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Vietnam's National Assembly Approves VAT Rate Reduction as Part of Relief Package to Support Growth and Recovery from COVID-19 — Orbitax Tax News & Alerts

On 11 January 2022, Vietnam's National Assembly approved a resolution providing a package of relief measures meant to support growth and recovery from the effects of the COVID-19 pandemic. One of the key measures is a 2% reduction in the standard VAT rate from 10% to 8%, which is effective from 11 January to 31 December 2022. As approved, however, certain activities/supplies are excluded from the rate reduction, including:

  • Telecommunication and IT services;
  • Finance and banking services, securities, and insurance;
  • Real estate business;
  • Metal production and manufacture of prefabricated metal products;
  • Mining (excluding coal mining), coke production, refined petroleum, and production of chemicals and chemical products; and
  • Goods and services that are subject to special sales tax.

Additional details on the measures of the resolution will be published once available.