Important updates on Tax Law & VN E-ID for foreigners

Navigating 2025 Vietnam’s Tax Law Changes

TMF Vietnam recently held a webinar on Tax Law Changes that business leaders should be aware of. We are happy to share with you a summary of the key updates from Decree 70/2025/NĐ-CP (effective 1 June 2025) and the Law on VAT No. 48/2024/QH15 (effective 1 July 2025):

• Expanded VAT Scope and Taxpayer Obligations

The new VAT law introduces tax obligations for foreign e-commerce providers and digital platforms operating in Vietnam. It also reclassifies several previously exempt goods and services, such as fertilizers and public services, as taxable.

• Revised VAT Rates and Zero-Rated Categories

Certain goods and services previously taxed at 5% will now be subject to 10% VAT. The list of zero-rated items has been expanded to include duty-free goods and digital content for foreign use, while on-the-spot exports are no longer zero-rated.

• Stricter VAT Credit and Refund Conditions

The law tightens rules around invoice fraud and clarifies procedures for correcting VAT declarations. Refund eligibility now requires more rigorous documentation and compliance with anti-abuse measures.

• New Invoice Types and Issuance Rules (Decree 70/2025/NĐ-CP)

A new “e-commercial invoice” has been introduced for exporters. POS e-invoices are now mandatory for sectors such as retail and F&B. Exporters may issue invoices the day after customs clearance, offering greater flexibility.

• Detailed Guidance on Invoice Corrections and Adjustments

The decree provides clear procedures for correcting invoice errors, managing quantity discounts, and handling post-settlement changes. Written agreements are now required for corrections, and consolidated adjustments are permitted for multiple errors.

For more detailed information, please refer to the attached presentation or contact TMF Vietnam via: Nguyen Huy Thu (Ms.), Director, Global Business Development E: thu.nguyenhuy@tmf-group.com. 

Relevant updates on Electronic identification (e-ID) accounts for foreigners

• According to prevailing regulation, all accounts for enterprises that were created and issued by the National Public Service Portal and Information Systems for handling administrative procedures at ministerial and provincial levels ("Cổng dịch vụ công quốc gia, hệ thống thông tin giải quyết thủ tục hành chính cấp bộ, cấp tỉnh") be terminated, and the eID account for Enteprise is effective. This results in lack of synchronization between the Company's data, the LR's data and the National administrative databases, which will make administrative, tax, and other transactions difficult and may lead to rejection of these procedures in case the Company has not created eID accounts for Enterprise.​​​​​​​​​​​​​​
• The eID account is used for verifying electronic identity of the enterprise when conducting transactions and activities. By using these accounts, the account holder (i.e., the Company and its LR) can complete administrative procedures online, decrease the need for physical documents. The Government Authority and other organizations can cross-check during transactions and activities that require identity document (i.e. Enterprise Registration Certificate or the LR's passport, ID Card), which means that domestically, these eID accounts will be equal to identity documents.

Given that Vietnam is processing a digital transformation in the administrative procedures, implementing the eID authentication for LR and the Company will help save time and costs, enhance efficiency, productivity and ensure compliance with the regulations.

In case, the Legal Representative (“LR”) of the Company is foreign Legal Representative, the Company is required to create LR’s personal eID account in Step 1 and Step 2 first then registering the Enterprise eID account in Step 3 as following procedures:

Step 1: The LR needs to register a SIM card under their own name at one of the major mobile network providers in Vietnam (Viettel, Mobiphone, Vinaphone)

Step 2: The LR will register for personal eID account at the immigration office and is required to have the following documents:

• Possess a valid temporary or permanent residence card in Vietnam.
• Hold a valid passport in accordance with Vietnamese regulations.
• Use a Vietnamese-registered SIM card under their own name.

Step 3: Register the Enterprise eID account according to the personal eID account that has been issued to the LR.

*Note: This procedure requires that the LR must have a temporary residence card or permanent residence card that is still valid in Vietnam and the LR must be present at the Authority to carry out related procedures. 

Regarding estimated time to proceed the procedures, we would like to provide detailed information under prevailing regulations as follows:

• Personal eID account for foreign Legal Representative: around 7 working days from the date submission of sufficient documents.
• Enterprise eID account for the Company: from 3 to 15 working days from the date submission of sufficient documents.

However, in fact the timeline can be prolonged due to the authority’s check and consideration.

Grant Thornton Tax Flash Card
Please also see detailed information provided by Grant Thornton in the Tax Flash Card June 2025 regarding the issuance of electronic identification (e-ID) accounts for foreigners per Notification No. 220/TB-V01 dated 17 June 2025 issued by the Ministry of Public Security.