Updates on new policies regarding tax, invoices, and social insurance in June 2025

From July 1, 2025, a series of new regulations on tax, invoices, and social insurance will officially take effect, directly impacting the financial and accounting activities of enterprises.

The following article comprehensively summarizes the prominent changes to help businesses proactively review, comply with, and timely adjust accordingly.

VALUE-ADDED TAX (VAT) and IMPORT TAX 

VAT reduction by 2% from July 1, 2025 to December 31, 2026 

Resolution 204/2025/QH15 was approved by the 15th National Assembly of the Socialist Republic of Vietnam, 9th session, implementing the VAT reduction policy for the period from July 1, 2025 to December 31, 2026, as follows: 

Reduce VAT by 2% (from 10% to 8%) for goods and services currently subject to a 10% tax rate. 

Applied to most goods and services subject to 10% VAT. (As stipulated in Clause 3, Article 9 of the 2024 VAT Law No. 48/2024/QH15). 

Not applied to certain sectors/fields as follows: 

• Telecommunications 
• Finance – Banking 
• Securities – Insurance 
• Real Estate 
• Metal and mineral products (except coal) 
• Goods and services subject to special consumption tax (except gasoline) 

Effective from July 1, 2025 to December 31, 2026.

Regarding penalties for enterprises submitting supplementary declarations that reduce deductible VAT amounts

Official Letter No. 1592/CT-NVT dated June 5, 2025, from the Tax Department concerning value-added tax (VAT) declarations, details as follows: 

Based on the report from Tax Sub-Department Area XIII, in cases where enterprises submit supplementary VAT declaration dossiers and the results only increase or decrease the amount of deductible VAT not yet claimed in the erroneous tax period, the supplementary declaration dossier may be made according to the provisions in Clause 4, Article 7 of Decree 126/2020/ND-CP. 126/2020/NĐ-CP. 

The adjusted increased or decreased deductible VAT amount for the erroneous tax period shall be declared in indicator [38] “Adjustment to increase VAT deductible from previous periods” or indicator [37] “Adjustment to decrease VAT deductible from previous periods” on the current tax period’s VAT declaration form (within the tax declaration deadline). 

No VAT exemption for imported goods sent via express delivery  

Official Letter No. 10971/CHQ-NVTHQ dated June 26, 2025, from the Customs Department regarding VAT on low-value imported goods sent via postal and express delivery services, states: 

Based on Decision No. 01/2025/QD-TTg of the Prime Minister and Official Letter No. 1813/BTC-TCHQ dated February 17, 2025, from the Ministry of Finance, low-value imported goods sent via express delivery services are no longer exempt from VAT since February 18, 2025. From that date, declaration and payment of VAT on low-value imported goods sent by express delivery shall comply with the VAT Law and relevant legal documents. 

For low-value imported goods sent via postal services, they have been subject to VAT since January 1, 2009, according to the provisions of VAT Law No. 13/2008/QH12. 

VAT Law effective from July 1, 2025

Pursuant to Decree No. 181/2025/ND-CP issued on July 1, 2025, detailing the implementation of certain articles of the Value-Added Tax Law. 

Tax rates

The 0% tax rate applies to goods and services specified in Clause 1, Article 9 of the VAT Law, including:  

• Exported goods 
• Exported services 
• Other exported goods and services 
• Cases where the 0% tax rate does not apply as regulated in points b and d, Clause 1, Article 9 of the VAT Law. 
• Goods and services sold or supplied to organizations within duty-free zones and consumed therein, directly serving export production activities as specified in Clauses 1 and 2 of this Article. 

