Knowledge base

Ho Chi Minh City Tax Sub-department 1 (on behalf of the Ministry of Finance) advises on the invoice and VAT treatment for 7 gift vouchers of VND 1 million each that were fully paid by customers but expired unused. Under Article 4(1) of Decree No. 123/2020/ND-CP (as amended by Decree No. 70/2025/ND-CP), sellers must issue invoices when selling goods or providing services. The tax authority advises the business to assess its specific situation against the invoicing rules to determine whether an invoice must be issued for the value of the expired vouchers. The tax authority did not issue a definitive ruling but instructed the business to self-assess based on the nature of the transaction and applicable invoicing principles.

The Ho Chi Minh City Tax Department responded to Hang Thang Co., Ltd. on the timing of invoice issuance for wood veneer lamination processing services. Under clause 6, Article 1 of Decree 70/2025/NĐ-CP amending Article 9 of Decree 123/2020/NĐ-CP, the invoice must be issued **at the time the service is completed**, regardless of whether payment has been received. The Tax Department determined that wood veneer lamination processing services do **not fall** within the list of services permitted to defer invoicing until after data reconciliation (provided under point a, clause 4, Article 9 of Decree 70/2025/NĐ-CP, which covers only aviation support, electricity, water, telecommunications, logistics, banking services, etc.). The company therefore cannot apply the post-reconciliation invoicing mechanism and must issue invoices at service completion.

The Ho Chi Minh City Tax Department advised a medical equipment importer that invoices may use the customer's common trade name for goods, supplemented by the registered name in parentheses, as long as the true nature, model, and type of goods can be identified. Under Decree 123/2020/ND-CP and Circular 78/2021/TT-BTC, invoice goods names must accurately reflect the goods but need not exactly match the name on import documents. Companies may use the common name or the name in tender documents with the Ministry of Health-registered name in brackets. When adding a foreign language name on the invoice, it must appear below the Vietnamese text and in a smaller font size. If the goods bear a legally registered trademark, that trademark name must also appear on the invoice.

The Ho Chi Minh City Tax Department advised that an individual acting as an insurance sales agent receiving commission income does not need to register a household business, as this activity is treated as an individual in business under an agency contract. Under Decree 68/2026/ND-CP, if annual revenue (commissions) does not exceed VND 500 million, no VAT or personal income tax (PIT) is owed. If the threshold is exceeded, the individual must declare and pay tax starting from the quarter in which revenue exceeds VND 500 million. The VND 500 million threshold applies to total commission income received during the year. If the actual amount exceeds the threshold after initially being projected below it, tax filing starts from the quarter of exceedance only.

The Ministry of Finance clarifies VAT policy for individual household businesses operating in education and vocational training. Under VAT Law No. 48/2024/QH15 and Decree No. 181/2025/ND-CP, teaching and vocational training activities conducted in accordance with education and vocational training law are VAT-exempt. Additionally, under Law No. 149/2025/QH15 amending the VAT Law, goods and services provided by household businesses with annual revenue of VND 500 million or less are also VAT-exempt. The Ministry advises the inquirer to review applicable regulations against their actual activities to determine the correct treatment.

The Ministry of Finance provides guidance on VAT applicable to household businesses selling goods on foreign e-commerce platforms, where goods are shipped from Vietnam to overseas consumers. The official image response shows the Hanoi Tax Department forwarding the inquiry (reference 060326-22) from Ms. Nguyen Thi Anh regarding VAT on goods exported via foreign e-commerce platforms. The Hanoi Tax Department acknowledges receipt and directs the inquirer to contact the tax office directly (phone 0983001726 or 024 33640589) for specific guidance on the 0% VAT rate applicable to exported goods not consumed in Vietnam.

The Ministry of Finance confirms that 10% VAT is correct for PT Precision Mechanical Company's service of processing auto parts from steel box materials. Under Article 1 of Decree No. 174/2025/ND-CP, product codes 241006 and 241008 (level-6 codes) are listed in Appendix I as goods excluded from VAT reduction - therefore the 8% reduced rate does not apply. The company's invoicing at 10% was correct. The customer's argument that the product falls under industry code group 25 and qualifies for the 8% rate has no basis under current regulations. For businesses using the credit method, the 8% VAT rate applies only to goods and services specified in Article 1 Clause 1 of Decree 174 - which does not include codes 241006 and 241008.

The tax authority provided guidance to Sophia Law Firm LLC (TIN: 0315746296) on the tax treatment of a scenario where the firm collects US immigration service fees from its clients and remits them to a US-based immigration service company under the EB-3 employment-based immigration program. The collection-and-payment-on-behalf amount is confirmed as excluded from the law firm's taxable revenue if supported by adequate documentation: legal service contract, agency/authorization agreement for collection on behalf, payment receipts, outbound remittance documents, and documents from the foreign immigration company (emails with attached contracts are acceptable even when US companies do not use official seals). Regarding foreign contractor tax (FCT): the immigration service fees remitted to the foreign company are subject to FCT and must be withheld and remitted by the Vietnamese party. For invoicing, the legal service fee portion and the collection-on-behalf portion must be shown separately on the invoice.

Decree 359/2025/ND-CP issued on December 31, 2025 amends and supplements certain articles of Decree 181/2025/ND-CP detailing the implementation of the Value Added Tax Law. This is an important regulatory document that adjusts VAT provisions, directly affecting businesses' declaration, calculation, and finalization of VAT obligations. This decree demonstrates the Government's timely adjustment to VAT regulations to ensure feasibility and alignment with practical implementation. The amendments may relate to scope of application, taxable subjects, tax calculation methods, input VAT deduction, or tax administrative procedures. Although detailed content has not been fully disclosed, businesses need to monitor closely to stay updated on the changes. For small and medium enterprises, timely understanding of VAT amendments is critically important to ensure proper compliance with legal regulations and avoid risks of administrative tax penalties. Businesses should proactively study the complete document when published, consult tax advisory experts, and prepare to adjust their accounting systems, invoicing, and internal processes to comply with the new regulations.

The National Assembly has passed the Law Amending and Supplementing Several Articles of the Value Added Tax Law at the 10th Session of the 15th Legislature. This is an important legal document aimed at improving the VAT system to align with economic development realities and international integration. The Law was drafted under the leadership of the Ministry of Finance and reviewed by the Economic and Financial Committee. The amendments to the VAT Law aim to resolve practical implementation difficulties, adjust provisions to suit new contexts, and ensure fairness and transparency in tax collection. For small and medium enterprises, this Law may bring changes to taxable subjects, tax calculation methods, applicable tax rates, or tax incentives. Business owners should closely monitor the detailed content of the Law when officially published to adjust accounting, tax declarations, and business operations in accordance with the new regulations.

Under Article 26(2)(i) of Decree No. 181/2025/NĐ-CP, when goods or services purchased for taxable business activities are paid for by an authorized employee of the business using non-cash payment methods in accordance with the enterprise's financial or internal regulations, and the enterprise subsequently reimburses the employee by non-cash means, the input VAT on such purchases is deductible. The Ministry of Finance directed the inquirer to study the provisions of Article 26(2)(i) of Decree 181/2025/NĐ-CP to assess the validity of the payment arrangement through the driver's personal bank account. For this to be valid, the authorization to pay must be consistent with the enterprise's financial or internal regulations, and the reimbursement to the employee must also be made by non-cash transfer. This is an important clarification for enterprises incurring project-site expenses that need to be paid through an authorized employee rather than directly transferred to the service provider.