Application of 8% or 10% VAT rate in Vietnam

• The company is unsure whether the VAT rate for their products is 8% or 10%.
• The components of the electrical cabinets include mechanical equipment, electrical devices, transmission equipment, protection and control devices, and intermediate connection devices.
• The VAT rate for the mechanical equipment and transmission equipment is 10%, while the VAT rate for the electrical devices and protection/control devices is 8%.
• Labor costs account for 12% of the value of the electrical cabinets.
• The Ministry of Finance states that the VAT rate for the company’s products depends on the specific items listed in the regulations.
• The company should refer to the Prime Minister’s Decision No. 43/2018/QD-TTg and compare the product codes to determine the applicable VAT rate.
• If there are any difficulties, the company should provide relevant documents and contact the tax authorities for guidance.

Source: baochinhphu.vn

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.

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