|Update:||Compliance Alert - VAT reduction for certain goods and services|
On 6 May 2023, the Vietnamese Government adopted Resolution 72/NQ-CP on the draft Resolution of the National Assembly on reducing Value Added Tax (VAT), which the Ministry of Finance proposed.
According to this Resolution, the VAT for goods and services currently applying the tax rate of 10% is reduced to 8% until the end of 31 December 2023.
The reduction of VAT for each type of goods and service shall be applied uniformly at the stages of import, production, processing, business and trade.
Business establishments (including business households and individuals) that calculate VAT by the percentage method on turnover are entitled to a reduction of 20% of the percentage rate to calculate VAT when issuing invoices for goods and services eligible for VAT reduction.
The Resolution is in force from the date of adoption.