One of the key changes introduced by the 2024 Law on Value-Added Tax (VAT), effective from July 1, 2025, is the revision of the VAT calculation formula for imported goods.

1. Previous Regulation on VAT Taxable Price for Imported Goods

● Under the current provisions of the 2008 VAT Law:

○ The VAT taxable price for imported goods is determined as follows:

VAT taxable price = Customs price at the border + Import duty (if any) + Special consumption tax (if any) + Environmental protection tax (if any)

2. New Regulation from July 1, 2025 – Expanded Taxable Base

● According to Article 6 of the 2024 VAT Law:

○ VAT taxable price = Import taxable value + Import duty + Additional import duties (if any) + Special consumption tax (if any) + Environmental protection tax (if any)

Key Difference: Instead of using the “customs price at the border,” the new regulation uses the “import taxable value” and includes additional import duties (e.g., anti-dumping duties, countervailing duties, etc.).

3. Implications and Impact on Importing Enterprises

● Increased transparency in calculation methodology

● Potential increase in input tax burden for businesses with low output VAT or non-deductible VAT

● Enterprises must review import contracts and adjust selling prices accordingly

4. Recommendations from Tax Experts

● Carefully review any supplementary duties currently applied to imported goods

● Recalculate input vs. output VAT to determine the actual tax liability

● Actively research trade defense tax policies to avoid misapplication

Conclusion:

The change in VAT taxable price rules from July 1, 2025, is a step toward tighter tax management on imports. Businesses must proactively review contracts, update pricing structures, and reassess tax obligations to ensure compliance, avoid risks, and maintain stable profitability.

Viet Australia
Viet Australia Auditing Company is an independent auditing organization licensed and established in 2007 in the Socialist Republic of Vietnam.