- Vietnam has issued Decree No. 44/2023/ND-CP on 30 June 2023 to implement a VAT rate reduction from 10% to 8% for most goods and services, except for certain categories such as telecommunications, financial activities, and products subject to excise tax.
- The reduction applies at all stages of import, production, processing, business, and trade. Businesses using the standard credit method can apply the 8% rate directly, while those using the percentage of revenue/turnover method can enjoy a 20% reduction.
- Separate invoices must be issued for supplies eligible for the VAT reduction. The Decree is effective from 1 July 2023 until 31 December 2023.
Source Orbitax
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