- Vietnam’s National Assembly approved extending a 2% VAT reduction until June 2025
- The reduction applies to goods and services normally taxed at 10%
- This extension is part of ongoing efforts to support economic recovery
- The VAT reduction was first introduced in 2022 and has been extended several times
- Decree 72/2024 will guide the implementation of this VAT reduction until the end of 2024
- The 2% reduction applies to various stages of production and distribution but excludes certain sectors like telecommunications and real estate
- Businesses must apply an 8% VAT rate on invoices for eligible goods and services
- Incorrect invoicing requires joint correction by the seller and buyer to comply with tax regulations
- The VAT reduction aims to stimulate economic activity and help businesses and consumers financially
- Companies must follow new invoicing and reporting standards to avoid penalties and ensure compliance with tax laws
- Businesses are advised to consult tax professionals to maximize the benefits of the reduced VAT rate
Source: aslgate.com
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.
