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Vietnam: VAT to be slashed from 10% to 8%

  • Apr 18, 2023
The government has agreed in principle to reduce the value added tax (VAT) by 2% to 8%.
VAT to be slashed from 10% to 8% till the end of this year.

In a document dated April 17 Deputy Prime Minister Le Minh Khai assigned the Ministry of Finance to prepare a detailed report that clearly states the grounds and necessity of formulating a resolution on VAT reduction.

The report will be submitted to the National Assembly and the National Assembly Standing Committee for consideration and approval.

The Ministry of Finance earlier proposed reducing the VAT rate by 2% for all goods and services subject to the 10% tax rate.

If such a resolution is approved, the policy will be implemented till the end of this year.

It is expected that the state budget will be reduced by about VND5,800 billion per month if the policy is applied.

Source: VOV