Knowledge base

The Ministry of Finance provided guidance on VAT and PIT rates for the Tieng Vong Pho household business (Da Nang) operating multiple activities: bamboo lantern manufacturing (code 3290), lantern-making and coffee-brewing instruction (codes 8559, 8552), lantern and coffee retail (codes 4773, 5630), and craft experience services. Per guidance from the Da Nang Tax Department (issued June 25, 2014, effective July 1, 2014), based on Decree 65/2013/NĐ-CP and the PIT Law: Craft experience and coffee-brewing experience services are classified as distribution/goods supply services - 10% VAT, 1% PIT. Lantern and coffee bag sales - 10% VAT, 0.5% PIT. Art teaching and artistic education - 0% VAT (exempt), 1.5% PIT. The household business applies presumptive or percentage-of-revenue tax calculation methods.

The National Assembly Office has published Consolidated Document No. 90/VBHN-VPQH of the Law on Handling of Administrative Violations (Law No. 15/2012/QH13), merging all nine rounds of amendments since 2014, most recently Law No. 88/2025/QH15 (effective July 1, 2025) and upcoming changes taking effect July 1, 2026 under the new Cybersecurity Law and Anti-Drug Law. This is a reference consolidation, not new legislation, but it is the foundational legal basis for every administrative penalty decision a business may face. Key points for SME owners and accountants: fines imposed on organizations are always double the fine imposed on individuals for the same violation. Maximum fine caps are set by sector - for example, accounting, invoices, fees and charges, and national reserves top out at VND 50 million; customs and tax procedures top out at VND 100 million; while tax, independent audit, securities, competition, and personal data protection violations follow their own specialized laws rather than this general cap. The statute of limitations for imposing penalties is generally 1 year, extended to 2 years for violations involving accounting, invoices, fees and charges, securities, and intellectual property, while tax and independent-audit violations follow the limitation periods set in tax administration and independent audit law. The law also sets out five forms of penalty (warning, fine, suspension of licenses/operations, confiscation of exhibits or instrumentalities, and deportation), lists of mitigating and aggravating circumstances, cases where no penalty applies (force majeure, legitimate self-defense, etc.), and prohibited conduct by enforcement officials (harassment, soliciting money, covering up violations). Businesses should keep this consolidated text on hand when dealing with tax, customs, or sector inspectors, since it determines fine levels, limitation periods, and the right to appeal.

Responding to a business household leasing real estate across multiple provinces with estimated annual revenue above VND 3 billion, the Ministry of Finance (Tax Sub-Department Region 1, Ninh Binh) cited Decree 68/2026/ND-CP (issued March 5, 2026) and Personal Income Tax Law No. 109/2025/QH15 to outline the general declaration and tax calculation principles. Business households and individual traders with annual revenue above VND 500 million are subject to VAT and must use the direct method: VAT payable equals taxable revenue multiplied by the percentage rate for the relevant business line under VAT Law No. 48/2024/QH15. For personal income tax, individuals leasing real estate (excluding accommodation-service business) pay tax on the portion of revenue exceeding VND 500 million multiplied by the applicable tax rate. If an individual leases multiple properties within the same province or across different provinces, they must file one consolidated tax return and choose a single tax authority (in the locality of one of the leased properties) to submit it, unless the corporate lessee has already declared and paid tax on their behalf. The VND 500 million annual deduction can be applied flexibly: the taxpayer selects one or more lease contracts to apply it against first, and if the deduction is not fully used, continues applying it to other contracts until the full VND 500 million is used, capped at VND 500 million total per year across all contracts. Important caveat: the official reply addresses only the general VAT and PIT declaration principles under Decree 68/2026/ND-CP. It does NOT directly answer the taxpayer's specific question about how to determine depreciation costs for fixed assets acquired in 2020 when the original supporting documents are no longer available, nor does it address invoice-issuance requirements that the taxpayer also asked about. The business household should contact its managing tax authority directly for specific guidance on valuing undocumented assets and on invoicing obligations.

