2% temporary cut in VAT rate Feb to Dec 2022 expires
Vietnam’s standard VAT rate on a range of supplies will return to 10%. Between 1 February and 31 December 2022, the rate has been cut to 8% to help stimulate the economy which is struggling with COVID-19 disruption.
In the last quarter of 2021, the country reduce the VAT rate on tourism and other sectors by 30% to 7%.
The sectors to benefit: aviation, transport, tourism, accommodation, catering services, education and training, agriculture, processing and manufacturing, and social housing. Certain supplies will be excluded, including: IT; production and mining; real estate; chemicals; and financial services. Any special consumption taxes will remain at full rate. The rate changes will apply likely from February 2022 until the end of the year.
The country’s economic growth has now dropped to just above 5%.
The draft resolution on the program for socioeconomic recovery will be presented at the first extraordinary meeting of the 15th National Assembly today, January 4.
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