-gia-tang-437281.html