Vietnam rolls out key tax reforms starting July 1
Tourists ride three-wheel bicycle taxis, known as cyclos, in the old quarter of Hanoi - AFP
HANOI: From July 1, Vietnam will officially enforce a new set of tax laws that are expected to reshape the country's tax system in both structure and administration.
These changes follow the passing of several amended tax laws, including the revised Law on Value-added tax (VAT), Law on Corporate Income Tax, Law on Personal Income Tax, and Law on Special Consumption Tax.
The updates are seen as a major reform to improve fairness, efficiency and transparency in taxation.
Under the new rules, the VAT system will see major changes.
One key highlight is the mandatory use of non-cash payments for VAT input deduction.
This applies even to purchases under 20 million dong.
In the past, only payments over that threshold required bank transfers.
Now, businesses must show non-cash payment proof for all purchases to claim VAT credit.
This aims to prevent fake invoices and strengthen tax integrity.
It may pose challenges at first for small vendors and traditional market sellers.
But in the long run, non-cash payments will help them build a clear financial history, which makes it easier to access official credit. — Viet Nam News/ANN
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