- Amended VAT Law to be submitted for approval next month with common tax rate proposed at 10%
- Many limitations in current VAT Law, need for thorough study identified by NA Standing Committee
- Concerns raised by domestic and foreign businesses about proposed changes in draft law
- Need to calculate impact of VAT on export services to avoid affecting local investment and business environment
- Concerns from multinationals about narrower scope of export services in draft law compared to general practice
- Vietnam’s common tax rate of 10% lower than other countries in the region and beyond
- Some countries, including ASEAN members, have been increasing VAT rates to improve budget collection efficiency
- Finance-Budget Standing Committee requests evaluation of impact of tax rate increase options following a roadmap in VAT law appropriately after economy has recovered, possibly in 2026-2030 period.
Source: vir.com.vn
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
