Tax & Legal Updates - Issue July 2026

I. Value-added tax ("VAT"), invoices and tax administration

1. Official Letter No. 1068/CT-CS issued by the Department of Taxation providing guidance on VAT applicable to services provided through digital platforms

According to the Official Letter, for the period prior to 1 July 2025, where an enterprise uses services by uploading content onto platforms and, pursuant to an agreement, shares the advertising revenue attached to each of the enterprise's content posts, the entire revenue paid to the enterprise shall be determined as advertising revenue and declared for VAT at the rate of 10%. From 1 July 2025, the enterprise shall comply with the Law on Value Added Tax No. 48/2024/QH15 and its implementing guidance documents.

2. Official Letter No. 11275/DON-QLDN1 issued by the Dong Nai Tax Office providing guidance on the VAT rate applicable to export processing enterprises

According to the Official Letter, where an export processing enterprise takes equipment or spare parts out of the non-tariff zone for repair, calibration, etc. in the domestic market, such services, being provided and consumed outside the non-tariff zone, shall be subject to VAT at the rate of 10%.

3. Official Letter No. 1415/LCA-QLDN2 issued by the Lao Cai Tax Office providing guidance on determining the timing of VAT refunds

According to the Official Letter, where an investment project has been completed but the VAT arising during the investment stage has not yet been refunded, the business establishment shall submit the VAT refund dossier within 1 year from the date on which the investment project, or the investment stage or investment item, is completed. The completion date of the investment project, or of the investment stage or item, is the date on which revenue of the investment project, or of the investment stage or item, arises.

With respect to the specific case in the Official Letter, where an enterprise generates revenue from management consulting activities but such revenue does not arise from the investment project, it shall not be determined as revenue of the investment project for the purpose of identifying the completion date of the investment project and the starting point of the 1-year period for submitting the VAT refund dossier in accordance with regulations.

4. Official Letter No. 3251/CT-CS issued by the Department of Taxation providing guidance on VAT and on the conditions for deduction and refund of input VAT on exported goods and services

According to the Official Letter, payment via bank means the transfer of money from the importer's account to an account in the exporter's name opened at a bank, in forms of payment consistent with the contract and bank regulations. The payment document is the credit advice issued by the exporter's bank for the amount received from the importer's bank account.

Where the foreign party pays directly to the export entrusting party, the entrusting party must have bank payment documents, and such payment arrangements must be stipulated in the contract. Where the exporter does not receive payment directly from the importer but receives it from an enterprise in Vietnam (a party that does not directly export but receives the export proceeds), the condition of payment via bank for the deduction and refund of input VAT on exported goods and services is not satisfied.

5. Official Letter No. 4195/CT-CS issued by the Department of Taxation providing guidance on VAT policy applicable to investment projects required to cease operations

Where an enterprise has an investment project in the investment stage that has not yet generated output VAT from its principal production and business activities but is compelled to cease operations, the enterprise must repay the refunded VAT of the project to the state budget in accordance with Decree No. 181/2025/ND-CP. The cases in which late payment interest is payable are specified in Clause 1, Article 59 of the Law on Tax Administration No. 38/2019/QH14.

6. Official Letter No. 4565/CT-CS issued by the Department of Taxation providing guidance on amounts collected and paid on behalf of customers (visa fees) and on invoicing for enterprises providing visa application support services

According to the Official Letter, pursuant to Decree No. 181/2025/ND-CP, the VAT taxable price excludes amounts collected on behalf of others. For visa application support services provided to customers for a fee, the enterprise must issue invoices and calculate VAT on the portion of services provided to customers in accordance with regulations.

For CIT purposes, amounts relating to consular fees and visa application center fees, where the enterprise holds complete dossiers and documents proving that it only collects and pays such amounts on behalf of customers at the request of customers and visa-receiving authorities, shall not be included in revenue for taxable income purposes and shall be treated as amounts collected and paid on behalf of customers. Amounts received from services such as application consulting, procedural completion, appointment booking support, translation, and application tracking, etc. shall be determined as revenue from service provision.

II. Personal income tax ("PIT")

7. Official Letter No. 13095/DON-QLDN1 issued by the Dong Nai Tax Office providing guidance on PIT exemption

Pursuant to Clause 3, Article 113 of the Labor Code, where an employee receives salary or wages paid for untaken annual leave days due to termination of employment or job loss, and the employee has not taken annual leave or has not used up the annual leave entitlement, such income is exempt from PIT. Where the salary or wages paid for untaken leave days exceed the amount prescribed by law, the excess portion shall be included in the individual's taxable income in accordance with Clause 3, Article 26 of Decree No. 253/2026/ND-CP.

8. Official Letter No. 4644/CT-CS issued by the Department of Taxation providing guidance on tax declaration and payment on behalf in respect of PIT upon the transfer of real estate

According to the Official Letter, pursuant to Decree No. 126/2020/ND-CP, in a real estate transfer transaction, the buyer shall declare and pay tax on behalf of the seller if so agreed in the transfer contract. Where the parties have no agreement on payment on behalf, the obligation to declare and pay PIT rests with the transferor. Where tax is paid late, the taxpayer is responsible for complying with the Law on Tax Administration and relevant implementing guidance documents.

III. Foreign contractor tax ("FCT")

9. Official Letter No. 4564/CT-CS issued by the Department of Taxation providing guidance on the transfer of shares by foreign shareholders

For share transfer transactions where a foreign enterprise shareholder without a permanent establishment in Vietnam transfers capital before Decree No. 320/2025/ND-CP takes effect, the tax obligation is determined under the previous regulations, namely the 2008 Law on CIT, the 2013 Law on CIT and implementing guidance documents. For transfer contracts signed before this milestone, the foreign enterprise shall declare CIT on the capital transfer using Form 05/TNDN (Circular No. 21/2026/TT-BTC).

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