The 5% tax rate applies to goods and services specified in Clause 2, Article 9 of the VAT Law, detailed as follows:  

• Fertilizers, ores for fertilizer production, plant protection chemicals, and animal growth stimulants. 
• Excavation and dredging services of canals, ditches, ponds for agricultural production; cultivation, care, pest control for plants; preliminary processing and preservation of agricultural products. 
• Crop products, planted forests (excluding wood and bamboo shoots), livestock, farmed and caught aquatic products not processed into other products or only processed normally, excluding products specified in Clause 1, Article 4 of this Decree. 
• Rubber latex types such as coagulated latex sheets, latex blocks, raw rubber; nets, cords and threads for weaving fishing nets. 
• Products made from jute, sedge, bamboo, cane, leaves, straw, coconut shell, coconut husk, water hyacinth, and other handicrafts made from agricultural by-products; raw and combed cotton fiber; newsprint. 
• Fishing vessels operating in sea areas; specialized machinery and equipment serving agricultural production. 
• Medical devices as regulated by law on medical device management; preventive and curative medicines; pharmaceutical substances and herbs used as raw materials for producing medicines. 
• Traditional and folk performing arts activities. 
• Children’s toys; all kinds of books, except those specified in Clause 8, Article 4 of this Decree. 

Conditions for input VAT deduction

Article 26 of Decree 181/2025/ND-CP stipulates that from July 1, 2025, purchases of goods and services over 5 million VND must have non-cash payment vouchers, including: 

• Non-cash payment vouchers are documents proving non-cash payments in accordance with Decree No. 52/2024/ND-CP dated May 15, 2024, by the Government on non-cash payments, excluding vouchers where the buyer deposits cash into the seller’s account. 
• Some special cases as regulated in point b, Clause 2, Article 14 of the VAT Law. 
• In cases where purchases of goods or services from a single taxpayer are below 5 million VND per transaction but cumulatively reach 5 million VND or more within the same day, input VAT deduction is only allowed if there are non-cash payment vouchers. 

This regulation takes effect immediately from July 1, 2025, without transitional provisions, so businesses need to review and promptly adjust their payment procedures.. 

Value-Added Tax (VAT) Refund

Article 29 of Decree 181/2025/ND-CP stipulates that imported goods subsequently exported to another country are not eligible for VAT refund, specifically:

A business establishment having exported goods or services in a month or quarter, with input VAT not fully deducted amounting to 300 million VND or more, is entitled to VAT refund monthly or quarterly, except for imported goods subsequently exported to another country, where: 

Imported goods subsequently exported to another country refer to goods imported by a business establishment and then directly exported or entrusted for export, excluding imported materials used to produce or process export goods. 

PERSONAL INCOME TAX (PIT)

Adjustment of dependent deduction timing when finalizing PIT 

Official Letter No. 1580/CT-CS dated June 5, 2025, from the Tax Department regarding personal income tax policy, provides the following details: 

According to Sub-point c.2, Point c, Clause 1, Article 9 of Circular 111/2013/TT-BTC, if an individual did not apply dependent deductions (for biological mother, child) during the tax year, they are entitled to deduct from the month the support obligation arises, provided the dependent is registered when finalizing personal income tax. 

If the tax authority's system records dependents differently from what the individual declares in Form 02-1/BK-QTT-TNCN, the taxpayer should contact the regional Tax Sub-Department to coordinate and review the PIT finalization dossier and dependent registration on the tax system. 

CORPORATE INCOME TAX (CIT)

Expense for product recycling support 

Official Letter No. 1581/CT-CS dated June 5, 2025, from the Tax Department regarding corporate income tax policy, states:  

According to Clause 4, Circular 96/2015/TT-BTC, if an enterprise makes a financial contribution to the Vietnam Environmental Protection Fund for product or packaging recycling, and the expense is not directly related to the company’s business operations, then it is not deductible for corporate income tax purposes under current regulations. 

INVOICE 

New points regarding e-invoices and electronic documents effective from 01/06/2025 

Official Letter No. 1591/CT-CS dated 5/6/2025 from the Tax Department introducing new contents in Circular No. 31/2025/TT-BTC and Circular No. 32/2025/TT-BTC, specifically as follows:, cụ thể như sau: 

According to Article 4, Point a Clause 1 of Circular 32/2025/TT-BTC, certain revisions are made regarding authorization to issue e-invoices, specifically:

Removal of the “affiliated relationship” requirement between parties involved in authorization (Point a, Clause 1, Article 4 of Circular 32/2025/TT-BTC). 

Instead, a general condition applies: The authorized party only needs to meet the requirements for using e-invoices and must not fall under the cases of suspension of e-invoice usage as stipulated in Article 16 of Decree No. 123/2020/ND-CP (amended by Clause 12, Article 1 of Decree No. 70/2025/ND-CP) to issue e-invoices for selling goods or providing services.  

