Vietnam issues Decree 144/2026 tightening VAT rules and expanding non‑taxable categories

The Vietnamese government has enacted Decree 144/2026/NĐ‑CP, effective 20 June 2026, to amend the Value‑Added Tax (VAT) law. The decree adds several sectors to the list of activities exempt from VAT, including life, health and agricultural insurance; fisheries insurance; re‑insurance; oil‑and‑gas‑related insurance; the sale of receivables and certificates of deposit; and certain export‑oriented mineral and resource products.

It also tightens input‑VAT deduction rules. Businesses must now account for deductible and non‑deductible VAT separately, or allocate based on the percentage of taxable revenue. For transactions of 5 million dong (≈ US$200) or more purchased on credit or installment, firms must retain a contract, a VAT invoice and non‑cash payment evidence. If payment deadlines pass without the required documents, the input tax must be reduced and can be reclaimed only after documentation is supplied. The decree aims to improve transparency and curb tax‑risk activities.