From July 1, 2025, Vietnam's tax policy system has recorded a series of important changes, directly affecting business individuals and enterprises. Specifically, the following new highlights are necessary for you to promptly grasp and properly fulfill your obligations according to legal regulations:
1. The Value Added Tax (VAT) Law 2024 officially comes into effect
The amended Law on VAT, effective from July 1, 2025, marks an important step forward in reforming the tax system. The revised contents include:
- Adjust the scope of goods and services not subject to VAT.
- Amending the principles of determining taxable prices for imported goods.
- Supplementing regulations on taxable prices for goods and services used for promotional activities.
- Adjust tax rates for certain groups of goods and services.
- Expand the scope of application of tax rate 0%.
- Add cases of VAT refund.
- Change the conditions for input tax deduction to tighten management and increase transparency.
The issuance and application of these new regulations are expected to create a synchronous legal corridor, support businesses and people in the process of fulfilling tax obligations, and at the same time contribute to the stable development of the economy.
2. Reduce 2% VAT according to Resolution 204/2025/QH15
The National Assembly passed Resolution No. 204/2025/QH15: apply VAT reduction from 10% to 8%, starting from 01/07/2025 to the end 12/31/2026.
The reduction applies to most goods and services, except for telecommunications, finance-banking, securities, insurance, real estate, minerals (except coal), goods and services subject to special consumption tax (except gasoline).
This new resolution marks a significant change in tax policy by expanding the scope of VAT reduction in 2% to many essential sectors such as transportation, logistics and information technology - industries that play a key role in the digital economy.
The notable difference is that the application period lasts until the end of 2026, giving businesses more room to make long-term plans and stabilize production and business activities.
3. Deduct and pay VAT and personal income tax via e-commerce platforms
According to Decree 117/2025/ND-CP Effective from July 1, 2025, e-commerce platforms must:
From date 01/07/2025, organizations operating e-commerce platforms – including owners or authorized parties in Vietnam and abroad – will directly perform the obligation to deduct and pay taxes on behalf of for individuals and businesses selling through their platform.
Specific withholding tax rates:
Value Added Tax (VAT):
- Goods: 1%
- Service: 5%
- Transportation services, or services accompanying goods: 3%
Personal income tax (PIT):
| Classify | Goods | Service | Transportation/Services with goods |
|---|---|---|---|
| Resident Individual | 0.5% | 2% | 1.5% |
| Non-resident individual | 1% | 5% | 2% |
Obligation to provide information:
Sellers on e-commerce platforms need to provide complete identification information for tax deduction purposes, including:
- Tax identification number or personal identification number (for Vietnamese citizens).
- Valid passport or equivalent document (for foreign citizens).
- Basic information as prescribed by e-commerce law such as: full name, address, contact, industry, payment method and list of goods/services being traded.
4. Businesses are required to switch to using electronic identification accounts.
According to the provisions of Decree 69/2024/ND-CP, from the date 01/07/2025, current accounts on the National Public Service Portal and the administrative procedure system (AP) at all levels will be no longer valid.
Instead, businesses are forced to use Business electronic identification account via VNeID platform to access and perform administrative procedures online as prescribed.
Recommendation: Businesses should h
Complete electronic identification registration before 01/07/2025 to avoid interruptions in the process of processing documents, paying taxes, applying for licenses or performing operations related to state management agencies. This is an important step in the process of digitizing administrative procedures and ensuring legality and data security.
5. Use personal identification number (ID) instead of tax code
From July 1, 2025, according to Tax Administration Law No. 38 and Circular 86/2024/TT-BTC, individuals, households and individual businesses will use personal identification numbers instead of tax codes, and at the same time eliminate the need to issue separate tax codes for each business location.
6. Decentralization and delegation in tax management
According to Decree 122/2025/ND-CP Effective from July 1, 2025, the Ministry of Finance and tax authorities will:
- Instruct taxpayers not to submit documents for tax declaration, tax payment, tax refund and related tax records that state management agencies already have, based on actual situation and information technology equipment conditions.
- Instructions on tax declaration and tax types, tax declaration period (month/quarter/year), declaration for each tax liability, tax finalization declaration.
- Instructions on the deadline for submitting tax declarations for agricultural land use tax, non-agricultural land use tax, land use fees, land rent, water surface rent, water resource exploitation right granting fees, mineral exploitation right granting fees, registration fees, etc.
7. Conditions for VAT deduction and non-cash payment
VAT Law 2024 adds provisions to encourage cashless payments:
- All purchased goods and services must have electronic documents to be tax deductible.
- If the enterprise does not deduct the full 300 million VND in input tax within 12 months, it will still be refunded input tax according to regulations.
8. Gasoline officially enjoys VAT incentives
To support economic stability, gasoline is for the first time subject to VAT rate of 8% according to Resolution 204/2025/QH15.
Specifically, after reducing VAT, the regulatory agency will reduce 101 VND/liter for E5 RON 92 gasoline and 128 VND/liter for RON 95 gasoline.
Maximum retail price after adjustment:
- E5RON92 gasoline: ≤ 20,530 VND/liter
- RON95-III gasoline: ≤ 21,116 VND/liter
9. Policy on real estate transfer tax and personal income tax
From 01/07/2025:
- Real estate sellers must declare the correct transfer price according to the market.
- The tax authority will use local reference price for comparison - if the declaration is found to be lower, then handle the collection.
- For individuals with income from transferring many real estates in a year, the tax authority may re-evaluate the nature of the activity as real estate business and apply the corresponding tax.
The uniform application of tax policies, especially from the date 7/1/2025, reflecting a trend of extensive reform to enhance transparency, adapt to digital transformation and support economic stability. Businesses and individuals doing business need to fully updated, quickly adapt to new regulations to ensure legal compliance and optimize benefits.