Update on new regulations in March 2025

Our Newsletter #32 would lead you on the following:

LEGAL UPDATE

I. New regulations on value-added tax (“VAT”) from 01 July 2025

On 26 November 2024, the National Assembly issued the Law on Value-added Tax No. 48/2024/QH15 (“Law on VAT 2024”), effective from 01 July 2025, with several key provisions on value-added tax as follows:

1. Changes in non-taxable value-added tax subjects

Compared to the Law on VAT 2008, the Law on VAT 2024 has added non-taxable subjects for imported goods in the following cases:

1. Gifts are given to state agencies, political organizations, socio-political organizations, socio-professional political organizations, social organizations, socio-professional organizations, and people’s armed forces units within duty-free allowances according to regulations of law on export and import duties;
2. Gifts within duty-free import limits, as prescribed by the law on export and import duties, given by foreign organizations and individuals to Vietnamese individuals;
3. Items of foreign organizations and individuals entitled to diplomatic immunity and movable assets within duty-free import limits, as prescribed by the law on export and import duties;
4. Goods within duty-free luggage allowance as prescribed by the law on export and import duties;
5. Imported goods donated or sponsored for disasters, epidemics and war prevention, response and recovery as regulated by the Government;
6. Goods traded and exchanged across borders for production and consumption by border residents, belonging to the List of goods traded and exchanged by border residents, as prescribed by law and within the duty-free import limits according to export and import duties regulations; and
7. Relics, antiques, national treasures prescribed by regulations of law on cultural heritage imported by competent authorities.

2. Changes in taxable price calculation

The Law on VAT 2024 has adjusted the taxable price for certain imported and commercial goods and services as follows:

1. For imported goods, taxable prices are determined as the import duty value as prescribed by regulations of law on export and import duties plus import duty plus extra import duties as prescribed by law (if applicable), plus excise duty (if applicable) plus environmental protection tax (if applicable); and
2. The value-added tax on promotional goods and services prescribed by regulations of law on commerce shall be zero.

3. Changes in VAT rates for several goods and services

The Law on VAT 2024 has made the following adjustments to VAT rates for goods and services as follows:

1. Supplementing new items subject to VAT rate of 0%, including:
   1. Construction and installation of works in foreign countries or free trade zones;
   2. Goods sold in isolated areas to individuals (foreigners or Vietnamese citizens) who have completed exit procedures; goods sold at duty-free shops; and
   3. Exported services including leasing services of transportation vehicles used outside Vietnam’s territory; aviation and maritime services directly serving international transportation or provided through agents.
2. Adjusting the VAT rate for certain goods and services from 5% to 10%, including:
   1. Fresh food and unprocessed forestry products;
   2. Sugar; by-products from sugar production, including molasses, bagasse, filter mud;
   3. Specialized equipment and tools used for teaching, research and scientific experiments; and
   4. Cultural, exhibition, sports and artistic performance activities; film production; film import, distribution and screening.

4. Changes in tax deduction conditions

The Law on VAT 2024 has amended the conditions for input tax deduction as follows:

1. All purchased goods and services must be accompanied by non-cash payment documents, except for specific cases as regulated by the Government. Under the current law, goods and services purchased in single transactions values at less than VND20 million are eligible for tax deduction without requiring non-cash payment documents; and
2. Additional documents are now eligible for input VAT deduction. Specifically, when deducting VAT for exported goods and services, the required documents include the packing list, the bill of lading and cargo insurance certificate.

II. New regulations on trade union’s activities from 01 July 2025

On 27 November 2024, the National Assembly issued Law on Trade Union No. 50/2024/QH15 (“Law on Trade Union 2024”), taking effective from 01 July 2025 with several key provisions on trade union activities as follows:

1. Right to establish, join and participate in trade union

According to the Law on Trade Union 2024, the subjects eligible to join and participate in trade union, including:

1. Vietnamese employees; and
2. Foreign employees working in Vietnam under a labor contract for at least 12 months.

Thus, compared to the Law on Trade Union 2012, the Law on Trade Union 2024 expanded the eligibility for joining and participating in trade union to include foreign employees working in Vietnam under definite-term labor contracts of at least 12 months.

2. Joining the trade union of employee organization at the enterprise

According to the Law on Trade Union 2024, legally established and operating employee organization at an enterprise that voluntarily endorse the Charter of the Trade Union of Vietnam has the right to join the Vietnam Trade Union; accordingly, the process for joining the Vietnam Trade Union is regulated as follows:

2.1. Applications for joining the Vietnam Trade Union

Employee organization needs to prepare a dossier for joining the Vietnam Trade Union, including:

1. Application for joining Vietnam Trade Union;
2. Copies of documents showing the legality of the employee organization at an enterprise;
3. Document showing the decision of the employee organization at the enterprise on participating in the Vietnam Trade Union; the procedure for approving the decision to participate in the Vietnam Trade Union shall comply with laws on labor;
4. List with signatures of members voluntarily participating in the Vietnam Trade Union; and
5. Documents and agreements in accordance with relevant laws on resolving the rights and obligations of the internal employee organization at an enterprise and related members.

