Proposed VAT Reduction for Second Half of 2025 and Entire 2026 Announced

• The National Assembly Standing Committee discussed a draft resolution to reduce VAT for the last 6 months of 2025 and the entire year of 2026.
• The proposal includes a 2 percent VAT reduction for goods and services currently taxed at 10 percent, excluding certain sectors like telecommunications, finance, banking, securities, insurance, real estate, metal products, and mining products except coal.
• The reduction aims to support production, business, tourism, and domestic consumption.
• The VAT reduction will not apply to goods subject to special consumption tax except gasoline.
• The implementation period is from July 1, 2025, to December 31, 2026.
• The expected reduction in state budget revenue is approximately 121.74 trillion VND over the specified period.
• The tax reduction is anticipated to lower product and service costs, boost production and business, create jobs, and stabilize the macroeconomy.
• For citizens and businesses, the 2 percent VAT reduction will decrease consumption costs and production expenses.

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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