The Government proposed a two-percentage-point reduction in VAT - from 10% to 8% - on goods and services currently subject to the 10% rate. This excludes certain sectors such as telecommunications, finance, banking, securities, insurance, real estate, metals, mineral products (excluding coal), and goods and services subject to special consumption tax (excluding petrol). The proposed timeframe for the reduction is from July 1, 2025 to December 31, 2026.
The Ministry of Finance has proposed a 2% reduction in value-added tax (VAT) from July 1, 2025 to December 31, 2026, expanding eligibility to include fuel, petroleum, and certain technology products and services. Experts have believed the measure will stimulate consumption, support businesses, and drive economic growth.
The proposed cut would apply to goods and services currently subject to a 10% VAT rate, lowering it to 8%, except for sectors such as telecommunications, finance, banking, insurance, real estate, metals, and mining (excluding coal), as well as goods and services subject to special consumption tax (except petrol).
The proposal suggests extending the 2% VAT reduction from July 1, 2025, until the end of 2026 for goods and services currently taxed at 10%, lowering them to 8%.
The Ministry of Justice held a meeting to appraise the draft resolution of the National Assembly on VAT reduction, which was chaired by Deputy Minister Tran Tien Dung.
People and businesses are looking forward to the Government's proposal on extending VAT reduction in the last six months being considered and approved by the National Assembly.
Legislators on May 24 listened to a proposal and a verification report on the further application of the 2% reduction in the value added tax (VAT) under a resolution dated January 11, 2022, as part of the ongoing fifth session of the 15th National Assembly.
The Government has proposed the National Assembly (NA) to consider a 2% reduction in the value-added tax (VAT) on goods and services subject to a 10% VAT during its coming meeting stated to start on May 22.
The Government has agreed with the Ministry of Finance’s proposal on a plan to reduce taxes, fees and charges for 2023, which suggested a 2% reduction in the value added tax (VAT) on goods and services.
Vietnam’s Government slashed the value-added tax (VAT) rate from 10 to 8 percent earlier this month – a move that cost the State budget 49.4 trillion VND (2.2 billion USD) but, along with other support, is expected to help boost the pandemic-hit economy.
