VAT reduced from 10% to 8%
Positive news from Vietnam Government pertaining to VAT rate that it reduces from 10% to 8%, applied for the period from 1 July 2023 to 31 Dec 2023.
8% VAT is applied for all goods and services, EXCEPT:
- Telecommunications
- Finance, banking, insurance and securities related service
- Real estate business
- Prefabricated metal and metal products, mining products (excluding coal mining), coke, refined petroleum, chemical products
- Information technology and IT related services
- Goods and service subject to special consuming tax
Some notices during adoption of 8% VAT
- For goods and services provided in Jun 2023 backward (provided and finished in Jun 2023) but invoice is issued in July 2023, 10% VAT is applied.
- For goods and service provided from Jul 2023 onward, except the business activities are not entitled for VAT reduction listed out above, 8% VAT is applied till 31 Dec 2023 or till having other written instruction from Vietnam Government. Please note 8% VAT rate when receiving and checking VAT invoices from the suppliers.
