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DECREE NO. 144/2026/ND-CP AMENDING DECREE NO. 181/2025/ND-CP ON VALUE-ADDED TAX

On May 5, 2026, the Government promulgated Decree No. 144/2026/ND-CP (“Decree 144”) amending and supplementing a number of articles of Decree No. 181/2025/ND-CP dated July 1, 2025, which provides detailed regulations on the implementation of certain provisions of the Law on Value-Added Tax (“VAT”), as amended and supplemented by Decree No. 359/2025/ND-CP dated December 31, 2025.

Decree 144 shall take effect from June 20, 2026, and introduces several new provisions as follows:

1. Addition of subjects not subject to VAT:

  • For certain insurance products related to individuals: life insurance, health insurance, student insurance, and other personal insurance services.
  • Agricultural insurance: insurance for livestock, crops, and other agricultural insurance services.
  • Fisheries insurance: insurance for vessels, boats, and equipment directly serving fishing activities.
  • Petroleum insurance: petroleum works, equipment, and foreign-flagged oil storage vessels operating in Vietnamese waters.
  • Reinsurance as prescribed by the law on insurance business, and revenue from insurance brokerage commissions.
  • Sale of debts and certificates of deposit: sale of receivables, payables, and certificates of deposit.
  • Exported products that are natural resources and minerals as listed in Annexes I and II of the Decree.

2. Amendment to regulations on input VAT deduction:

– Principles of input allocation:

  • Deduction applies to production and business activities subject to VAT.
  • Enterprises must separately account for deductible and non-deductible input VAT.
  • Where separate accounting is not possible, deductible input VAT shall be calculated based on the percentage ratio of revenue from goods and services subject to VAT to total revenue from goods and services sold during the tax period.

– Components of total revenue for allocation:

  • Revenue subject to VAT and revenue not subject to VAT.
  • Value added from the purchase, sale, and processing of gold, silver, and gemstones (except in cases of negative value added).
  • Revenue from goods and services not required to declare and pay VAT (Article 5 of the Law on VAT).
  • For specific sectors, revenue shall be determined in accordance with specialized legislation (credit institutions, securities, insurance)

3. New regulations on non-cash payment documents: