The National Assembly passed the Law amending and supplementing a number of articles of the Value Added Tax Law.

On the morning of December 11th, under the chairmanship of National Assembly Chairman Tran Thanh Man and the direction of National Assembly Vice Chairman Nguyen Duc Hai, the National Assembly passed the Law amending and supplementing a number of articles of the Value Added Tax Law with 421 out of 424 National Assembly deputies present voting in favor, achieving a rate of 99.29%.

Báo Đại biểu Nhân dân•11/12/2025

Household businesses with annual revenue of 500 million VND or more are not subject to tax.

The Law amending and supplementing a number of articles of the Value Added Tax Law consists of 2 articles and will take effect from January 1, 2026. This amendment to the Law is considered urgent and necessary to promptly overcome the consequences of natural disasters, storms and floods, and to quickly restore production and business, especially in the agricultural sector, while also removing the "bottleneck" in value added tax refunds.

Deputy Speaker of the National Assembly Nguyen Duc Hai presides over the session. Photo: Pham Thang

The law stipulates that cooperative enterprises and cooperative unions are not required to calculate value-added tax (VAT) but are entitled to deduct input VAT when selling unprocessed or only minimally processed agricultural, forestry, livestock, and aquaculture products to other cooperative enterprises and cooperative unions.

Also in the agricultural sector, the Law removes the provision that agricultural products, planted forests, livestock, aquaculture, and wild-caught seafood that have not been processed into other products or have only undergone basic processing and are used as animal feed or medicinal materials are subject to the value-added tax rate as stipulated for agricultural products, planted forests, livestock, and seafood as prescribed in Clause 5, Article 9 of the Value-Added Tax Law No. 48/2024/QH15.

Delegates attending the session. Photo: Quang Khánh

Another important change in this revision is the removal of the regulation that stipulated that buyers could only receive a tax refund if the seller had declared and paid the tax.

In addition, the Law adds goods and services produced and traded by households and individuals with annual revenue of 500 million VND or less as exempt from value-added tax, in order to align with the provisions of the amended Personal Income Tax Law.

Shorten the tax refund processing time for businesses.

In the report explaining, receiving feedback, and revising the draft Law amending and supplementing a number of articles of the Value Added Tax Law, Minister of Finance Nguyen Van Thang stated that, regarding the impact assessment of the policy contents in the draft law, the Government has issued Report No. 1170, in which the attached appendix includes an assessment of the impact on the legal system, the state budget, citizens, businesses, and tax administration agencies of each policy content in the draft law.

Minister of Finance Nguyen Van Thang presents the report explaining, receiving feedback, and revising the draft Law amending and supplementing a number of articles of the Value Added Tax Law. Photo: Pham Thang

Regarding the amendment of regulations on agricultural products, the report states that the Government has made technical revisions to the drafting and wording of the Value Added Tax Law of 2016, which has been implemented consistently over many years.

Regarding the amendment of regulations on waste, by-products, and scrap materials, this is a technical revision in the drafting process to ensure policy transparency, encourage the recovery and reuse of by-products and waste from agricultural products, and create momentum to promote the development of a circular economy in the agricultural sector, thereby contributing to reducing negative impacts on the environment.

Regarding animal feed, the amendment to regulations aims to ensure consistency among goods with similar uses, such as animal feed and medicinal herbs; it also ensures fairness between domestically produced and imported animal feed. This will create an incentive for businesses to reduce selling prices to support livestock farmers.

Regarding tax refund conditions, the Government has added content on impact assessment, including reports and the percentage of tax refund applications as stipulated in current regulations. Abolishing this regulation contributes to shortening the tax refund time for businesses, ensuring the proper responsibilities and separate rights of both buyers and sellers. Tax refunds will be implemented uniformly according to the provisions of the Tax Administration Law recently passed by the National Assembly, ensuring efficiency and strictness.

Comment (0)