Understanding Decree 144 2026 ND CP: Changes to Vietnamese VAT regulations
The Vietnamese government has amended a number of articles of the Value Added Tax (VAT) Law. The new regulations concern tax-exempt items, conditions for input VAT deduction, and cashless payments. Experts from ECOVIS AFA VIETNAM (Da Nang City, Vietnam) explain the amendments set out in Decree 144, which officially came into force on 20 June 2026.
Contact Person
Amended list of items exempt from value-added tax
Articles 1 and 2 of Decree 144 amend and supplement parts of Article 4 of Decree 181 to add products and services that are exempt from VAT. These include:
- Life insurance, health insurance, student insurance, and other insurance services related to people; pet insurance, crop insurance, and other agricultural insurance services
- Insurance for ships, boats, equipment, and other necessary tools directly used for fishing
- Reinsurance as prescribed by law on the insurance business; insurance for oil and gas facilities and equipment, and oil tankers of foreign nationality leased by foreign oil and gas contractors or subcontractors to operate in Vietnamese waters or overlapping waters where Vietnam and neighbouring or adjacent coastal countries have agreed to place them under a joint exploitation regime
- Commission revenue from insurance service brokerage is not subject to VAT
Decree 144 also amends the regulations on debt sales that are exempt from VAT, stipulating that debt sales include the sale of accounts payable and accounts receivable, and the sale of certificates of deposit. (Previously, the regulation stipulated that only debt sales involving the sale of accounts payable and accounts receivable, and the sale of certificates of deposit between taxpayers other than credit institutions were exempt from VAT).
New input tax rules for credit institutions, securities firms, and insurance businesses
The guidelines for determining deductible input tax are set out in Article 3 of Decree 144. They supplement Article 23, paragraph 2, of Decree 181.
- The revenue of credit institutions and branches of foreign banks is determined according to the regulations of the law on credit institutions
- Revenue from securities and securities market activities is determined according to the provisions of the law on securities; revenue from insurance business activities is determined according to the provisions of the law on insurance business
- Revenue from goods and services subject to VAT as stipulated in this clause includes revenue from goods not subject to VAT declaration and payment (if any)
We advise you on all matters concerning the new VAT regulations in Vietnam.
Trung Pham, Partner, ECOVIS AFA VIETNAM, Da Nang City, Vietnam
Input tax eligibility for deferred payments and instalment payments
Deferred payments or instalment payments exceeding VND 5 million that are not yet due remain eligible for input VAT deduction. Article 4 of Decree 144 also amends and supplements point g, clause 2, Article 26 of Decree 181, which stipulates non-cash payment documentation in cases of deferred payment or instalment purchases, as follows:
- For goods and services purchased on deferred payment or instalment plans with a value of VND 5 million or more, businesses shall base their input VAT deduction on the written purchase contract, VAT invoice, and non-cash payment documents for the goods and services purchased on deferred payment or instalment plans
- In cases where non-cash payment documents are not yet available because the payment deadline stipulated in the contract or contract addendum has not yet arrived, the business entity is still entitled to deduct input VAT
- If, at the time of payment as stipulated in the contract or contract addendum, the business entity does not have non-cash payment documentation, the business entity must declare and adjust the deductible input VAT downwards for the value of goods and services for which there is no non-cash payment documentation in the tax period in which the payment obligation arises according to the contract or contract addendum
- If, after adjustment, the business receives non-cash payment documents, the business is entitled to declare and deduct input VAT for the value of goods and services with non-cash payment documents in the tax period in which the non-cash payment documents are produced
New annex for exported VAT-exempt natural resources and minerals
Article 5 of Decree 144 stipulates that the List (Appendix I, Appendix II) issued with Decree 181 shall be replaced by the List (Appendix I, Appendix II) issued with Decree 144.
Specifically, Appendix I and Appendix II are lists of export products that are unprocessed extracted resources and minerals, and export products that are processed extracted resources and minerals, in accordance with the state’s policy of discouraging or restricting the export of raw resources and minerals that are not subject to VAT.