Additional provisions on mandatory content in authorization contracts/agreements (Clause 2, Article 4 of Circular 32/2025/TT-BTC) 

Circular 32/2025 details that the authorization contract/agreement must include the following contents:  

Information on name, address, tax code or personal identification number, digital certificate of both the authorizing and authorized parties.. 

Information on the authorized e-invoice (type, code, form number); purpose, duration, payment method, and responsibility for payment of goods/services. 

Responsibility for document storage and presentation upon request by competent authorities.  

Added provision on responsibility of e-commerce platforms when authorized by sellers (Point c, Clause 3, Article 4 of Circular 32/2025/TT-BTC)  

In the case where business households or individuals authorize an e-commerce platform management organization to issue e-invoices for their sales of goods/services, the platform organization must notify the tax authority on behalf of the household/individual  

Added provision: Authorized invoices must be consistent with the tax calculation method of the authorizing party (Point h, Clause 1, Article 4 of Circular 32/2025/TT-BTC)  

The e-invoice issued by the authorized party must be consistent with the tax calculation method (declaration or presumptive) of the authorizing party.   

Additional provisions on invoice form codes and invoice symbols 

Clause 1, Article 5 of Circular 32/2025/TT-BTC has added several regulations regarding invoice form codes and e-invoice symbols as follows:   

• E-invoice form codes: Added form codes 7, 8, 9 to reflect the following invoice types:  
• No. 7: Reflects electronic commercial invoices;  
• No. 8: Reflects VAT invoices integrated with tax, fee, and charge receipts;  
• No. 9: Reflects sales invoices integrated with tax, fee, and charge receipts.  
• E-invoice symbol: Added the symbol “X” for commercial electronic invoices.  

Clause 1, Article 5 of Circular 32/2025/TT-BTC has added several regulations regarding invoice form codes and e-invoice symbols as follows:   

Issuing e-invoices for financial leasing activities  

Clause 2, Article 6 of Circular 32/2025/TT-BTC provides detailed provisions on issuing e-invoices for financial leasing activities, with new updates compared to Circular 78/2021, including: requirement to issue VAT invoices, matching input and output VAT, use of the “CTTC” symbol, invoice serving as a tax refund declaration, and invoice handling upon disposal of repossessed assets. Details as follows: 

• Mandatory VAT invoice issuance: Financial leasing organizations must issue VAT invoices for assets subject to VAT, with conditions regarding input invoices/documents (domestic purchase or import): 
• Domestic assets: Must have input VAT invoice.  
• Imported assets: Must have VAT payment document at the importation stage.  
• Input-output VAT matching requirement: Total VAT on the output invoice (issued when leasing the asset) must match the VAT on the input invoice (for domestic assets) or VAT payment document at import stage (for imported assets).  
• Regulation on using the “CTTC” symbol on VAT invoices to represent the VAT rate for financial leasing activities instead of specifying an exact rate (0%, 5%, or 10%).  
• In cases where the asset is non-VATable or lacks input invoice/documents, the invoice must not include VAT.  
• Regulation on selling repossessed assets: When a financial leasing organization sells repossessed assets (due to customer non-payment), it must issue a VAT invoice and provide it to the customer. The invoice must specify: Output VAT amount on the repossessed asset + VAT rate symbol “CTTC” + VAT calculated on the residual pre-VAT value based on the asset repossession record. Hóa đơn này ghi rõ: Số tiền thuế GTGT xuất trả của tài sản thu hồi + Thuế suất ký hiệu “CTTC” + Số thuế GTGT tính trên giá trị còn lại chưa có thuế GTGT theo biên bản thu hồi tài sản.  

Issuing e-invoices for large-volume, frequent sales or service provision  

Clause 1, Article 6 of Circular 32/2025 amends and supplements Circular 78/2021, providing regulations on issuing e-invoices in cases of frequent and large-quantity sales or service provision, where data reconciliation between the enterprise (seller) and customer/partner is needed. 

