- Vietnam has extended the reduced VAT rate from 10% to 8% for the first half of 2025
- The reduction applies from 1 January to 30 June 2025
- The policy was outlined in Decree No. 180/2024/ND-CP following National Assembly Resolution No. 174/2024/QH15
- The announcement was made on 31 December 2024 by the Vietnamese government news portal
- The VAT reduction applies to goods and services previously taxed at 10%, with exceptions
- Exceptions include telecommunications, financial activities, banking, securities, insurance, real estate, certain metals and metal products, mining products, coke, refined petroleum, chemical products, goods and services with special consumption tax, and information technology as defined by law
- The VAT reduction is expected to lead to a budget deficit of approximately VND 26.1 trillion or over USD 1.02 billion
- The 2% VAT reduction was initially introduced in 2022 to support economic recovery post-COVID-19
Source: regfollower.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.
