Value Added Tax (VAT) is always one of the taxes with the most direct and powerful impact on the cash flow and operational activities of any business. Any changes in tax policies require businesses to promptly update to avoid the risks of tax arrears, violation penalties, or capital blockage due to delayed tax refunds.
In the near future, Decree No. 189/2025/ND-CP, issued by the Government to detail and guide the implementation of a number of articles of the 2024 Law on Value Added Tax, will officially take effect from July 1, 2025.
So, what key changes does this new Decree bring? What do businesses need to prepare to adapt? Let’s find out right away with SBLAW experts!
- The Significance of Decree 189/2025/ND-CP in the Digital Era
Decree 189/2025/ND-CP is not just an ordinary guiding document but also plays an extremely important role in perfecting the legal framework for VAT. The core objective of this document is to ensure consistency and transparency, while being formulated to maximally align with the current context of digital transformation and profound international economic integration.
The promulgation of Decree 189/2025/ND-CP is expected to create positive changes, facilitating businesses in the process of fulfilling tax obligations. At the same time, state agencies will also enhance tax management efficiency, contributing to building a fair, transparent, and sustainably developing business environment.
- “Hot” Points in Decree 189/2025/ND-CP Businesses Need to Note
The content of the Decree focuses on clarifying and reshaping vital key issues for the accounting and finance departments of businesses, including:
- Redefining taxable subjects: Providing clearer regulations on subjects subject to VAT and not subject to VAT, as well as applicable tax rates.
- Tightening conditions for VAT deduction and refund: This is the most notable point. Decree 189/2025/ND-CP has added many new, stricter regulations related to VAT refund procedures, deduction methods and conditions.
- Controlling tax fraud risks: Introducing stricter measures for managing invoices and documents to identify and control the risks of tax fraud and the trading of fake invoices.
- Enhancing coordination responsibilities: Elevating the responsibilities of taxpayers and strengthening the transparent information coordination mechanism between tax authorities and businesses.
- What Challenges Are Businesses Facing?
With the new regulations on invoice management and tax fraud risk control, if businesses do not master the 2024 VAT Law and Decree 189/2025/ND-CP, you may face:
- The risk of having reasonable and valid expenses rejected, or not being allowed tax deductions due to document errors.
- Prolonged tax refund procedures and complex tax inspections causing businesses’ capital to be tied up.
- Subject to heavy administrative penalties due to improper management of electronic invoices.
- SBLAW – A Legal Partner Accompanying Businesses
The legal corridor on taxation is always complexly intertwined. To run a business with peace of mind and optimize benefits from new tax policies (especially VAT refund procedures), having a legal advisory team is extremely urgent.
With extensive experience in Corporate Law and Intellectual Property consulting, SBLAW is proud to provide comprehensive legal solutions, helping businesses:
- Promptly update and detail the new points of Decree 189/2025/ND-CP applicable to each specific industry.
- Review and standardize the system of contracts and commercial documents to ensure validity when deducting and refunding taxes.
- Represent the business to work and explain to tax authorities during inspections and audits.
Do not let tax legal risks hinder the growth momentum of your business! Right from now, proactively grasp the policies to be ready for the milestone of July 1, 2025. Contact SBLAW’s team of experts immediately for in-depth consultation:
- HOTLINE: 0904.340.664 – 0906.17.17.18
- Email: info@sblaw.vn
