VAT TREATMENT FOR UNPROCESSED AGRICULTURAL PRODUCTS FROM 1 JANUARY 2026

On 31 December 2025, the Government issued Decree No. 359/2025/ND-CP, amending and supplementing Decree No. 181/2025/ND-CP, providing clarification on the VAT treatment applicable to unprocessed agricultural products at the commercial trading stage.

The new Decree clarifies how VAT should be applied depending on the seller, the buyer, and the VAT calculation method, addressing long standing inconsistencies in practice regarding whether such transactions are subject to VAT declaration, the 5 percent VAT rate, or VAT calculation under the direct method.

These clarifications provide a clearer legal basis for agricultural trading activities and help reduce VAT reassessment risks, particularly for businesses dealing with mixed customer profiles or operating under different VAT calculation methods from 1 January 2026.

The full W&A newsletter analyses the legal framework, key regulatory changes, and practical compliance considerations to help businesses correctly apply VAT and minimize risks during tax inspections and audits.

👉 Read the full article here:

W&A_Newsletter on VAT treatment for unprocessed agricultural products from 1 January 2026 .

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