Proposed VAT amendments to facilitate VAT refund procedure and support agricultural and related sectors
07 November, 2025
At a glance
On October 27, the Ministry of Finance released a draft law amending certain provisions of the Law on Value Added Tax No. 48/2024/QH15. These changes are expected to be effective from January 1, 2026.
The proposed changes in the draft aim to reduce certain obstacles related to VAT refund procedures and address challenges faced by businesses in the agricultural, seafood, and animal feed manufacturing sectors.
Proposed changes
Remove the requirement that sellers must have declared and paid VAT on invoices issued to buyers in order for the buyers to be eligible for VAT refunds.
Purchasers of products from cultivation, forests, animal husbandry, aquaculture, or fishing, that have not been processed into other products or have only undergone preliminary processing which then sell these products are not required to declare and pay VAT but are nevertheless able to claim creditable input VAT.
Products from cultivation, forests, animal husbandry, aquaculture, or fishing, that are unprocessed or have only undergone preliminary processing, and are used as animal feed or medicinal materials will be changed to be exempt from VAT or not required to declare and pay VAT, instead of being subject to a 5% VAT rate.
