Proposed 10% VAT Rate Amendment for Business Development in Vietnam

• Amended VAT Law to be submitted for approval next month with common tax rate proposed at 10%
• Many limitations in current VAT Law, need for thorough study identified by NA Standing Committee
• Concerns raised by domestic and foreign businesses about proposed changes in draft law
• Need to calculate impact of VAT on export services to avoid affecting local investment and business environment
• Concerns from multinationals about narrower scope of export services in draft law compared to general practice
• Vietnam’s common tax rate of 10% lower than other countries in the region and beyond
• Some countries, including ASEAN members, have been increasing VAT rates to improve budget collection efficiency
• Finance-Budget Standing Committee requests evaluation of impact of tax rate increase options following a roadmap in VAT law appropriately after economy has recovered, possibly in 2026-2030 period.

Source: vir.com.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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