Insight:
- Vietnam’s 2025 tax reforms introduce major changes to VAT, transfer pricing, and e-invoicing regulations.
- Businesses must act now to ensure compliance and minimize legal and financial risks.
Vietnam tax updates 2025 bring significant regulatory changes that will impact both local and foreign businesses. From stricter transfer pricing rules to new VAT obligations for digital service providers, these updates mark a critical shift in the country’s tax landscape. This article breaks down the key changes and what companies need to do to stay compliant.
Major tax shifts in 2025 – what you need to know
As 2025 unfolds, Vietnam is entering a pivotal phase of tax reform aimed at modernizing its fiscal landscape and aligning more closely with international standards. These changes mark not just minor technical tweaks but fundamental shifts in how taxes are applied, collected, and reported, especially for foreign-invested enterprises and businesses operating across borders.
From value-added tax (VAT) adjustments to enhanced transfer pricing documentation, the new rules are poised to reshape the tax compliance landscape. For companies doing business in Vietnam, staying updated isn’t just recommended—it’s essential to avoid regulatory pitfalls and remain competitive in a fast-evolving market.
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VAT update 2025: Key changes coming this July
One of the most notable reforms is the updated VAT law, set to take effect on July 1, 2025. The revised legislation introduces a clearer distinction between exported goods and services. This issue has often led to confusion and disputes in the past. By refining these definitions, Vietnam aims to improve transparency and simplify VAT treatment for export-oriented businesses.
Another headline change is the imposition of a 10% VAT on foreign suppliers that deliver goods or provide services through digital platforms. This is a game-changer for cross-border e-commerce players and tech giants, as Vietnam tightens tax obligations on digital revenue streams. Businesses operating in or with Vietnam must now review their VAT strategies to ensure full compliance under the new rules.
Transfer pricing compliance: New deadline and rising stakes
Transfer pricing remains a critical focus in Vietnam’s evolving tax framework, with stricter enforcement now taking shape. Under the latest regulations, companies engaged in related-party transactions are required to submit transfer pricing documentation by March 31 each year, alongside their annual corporate income tax returns. This deadline leaves little room for delays or incomplete filings.
Equally important is the choice of transfer pricing method. Businesses must not only select a method aligned with OECD principles but also justify its appropriateness with robust benchmarking data and economic analysis. Failure to comply may trigger audits, result in tax adjustments, and potentially incur significant penalties. As tax authorities ramp up their scrutiny, having a defensible and well-documented transfer pricing strategy is no longer optional—it’s essential for avoiding financial and reputational risk.
E-invoices under decree 70/2025/Nđ-cp: What changes to June 1?
From June 1, 2025, Decree 70/2025/NĐ-CP will come into effect, introducing several updates to Vietnam’s electronic invoicing regime. The new rules require businesses to modernize their e-invoicing systems, ensuring that invoice issuance, storage, and transmission comply with enhanced standards.
For many companies, this shift means revisiting internal workflows and upgrading accounting software to remain compliant. While the transition may involve upfront investment and training, it also supports Vietnam’s broader push toward digital governance and increased transparency in tax administration.
Tax system restructuring: The end of an Era, the start of a new model
Under Decision 381, Vietnam has officially dissolved the General Department of Taxation, paving the way for a restructured, more streamlined tax authority. This move signals a broader shift toward digitalization and centralized oversight, aimed at improving efficiency, transparency, and service quality. Businesses can expect a more integrated and technology-driven approach to tax administration in the years ahead.
Profit repatriation: Clearer rules for foreign investors
Vietnam has introduced more transparent procedures for profit repatriation, a long-standing concern for foreign investors operating in the country. To legally transfer profits abroad, companies must now follow a standardized process that includes proper documentation and formal notification to tax authorities.
These updates not only reduce legal ambiguity but also enhance investor confidence by minimizing the risk of delays or disputes. By clearly outlining the steps and compliance requirements, Vietnam reinforces its commitment to creating a fair, predictable environment for international business.
Conclusion
In light of these sweeping changes, businesses should take proactive steps to stay ahead. This includes reviewing internal tax workflows, re-evaluating transfer pricing strategies, and upgrading e-invoicing systems to meet new compliance standards. Most importantly, companies should consider engaging with professional tax advisors and legal experts to navigate the evolving regulatory landscape with confidence.