This regulation allows enterprises in certain special cases to issue e-invoices after completing data reconciliation, instead of immediately upon providing goods/services. Applicable cases include: 

• Derivative products: As prescribed by laws on credit institutions, securities, commerce, and VAT.  
• Industrial catering services: E.g., meals provided for factories, schools, hospitals.  
• Commodities exchange services: Trading of goods on exchanges (e.g., agricultural products, metals).  
• Credit information services: Providing credit reports, financial data.  
• Taxi passenger transport services (applicable to business/organizational customers).  

Added provision on concurrent use of multiple types of e-invoices 

According to Clause 3, Article 8 of Circular 32/2025/TT-BTC,businesses with multiple lines of operation may concurrently use different types of e-invoices corresponding to each type or sector of their business. 

Specifically: If an enterprise conducts both direct retail to consumers and other business activities, it may choose as follows:  

• Enterprises in retail activities to end-consumers such as: supermarkets, restaurants, hotels, passenger transport, entertainment, cinema… may register to use invoices generated from POS systems.  
• Other businesses may continue using standard electronic invoices with or without tax authority codes.  

Circular 32/2025 updates the registration forms for using e-invoices and electronic documents, including:  

• Form No. 01/ĐKTĐ-HĐĐT: Registration form for using e-invoices.  
• Form No. 01/ĐKTĐ-CTĐT: Registration form for using electronic documents.  
• Invoice and receipt templates as per the annex attached to Circular 32/2025/TT-BTC. 

Businesses that have abandoned their registered business address must restore their tax code to continue issuing invoices 

Official Letter No. 2028/CT-CS dated June 25, 2025, from the Tax Department regarding invoices, specifically as follows:  

In the case where the company is in a status of "not operating at the registered address" (as notified by the tax authority) but needs invoices to fulfill tax obligations and issue VAT invoices, the company must carry out the procedures to restore its tax code and comply with tax and invoice obligations as prescribed. 

Regulations on restoring the tax code can be referred to in Article 40 of the Law on Tax Administration No. 38/2019/QH13 and Articles 18 and 19 of Circular 86/2024/TT-BTC.86/2024/TT-BTC. 

Regulations on the suspension of using e-invoices can be referred to in Point b, Clause 1, and Clause 2, Article 16 of Decree 123/2020/ND-CP and Clause 12, Article 1 of Decree 70/2025/ND-CP. 

SHUI – Trade Union Contributions 

New provisions on compulsory Social Insurance and Health Insurance effective from July 1, 2025 

Official Letter No. 526/BHXH-QLT dated June 20, 2025, from Social Insurance Office of Region XXVII guiding the registration and declaration of Social Insurance, Health Insurance, Unemployment Insurance, Occupational Accident and Disease Insurance; and management of social insurance books and health insurance cards, specifically as follows: 

Regarding individuals subject to compulsory social insurance, note the following points: 

• If an individual has multiple labor contracts with different employers at the same time, they must contribute to Social Insurance, Health Insurance, and Unemployment Insurance based on the first signed contract, and must contribute to Occupational Accident and Disease Insurance for each contract separately K(as stipulated in Clause 4, Article 13, Decree 143/2018/ND-CP).
• Even if the employer and employee use a different contract title (not labeled as a labor contract), but the content involves paid work under the management or supervision of one party—such as workers at construction companies, restaurants, security services, etc.—then it still falls under the scope of compulsory SI, HI, and UI contributions (new regulation at Point a, Clause 1, Article 2, Law on Social Insurance No. 41/2024/QH15).
• In cases specified at Points a, b, c, d, and i of Clause 1 and Clause 2, Article 2 of the Law on Social Insurance, if the employee does not receive salary for 14 or more working days in a month, then SI is not required for that month. However, the employee and employer may agree to continue contributing for that month (new provision at Clause 5, Article 33, Law No. 41/2024/QH15).
• If in the first working month or the first month of returning to work, the employee takes sick leave for 14 or more working days, SI contributions must still be made for that month (new regulation at Clause 6, Article 33, Law No. 41/2024/QH15).
• Employees working under contracts from 1 to under 3 months will be subject to compulsory SI and HI from July 1, 2025. Employers must review and prepare SI/HI registration for these employees. If the employee has already participated in SI, they must additionally register for HI. 