2.2. Procedures for participating in Vietnam Trade Union

Step 1: The employee organization at an enterprise shall submit the dossier as specified in section 2.1 to the competent provincial-level trade union, central sectoral trade union, or an equivalent authority; and

Step 2: Upon receiving a complete dossier as specified in section 2.1, the competent provincial-level trade union, central sectoral trade union, or an equivalent authority shall review and recognize the enterprise’s employee organization as a member of the Vietnam Trade Union; in cases where recognition is denied, a written response stating the reasons must be provided.

2.3. Assignment to be carried out upon recognition of membership in the Vietnam Trade Union

1. The employee organization at the enterprise shall automatically cease its operations as an employee organization within the enterprise. The competent provincial-level trade union, central sectoral trade union, and equivalent authority is responsible for notifying the relevant state management agency that issued the registration, so that the registration can be revoked; and
2. Employees who were members of the enterprise’s employee organization and voluntarily meet the eligibility criteria for participating the Vietnam Trade Union, as stipulated in the Vietnam Trade Union Charter, shall be recognized as trade union members.

3. Public disclosure trade union finance

According to the Law on Trade Union 2024, trade unions at all levels must annually disclose their finances at trade union executive committee meetings in one of the following methods:

1. Posting at the workplace of the agency, organization, unit, enterprise;
2. Notifying in written to relevant agencies, organizations, units, enterprises, individuals;
3. Announcing at the annual conference for officials, public employees, civil servants, and workers; and
4. Posting on official websites of the agency, organization, unit, enterprise.

4. Cases of exemption, reduction and suspension of trade union fees

The Law on Trade Union 2024 has supplemented provisions allowing enterprises, cooperatives, cooperative alliances to be exempted from, have reduced, temporarily suspended the payment of trade union fees in the following cases:

1. Being dissolved or gone bankrupt in accordance with the law, it may be considered for an exemption from an unpaid trade union;
2. Facing economic difficulties or force majeure events, it may be considered for a reduction in trade union fees; and
3. In case of difficulties that require it to temporarily suspend operations, leading to an inability to pay trade union fees, it may be considered for a temporary suspension of trade union fee payments for a period not exceeding 12 months.

After the suspension period ends, the aforementioned entities must resume paying trade union fees and make up for the unpaid fees. The latest deadline for making up the unpaid fees is the last day of the month following the month in which the suspension ends. The amount to be made up equals the amount that should have been paid during the months of suspension.

III. New regulations on digital data activities from 01 July 2025

On 30 November 2024, the National Assembly issued Law on Data No. 60/2024/QH15 (“Law on Data 2024”), effective from 01 July 2025, with several essential provisions on data activities as follows:

1. Scope of regulation and subjects of regulation

The Law on Data 2024 prescribes digital data; the establishment, development, protection, administration, processing, and use of digital data; the National Data Center; the National Integrated Database; products and services related to digital data; the State management of digital data; and the rights, obligations, and responsibilities of relevant authorities, organizations, and individuals involved in digital data activities.

The subjects governed by the Law on Data 2024 include:

1. Vietnamese authorities, organizations, and individuals;
2. Foreign authorities, organizations, and individuals in Vietnam; and
3. Foreign authorities, organizations, and individuals directly engaged in or related to digital data activities in Vietnam.

2. Principles for the construction, development, protection, administration, processing and use of data

According to the Law on Data 2024, the construction, development, protection, administration, processing, and use of data must comply with the following principles:

1. Complying with the regulations of the Constitution, the regulations of this Law, and other relevant laws; ensuring human rights, citizens’ rights, and other legitimate rights and interests of authorities, organizations, and individuals;
2. Ensuring publicity, transparency, and equality in accessing, utilizing, and using data in accordance with law regulations;
3. Collecting, updating, and adjusting data accurately, with inheritance; ensuring integrity, reliability, security, and safety;
4. Protecting data in line and consonance with establishing and developing data; and
5. Storing, connecting, coordinating, sharing, utilizing, and using data to ensure efficiency, simplicity, and convenience for authorities organizations and individuals in implementing public services, administrative procedures, and other activities.

3. Prohibited acts in the construction, development, protection, administration, processing, and use of data

According to the Law on Data 2024, prohibited acts in construction, development, protection, administration, processing, and use of data include:

1. Exploiting data processing, data administration, development, trading, and circulation of products and services related to data to infringe upon national interests, national defense, security, social order and safety, public interests, and the legitimate rights and interests of authorities, organizations, and individuals;
2. Illegally obstructing or preventing the process of data processing, data administration, or attacking, appropriating, or destroying databases and information systems serving the management, processing, administration, and protection of data;
3. Falsifying, intentionally distorting, losing or damaging data in the databases of affiliates of the Communist Party of Vietnam, State authorities, the Vietnam Fatherland Front, and socio-political organizations; and
4. Intentionally providing inaccurate data or failing to provide data in accordance with law regulations.

The above is not official advice from BLawyers Vietnam. If you have any questions or suggestions about the above, please contact us at info@blawyersvn.com. We would love to hear from you.

Date: 26 March 2025

Writer: BLawyers Vietnam

Legal News and Update Team

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Newsletter #32 (EN version)

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