Vietnam: Government approves resolution for reduction of VAT rates on specific goods and services
The Vietnamese Government has recently approved Resolution No. 72/NQ-CP, which introduces changes to the VAT rates applied to specific goods and services. The resolution includes the following key measures:
- Reduction of the VAT rate: The VAT rate for goods and services previously taxed at 10 percent will be lowered to 8 percent. This reduction will remain in effect until December 31.
- Uniform application: The reduced VAT rate will be uniformly applied at various stages, including import, production, processing, business, and trade. This ensures consistent implementation across different sectors.
- VAT calculation rate reduction: Businesses, including business households and individuals subject to VAT based on the revenue percentage method, will benefit from a 20 percent reduction in the VAT calculation rate. This reduction applies specifically to invoices issued for goods and services eligible for the reduced 8 percent VAT rate.
Source: gov.vn