Important notes on deadlines for SI registration documents: 

• Employers must declare and submit SI registration documents for eligible employees within 30 days from the date they become subject to compulsory SI. 
• For monthly salary adjustment or labor increase/decrease reports, submissions must be made promptly—no later than the 28th of each month. Large companies with frequent changes may submit up to 3 batches of documents/month (except in special cases). Payment must be completed by the end of the month. 
• For workforce reduction in the following month, documents can be submitted as soon as the Termination Decision is issued—no need to wait until the 28th. Further updates (increase/decrease, salary changes) may still be submitted within the same month if there are new developments. 

New regulations on Social Insurance benefits effective from July 1, 2025: 

• The minimum contribution period for pension eligibility is reduced to 15 years. 
• Employees who reach retirement age but are not yet eligible for pensions and do not qualify for social pension support, and who do not opt for a lump-sum SI payout, may apply to receive monthly allowances. 
• Those who contribute to voluntary SI, or a mix of compulsory and voluntary SI, for at least 6 months within the 12 months before childbirth, will be eligible for maternity benefits. The benefit is 2 million VND per child born or per fetus of 22 weeks or more that dies in utero or during labor. 
• Female employees who have paid compulsory SI for at least 6 months within the 24 months prior to childbirth are eligible for maternity leave benefits in cases of leave for infertility treatment. 

Key Updates in the 2024 Law on Social Insurance and Law on Health Insurance  

Official Letter No. 144/BHXH-QLT&PTNTG dated June 13, 2025, from Social Insurance Office of Region XIII on implementation guidance for several new provisions in the amended Law on Social Insurance and Law on Health Insurance, specifically as follows: 

• Mở rộng thêm một số đối tượng tham gia BHXH, BHYT bắt buộc, cụ thể Expands the scope of individuals subject to compulsory Social Insurance and Health Insurance, including: household business owners; part-time workers earning monthly wages equal to or higher than the minimum wage base for compulsory SI contributions; individuals working under other types of agreements that involve paid work under the management or supervision of a party; enterprise managers, controllers, representatives of state capital, representatives of enterprise capital at companies and parent companies, etc. 
• Adds prohibited acts in the field of Social Insurance, such as: collusion, cooperation, concealment, or aiding agencies, organizations, or individuals in violating regulations on SI and unemployment insurance; pawning, selling, mortgaging, or pledging social insurance books in any form, etc. 
• Adds responsibilities for enterprises regarding Social Insurance, such as: compensating employees if the employer fails to fulfill or inadequately fulfills their compulsory SI obligations, causing damage to employees’ lawful rights and interests; coordinating with the SI agency in recovering improperly paid SI benefits from employees. 
• Specifies that the deadline for employers to submit documents for compulsory SI registration for employees is within 30 days from the date the employee becomes subject to compulsory SI. 
• For employees who take unpaid leave for 14 or more working days in a month, the employer and employee may agree to contribute SI for that month based on the most recent contribution base. 
• Adds a provision that if an employee takes sick leave for 14 or more working days in their first month of employment or first month returning to work, SI contributions are still required for that month. 
• Specifies cases considered as delayed or evaded SI, HI, and unemployment insurance contributions, along with corresponding penalties. 
• Adds that for compulsory SI and unemployment insurance amounts which employers are responsible for under Law on Social Insurance No.58/2014/QH13and Law on Employment No.38/2013/QH13 but fail to pay or fully pay by June 30, 2025, such actions will be handled as delayed or evaded contributions under the new law. 

OTHERS 

No mandatory adjustment of address on Business Registration Certificate according to new province, commune boundaries 

Based on Notification No. 11984/TB-CCTKV02 dated June 27, 2025, from Tax Sub-Department Region II regarding updating taxpayer address information according to new administrative divisions and the tax authority directly managing the taxpayer, specifically as follows: 

Taxpayers are not required to adjust their address information according to the new province or commune on their Business Registration Certificate. Taxpayers may use this notification to explain to the relevant authorities or clarify to customers in cases where the address on the invoice reflects the new province or commune, but the Business Registration Certificate still shows the old province or commune address. If taxpayers wish to update the new address on the Business Registration Certificate, they must carry out procedures according to regulations at the business registration office. 

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