TAX UPDATE VIETNAM - News on VAT Reduction

Reduction of VAT to 8% from 1/7/2023 to 31/12/2023

The reduction of VAT applied from July 1, 2023, until the end of December 31, 2023, is as follows:

Businesses calculating VAT using the deduction method can apply the VAT rate of 8% to goods and services currently subject to a 10% VAT rate, except for the following goods and services:

  • Telecommunications, financial activities, banking activities, securities, insurance, real estate transactions, metals and prefabricated metal products, mining products (excluding coal mining), coke extraction, refined petroleum, and chemicals.
  • Goods and services subject to special consumption tax.
  • Information technology according to the Information Technology Law.
  • VAT on goods and services will be reduced consistently at all stages, including import, production, processing, and marketing.

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