The law, effective 1 July 2026, establishes a framework for taxpayer obligations, electronic invoicing, risk-based management, and enforcement, applying to domestic and foreign entities, households and individuals.
Vietnam has enacted Law No. 108/2025/QH15 on 10 December 2025, establishing a comprehensive legal framework for managing taxes and other state budget revenues.
The law defines taxpayer rights and obligations, sets out the powers of tax and customs authorities, and standardises procedures for tax registration, declarations, payments, and enforcement.
The legislation applies to domestic organisations, households, individuals, and foreign entities conducting business or earning income in Vietnam, including through e‑commerce platforms. It mandates the use of Tax Identification Numbers (TIN), electronic invoices, and risk-based management to improve compliance and transparency.
Authorities are authorised to take enforcement actions such as freezing accounts, withholding salaries, or revoking business licences in cases of non-compliance. Late payment interest is set at 0.03% per day, while administrative fines range from 10% of under-declared amounts to up to three times the tax in cases of evasion. Tax debts may also be frozen or cancelled in specific circumstances, such as bankruptcy or death.
The law includes provisions for international tax cooperation through Mutual Agreement Procedures (MAP) and Advance Pricing Arrangements (APA) to address cross-border tax matters. It takes full effect on 1 July 2026, with certain rules for household and individual businesses, including electronic invoicing, already effective from 1 January 2026.
The law aims to strengthen tax administration, protect the national treasury, and support equitable economic activity by introducing modern, technology-driven processes and clearer taxpayer obligations.