The Ministry of Finance issued an official response clarifying how deductible input VAT should be reflected in project investment settlement reports prepared on Form 01/QTDA under Decree 193/2026/ND-CP. Under Article 4 and Clause 2, Article 3 of Decree 193/2026/ND-CP, settled investment capital covers all lawful costs incurred within the approved project scope, budget estimate, and signed contracts. Citing Clause 2, Article 9 of Corporate Income Tax Law No. 67/2025/QH15 and Points dd and e, Article 14 of VAT Law No. 48/2024/QH15, the Ministry confirmed that for businesses paying VAT under the deduction method, input VAT that is creditable or has been refunded must NOT be included in the value of fixed assets, investment costs, or deductible expenses for corporate income tax purposes. Because Form 01/QTDA attached to Decree 193/2026/ND-CP has no separate line item for deductible VAT, project owners preparing settlement reports must determine the proposed settled investment capital value excluding any input VAT that is creditable or refundable under tax law. This is an interpretive application of existing law rather than a new rule, but it carries practical significance for project owners and project accountants compiling settlement dossiers.

The Ministry of Finance (via Tax Sub-Department 2 of Khanh Hoa Province) answered a household business's question about how to report revenue under 1 billion VND on Form No. 01/TKN-CNKD (issued under Circular 50/2026/TT-BTC), for taxpayers using the declaration method. Asked which column to use for revenue below the taxable threshold, the tax authority did not give a specific answer because the taxpayer did not state its business line, and instructed the reader to contact its managing tax office directly for guidance matching its actual business. On the second question - what cases Column 3, "Revenue not subject to VAT," covers - the Ministry confirmed the line item follows Article 5 of VAT Law No. 48/2024/QH15 (as amended by Law No. 149/2025/QH15 and Law No. 09/2026/QH16): it applies only to unprocessed or only preliminarily processed agricultural, forestry, and aquaculture products sold directly by the producing or catching organization or individual, or such goods at the import stage - not to every household business whose revenue simply falls below the VAT taxable threshold. This is an important clarification for household and individual businesses: revenue below the VAT taxable threshold (currently 1 billion VND) is not automatically the same as "revenue not subject to VAT" under Column 3 - these are two distinct concepts. Businesses should contact their managing tax office directly for guidance on which line item to use based on their specific business line, to avoid a misdeclaration that creates risk later.

A company that applies an end-of-period trade discount based on sales volume asked the Ministry of Finance how to prepare the listing attached to discount invoices, whether the discount value may be shown as a negative figure, and how to word the invoice's description line. The tax authority answered by citing Decree 254/2026/ND-CP and Circular 91/2026/TT-BTC (both dated June 30, 2026, guiding Tax Administration Law No. 108/2025/QH15 on e-invoices). Under the cited rules, when a business applies a volume- or revenue-based trade discount, the discount amount is adjusted on the invoice for the final purchase or a subsequent period, not exceeding the value of goods on that invoice, or an adjustment invoice may be issued together with a listing specifying the invoice numbers to be adjusted, the adjustment amount, and the adjusted tax; the listing is kept at the business and produced when the tax authority requests it. Notably, the rules confirm that a downward adjustment must be recorded as a negative figure and an upward adjustment as a positive figure, matching the actual adjustment - directly answering the company's question about negative figures. The tax authority did not specify the exact wording for the invoice's description line, instead directing the company to compare the cited regulations against its own actual circumstances, or contact Ho Chi Minh City Tax Sub-Department No. 12 (Business Support and Management Team No. 3) for further help. This guidance is useful for any business with a volume-based trade discount policy when issuing e-invoices under the new rules.

Vietnam's National Assembly is in the process of drafting and consolidating a State Budget Law, led by the Ministry of Finance with review by the Economic and Financial Committee. This draft law is expected to be presented at the First Extraordinary Session of the 16th National Assembly term. The official passage date has not yet been announced and remains pending. At this stage, the detailed content of the draft has not been fully published in the source material - only information about the drafting agency, the reviewing committee, and the expected submission timeline is available. The State Budget Law is a foundational legal instrument governing state revenue, expenditure, and fiscal management, with broad implications for tax policy, public resource allocation, and the overall business environment. Businesses, particularly those that transact with the public sector or are affected by fiscal policy, should monitor the progress of this draft law. RegHub will provide updates once the detailed content and specific provisions of the draft become available.

