The LAW ON Value-Added Tax (VAT) Law 2024 No. 48/2024/QH15, effective from July 1, 2025, amends the regulations on VAT deduction for goods and services valued under VND 20 million
On 26 November 2024, the National Assembly passed the Law on Value-added tax (VAT) 2024, replacing the Law on VAT 2008. The new law includes provisions on one of the conditions for input VAT deduction in Point b, Clause 2, Article 14, as follows:
There is documentary evidence of cashless payment for goods and services purchased, except in special cases specified by the Government.
Previously, the provision in Point b, Clause 2, Article 12 of the Law on VAT 2008, amended by Clause 6, Article 1 of the amended Law on VAT 2013, stated that goods and services purchased individually with a value of under VND 20 million were not required to have cashless payment documents to be eligible for VAT deduction.
Thus, according to the Law on VAT 2024, effective from 1 July 2025, all goods and services purchased, regardless of their value, must have cashless payment document to be eligible for VAT deduction.
CIRCULAR No. 01/2025/TT-BLĐTBXH: ADJUSTMENT LEVELS OF SALARY AND MONTHLY INCOME FOR WHICH SOCIAL INSURANCE HAS BEEN PAID
On 10 January 2025, the Ministry of Labor, Invalids, and Social Affairs issued Circular No. 01/2025/TT-BLĐTBXH, replacing Circular No. 20/2023/TT-BLĐTBXH dated 29 December 2023. This circular regulates the adjustment levels of salary and monthly income for which social insurance has been paid, as follows:
1. Adjustment levels of monthly salary for which social insurance has been paid of employees participating in social insurance under the salary system determined by the employer or the State:
2. Adjustment level of monthly income for which social insurance has been paid of individuals participating in voluntary social insurance:
This adjustment level applies to employees receiving pensions, one-time retirement allowances, one-time social insurance benefits, or to deceased individuals whose relatives are entitled to one-time funeral allowances, during the period from 1 January 2025 to 31 December 2025.
OFFICIAL LETTER NO. 310/TCHQ-TXNK REGARDING IMPORT TAX REFUND
On 17 January 2025, the General Department of Customs issued Official Letter No. 310/TCHQ-TXNK to respond to and guide Lihua Environmental Technology Co., Ltd. (Vietnam) regarding the implementation of import tax refund for materials purchased from domestic enterprises.
The General Department of Customs bases on the provisions related to import tax exemption and refund in the Law on Export and Import Tax No. 107/2016/QH13, as well as certain Decrees that provide guidance and amendments to this Law. Accordingly:
For materials, supplies, and components imported for the production of export goods that are exempt from import tax but are not used for the originally intended purpose of tax exemption, the company must declare the change of use and apply the applicable tax policies for the imported goods at the time of registering a new customs declaration.
Therefore, in cases where imported goods are repurposed for domestic sales instead of export, enterprises must complete the necessary procedures to declare the goods to customs and pay the import tax on these goods (if applicable).
For imported goods on which import tax has already been paid but are exported to a non-taxable zone for use within the non-taxable zone, if the goods meet the requirements of being unused, unprocessed, or unmodified as specified in Clause 2, Article 19 of the Law on Export and Import Tax No. 107/2016/QH13, the import tax may be refunded. The documentation, procedures, and process for the tax refund will follow the regulations set out in Clause 2 and Clause 3, Article 34 of Decree No. 134/2016/ND-CP, as amended and supplemented by Clause 17 and Clause 18, Article 1 of Decree No. 18/2021/ND-CP.
OFFICIAL LETTER NO. 17/TCHQ-GSQL REGARDING THE PRODUCTION AND IMPORTATION OF ELECTRONIC CIGARETTES AND HEATED TOBACCO
In order to implement point 2.2 of Resolution No. 173/2024/QH15 of the XV National Assembly, on 02 January 2025, the General Department of Customs has issued Official Letter No. 17/TCHQ-GSQL, requesting that Customs Departments of provinces and cities take the following actions:
1. From 01 January 2025, customs procedures shall not be applied to the import and export of electronic cigarettes, heated tobacco products, as well as components and raw materials imported for the production of electronic cigarettes and heated tobacco products;
2. By 10 January 2025, Customs Departments must compile and submit to the General Department of Customs the inventory data of goods currently held by businesses within their jurisdiction, including: components, raw materials imported for the production of electronic cigarettes and heated tobacco products; semi-finished products, finished products of electronic cigarettes and heated tobacco products; scrap and waste, in accordance with the table attached in the Appendix, along with proposed measures for handling these goods.
OFFICIAL LETTER NO. 28/TCHQ-GSQL RESPONDING THE EXPORT OF DEFECTIVE COMPONENTS
On 12 February 2025, the General Department of Customs issued an official letter addressing the concerns of the U.S.-ASEAN Business Council regarding the export rights and policies on the management of export goods for defective components of foreign direct investment companies (FDI enterprises) in Vietnam.
1. Regarding export rights
The General Department of Customs clarified the regulations on export rights for FDI enterprises in Vietnam based on the provisions in Clause 2, Article 3 and Clause 1, Article 7 of Decree No. 09/2018/ND-CP dated 15 January 2018 by the Government.
Specifically, FDI enterprises are only entitled to export goods purchased in Vietnam, goods processed in Vietnam as ordered by the enterprises, and goods legally imported into Vietnam for export. Therefore, if an enterprise is not engaged in the purchase or sale of defective information technology components in Vietnam for export, such export activity does not fall under the scope of regulations on export rights for FDI enterprises as stipulated.
Therefore, enterprises need to research the regulations for compliance and contact the Ministry of Industry and Trade for guidance in case of issues related to export rights and goods liquidation activities.
2. Regarding policies on the management of export goods
The General Department of Customs also pointed out the regulations related to the export management of used electronic components, particularly when the items may be classified as hazardous waste. Accordingly, if the exported electronic components are identified as hazardous waste, the enterprise must obtain a written approval for exporting hazardous waste from the Ministry of Natural Resources and Environment.
If the goods are not identified as hazardous waste (for example, goods identified as waste, or used goods, used information technology products... that are not subject to export prohibition), the export procedures will comply with the regulations on customs, environmental protection, and foreign trade management.
3. Regarding customs procedure codes
FDI enterprises need to base on the nature of goods transactions to research the list of customs procedure codes according to Decision No. 1357/QD-TCHQ and Official Letter No. 4032/TCHQ-GSQL of the General Department of Customs, thereby using appropriate codes to properly implement the export process.
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