Understanding the 8% VAT in Vietnam

• The VAT rate in Vietnam has been reduced from 10% to 8%.
• VAT is a tax applied to the value added of goods and services.
• VAT is applicable to businesses and individuals engaged in production, trading, and importing goods and services.
• The VAT rate reduction is part of a policy to support businesses and stimulate the economy.
• The new VAT rate of 8% is effective from July 1, 2023, to December 31, 2023.
• Certain goods and services are exempt from the VAT rate reduction, including telecommunications, financial activities, real estate, and certain technology products.
• The VAT amount for a product priced at 20 million VND with an 8% VAT rate would be 1.6 million VND, resulting in a total payment of 21.6 million VND.

Source: danviet.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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