The Ministry of Finance has responded to a query from an international freight forwarding agent about applying the 0% VAT rate to port handling fees and related charges (documentation fees, delivery order fees, cleaning fees, container balancing fees, container maintenance fees, agency fees) provided to an enterprise located in a non-tariff zone in connection with imported goods (machinery). Under Point b, Clause 1, Article 9 of VAT Law No. 48/2024/QH15 and Clauses 2, 4, and 5, Article 17 of Decree 181/2025/ND-CP, export services qualify for the 0% VAT rate when provided directly to an organization in a non-tariff zone and consumed within that zone to directly serve export production activities. The key condition is that the service must serve the export production of the receiving organization, not other activities, and must not fall under the exclusion list in Clause 4, Article 17 (such as leasing of housing or warehouses, catering services, or worker shuttle transport within the non-tariff zone). The Ministry did not issue a blanket ruling on each specific fee type, instead directing the company to compare its situation against the cited regulations. The key takeaway for businesses is that fees not explicitly named in Point b, Clause 2, Article 17 (such as cleaning fees, container balancing fees, container maintenance fees, and agency fees) may still qualify for the 0% rate if, in substance, they are services provided directly to a non-tariff zone organization, directly serve its export production, and are not covered by the exclusions. Logistics companies and freight agents should carefully examine the true nature of each fee and the intended use of the imported goods to apply the correct VAT rate and avoid the risk of tax reassessment during audits.

The Ministry of Finance (answered via Ca Mau Provincial Tax Department) clarified how household businesses should handle tax declarations after the taxable revenue threshold was raised from VND 500 million to VND 1 billion per year under Decree 68/2026/ND-CP (dated March 5, 2026), as amended by Decree 141/2026/ND-CP (dated April 29, 2026). For household businesses with annual revenue between VND 500 million and under VND 1 billion that already filed a Q1 return under the old rules, they no longer need to file quarterly tax returns from Q2 onward. Instead, they only need to notify the tax authority of their actual revenue for the year by January 31 of the following year. Regarding tax amounts already assessed or paid for Q1 under the old threshold, if a household business filed a return but has not yet paid the tax, it should contact its managing tax office for guidance. If tax was already paid and year-end revenue remains under VND 1 billion, the business may request a refund of the overpaid tax under the Law on Tax Administration. On the question of how local tax authorities will nationally standardize the process of updating tax obligations, the responding authority (Ca Mau Provincial Tax Department) stated this issue lacks specific guidance and it cannot answer on behalf of the relevant authority. For household businesses with revenue under VND 1 billion per year that are not required to use e-invoices and have already notified a suspension of e-invoice use starting Q2/2026, they do not need to continue filing quarterly VAT and personal income tax returns for Q2/2026 onward, provided annual revenue does not exceed the VND 1 billion threshold; they only need to report actual revenue by January 31 of the following year. For household businesses with revenue of VND 1 billion or less that voluntarily register to use e-invoices to serve their business and customer needs, tax declaration is still done annually (reporting actual revenue by January 31 of the following year), not quarterly.

Dong Nai Tax Department No. 10 clarifies: under Decree 70/2025/ND-CP amending Decree 123/2020/ND-CP, the invoice issue date for services is the date the service is completed (regardless of whether payment has been received), or the date the invoice is issued if issued before service completion or before payment. Labour supply services are not among the exceptions listed in Decree 70/2025/ND-CP. Therefore, if the company determines that service completion occurred on the date the review ended and the handover document was signed (8 April 2026), and issues the invoice on the same date, the invoice timing complies with regulations, provided that date is indeed when the service was completed.

Tay Ninh Tax Department No. 8 clarifies: the household has two activities - selling animal feed (a VAT and personal income tax taxable activity) and farming fish in ponds for sale to traders (aquaculture produce exempt from VAT and personal income tax under Decree 181/2025/ND-CP and VAT law). When filing Form 01/CNKD, revenue from fish sales is not declared as taxable revenue (it is exempt); only feed trading revenue is declared. For aquaculture business registration, Tax Department No. 8 Tay Ninh advises the household to contact the commune-level economic office directly for guidance.

The Da Nang Tax Department responded to OBE Vietnam Co., Ltd. on issuing VAT invoices for export sample goods with no payment. Under Decree 320/2025/ND-CP and Circular 20/2026/TT-BTC, export samples without bank payment documents do not meet the conditions for the 0% VAT rate. The tax authority determined that goods exported without charge (no bank payment evidence) fall under the VAT-exempt category per Article 5 of the VAT Law, rather than the 0% taxable category. The company may therefore issue a VAT invoice marked 'Not subject to VAT' for these sample shipments. For case-specific guidance, the enterprise should contact the Da Nang Tax Department directly with actual documentation.